Hendry Admits It
The China shorts have got is all wrong thus far, and while the economy
will continue to experience problems, it will make it through, says
Jim Rogers in an interview with Index Universe.
Rogers says that while hedge funder Hugh Hendry has admitted his China
short is hurting him, Chanos has not thus far. He believes both, in
the long-run, will be proven wrong.
Jim Rogers, from Index Universe:
Well, I feel sorry for them. They've been dead wrong for two years.
Hugh Hendry has at least acknowledged that being short China is
hurting him. I don't know about Chanos—Jim said he was short, and if
so, he's hurting too. China has not gone down. It's been two years now
and, sure, there are going to be setbacks in China along the way, but
China has not collapsed. We, in the U.S., had many depressions—with a
"small d;" we had a horrible Civil War; we had very little rule of
law; we had periodic massacres in the streets; we had virtually no
human rights; you could buy and sell congressmen—well, you can still
buy and sell congressmen in America, but they were cheap in those
days. As recently as 1907, the whole system was broke in the U.S., and
yet we were on the verge of becoming the most successful country in
the 20thcentury.
Maybe real estate speculators in Shanghai will go bankrupt. I expect
that, I hope it happens; it would be good for China and it would be
good for the world. But in the meantime, these guys shorting China
have been dead wrong. But I want to repeat this: There will be massive
setbacks in China, along the way. It's the way the world works. If I
see serious problems in China, I'm not going to stop teaching my
children Mandarin.
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