Thursday, June 20, 2013

Hedge fund Grandmaster sees stock market crash in China



Holy Hannah!  Former chess grandmaster-turned hedge fund manager Patrick Wolff is betting on a stock market crash in China, where he told Reuters corruption and bad debts have spiraled to dangerous levels.

Speaking to Reuters on the sidelines of the GAIM conference in Monaco this week, Wolff said investors were too focused on trying to work out when easy money policies will taper off in the United States and ignoring a looming correction in China.

"People are talking way too much about the Federal Reserve and not enough about China," he said. "We've been saying that the U.S. is the safest place to invest, while China is a crash waiting to happen."
"China's centrally-planned economy inevitably means massive corruption and a massive misallocation of capital," he added, pointing to increasing funding problems for Chinese companies.


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