Investment legend Jim Rogers says that China’s overall economy doesn’t represent a bubble, though he acknowledges that some urban real estate is overheated there.
Property prices should decline in Hong Kong and Singapore, he says.
“If anything is a bubble in the world, that and U.S. government bonds are certainly very overpriced,” he told Bloomberg.
But China’s economy as a whole isn’t in bubble territory, Rogers says.
“Maybe you have too much inflation and credit creation. But that doesn’t mean there’s a bubble. A bubble is when everybody is buying everything every day, and people can hardly wait to get more.”
Rogers notes that China’s government is trying to curb economic excess.
“The Chinese realize they’ve created too much money and that prices are going up a lot. So they’re trying to slow things down.”
The government has recently announced increases in reserve requirements and interest rates.
On another subject, Rogers says Federal Reserve Chairman Ben Bernanke doesn’t deserve another term in office.
“Mr. Bernanke has never been right about anything in the past six years,” Rogers said.
If the investor was a senator, “Bernanke could resign, he could abolish the Fed, and then I’d vote for him,” Rogers said.
Warren Buffett, who has had a bit more success investing than Rogers, disagrees.
“If I could vote twice (for Bernanke), I would,” Buffett told CNBC.
“He did a magnificent job over this period (the financial crisis).”
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