I HOLD THIS TRUTH TO BE SELF-EVIDENT, THAT A DEBT CRISIS CANNOT BE RESOLVED WITH MORE DEBT
Monday, February 5, 2007
Volatility Compression and Convergence
The chart below (from the ECB's monthly bulletin) compares volatility for euro area, US and Japanese stocks. It's a converging world out there - as far as everyone's risk perceptions are concerned. Evidence of complacency becoming a global virus.