Here is another snippet of why the market is starting to tremble and may soon plummet to levels not seen for decades. Keep your powder dry and IMHO move to cash.
" Chinese policy, over the past week or so is a tectonic shift that no market player should treat with a cavalier attitude. Marketwatch informs that: “The omission of a handful of words from statements by senior Chinese officials this week has fueled speculation that unofficial government policy has tilted towards tighter monetary conditions, a milestone that could have policy implications for years to come. A speech by Premier Wen Jiabao posted on the People's Bank of China' Web site on Tuesday left out the words "proactive fiscal policy and relatively loose monetary policy" when referring to China's macroeconomic policy.”
The bigger question is, lending curbs and other measures aside, will that country’s economic engine be able to provide enough torque to pull the whole global stump out of the muddy rut it finds itself in? Not according to Nouriel “Dr. Doom” Roubini, who, in a Marketwatch piece is attributed to have said that” “Expectations [that] China can buoy the global economy on its own will meet with disappointment, adding that a glut of worldwide industrial capacity threatens recovery from the financial crisis.”
