If there is any truth to this Canaccord comment about the state of China's economy then you could only imagine where the rest of the world is headed...not fear mongering, but I do believe we are due for a market correction, which is healthy, but the comment below, should there be any shred of truth, would be far worse then a normal market correction. It would even affect Chavez who is looking to the Chinese friends(and other socialist countries) for support to fund his own personal socialist agenda.

China – The Next Enron?

The man who figured out Enron is now looking to short all of China! Jim Chanos, founder of Kynikos Associates and a noted short seller, is now reportedly attempting to short the ENTIRE Chinese economy. What's fueling his short case against China? As reported by Politico, Chanos points to several key pieces of evidence that China is heading for a crash: i) The Chinese economy is still underperforming despite the government spending $900 billion to prop up a $4.3 trillion economy; ii) China may be cooking its books. For example, China reports that car sales are surging while gasoline consumption is flat. How does that work? Are state run Chinese companies just stockpiling cars? and iii) China has an overcapacity issue. The central planners built out productive capacity for a booming economy but China is stalling. This is happening in sector after sector in the Chinese economy. Chanos' most famous call came in 2001, when he was one of the first to figure out that the accounting numbers presented to the public by Enron were baked.