With President Obama touring Asia, Asian leaders have a bit to say about the global recession.  Some comments from an APEC meeting in Singapore, led off by World Bank president Zoellick as reported in the Wall Street Journal:

Several expressed concern that the global stimulus, especially the flood of liquidity pumped out by central banks, could create asset bubbles. “What central banks did in the face of the crisis is just open the tap of liquidity,” the World Bank’s Mr. Zoellick said. The increased liquidity could lead to inflation, such as in commodities. Asset bubbles “could undermine confidence in 2010,” he said.

Hong Kong Chief Executive Donald Tsang said he was he was “scared” that the U.S. may be following the example of Japan — tackling its recession with overly loose policies that could, in turn, inflate asset bubbles.

Singapore Prime Minister Lee Hsien Loong said he wasn’t sure the recent surge in financial markets was sustainable. “In Asia, we have seen stock markets go up, we have seen property markets go up,” Mr. Lee said. “We have to live with it for now and manage the difficulties, but if it becomes a significant and broad, widespread bubble … this will become a serious problem.”

Meaning: we could be — indeed we seem to be — already climbing back up an “asset bubble.”  Where does this take us?  Right to the brink of another crash.  Time for exceedingly prudent state budget making since there is little we can do.