Famed short seller Jim Chanos is loving the markets these days — he’s finding lots more to do and is
looking forward to the number of defaults jumping in a number of areas….
Speaking at a New York investor gathering, Chanos said his $4 billion-plus investment firm sees rich opportunities in leveraged buyout debt, cable entertainment companies threatened by the Internet and construction companies in overheated developing countries.
"I don’t know what crack pipes these guys were smoking, but some of the valuations were absolute madness," said Chanos, speaking to hundreds of investors, referring to private equity firms and their portfolio companies.
Chanos, whose Kynikos Associates firm invests globally, also forecast the so-called sovereign wealth funds controlled by Dubai, China and elsewhere will not be "the panacea and savior" many think they are.
"I think you will find out very quickly that they will have their own problems," said Chanos, pointing out that such funds are heavy financiers of "aggressive" infrastructure projects in China and the Middle East that may fail to find market demand when completed.