I wanted to provide a review of some of the issues we’ve discussed over the past several months given today’s reminder that the market is a risky asset. The talking heads will chalk this up to geopolitics. Granted geopolitics add a degree of risk but it is the underlying realities of the US and global economies that will burst the bubble of market euphoria. Something to note is that we’ve been facing geopolitical tensions for months now and the market has continued its all time high performances. But we had a Portuguese bank conglomerate default last week and Argentina default last night. And today…. the largest sell off in the market YTD sending the Dow to a YTD decline and the Russell 2000 down almost 4% YTD. So despite the hype we have no growth in GDP this year and major markets in the red. And folks, this is only the beginning. There may yet be some ups to come in the midst of the downs but this is the beginning of the next bursting bubble. And the implications will far more severe than ’08. To understand the underlying significant economic issues review the following posts. The divergence between the market and the economy cannot continue as they are, perhaps unfortunately, fundamentally intertwined.