Ponzi Wake Up Call for China and The Rest of Us

Never say never, but the news this past week about a major Chinese Ponzi scheme has a “bound to happen” feel about it. Ponzi finance in China is no small matter, and US investors would be wise to keep it on their radar screens, so that they don’t get blindsided as the global economy slows. The sharp selloff in stocks at the end of the first week in February, in reaction to slowing job growth, suggests that US investors might have underestimated the spillover effects from economic weakening...