Broken China

Recently I have pointed out the dragon in the room insofar as financial risk is concerned ... and that is the Shanghai stock market and its dramatic rise and fall ... see: The Next Bubble. Since I wrote this blog entry the stock market there has plunged 27% with no real relief in sight ... see: CNBC Story. The Chinese government seems in fibrillation mode in its frantic efforts to remedy this "bloodbath."

Shanghai Composit Index

There are many who believe that this major stock market correction in China poses a bigger threat to world financial stability than either the Greek or Puerto Rican problems.

I am among them.

Afterward: Not a good idea ... see: NY Times Story.