Random thoughts on the markets...

Here is a chart that is useful to put the China meltdown in a little better perspective. Still not stable, but Chinese markets are still above their levels from November of last year. In short, they experienced a speculative bubble that burst. The likelihood of a debilitating spillover to the U.S. is still low. China’s (very)Central Bank still has plenty of weapons to use to stimulate the economy. Just one tool: their short term borrowing rates were lowered to 4.6% yesterday; ours are near 0%. 

Steadying the course here at ZWM, I am

Tom