Faber: 30 Percent Chance China Will Crash And Burn

Investment guru Marc Faber says there's a 30 percent chance that China's "soft landing" will turn into a crash-and-burn, taking most commodities with it.

“I think to some extent (China) is a bubble,” said Faber, the editor of "The Gloom Boom & Doom Report."

"Last year, total loans by banks have increased by a quarter of GDP. In addition to this they have large excess capacities across industrie,” he told the Smart Investor.

Faber says he expects the Chinese economy will slow down considerably.

“The bigger question is that, 'Will It Crash?'” he asks. “To that, my answer is: 'Yes, That Is Also Possible.'"

He thinks “there is 99 per cent possibility that China will slow down considerably and I would say there is 30 percent chance that it will crash.” (more)