China credit bubble dangerous

In the last 20 years China has made huge progress, huge economic development, but I equally feel post crisis in 2008 there were massive monetary and stimulus that has led to a huge credit bubble. I think that credit bubble is rather dangerous. I do not believe the current Chinese economy is growing at 7 or 8 percent but rather like 4% or even less. The credit bubble will come undue sooner or later.

Contrarian Investor Dr.Marc Faber is an international investor known for his uncanny predictions of the stock market and futures markets around the world.

Marc Faber on China Recession

China is a country twice the population of US and Canada in terms of population. So you can have some sectors and some regions, like the US has California. Occasionally California is in a recession but New England is booming. Same can happen in China, some sectors are contracting, some provinces are growing.

Contrarian Investor Dr.Marc Faber is an international investor known for his uncanny predictions of the stock market and futures markets around the world.

I Have Never Seen Such a Disconnect

"In the 40 years I've been working as an economist and investor, I have never seen such a disconnect between the asset market and the economic reality ... Asset markets are in the sky and the economy of the ordinary people is in the dumps, where their real incomes adjusted for inflation are going down and asset markets are going up."

Contrarian Investor Dr.Marc Faber is an international investor known for his uncanny predictions of the stock market and futures markets around the world.

Total Collapse of Confidence

"The next crisis could lead to a deflationary bust. And a bust in governments. In other words, we may have a total collapse in confidence in the system."

Contrarian Investor Dr.Marc Faber is an international investor known for his uncanny predictions of the stock market and futures markets around the world.