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Faced with a global asset bubble of some $290 trillion about to burst, a frantic Darling started throwing millions, then billions, then a trillion at underpinning the banks' near worthless "casino" debts.
capital markets and economic reform - as developed, capitalist market economies, both countries are experiencing a credit crunch and asset deflation associated with a burst global asset bubble.
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The previous day Liu Mingkang, China's chief banking regulator, blasted America for its low interest rates and for the falling dollar, which, he suggested, might be encouraging a dollar carry trade and, in turn, global asset-price bubbles.
Chinese officials have blamed ultra-loose U.S. monetary policy for fuelling global inflation and asset bubbles but they tend to be less vocal about China's huge holdings of U.S. assets for fear of roiling the currency market.
But the return to conventional monetary policy would deflate the asset bubble and reduce corporate profits.
This was the engine of the credit bubble, commodity boom and asset bubble, which ultimately blew up the global financial system in 2007 and 2008.
Deflation in prices, i.e. a depression, has followed every major debt and asset bubble in history – and this is the largest debt bubble ever and it is global.
But global asset prices are once again rising rapidly above their underlying value — in other words, they are in a bubble.
The global financial and economic crisis arose out of radical deflation in the U.S. housing market, as the real estate asset bubble split asunder.
Maidment: Chris, is this a new asset bubble, then, that we're having created by all the money that Central Bank is pumping into the global economy or have we still got to see the collapse of, as Bernie indicated, existing bubbles like commercial real estate?
Asset bubble followed asset bubble.
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