Juggling Dynamite

China is a canary in the global economy coal mine. The Shanghai Composite bottomed in November 2008, four months before the S&P 500. Most recently it topped out 9 months ago in August 2010 at 3471 and since then has declined about 25%. Technical support lies next in the area of 2400. If it held there that would mark a 35% decline from the peak last August. The breakdown in the Chinese market suggests further downside risk for equities and commodities over the next quarter.

Ms. Park was a guest on BNN this morning, Wednesday, May 19, 2010 at 8:50 am est. A clip of the interview is available here on the BNN web site.

Roubini spoke to BBC Radio today about the on going credit crisis, and the challenges of resolving solvency problems.