Markets are realising that the five-and-a-half year recovery since the financial crisis may already be over

Markets are realising that the five-and-a-half year recovery since the financial crisis may already be over. Ambrose Evans-Pritchard writes Combined tightening by the United States and China has done its worst. Global liquidity is evaporating. What looked liked a gentle tap on the brakes by the two monetary superpowers has proved too much for a fragile world economy, still locked in secular stagnation. The latest investor survey by Bank of America shows that fund managers no longer believe the European Central Bank will step into the breach with quantitative easing of its own, at least on a worthwhile scale. Markets are suddenly prey to the disturbing thought that the five-and-a-half year expansion since the Lehman crisis may already be over, before Europe has regained its prior level of output. (VIEW LINK)