The surge in investor confidence we currently see in the markets can be partially attributed to the adapted monetary policy of the ECB. This helped ensure stability in the markets, not only within but also beyond the borders of the euro area. The ECB reacted promptly to the challenges brought about by the crisis, taking both traditional and unconvential measures.
That said, the uncertainty surrounding the future course of US house prices is considerable and there is a very wide range of estimates of the total losses that financial systems will eventually have to absorb.