Think about how many companies pin their hopes and dreams on the infinite possibilities of selling stuff in China. If TSLA's stock can pop 10% because Musk announces he's going to put superchargers in China (he announced he'd put them in America 3 years ago – where are they exactly?), why does the stock then ignore declining auto sales in China or the slowdown of the whole economy over there?
The slide in Chinese manufacturing has been accelerating since the fall and we're in danger of breaking through a floor we haven't seen breached since we ignored it in early 2008 – the last time the MSM shrugged off a China slowdown as "no big deal."
How can China be the biggest deal in the World when you make a bull case but no big deal when it turns the other way? This is why investors are so confused about the markets – the information they are being fed is spun to CAUSE them to make poor investing decisions. Remember when the Senate investigated Goldman Sachs because, internally, they called $600M worth of Timberwolf Securities they were ACTIVELY selling to thier investors a "shitty deal" while bonusing their "financial advisors" for pushing it on their clients.
Like the US, China's growth story is a stimulus story. China's money supply grows faster than their economy and, in the past 5 years, as you can see on the chart, it's gone into hyper-drive with loans up almost 100%, which is ANOTHER 150% of the country's GDP in debt. China began their stimulus program in 2008, while our Congress was still arguing over TARP.
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