"I think that a "world economic collapse" because of China is extremely unlikely. The underlying real economy in the US and Europe is strong and mature. Most likely, the financial turmoil would settle quickly, with Chinese dollar reserves being expended to buy their way out of trouble, bringing the dollar down and boosting US exports. If the US economy got into trouble at the same time, it would not be due to China but to the housing bubble collapsing."
Well put and agreed. The housing bubble coupled with outrageous energy could be the biggest recession of the last 50 years or even a depression. The ripple effects from our potential deep recession in the US would cause global recession. But China causing world financial collapse? I dont buy it either.