If you thought round one of the financial crisis was pretty rough three years ago, that was just a dress rehearsal for the main act. And the performance has just begun.
For the past 10 days, the markets have been doing the dance of the uncertain. Serious falls but nothing to get too alarmed about. On Wednesday things began to get ugly. Then came last night, when it finally dawned on traders in Europe and North America that there is almost no way to avoid an economic calamity.
The problem is compounded by the fact that it is so alarmingly huge and that it is replicated throughout the developed world. Massive deficits, enormous debts, and no obvious way to pay for it all.
Read more: http://www.smh.com.au/business/this-time-its-serious-20110805-1ie4t.html#ixzz1U7MFB833