Tags: Faber | China | Crash | Year

Faber: China Will Crash Within a Year

Monday, 03 May 2010 09:55 AM

Share:
  Comment  |
   Contact Us  |
  Print  
|  A   A  
  Copy Shortlink
The Chinese economy is due for a major cooling and may even tank by year’s end, says investment guru Marc Faber.

The Chinese property market, often said to be in a bubble, is due for a pop, just like overall stock prices, Faber says.

“The market is telling you that something is not quite right,” says Faber, the publisher of the Gloom, Boom & Doom report.

“The Chinese economy is going to slow down regardless,” he tells Bloomberg. “It is more likely that we will even have a crash sometime in the next nine to 12 months.”

The nation’s economy grew 11.9 percent in the first quarter, the fastest pace in almost three years. The government projects gross domestic product growth for the year of about 8 percent.

The clampdown on property speculation may prompt investors to turn to the nation’s stock market, Faber said. Still, shares are “fully priced” and Chinese investors may instead become “big buyers” of gold, he said.

China has ordered banks to raise their reserve requirements in an effort to ease inflationary pressures and cool a red-hot economy without raising interest rates.

The flood of money pumping through the economy has pushed up housing prices by 11.7 percent in March over a year earlier, according to the Associated Press.

"The government's campaign against property speculation is now center stage," says Mark Williams, of Capital Economics in London.

According to Williams, China could hike bank reserve requirements once a month for the rest of the year while avoiding interest rate hikes until it sees how well the measure is working.

© 2014 Moneynews. All rights reserved.

Share:
  Comment  |
   Contact Us  |
  Print  
  Copy Shortlink
Around the Web
Join the Newsmax Community
Please review Community Guidelines before posting a comment.
>> Register to share your comments with the community.
>> Login if you are already a member.
blog comments powered by Disqus
 
Email:
Retype Email:
Country
Zip Code:
 
Hot Topics
Follow Newsmax
Like us
on Facebook
Follow us
on Twitter
Add us
on Google Plus
Around the Web
You May Also Like

Undocumented Immigrants Picket White House to Demand Voice

Monday, 28 Jul 2014 21:58 PM

Undocumented immigrants picketed the White House on Monday, urging advocacy groups to refuse meetings with President Bar . . .

US: Russia Violated 1987 Nuclear Missile Treaty

Monday, 28 Jul 2014 21:41 PM

In an escalation of tensions, the Obama administration accused Russia on Monday of conducting tests in violation of a 19 . . .

Doctor with Franklin Graham Charity Who Contracted Ebola in Grave Condition

Monday, 28 Jul 2014 19:36 PM

Kent Brantly always wanted to be a medical missionary, and he took the work seriously, spending months treating a steady . . .

Most Commented

Newsmax, Moneynews, and Independent. American. are registered trademarks of Newsmax Media, Inc. Newsmax TV, NewsmaxWorld, NewsmaxHealth, are trademarks of Newsmax Media, Inc.

 
NEWSMAX.COM
America's News Page
©  Newsmax Media, Inc.
All Rights Reserved