Credit markets: fear of falling

In normal times, a US recession would be a distant prospect. After all, the biggest piece of economic data this week will be the revision of third-quarter US GDP growth rate, probably to a far-from-recessionary 5%. But these are not normal times. True, the economic world only looks a little darker since the end of September. The additional problems – further declines in US housing and bad mood indicators in the EU and US – are mild. But the financial world is another story. Many key markets are...