So you know who Jim Chanos is, this from Wiki:
James Chanos is an American billionaire and hedge fund manager, and is president and founder of Kynikos Associates, a New York City investment company that is focused on short selling.
In business, he developed an investment strategy based on intensive research into stocks (as long as months), searching for fundamental and large market failures in valuation: typically under-estimated or previously un-reported failings in the business or market of a stock. followed by committing to a (usually large) short-position which he is willing to hold for long period of time - almost the mirror image of Warren Buffet's reputed "fundamentals+long stay" investment strategy. Because of this model, his investments function more like those of a whistle-blower than most typical investments. Examples of this include short-selling companies such as Baldwin-United, Drexel Burnham, and more recently, the notorious Enron Corporation.
He rose to fame in the 1980s as a "short" - a short seller who had a knack of spotting stocks that he thought to be overvalued. After working as an analyst in several firms, he founded Kynikos (Greek for "cynic") in 1985 as a firm specializing in short selling. A critical position taken at Kynikos was his shorting of Enron.
In October 2000, Chanos started research into the valuation of Enron Corporation. He examined their use of mark to model (cousin to mark-to-market) accounting, which, in Chanos' experience, results in management overstating earnings, as well as what appeared to be a worryingly low (6-7%) return on capital investment. Enron stock declined from $90 in August 2000 to a low of $1 in January 2001. Over this period, Chanos was a short seller of Enron during 2001, increasing his short position as more information surfaced. Kynikos profited greatly and Chanos himself became somewhat of a celebrity as a consequence of his early awareness of Enron's problems.
When he talks, I listen.
Related article - Jim in the NYT on China
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