a must read on us market a fall is near, page-5

Funny how you miss things right under your nose... liquidity again.. just came across some stuff pointing out for quite some time that the Chinese govt has been pumping yuan into their system like there was no tomorrow in order to hold down the yuan against the usd... the major consequence is inflation at about 5-6%.. but also asset price bubbles.. stocks and buildings.. people aren't saving their money because of inflation and are instead putting their money into hard assets such as stocks and houses.. stocks up whatever ridiculous figure we all know, and houses up about 27% year on year so far.. that was the news I had previously missed.. but the thing that startled me was the implication... could we be seeing the start of a similar bubble in usa stocks cos of their liquidity injections.. imagine spx up 150% in a year, like shanghai or perhaps hong kong.. or xjo.. xjo after all seems to be attracting funds from both usa and asia, particularly china... given the liquidity injection currently in china, rest of asia incl japan, australia (no rate rise when needed is same as rate cut, tho rates are just one mechanism for controlling liquidity) and europe I am seriously wondering if we are not seeing the start of a massive global bubble in equities ... in which case Soros' approach is probably best...