Rising Risk of 2007 Global Recession by Andy Xie

The global liquidity bubble looks to be bursting:
The Fed is turning to inflation fighting. Global liquidity has been sluggish for six quarters but may begin to decline in the coming months. Mean reversion of financial asset valuation is beginning. This bear market could last for two years or longer, I believe.
The risk of a global recession in 2007 is rising:
The liquidity reduction to contain inflation will likely cause property prices to decline. If the decline is gradual, the global economy could avoid a recession. However, the US and China are the pillars of global growth. They cannot rely on others to cushion the impact of their property recessions.
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