When Jim Chanos makes forecasts, it's time to listen. Chanos was the hedge fund manager who was the first to see that Enron was a disaster in the making and who made himself a fortune in the process by short-selling the stock.

Now Chanos is warning about China's real estate bubble which is a disaster in the making, a reworking of the Dubai calamity. Chanos says: "I do see all of the signs of a credit induced real estate bubble that i think is going to be a doozy.. Looking at companies, I'd be very leery of companies who are exporting materials to China to build up this construction bubble."

One of the warning signs of a bubble is the city of Ordos in Mongolia. According to this report, the city is richer than Beijing, at least on paper. It's fully of fantastic buildings and futuristic architecture. Trouble is those buildings are empty.

Still, it's not going to deter investors. As The Guardian's Heather Connon says, China is one of the few economies that's growing with a massive market of 1.3 billion people and a government spending heavily on infrastructure.

Maybe, but if the bubble bursts, it will make Dubai look like a picnic.