Chanos and the rest of the China bears have been dead right on the existence and scope of the Chinese “Ghost Cities” – developments that have been built just for the sake of giving people something to earn a living doing and for “growing” the economy.
What they’ve not been great at is the timing of when any of this will matter. Bulls say the cities will eventually be occupied. Bears say this is the equivalent of a massive state-run fraud and will bring down the economy there and abroad.
Here’s the clip they played on CBS’s 60 Minutes last Sunday: