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Most have probably heard about the Dow's large loss on Tuesday, precipitated by the Shanghai Stock Market plunge.  A recent NY Times article recaps much of the events and, mirroring Fed Reserve Chairman Ben Bernanke's remarks about the economy to Congress a few days ago, believes the market correction will not stop moderate growth in the US economy.  “We’re seeing some blowing off of some froth in the equity markets and that’s probably a good thing,” said Peter Morgan, regional economist at HSBC in Hong Kong.  Well put.  But a lot more regular, everyday traders are going to pay attention now when they hear rumors or see signs of a potential cooling in China's economy. 

We're watching each other more and more closely.  In fact, an old friend who is a reporter for Xinhua, the Chinese national news agency, contacted me a month or so ago for a statement regarding the impacts a cooling in the US economy might have on US imports of Chinese goods.  It's easy to focus on our own situation and forget how much of what we do impacts hundreds of millions of people's livelihoods over there. When our housing market cools, we aren't the only ones who feel it. 

Just another reminder that we're all starring in our own "Babel" movie--but instead of a housekeeper, a Japanese girl, and some kids in a Middle Eastern country--Tuesday starred a Chinese business exec, a strung out New York stockbroker, and Brad Pitt still, whose headline about recently upsetting Angelina Jolie for sending a birthday card to Jennifer Aniston was bumped off the front pages because something more important happened.  Whether we're investing in the stock market, manufacturing a product overseas, pumping gas, love Walmart's Everyday Low Prices, just about anything these days, what happens in Shanghai might play a role.