markets: looking for signs

Tuesday was a bad day in the financial markets. A widespread fear response - in equities, credit, foreign exchange and bonds - was provoked by the unsurprising announcement that S&P is rethinking its ratings on securities backed by US subprime mortgages. The disproportion of the reaction raises a frightening question. Could the top of the credit-fuelled bull market be at hand? The financial evidence is weak. The potential S&P rerating affects only $12bn of securities, a mere drop in the massive...