Jim Chanos vs El-Erian on China 's Economic outlook

Jim Chanos , the founder of Kynikos associates with Mohamed El Erian on the Squawk box CNBC 14 April 2011 he says Healthcare is still the problem , Jim also sees slowing growth in China and China's property market he also speaks about alternative energy and argued with Mohamed El-Erian on their different views on China soft landing or hard landing



Jim Chanos :."... Healthcare is still the problem. at the end of the day, if you look at all of the budget talk and all , if we don't go after health care, we're not going to solve any of these problems. we still devote twice the GDP to health care that the rest of the OECD , the rest of the developed does with worse outcomes. there is no more logical argument than that to take a hard look. but this reform didn't do it. "

"... if Healthcare continues to grow at 6 or 7% above the real rate of the economy, every 10 to 12 years it will double. that means in about 15 years or so, half of us will be doing operations on the other half of us. that's not going to happen. something's going to give." "to go to the other end, a nationalized health plan. something has to happen. the problem that we have in this area is that so much federal funding, i mean health care whether we want to believe it or not is still half socialized in effect. federal and state governments pay for pretty much of health care expenditures. whether we want to believe it or not, we're almost sort of the way there, but it's the worst of all worlds. it's government payments without any accountability. and this is going to break us. so something's going to give. and i just don't know which way it will go."


regarding China's property bubble Jim has this to say : " I think if we're wrong about china in terms of the property bubble there, that that continued demand could keep things going, you know, demand for commodities, demand for construction materials. they are sucking in basically everything on the margin is china. and if they just keep putting up high rises, this could go on for a while." "that is the hope. you know, first the argument was there was no bubble. now the argument has sort of morphed i think into more serious policy circles in china. well, we will let the air out slowly."