Is China borrowing too much for unneeded make-work projects? That’s the opinion of a Wall Street money manager, Stanley Druckenmiller. The CNNMoney story by Matt Egan:
China is in the midst of an "extremely rare and quite dangerous" explosion of debt, argued Druckenmiller, whose fortune Forbes estimates at $4.4 billion. He compared the situation with "subprime mania" in the U.S. . . .
He specifically warned about an overhang of real estate development in China.
As for the U.S., Druckenmiller worries that persistent low interest rates have created a speculative bubble in securities, with the Fed now stuck in a position of trying to prevent a near-term global stock market crash.