Food for Thought: Wednesday July 3, 2013

This is a big deal. Hot money is now fleeing China “abruptly”
Yes, arguably this is a big deal, but there is something the author of this article completely omits. The abrupt change did not happen last month, it happened in early 2013 when the inflows of capital into China spiked upwards. This corresponding outflow is the return to normal from that unnaturally elevated situation. Why did the spike take place? This is the question that should be asked here.