Billionaire Paul Singer: China Crash Is 'Way Bigger Than Subprime'

[marmar]

(Bloomberg) Hedge fund manager Paul Singer said that China’s debt-fueled stock market crash may have larger implications than the U.S. subprime mortgage crisis, echoing warnings from fellow billionaire money managers Bill Ackman and Jeffrey Gundlach.

“This is way bigger than subprime,” Singer, founder of hedge fund Elliott Management, said at the CNBC Institutional Investor Delivering Alpha Conference in New York in response to a question about China’s crash potentially affecting other markets. Singer said it may not be big enough to cause a global financial market conflagration.

China’s stock market has dropped from a June 12 peak wiping out almost $4 trillion in value in less than a month after investors who borrowed to buy shares had to unwind trades. Markets tumbled even as President Xi Jinping’s government ramped up efforts to stem the rout, including preventing share sales of companies.

The threat to markets from the country is a bigger concern to Ackman, who runs Pershing Square Capital Management, than Greece. .....................(more)

http://www.bloomberg.com/news/articles/2015-07-15/billionaire-ackman-sees-china-stocks-as-worse-than-u-s-in-2007

[delrem]

1. sez a guy who always manages to land on the upside, not the downside, of such swindles. nt

[MisterP]

4. with the invention of the corporate raider and the financialization of everything (i.e. it's made

into a portfolio) the owners got as much $$$ from wrecking a company/dismembering it and firing everyone/or just burning it down for the insurance money and skipping with the pensions: with sturdy majorities of Congress insisting that any accountability would doom everyone to stagflation

now eventually we'll run out of jobs to export to China, or even run our economy for 99.999% of the people instead of 10% (that includes the rentiers) and increase what people can afford so actually more money comes in for fewer products (this is bad for sweatshops since their stuff doesn't last past 2 years): Beijing knows this and (like Russia) is dumping its current "cheaply-bought" money into infrastructure (and some white elephants) for when the times go downhill (or its industries pack up and move to SE Asia)

[hughee99]

9. It's sort of like what they do to the tiki restaurant in the movie Goodfellas

They bleed the company dry for assets, and when there's nothing left, burn it down for the insurance.

[Scuba]

2. Paul Singer is pure evil...

http://www.democraticunderground.com/10025306154

[KamaAina]

7. Excellent catch!

[Orrex]

3. I'm sure that Singer has purchased enough members of Congress to protect himself.

[Warren DeMontague]

5. BUY GOLD!!!!!!!!

Yeah, super-rich guy "helpfully" offering investment advice. 10 to 1 he's shorted the US market to the gills.

[KamaAina]

6. Nice post, Glenn!

[bemildred]

8. He is blowing smoke of some sort, you can be sure of that.

Guys like Singer don't tell you what they think, they tell you what they want you to think, or what they think you want them to think.,