when china teetered, so did a lot of other things, including stock markets. commodity and investor confidence. is the world economy intertwined. if the chinese have a bad year,

when china teetered, so did a lot of other things, including stock markets. commodity and investor confidence. is the world economy intertwined. if the chinese have a bad year, we all do. a sag and drag. that's the inside story >>> welcome to "inside story". i'm ray suarez. when the small group of old men who ran china set a new course for the enormous country in the 1980s, it was unimaginable that the chinese economy would quickly become the world's largest. or nip at the heels at the number one, the united states. here we are. in 30 years, china became the world's factory, vacuuming in raw materials from every corner of the planet and sending finished goods to the world, not just socks and gloves, but sell phones, computers and giant flat screen tvs. the economy grew nine, 10, 11 a year. millions moved from farms and cities. bicycles disappeared. the world, apparently got used to that and after years of warnings, the party couldn't last forever, it's been surprised by what may be a gathering slump. here is al jazeera's patricia sabga. >> reporter: 5 million

when china teetered, so did a lot of other things, including stock markets.modity and investor confidence. is the world economy intertwined.

as i said on friday night's show, i'm not against one foreverch when we're sure china is not teetering. europe is on firm footing. i will be on agreement on board when the tightening comes up then. sure. right now, though, i'm seeing deflation all over the plapgs, including most of the commodity complex. without minimum wage hikes at the state and level the aij wages i think would be on the decline. i'm not staking out a radical position. i'm agreeing with the wise imf chief who has asked the chef to put too many rate increases. the unsavory fed, i don't know, decided not the take action last week. here's the real rub. i recall being laughed at by the fed in 2007. when i said they knew nothing and they should cut rates immediately before we experienced a collapse in the real economy, not just stock prices. i went out of my way to be forceful and, yes, personal, as possible frankly. i didn't think they would listen. i said they know nothing. it turns out they listen all right. later on when the fed minutes were released, we learned they listen and laugh, seduction it as if i were a luna

we should do it when we're sure china is not teetering, when europe is on firmer footing and our recovery is less episodic. but right now wages aren't budging and the chinese government is selling enough u.s. treasuries to do the fed's work for them. that's why i'm declaring this show, tonight in san francisco a fed-free zone so we can take a serious look at next week's game plan. on monday we hear from my favorite home builder and this stocks has been on a role up 16% for the year. sure lennar is know netflix up 10% and we'll hear from the ceo reed hastings later on in a bustout interview. but lennar's rally, because it's been shooting the lights out of the estimates. can they do it again? the fed had raised rates yesterday i would have told you to sell lennar, but that didn't happen so if the commentary around the quarter is positive -- and, believe me, this stock trades around the chatter of its brilliant ceo stewart miller -- then you want to buy lennar into any continued weakness. after the close monday we have red hat and i know from partner sal salesforce.com that this could be str

plus stocks are teetering. china's crashing. and oil has collapsed. so what will save the markets? >> the force? >> that's right, luke. "star wars" to the rescue. because it's giving an unlikely boost to a number of stocks. and we'll tell you which ones when "fast" returns. and today hundreds of companies are putting me to work. i'm teaching watson to help your vet speak dog. you're a dog, right? i'm teaching watson to help you make healthy choices. i'm teaching watson to help design a vacation around your personality. don't judge. i'm teaching watson to answer endless questions. how big is infinity? where do babies come from? why can't i have chocolate for breakfast? i'm watson and i'm ready to work with you. >>> welcome back to "fast money." back in april of 2013 when gold was trading near $1,600 an ounce our next guest made the call that it was heading into a rout. it has fallen about 30% since then and has failed to recapture anything close to that level. and now he's here with his bold call on oil. michael hague is the global head of commodities research at societe general. gr

teetering. recognize that europe is a nation and that china, china is bad. there are some articles. cnbc had articles with a chai into conmer pole. can you all hide in general mills. i am saying, i feel like, you know what, remember when we were growing up and they had little prizes in the cereal box. i feel like a little prize in the cereal box this morning. >> all the losers surrounding caterpillar are in that space. joy global, united rentals, deere, borgwarner had some exposure to volkswagen. >> cummins is worth talking about. who has been able to crack china? caterpillar, cummins, the engines with the least pollution. talk to cummins. they have great formulation. parker-anderson does hydraulics. that's going lower. people aren't looking at the good part, aerospace or defense. they are looking at the worst part. in a bear market, we take our cue from everything back. gm, you want to own that? how about fiat? fiat is a huge winner. >> it got a great commercial yet as pope francis drove around in one. >> we are still a lot better than a lot of other places around the world. it is

teetering on recession? jon: not right now, tom. the pmi toss out this morning do not show that at all. we are seeing a slowdown in chinawhich is important. we are not seeing that feedthrough into the headline numbers in europe. inflation is low, just above zero, but we had not seen it show up in data in a big, big way. we are way off from falling into the next recession. jon ferro, thank you very much. look for his interview with mr. nowotny across all of bloomberg media this morning. i look at europe and the predictions made, the article out this morning on bloomberg about dollar strong, dollar weak. four days on, we still have no clue. there: and it is obvious are problems in central banks around the world in deciding what to do next, based on what the fed has done. you heard him say that an prolongation of the asset program will have an indirect effect on the market. tom: the biggest quantitative easing is in japan as a percentage of gdp. their punch bowl is as big as you can get. coming up, we are thrilled to bring you former chrysler chief executive officer robert nardelli. he will join us to talk about vw. bob na