The Shanghai Composite, the major stock index in China, is up 68 percent this year. The Dow Jones Industrial Average is off 5 percent.
China's economy may still be expanding at a 7 percent rate, but the risks to the growth are considerable. China is relying on a $585 billion stimulus package to prime the pump of consumer spending. The money is also going toward mammoth infrastructure projects. At some point, all of the investment capital runs out.