Aussie house price crash is a different matter entirely.
The stock market had a knee jerk reaction to a number of key events and was due for a correction anyway. It went up too much too quickly and needed an excuse for profit taking.
This would be out 5th major correction since the rally beginning March 2009.
China is not looking shaky at all (it's growing too fast). It's doing all the right things by restricting lending to cool speculation and overheating. You would much rather have sustainable growth than having a bubble forming. Unlike China, our government pour petrol on fire with the FHOG (amazingly for existing homes) and the RBA panicked just the same.
Ben Bernanke renomination is the other temporary unknown causing the jitters.
Obama trying to rein in the banks is all political correctness. Even if congress passes the bill, it will be watered down so much, you would think it's business as usual. Otherwise, US can't compete interationally.
