Investor confidence grows on US, China bubble fears mount – survey

Investor sentiment is turning more positive on the US while fears of a market bubble in China are increasing, according to Bloomberg‘s quarterly survey of investors and analysts. "American consumers are regaining confidence, and with that alone, there should be no impediments fur current business to resume the growth of the past decade," one respondant from Wells Fargo said. China however was considered as a bubble by 62% of those polled; a third of investors believed China showed the greatest risk. James Chanos, founder of Kynikos Associates – one of the first investors to foresee the collapse of Enron – was quoted as saying that China looks like "Dubai times 1,000…or worse." Fears of a China bubble have been growing steadily as the domestic economy continues to be flooded with liquidity despite calls from the central bank and the regulator to slow lending growth.