China stocks swoon and the Dow is down another 300 points today. A correction is underway and Asia is going to bring down the global economy. Lions and tigers and bears oh my. I had a reassuring phone call the other day with IHS chief economist Nariman Behravesh, a veteran market watcher and Wharton M.A/Ph.D. His takeaway: China is more China’s problem than any one else’s. His argument rests on the fact that financial linkages with China are weak, even if non-financial and certainly industrial linkages aren’t. U.S. banks have little to no equity exposure in China, and there is not a lot of Chinese debt outside of China. (I mean, in absolute terms it’s a lot but in percentage terms it’s still tiny.) China accounts for only 7% of our exports and, as of only three years ago, only 2% of our multinationals’ profit.

from Forbes – Tech http://ift.tt/1UUS0L6
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