A dodgy alliteration, but now the heat has turned on Hypo – so what does the German government do, rushes to the rescue, guaranteeing savings everywhere. Other countries in the Euroland won’t be too unhappy about this, but the UK definitely will be.
This is now socio-political concerns completely overriding the economic forces – ie. very definitely not a free market and not capitalism.

Since the only bullish market is in bail-outs and guarantees, obviously matters are going  to continue to be tricky to predict. Signals? Mixed, and unfortunately at the whim of people who aren’t primarily trained in economics.