Not likely, Why they will reduce there holding in half the value? They are not buying now that is why Fed is buying US treasury bonds.
If Chinese currency appreciate to correct level there will be few buyers of there goods, so they have big interest in system keep going.
In 5-8 years whole system profit will accumulate so much that losses of 08 debacle will be covered and then economy will move on strength.
Right now equities are moving higher because initial phase of inflation can lift all prices. That will also lift housing prices.
When every one buying puts (data shows it) then it provide floor for market and that is one reason market is not dropping, if market drop now it will crash.
MM sells puts and they sell against protection and the will not move it till 3rd week of October so buying early will only evaporate premium. Making money is not so easy as people think, easy way to make money is follow the trend.
One will lose some portion on those trades but in the end one will be ahead.
I know I do not know every thing and yes I lost many times and it is possible I lose in future also.
I am just sharing some thing with my 39 year knowledge of trading.