how would we hold up?

I am sure I am not the only one seeing the increase in the number of articles discussing or touching upon the Chinese property situation. So here is a forum q: how would we bear up if this situation came became a problem? My feeling is that we (CER) would get hit by the indirect fallout, but that it might not be that bad for our US malls; Australia I am not so sure about it; our commodity dependency suggests that everything here would catch cold.

Here is the worst case scenario, admittedly from a goldbug:http://www.kitco.com/ind/West/mar222010.html

"And China this past week ratcheted up the warning signals suggesting its superhot economy could go supernova. Headlines warning of crises in debt, housing and speculation were abundant in diverse mainstream news sources, and as we all know, where theres smoke theres generally fire.

This is the theme of imminent risk this week. If China were to suffer a major debt and housing market contraction like that triggered by the U.S. in 2008, the good times could temporarily end for the otherwise frothy commodities markets. A susbtantial Chinese stumble would most likely trigger panic asset selling and capital hoarding, plunging the world into what would in reality be the Next Leg Down in the 2008 financial crisis.

That spells trouble for individual investors, whose scale of capital destruction is generally proportional to their distance from the markets in which their invested (I mean psychological distance).

These signals from China need to be very carefully monitored, and if the risk of economic contraction or crisis is perceived to increase, a proportional controlled liquidation of assets should be converted into gold and safer bonds. Risk capital can be left working in small batches, with one eye on the news feeds and the finger on ready to pull the sell trigger.

The first casualties of a Chinese crisis will be industrial metals like copper and iron as well as commodities like dimension lumber and related products. A temporary halt to economic growth would likely result in markets reliant on trade in such materials. Chile would suffer, Peru to a lesser extent, Canada and the United States as well.

Essentially what we see developing is a perfect storm of potential economic news that, if they unfold simultaneously, could be enough to plunge the world economy back into recession. We watch and wait nervously."