David Bloom, currency chief at HSBC, is quoted in the latest AEP article. He describes our world as one of "rotating sovereign crises". The lighthouse alarums circle round and light up the problems of each district one after the other. A month ago, it was the PIGS and the Eurozone. Today, it is the United States with the Federal Reserve's warning that the USA may take far longer to recover than anticipated and further stimulus may be required.
Are the markets unable to digest bad news at once? It seems to be a linear and staccato crisis, of alarms and breakpoints, single problems highlighted and countries crucified before governmental action sets up a firebreak.
The United States has turned down according to its leading indicators. Predictions that the $ will fall to 1.35 against the € can be treated with some scepticism. The problems are a series of rotating doors: it is a matter of relative perception when US fragility translates into EU robustness. It doesn't and, in turn, we will see Europe's problems come to the fore, as depression exacerbates debt and default.
As for the UK, double-dip seems a racing cert.