Clouds gather again as the sunny start to 2012 fades


It is difficult to see how economics and markets can be detached again from politics in a year when there are so many political events, elections and transitions

By Nick Evans

Well that didn’t last long. After an unexpectedly sunny and bright start to the year, markets have turned cloudy and stormy again in the last few weeks. Far from looking like a possible repeat of 2009, 2012 now looks a good deal more likely to be like 2011 all over again.

Normal service has been resumed in the eurozone, with Spain’s mounting financial and financing difficulties putting a dampener on the earlier euphoria that had been triggered by the the ECB’s LTRO operation at the end of last year.

Just as the Fed, the Bank