The man that shorted Enron says next bubble is China Real Estate and the biggest threat to global economic recovery. He estimates that 50% of the economic activity in China is related to construction and real estate.  Price appreciation is not supported by fundamentals and the usual defense that China has $ 2 trillion of foreign reserves is no defense at all when it comes to domestic bubble. He points that US in 1929 and Japan in 1987 had at the time the largest foreign reserves.  Chanos is short China.

Charlie Rose – James Chanos, President, Kynikos Associates.