“Markets braced for big European rate cuts”

Sometimes a headline says it all. Today’s in the Financial Times, “Markets braced for big European rate cuts”, showed just how far we have travelled since the first signs of global financial crisis in August last year. Then, a co-ordinated round of interest rate cuts would have sent stock markets soaring. Now, they are taken as a sign of underlying weakness. Deflation, as the blog discussed in October, is now the real concern.