I personally think people misunderstand this story. It's not a Lehman like structural issue. It's a consumer confidence issue in the Chinese real estate bubble

I personally think people misunderstand this story. It's not a Lehman like structural issue. It's a consumer confidence issue in the Chinese real estate bubble and public finance issue relating to how Chineee municipalities finance normal operations via land sales through special purpose vehicles. Basically if Chinese people stop believing houses are an endless fountain of money they Chinese government is in an enormous mess and this seems to be a step towards that happening.