Prepare yourself (and your portfolio) for a coming debt crisis and a Chinese hard-landing (crash) 2010 - (update 5)

Greece is heading towards a bailout with the EU offering the 30billion EURO to be tapped. Why? Greece will struggle to sell it's debt (10yr at 7.00%), so a default fear lingers. Which means that a bailout package will activate for Greece very soon. Which also means that Greece has structurally defaulted in the sense the austerity measures aren't tuff enough and Greece is struggling to reign in public spending.

Wouldn't it be simpler to boot Greece out of the EU? Either way, the bailout of Greece will still send a chill through the markets as Portugal and Italy start to make some noises (that don't sound too good) in the coming months.

The markets are running on a psychological upswing from China's 11.9% GDP (q1) numbers and the US maintain liquidity (which flows into equities as interest rates on cash remain close to 0%). But as bubbles occur in China and a contagion of debt problems in Europe; markets may not be factoring in a China tightening policy and/or a bail out for indebted European countries. A major panic sell could be on the cards within the next few weeks.