Hugh Hendry walks the streets of China
This home-made clip features Hugh Hendry, founder of Eclectica Asset Management, walking around the streets of China (presumably Beijing or Shanghai) and pointing out numerous empty buildings. Huge debt must have been incurred in erecting these buildings and without tenants there is no prospect of servicing the debt. What’s more, the workmanship also seems shoddy as a nearly-completed 13-story building in Shanghai collapsed last month.
Who will pick up the tab for creating all the overcapacity in the Chinese economy?
Hendry has perhaps looked at only a limited sample, but the video provides food for though in the greater economic scheme of things.
More on this topic (What's this?)
Countries are Vulnerable To a China Slowdown: An Update (Top Foreign Stocks, 5/16/13)
Chinese Manufacturing Slump (Wealth Daily, 5/2/13)
(F) China Auto Sales Rise 13% in April (Stock Blog Hub, 5/12/13)
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