Across the globe PMI's and exconomic growth are slowing and here at home we are precariously close to stall speed and very vulnerable to economic shocks.
The markets, which are forward loooking when it comes to positive developments and plain stupid when it involves challenges, finally realize there is a chance of recessions in both the US and Europe accompanied by potentially catastrophic debt events. And the BRIC's are slowing.
With respect to the US, I believe market action is in response to the broader events already mentioned plus a realization the prospects for further QE are remote.
This Qualifies as a Genuine Panic [View article]
The markets, which are forward loooking when it comes to positive developments and plain stupid when it involves challenges, finally realize there is a chance of recessions in both the US and Europe accompanied by potentially catastrophic debt events. And the BRIC's are slowing.
With respect to the US, I believe market action is in response to the broader events already mentioned plus a realization the prospects for further QE are remote.