Tuesday, November 30, 2010 – by Staff Report
Hedge fund manager Mark Hart bets on China as the next 'enormous credit bubble' to burst. Mark Hart, an American hedge fund manager who has made millions predicting the crises in US sub-prime market and European debt, has launched a fund to bet on the imminent implosion of China. Mark Hart says complacency among market participants regarding China is eerily similar to the complacency exhibited prior to the United States sub-prime crisis and European sovereign debt crisis. Mr Hart, who runs Corriente Advisors from Fort Worth Texas, has told potential investors in a presentation that China is in the "late stages of an enormous credit bubble". When this bursts, the financier said he expects an "economic fall-out" that will be as "extraordinary as China's economic out-performance over the last decade". Asking for a minimum $1m (£640,000) stake, Corriente said it will use sovereign and corporate credit default swaps, interest rate and foreign exchange options to cash-in on the collapse. – UK Telegraph
Dominant Social Theme: Let's not talk about it ...
Free-Market Analysis: The same day we published yet another (much disputed) article about China's raging inflation, we read this in the Telegraph (see article excerpt above). We agree with much that the Hart is suggesting, and we have mentioned a lot of it. What comes across clearly to us is that Hart has arrived at the same conclusions that we have.
Banks and Finance
Hedge fund manager Mark Hart bets on China as the next 'enormous credit bubble' to burst
Mark Hart, an American hedge fund manager who has made millions predicting the crises in US sub-prime market and European debt, has launched a fund to bet on the imminent implosion of China.
Mr Hart, who runs Corriente Advisors from Fort Worth Texas, has told potential investors in a presentation that China is in the "late stages of an enormous credit bubble".
When this bursts, the financier said he expects an "economic fall-out" that will be as "extraordinary as China's economic out-performance over the last decade".
Asking for a minimum $1m (£640,000) stake, Corriente said it will use sovereign and corporate credit default swaps, interest rate and foreign exchange options to cash-in on the collapse.
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