Salient to Investors: William Pesek writes: George Soros believes the main risk facing the world is a Chinese debt disaster that is unfolding in plain sight. Soros said China’s restarting of the furnaces also reignites exponential debt growth, which cannot be sustained for much longer than a couple of years. Soros
READ MORE... →Salient to Investors: Leland Miller and Craig Charney at China Beige Book Intl said China’s economy slowed this quarter and demonstrates that the conventional wisdom of a renewed, strong economic expansion is seriously flawed. Their data reveal weakening gains in profits, revenues, wages, employment and prices. The official pickup spurred
READ MORE... →Salient to Investors: Jim Chanos at Kynikos Associates said: He is unconvinced by China’s improving economic growth and is maintaining bearish bets on the nation’s banks. If you grow new credit by 30 percent to 40 percent of GDP a year, it is not difficult to reach the government’s expansion
READ MORE... →Salient to Investors: Malcolm Polley at Stewart Capital said things won’t improve as fast as people think, and Fed’s actions won’t lead to higher growth. FRB of Philadelphia President Charles Plosser said this months new bond buying by the Fed won’t boost growth or hiring and may jeopardize Fed credibility. The Dow is 5.3 percent from its
READ MORE... →Salient to Investors: Jim Chanos at Kynikos Associates says: He expects declines in companies that may be inexpensive compared with earnings, like in natural gas, which have enormous cash needs, and iron-ore producers, where industry capacity will expand globally even as demand stalls because of China’s slowdown A number of high-profile natural gas companies may be in financial
READ MORE... →Salient to Investors: The S&P 500 Index is up 82 percent since Obama took office, closer to its all-time high than any other stock markets, and at 14.9 times reported earnings, the biggest discount to MSCI’s global measure since March 2010, and 9.1 percent below the five-decade mean – the last two times the ratio
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