The real question in China is what is the historical allegory? Is it 1990 Japan or 1932 US? They are both similar in the sense it was the bursting of 2 separate bubbles at once -- Real Estate & Equity Markets. The good thing in China (really most of Asia) is most people don't invest in stock markets but they did invest heavily in real estate so it has to take a toll on consumer confidence. Even the Fed acknowledges the wealth effect of the equity and real estate markets.