Paul Krugman: When China Stumbles

So, will China’s problems cause a global crisis? The good news is that the numbers, as I read them, don’t seem big enough. The bad news is that I could be wrong, because global contagion often seems to end up being worse than hard numbers say it should. And the worse news is that if China does deliver a bad shock to the rest of the world, we are remarkably unready to deal with the consequences.

For those just starting to pay attention: It has been obvious for a while that China’s economy is in big trouble. How big is hard to say, because nobody believes official Chinese statistics.