James Chanos is an American investment manager and registered investment advisor focused on short selling. He is the founder of Kynikos Associates and even appeared in the movie ‘The Promise.’ With decades of experience and expertise, here is a look at some of the best James Chanos quotes to know.
“Bubbles are best identified by credit excesses, not valuation excesses. And there’s no bigger credit excess than in China.”
“Derivatives in and of themselves are not evil. There’s nothing evil about how they’re traded, how they’re accounted for, and how they’re financed, like any other financial instrument, if done properly.”
“Healthcare is growing now at about 10 per cent per annum in the U.S. top line, versus 3 per cent for the economy. As someone with a sharp pencil and an eye for this kind of thing, this can’t last.”
“I call it the Rule of Three. If you read a company’s financial statements three times, and you still can’t figure out how they make their money, that’s usually for a reason.”
“If you’re a short-seller, that’s a cacophony of negative reinforcement. You’re basically told that you’re wrong in every way imaginable every day.”
“I’ll always understand the Schadenfreude aspect to short-selling. I get that no one will always like it. I’m also convinced to the deepest part of my bones that short-selling plays the role of real-time financial watchdog.”
“Increasingly, the real estate developers can’t get bank loans for their project financing in China. They’re now going into the Hong Kong market to raise money in the bond market at very, very high rates, as high as 15, 20 percent.”
“It’s almost sickening now that the regulators ‘on the beat’ while the biggest credit collapse in modern financial history unfolded are now patting themselves on the back for their ‘brave’ stance on short-selling!”
— (((R_Singa))) (@R_Singer1) June 19, 2017
“It’s very difficult in the technology space when you have been leapfrogged to prosper again.”
“I’ve learned there’s a big difference between a long-focused value investor and a good short-seller. That difference is psychological and I think it falls into the realm of behavioral finance.”
“I’ve seen a lot more go to zero than infinity.”
“People who lose money always need someone to blame.”
“So you know, everyone points out Greece’s default record, but the history of a lot of sovereign nations is not a good one when it comes to lending them money.”
“The Chinese banking system is built on quicksand and that’s the one thing a lot of people don’t realize. Everybody seems to think it is a free and clear open checkbook. It’s not. The banking system in China is extremely fragile.”
“The U.S. healthcare system is probably the most interesting large group of companies that are heading for major problems that we’ve seen in a long, long time.”
“What American people and what the markets want is a fair and level playing-field, where the rules are clearly elucidated, where the referees are competent, and where we know that the game is not rigged.”
“What we define as a bubble is any kind of debt-fueled asset inflation where the cash flow generated by the asset itself – a rental property, office building, condo – does not cover the debt incurred to buy the asset.”
Here is a look at James Chanos as he appears during this session of the China Economy Bubble and disruption of the Global Economy.
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