Markets were plummeting left and right last week but China's stock market didn't do all that badly, despite the slides in the Asian markets.
Ying Zhao notes smugly in her analysis, Financial Crisis Is Highly Unlikely in China, that "no matter what happens in China, a credit crunch probably won't be a concern."
It does seem that way -- but why, given that China's banks are staggering under a mountain of bad debt? Or least they were staggering; if they've shrugged off the mountain just exactly how and when did they do that?
I have brought up that question before, which brings me to Nicolas Sarkozy's idea of creating a new Bretton Woods. It's a great idea on paper, if you'll pardon the expression. But the reality is that plunk in the middle of the international financial system is the black hole of China's banking system. So how are the Lords of Craps Table going to patch around that problem?