Menta, what gets lost in most of this is the time frame.
The unraveling eg. reversal, takes quite a while so those whose heads are buried firmly in the 'now' will never see the signs nor heed the warnings.
That in itself causes the most violent of violent reactions making things crash at greater speed with a momentum that, due to shattered confidence, spins greater destruction.
I believe that 08/09 were just a taste of what will happen and sometime this year the markets could have shrugged of a currency crisis, higher bond yields, European sovereign default/s, QE3, a large mid year shock correction, China slipping into recession, $200 oil, absurdly priced commodities, a full blown civil war in Pakistan, a record US budget deficit blowout (aren't they all?).....etc
And how do the markets respond to these cataclysmic events?
