Bad news has been roiling financial markets for some time. It’s hard to stay on top of what has spooked investors recently and how important it might be. A sense of fear and at time panic drives much of the news. But last week a few things happened that might just be the worst news we have seen since the meltdown of Lehman in 2008, the event that plunged the financial world into crisis.
Two things have happened that have investment houses running for the exits very rapidly. The first is that Spain appears to be in need of a bailout, the largest European economy to hit a key threshold yet. The second is that a weak US jobs report has bid up demand for safe US treasuries to a dangerously high level.