Bursting of bubbles will continue, only someplace else
So the recession is over and bears are still staring in disbelief unable to comprehend what happened. But it was all very predicatable. As long as Asian creditors provided financing to Bernanke & Co to plug in every gaping hole, Bernanke & Co could speep peacefully. Can you drive your car off a cliff and still have a soft landing? Sure, it is very possible. All it takes is to convince just one person to stand under the cliff just as your car is landing on his head. And this is the real truth behind the Party's slogan "Yes we can".
As the V-shaped US recession draws to an end, the Asian economies now begin to emerge from the recession floating belly up. Their pig-headed leaders have yet to realize that the game is over, but it's all over for these countries. They just donated several trillion dollars to the US, having been talked into the quasi-Keynesian theories which they didn't understand properly. The US assets are now recovering, but these countries no longer have the money to purchase them. No wonder: all the money they had has just been used to inflate these assets. Even if these countries suddenly realized their mistake, unwinding their dollar position would now be extremely difficult - much harder than half a year ago. Hence my newfound bearish stance on China and others.