That appears to be what all the markets are hoping for, as there is no other good news.

Chinese Premier Wen Jiabao is considering new stimulus measures, adding to a 4 trillion yuan ($585 billion) spending plan as the government tries to revive growth in the world’s third-biggest economy.  -Bloomberg

I must admit I’m more than a little skeptical this will be enough to spike growth throughout the world.  China’s people have never been big consumers, so stimulating an export economy seems unlikely to be a huge benefit to the global economy. 

On top of that, how does this stimulus pull the U.S. and the U.K. out of this housing debacle, or the rest of the modern world out of what some are calling the Great Recession?  It doesn’t.  I may help, but it’s not the answer.

This does not mean the “good” news won’t create a nice run up in the market.  Everyone is literally begging for a positive sign (just watch CNBC) and this might be positive enough to cause a rally.  Well, at least a sucker’s rally based on current data. 

If a rally does appear I will shed some of the investments I have purchased over the last week to free up cash for the next drop, as volatility is far from over.  How can it be when GE is on the verge of losing it’s AAA rating. 

China’s day as a co-world leader or outright world leader may come, but right now they are only part of the solution…not the entire solution.