The "news" that a Euro bank tapped ECB for dollars at 1.1% has sent the markets into a hizzy. That banks are catatonic and under Central Bank control should not be a surprise to anyone with a pulse. The stream is bubbling with calls for global recession and even depression. The surprise ending to this movie could be a shocker.
We remain in the slow growth camp. Capital markets are pricing something considerably worse. World wide austerity can leave a mark. The ECB needs to play harder and faster. The Chinese need to move the Renminbi peg officially up. The gap between markets and the economy is wide when either up or down.