Wednesday   10 June  2015  / Hour 2, Block A: Fraser Howie, co-author of Red Capitalism: The Fragile Financial Foundation of China's Extraordinary Rise, in re:  . .  On Chinese mkt, PEI is at 130.  This is beyond rational thinking anywhere on Earth.  Singapore index trading at 15.  ("Hey – sounds like a buy.")   Govt had to orchestrate stimulus; the money heads straight to the stock market.  This rally has taken some pressure off the debt problem in China b/c some companies can raise money not on debt but on equity. Now margin trading is in excess of $300 bil – things used to be fully funded are now funded on credit or debt.  Huge amt of leverage. Living on the margin destroyed US economy in 1931.  Beijing can see this; do they have a plan? [Laughter in the control room.] Not really. Markets are volatile; falling mkts are much more vicious than rising mkts.  Cannot catch a falling knife.  Many foreigners are in, but it's really a domestic story.
http://www.zerohedge.com/news/2015-06-08/one-belt-one-road-may-be-chinas-one-chance-save-collapsing-economy
http://www.forbes.com/sites/gordonchang/2015/06/07/china-blowing-a-trillion-dollars-on-its-silk-roads/