What's Up With China?
• Washington;s BlogMarketWatch argues: A weak set of economic indicators for July laid the foundation for the latest market correction, challenging the Shanghai Composite's nearly doubling in value in the first seven months of the year. But let's dig a little deeper. China's current-account surplus is off 32% for the first half of the year. Financial Times Alphaville writer Izabella Kaminska convincingly argues that China's stimulus money is being recollected back from the people who receive it before it can do any good. China has lent out a huge amount of money. Marketwatch's David Weider notes that "China loaned $852 billion globally through the first five months of the year". Vitaliy Katsenelson argues that while China has been blowing a huge bubble in lending, the government may have enough of a surplus to pull it off - at least for a couple of years (especially given that the banks are controlled by the government). But - at some point in the future