In China slumping car sales signal it’s time to get out those central bank cash hoses again

Think there’s a connection here? New car sales in China fell in June for the first time in more than two years. And last week the Communist Party’s Politburo pledged policy changes in the second half of 2015 to accelerate growth. The proposals are heavy on the tried and true of infrastructure spending and big increase in the funds available for debt financing.

Has China’s bear market delayed a Federal Reserve interest rate increase until 2016?

If the Fed was thinking on June 16-17 that it might hold off on a rate increase and leave the Fed funds rate at 0%, where it’s been since 2008, because of worries about Greece, I think it’s safe to conclude that, with China looking now at what is best termed a stock market in free fall, a September interest rate increase is just about off the table.