This Investor’s Business Daily editorial makes the connection: Keynesian theory. Specifically, the ridiculous notion that prosperity comes from government money creation and spending rather than allowing millions of individuals and firms to find the best use for limited resources.

Government meddling led to both the housing bubble here and the now rapidly deflating Chinese bubble there. The only solution is to let the losses fall where they will and cleanse the system of malinvestments and misallocated resources. Instead, Obama tried “stimulus spending” and the Chinese are going to try to same thing.