you think, there s got to be something inhertegritheriently n china, leading to the spiral effect in the country. how deep is china s economy in trouble right now? they ve been putting so much out there. millions of workers are at risk of losing jobs. it creates instability and they re trying to overhaul their economy. they re trying to also overhaul the regulation of their stock market, as well. oe of the reasons, the first time you ve seen stock market curbs put in in china, is because this is them trying to modernize their stock market. you have them halting trading to try to get control of all the selling here. it ll be a big test for china going forward. they re the factory floor to the world. we know the factory floor has been slowing a little bit. because it is such an inter connected world market, that is why you re seeing concerns this morning. we re watching oil markets, too, very carefully, because of what s going on in the middle east. selling stocks going into oil, going
that is an enormous chunk of city revenue. this is a stark warning for cities across the country because now moody s investors, which is the credit agency for wall street, some 8500 local cities and counties are now unfunded and their pension liabilities by $2 trillion. that means that you are obligated to pay, but you simply do not have the money. here is the biggest problem. when cities invest in pension money, they base their rates on return at between 7.25% and 8%. in actuality, they are only getting four to 5%. here s the problem, pension liability come if you have a 10 million-dollar liability and you re getting a percent and you are only getting 5%, it means they really have $13.5 million in liability, and movies is likely to downgrade the credit rating of hundreds of cities across the country. listen. this is just a spiral effect.