While trading in the United States was clearly the initial source of alarm, the concerns spread to everywhere that money changes hands. It makes people risk averse.”The fear that seized the United States was the spawn of good times. Inflation remains weak in Europe, undergirding expectations that the central bank will be slow to take back its free money. Mario Draghi, the Italian who heads the European Central Bank, is scheduled to complete his eight-year term late next year. Whatever the interest rates, central banks retain trillions of dollars on their balance sheets earmarked for buying up financial assets, making credit available.

Source: New York Times February 06, 2018 18:30 UTC