Last fall Treasury Sec. Paulson brought a Chinese counterpart into the market stabilization system. It could get tested today. Mr Harry we down 10% in Shanghai. Mr. Harry we not getting paid on these house bonds from you.
Nikkei close was 18110 - 120 with a good part of Shanghai plunge coming later. To follow along - Watch US day Nikkei contract NKD at 17940 -290 now. True amount down it is indicating for Nikkei tonight is -170 (18110 less 17940 = 170). Watch yen for carry trader troubles and squeezing. Yen is ripping.
Interesting that EWJ is barely down at all. 15.00x15.10 right now, and 15.05 was where it was during much of yesterday's US session.
so roughly a 17470 close on US day contract as I type suggests - - Nikkei down 640 on open. Should be a wild volatile night in Asia. What a wild day!
Here is the key article written profiling Treasury Secretary Paulson and China. He is BY FAR the most competent and powerful figure in what remains of the US admin. http://www.weeklystandard.com/content/public/articles/000/000/012/992swoll.asp