Basically a colossal bubble forming around developed and emerging markets, bonds, stocks and everything in between.
Particularly in China which had the mother of all economic stimulus at $586 billion +
I remember (2008) some fucking dildo (sorry, just wanted to see how 'fucking' and 'dildo' work together as an insult...kinda works) analyst at Moody's economics saying how how great everything will be after China blows out the big stimulus. It's all short term baby, stock gains and over valuation plus a shit load of IPO's that will come onto the market in 2010 - oversupply central. Classic fundamentals of bubble orientated markers.
So, China has raised the auction yield of it's 3 month bills. Pitiful if you think about it, but...may indicate to the market that something is worrying the Chinese government and central bank; namely an implosion and inflation.
Still focused on USD strength on risk averse in 2010.
from Bloomberg (Jan 2010)
"China is trying to cement a recovery while preventing excessive liquidity in the financial system from causing resurgent inflation, asset bubbles and bad debts for banks. Property prices are surging in some cities and Liu Mingkang, the top banking regulator, wrote in an opinion piece in Bloomberg News this week that “structural bubbles threaten to emerge.”
“There’s no doubt that lending has been excessive and that explains why policy makers are starting to be more cautious about lending this year,” said Qu Hongbin, chief China economist for HSBC Holdings Plc in Hong Kong. "
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