The Shanghai Composite broke the 2,000 level ominously yesterday after a drop of 5%. This breakdown is confirmed today with another 4% drop. There is no doubt that China's growth is contracting in the the next couple of years....perhaps to a sustainable 5%.....This is a deliberate effort by the state. Whoever is botom fishing resources penny dreadfuls.....Be careful.....Very careful. Having said that...No one knows what Chinese policy makers decide to do.....They have huge power to move markets.....So far they seem determined to deflate the bubble.
