China, the world’s Ultimate Crony Capitalist State, is taking it on the chin right now.
Whether it can stem the bleeding like it did in 2015 will be interesting to see. Locking up journalists and short sellers might not be enough this time.
In many respects China is built fundamentally on price obfuscation and cronyism, and as such its economy has an inherent fragility.
But how fragile?
Chinese stocks fell sharply on Thursday as heavy selling in the energy sector and worries about the levels of borrowing in the stock market added to broader concerns over growth and the global sell-off in equities.
The Shanghai Composite index closed down 2.9 percent at 2,486.42, after hitting its lowest point since November 2014 on Thursday morning.