In the Alice in Wonderland world of the stock market, this will help U.S. stocks extend their rally over the next few weeks once equity markets settle in. The elixir for the markets is the Fed’s printing press and this is sure to keep interest rates held in check for a while longer.
Europe is risking a bank runBy Wolfgang MünchauCreditor nations will now insist bank rescues must be co-funded by depositorsSir Mervyn King once said it was not rational to start a bank run but rational to participate in one once it has started. The governor of the Bank of England was right, of course. On Saturday morning, the finance ministers of the eurozone may well have started a bank run.