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Thursday, September 20, 2012

Jim Chanos on CNBC

Today Jim Chanos was on CNBC discussing a range of things - the economy, financials, China, healthcare stocks, etc. In the first video he discusses why he is short China. We have highlighted this in the past but its nice to hear an update on their position. About 20% of their global short fund is concentrated on China. He said that non-performing loans have tripled from 2011 using Chinese accounting. He then goes in to how there is numerous issues with Chinese companies and their accounting. At the root of the thesis is the fact taht China is going through a credit boom. In the next video he talks about covering his shorts on a number of his healthcare bets. He goes into his frustration with the current healthcare system and why he was short it at the time. In this next clip he talks about why he is short Hewlett-Packard and some other financials. He thinks the PC game will continue to remain under pressure for the forseeable future. They are long Microsoft and Oracle against their HP short. He also talks about being long the deleveraging of the credit "python". He thinks the U.S. is coming out of it and they are long Citi and JP Morgan. They are short Spanish banks and Chinese banks as a hedge. Overall he thinks the market has gotten pretty expensive rather quickly. In this final clip he discusses his interest in remaining short the financials.

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