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.
James ChanosAnd so it can be very much in the interest of bank A to sell-short bank B shares, or buy CDSes on bank B, because they have exposure to bank B. It's the responsible thing to do as a fiduciary, and yet if everyone does it at the same time, it's destabilizing because everyone is selling.
James ChanosChinais a world class if not the world class property bubble, primarily high-rise buildings, offices and condos.
James ChanosI used to think that good short-sellers could be trained like long-focused value investors because it should be the same skill set; youโre tearing into the numbers, youโre valuing the businesses, youโre assigning a consolidated value, and hopefully youโre seeing something the market doesnโt see.But now Iโve learned that thereโs 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.
James Chanos