If this is not yet capitulation, it sure feels like it. Money has been fleeing stock markets at record speed, and despite dovish signals from the Federal Reserve, investors are still not taking advantage of the buying opportunities the panic in the markets are throwing at them.
The European Central Bank may have just given the start to a property bubble in the eurozone with the credit easing measures it announced on Thursday. Will it be enough to end the single currency area’s crisis once and for all?
The European Central Bank and the Bank of England issued an extended paper pleading for leniency from regulators on the treatment of asset-backed securities (ABS), a class of securities largely blamed for sparking the 2007-2008 financial crisis.