It's about China

Last night I speculated that weakness which was very sharp and sudden had something to do with the rating's agencies viewing debt rollover as a credit event, that may put pressure on the EU zone, but it seems the real news came from Moody's shortly after I wrote that. China is apparently hiding about 1/2 trillion dollars in bad debt, much of it to local government, this of course causes speculation about China's ability to come to the aid or rescue of Europe. It now seems this may be a more plausible reason for the sudden drop in the Euro which has started a consolidation phase, but has not regained any lost ground from last night.