Credit crunch catalyst has resilience to lead world out of downturn

America lay at the heart of the global financial crisis: falls in the price of speculative property ...

America lay at the heart of the global financial crisis: falls in the price of speculative property developments in Florida and California were the proximate cause of the sub-prime crisis, itself the trigger for the global credit crunch. Since then, the US economy has shrunk and millions of Americans have lost their jobs, another 539,000 joining the ranks of the unemployed in April, driving the unemployment rate up to 8.9%. Why, then, does the latest edition of Merrill Lynch's monthly survey of global fund managers show that they are significantly overweight in US equities and significant...