Marc Faber forecasts a harder landing for China than expected

Marc Faber, the bearish investor and author of The Doom, Gloom and Boom Report forecast “a harder landing than expected” (for China ) before the third-quarter GDP data was released. “I think at the present China is growing at maximum 4%,” Faber told Emerging Markets last week, during the IMF/World Bank annual meetings. Faber’s arguments are the slowdown in credit, “lots of overcapacity,” high inventories and “an underground lending business” that caused lots of problems by inflating a property bubble. He looks at exports from South Korea and Taiwan to China and at electricity production to gauge the health of the economy, not at the official growth figures. - in www.emergingmarkets.org