Jim Chanos on Charlie Rose

Here is Charlie Rose’s interview with Jim Chanos regarding the China bubble.  One of our favorite exchanges:

Charlie Rose:  Tom Friedman weighed in on this [China bubble].  He said “never short a country [China] with $2 trillion in foreign currency reserves.”

Jim Chanos:  Yes.  The last two economies that had similar foreign currency reserves relative to the size of their economy was Japan in 1989 and the US in 1929.  I’ll let that be the end of the discussion.  It [foreign currency reserves] has no bearing on whether there’s a domestic credit bubble or not.