ML-Implode News - China is in a serious bind but this is not yet a 'Lehman' moment

My own view - with low conviction, as they say in the hedge fund world - is that China will weather this immediate storm, though with difficulty. Fiscal spending is growing at 13pc again. There is already enough juice in the pipeline to flatter growth for a few more months. The housing maket is coming back from the dead. Services are growing at a 10pc pace.
Another stop-go cycle is picking up. Each time it is weaker, but it is still enough to delay the denouement until next year, and next year is an epoch away in market time.

Watch the offshore exchange rate for the renminbi. If that keeps spiraling further away from the inland rate, we will know that matters are out of hand, and then we really will have a global currency crisis. We are not there yet.

Interesting opinion, though we note that in brushing off the probability of a market crash (following on what started in the last couple weeks), AEP ignores the de-leveraging effect of a Fed rate rise (funny because he simultaneously says the US economy is "picking up steam")

Relevant:

China is in a serious bind but this is not yet a 'Lehman' moment