Chinese Shock?

Last week, I blogged about what I considered to be a sign of Chinese real estate price inflation, or a real estate bubble, depending on how you look at it.

Today, with a hat tip to Marginal Revolution, we see further evidence, only this time in the form of a 20% market contraction.

This certainly doesn't bode well for China and cannot at all bode well for the global marketplace. My biggest fear, however, is not that the markets will crash, but that a market crash will herald a Chinese return to a command economy. The West has seen these boom-and-bust cycles before. China has, too, but never under the auspices of a free market economy.