[MRM]

With a 25% sell off today, the Shanghai Index is now selling at about the same level it was in March of this year. One year ago it was roughly double what it is today, even with the 25% drop. It's not the same as a 25% drop in an American or European market.

Investment in China's stock markets is so speculative that I don't think a collapse would hurt American markets much. Not very many Americans or large US institutional investors have much exposure to the Chinese stock market.

The larger danger is that if losses in the Chinese stock market are a precursor to the Chinese economy going into recession, the World and the US will see a big drop in demand for our products - everything from exporting raw goods like lumber and intellectual property like iPhones to Chinese buying real estate will dry up.