Welcome to the world of quantitative easing during a depressionary box. This liquidity driven recovery, similar to 2007, will eventually collapse under the weight of the liquidity injection. The foundation of excessive debt (sand) is simply not strong enough to support a secular recovery yet. The process of hemorrhage and inject is not unique. Similarities can be drawn between today policies and those of 1929-1951, and to a lesser degree 1871-1895.
The next crisis, whatever the assigned name - "Emerging market" or "Asian Contagion", are nothing more than symptoms of an excessive debt burden in Western world.
Hint: Markets that are getting too hot now. "The next crisis, the next meltdown I think will be driven by some big collapses in emerging markets including China," Johnson says.
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