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Jim Chanos On Charlie Rose - Full Interview

Tyler Durden's picture




 

You have all seen the Chanos interview snippets made available last week. Now watch the full interview by Charlie Rose in which Jim Chanos deconstructs China. Goldman's (make that Jim O'Neill) response: "BRIC BRIC decoupling BRIC baltic dry BRIC Goldman Nepal office BRIC." Chanos destroys the Friedman defense to never short countries with $2 trillion in foreign currency reserves: he points out that the last two countries that had similar foreign currency reserves relative to the size of their economy was Japan in 1989 and the US in 1929. I will let that be the end of that discussion. It has no bearing on whether there is a domestic credit bubble. Countries embark on domestic credit bubbles often tend to accumulate foreign currency reserves." After listening to the full 26 minute interview, we are confident that the Dow will hit 36,000 in anticipation of the Chinese collapse, as the IMF is forced to expand its just amended $550 billion bailout facility to a cool quadrillion.

Below is a full transcript of the interview, courtesy of Bloomberg:

 

 

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Tue, 04/13/2010 - 13:01 | 298282 JohnKing
JohnKing's picture

Big deal, Chanos is talking his book. I do like the fact that he is seemingly (at least for the moment) not actively destroying capital here is the US. Why are crooks like him bestowed with this credibility? Has ZH been captured too? He has a long and checkered past with naked short selling, criminal associations and all manner of slimy dealings but he is now a media/financial darling?

 

Yes, this why we have no bananas, these guys should be in jail, not on PBS.

Tue, 04/13/2010 - 13:32 | 298326 caconhma
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JohnKing, you are correct. The present USA  is no different than Russia. We are not anymore a country of Law. We are a 3rd-world country controlled by the WallStreet and oligarchy.

Under Clinton and GWB, both our Law and the Constitution were twisted to fit their needs. Under Barrack Muhammad Obama, there is no any respect for the Law:

- No single WallStreet gangster went to a jail

- GM and Chrysler bondholders learned that a contract in this country is just a useless piece of paper if the Ruling elite does not like it

 

Finally, lately, our oligarchy likes publicity to spread lies. Chanos is just  too jealous of George Soros and Tiger Woods.

Tue, 04/13/2010 - 13:40 | 298381 JohnKing
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No single WallStreet gangster went to a jail

 

Correct, not yet.

Tue, 04/13/2010 - 14:54 | 298612 chalcedonite
chalcedonite's picture

Why would a WallStreet gangster need to go to jail?  He needs to pay restitution 4x what he stole  - which would require him to work for the rest of his life.

Tue, 04/13/2010 - 15:53 | 298776 CookieMonster
CookieMonster's picture

Yes, seems true. See minute 26 of the video, talking about Lehman Bros. where he says, "I think there should be a lot of indictments.....". He does NOT say the other big bankers should be indicted for pushing derivatives to the whole global banking system, just Lehman Brothers execs. He made his money on the fragility that derivatives have caused, and may cause again. As long as Wall St. is protected and can keep peddling its toxic contracts, he is assured of having more opportunities to make big $$$.......

Tue, 04/13/2010 - 13:10 | 298293 rubearish10
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If he's is the slightest chance right about China's housing bubble then the cash spigot reverses ala Sell Treasuries!!! Yippeee!!! Timmy should move into one of those shell apartments and look occupied!

Tue, 04/13/2010 - 22:13 | 299302 aus_punter
aus_punter's picture

care to extrapolate the flow of money out of treasuries if Chinese housing goes down?

Tue, 04/13/2010 - 13:55 | 298445 Segestan
Segestan's picture

Crash in china, Crash in Euro land, Crash in USA , third worlders losing all mother ships.... reads like a global panic into a new world currency . One that will not work,  but hey they'll try it anyway.

Tue, 04/13/2010 - 14:20 | 298519 malek
malek's picture

From the transcript:

JAMES CHANOS: And you’re beginning to hear about these bizarre developments in China
-- indoor ski resorts, similar to what we saw in Dubai. We were remarking
on the country being much bigger than Dubai, of course. But keep at it
another couple of years and it will be Dubai times a thousand.

With that timeframe I agree.

Tue, 04/13/2010 - 15:44 | 298664 GFORCE
GFORCE's picture

Love the transcript. Especially where he talks of a max 5% loss on his China play. This is where many confuse his agenda or that of other Hedge Funds.

Tue, 04/13/2010 - 18:03 | 298983 JohnKing
JohnKing's picture

Define - sycophant

Charlie Rose

Tue, 04/13/2010 - 22:33 | 299328 Lux Fiat
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In the interview, Chanos defines a bubble as "...any kind of debt-fueled asset inflation...where the cashflow generation from the asset itself...does not cover the debt service."  He then goes on to say that under these circumstances, people make their money by finding a greater fool.

The next time Greenspan, Bernanke or anyone else claims that there was no way to see the property bubble in the US coming, someone should provide them with Chanos' definition.  Geez....

Wed, 04/14/2010 - 04:25 | 299577 dabug
dabug's picture

Not sure where he gets his figures from but I'm pretty sure that construction is closer to 15% of GDP.

Sun, 06/05/2011 - 08:30 | 1340937 sun1
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Fri, 07/22/2011 - 03:00 | 1479763 jimmight
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Finding and shorting Chinese frauds is turning into a nice little cottage industry. Soon everybody is going to be looking for their own.
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