Together with Greece briefly soaring to prominence over the summer (only to fade into perpetual obscurity in its new role as Germany's certified Mediterranean colony), the biggest event of this past summer - before the EM capital flow/Fed non-rate hike fiasco - was the rapid boom and spectacular bust of China's equity market, which culminated not only in arrest of sellers, but in the hiking of futures margins so high that nobody actually trades in China any more.

However, China's equity bubble was just the beginning. As we showed in "If You Thought China's Equity Bubble Was Scary..." even after the Shanghai Composite crashed in the fall, Chinese bonds spreads continued plunging oblivious of everything that was taking place in the stock market.