A bubble in China bubble stories

There is a torrent of bubble-related news coming out of China today, that is, if you look at the news that Bloomberg is reporting.

Bank of China’s Zhu Sees ‘Bubbles’ in Asset Markets
Sept. 10 (Bloomberg) -- Bank of China Ltd., which led the nation’s $1.1 trillion lending spree in the first half, said ample liquidity has caused “bubbles” in stocks, commodities and real estate.

Wen Says China ‘Cannot’ Yet Pull Back on Stimulus
Sept. 10 (Bloomberg) -- China’s Premier Wen Jiabao signaled he will maintain unprecedented government spending to drive a recovery from the slowest expansion in almost a decade.

“China’s economic rebound is unstable, unbalanced and not yet solid,” Wen said today in a speech at the World Economic Forum in Dalian, a city in northeastern China. “We cannot and will not change the direction of our policies when the conditions aren’t appropriate.”

China Has ‘Vicious Circle’ in Home Prices, Zhu Says
Sept. 10 (Bloomberg) -- China’s home prices are driven by expectations for appreciation of prices, causing a “vicious circle,” China International Capital Corp. Chief Executive Officer Levin Zhu said.

“Escalating prices may create a situation where people who buy real estate don’t need it, while those needing housing can’t find suitable homes,” said Zhu, son of former Chinese Premier Zhu Rongji, at the World Economic Forum meeting in Dalian, China.

If, on the other hand, you look at the assessment that CHINADaily is offering today, the situation appears to be much different.

It is a picture of an economy firing on all cylinders, in the process of saving the world.

New jobs work out for 7.6m, unrest ruled out
By Cui Xiaohuo (China Daily)
Updated: 2009-09-10

Job creation momentum has let the nation's minister of human resources and social security to believe that social unrest triggered by unemployment could be a thing of the past.

"I am convinced the current measures taken by the central government will prevent further social unrest from happening," Yin Weimin told China Daily on the sidelines of a press conference at the State Council Information Office.

China to lead world out of global economic gloom, says Schwab
By Zhu Qiwen and Ding Qingfen (China Daily)
Updated: 2009-09-10

The nation will emerge from the depths of the global downturn first and in better shape than any other country, according to Klaus Schwab, who made the observation while stressing the need for more global cooperation to combat the recession.

"We can be very confident that China's growth objective will be achieved," said the founder and executive chairman of the World Economic Forum (WEF) in an exclusive interview with China Daily.

Whom to believe? We'll probably find out before the end of the year...