Chinese Sell-Off Sparks Global Rout

Stocks in China got hammered today, with the Shanghai Composite losing nearly 6%, and the Hang Seng in Hong Kong down by 755 points.  Japan's Nikkei was a loser as well, even as Japan scored a positive GDP gain.  We've spoken before on the recent slide in Chinese shares, which started as equities in other important countries were registering big gains.  Here in the US, at noon EST, Reuters is reporting increased insider selling, and the S&P is down some 5%, falling below 1,000.

Yves Smith of Naked Capitalism has these comments on the potential significance of this conjucnture.

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