The Swiss take fright at the strength of their currency-and set an unfortunate example.
Bond investors might still take fright if there is an unexpected rush of new borrowing-for a fresh bank bail-out, say.
Hence the big question for China and the world. Will China take fright at the global troubles and relax its grip on the property market?
Either voters will be unwilling to sanction higher deficits, or the markets will take fright and push up bond yields, killing the recovery by a different method.
The housing market is already wilting, as Banks tighten the terms on which they make mortgage loans and would-be buyers take fright at the possibility of instant losses on their purchases.
