It appears bad news in China is “bad news” for everyone. With Chinese authorities already in full liquidity spigot-mode, the fact that China PMI for August collapsed to its lowest since March 2009 strongly suggests that – unlike every talking-head’s proclamation – a crashing stock market does (whether reflexively or not) impact the real economy. US equity futures legged significantly lower on the news – S&P 500 to 7-month lows, eyeing the stunning 2,000 level; and Japanese stocks also legged lower.