BofA Analyst Expects Negative Real Rates to Drive Bubble In China In 2010

Bloomberg provides snippets of an interview with BofA Merrill Lynch analyst David Cui in which Cui warns that 2010 will feature a massive asset bubble in China:

“Next year could be the year we see a full-blown asset bubble…We’re likely to see massive savings migration as we head into real negative interest-rate territory,” where people “save less, spend more and invest more…”
….Asset prices will gain even with the anti-speculative policies, Cui said, as he expects the government to maintain a “fairly loose” monetary policy unless the consumer price index “threatens to go out of hand.”

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