There may be trouble ahead....both for emerging and developed markets

There may be trouble ahead not just because of Ukraine but because the Fed's printing presses are slowing down. A lot of the dollars flowed abroad to emerging markets as US yields fell and there was a splurge in global liquidity. The Quantitative Easing experiment has created artificially low interest rates in the United States at both the short term (3 month Treasury bills) and long terms (10 year bonds yield) and around the world. Now the Fed is starting to taper, the adverse effects of this mad printing of money will be felt around the globe. In addition, there are real signs of economic and financial problems in China and in particular the massive credit creation of its banking system which has pushed its banking loans from $10 trillion to $24 trillion in just 5 years !! The resulting property boom in China will eventually become a big property bust as prices in the major cities now have no relation to peoples disposable incomes. This will mean major increases in non peforming loans in both Hong Kong and Chinese banks. There are also clear signs that the US stockmarket now has many company shares in clear "bubble territory" once again - Tesla motors, Splunk, Facebook, Twitter and Amazon come quickly to mind. In addition the upper middle to top end of the real estate market in London and New York gives me cause for concern. There is a really interesting article in Asia Confidential by James Gruber that captures some of my own thoughts LINK1 but also offers some very useful insights from the Asian perspective. When will the crises start??...my guess is we are close to the final phase of the global bubble and I think it will start to play out over the next six months.