Thanks to subscriber Tom for passing this along:
China and the buzz of a pending bank default
I find this very telling (remember our chart showing the FXI China etf leading the SPY lower?):
"This is why I take the buzz on the floor over the past two days very seriously as well as I do the incredible spike in Gold today. Most importantly, I do not take lightly the recent 25% correction we have seen in the Chinese Stock Market. Can all these events be interconnected some how? Is the Chinese stock collapse giving us a hint?"
I will say that if this what is behind gold's move and does not produce some serious damage to the financial system, the huge move in the gold market could be vulnerable because panicky moves are usually not sustainable after emotions flatten out.
Edit (9/4 @ 6:07 am) More courtesy of Tom, this time from The Economist: Our Loss, Your Problem
