There are a couple of huge gorillas loose in the current environment, threatening to do serious damage to global financial markets. (No, I don't think we have seen the worst yet...).
- US - Russia relationships are deteriorating fast. The Georgia flash point did not come as a surprise to anyone who has been following energy/geopolitical developments. Simply put, the West's reliance on imported oil and gas is exacting a heavy price, with a resurgent Russia demanding to reclaim its global player role.
- The Fannie and Freddie nationalization is the clearest sign yet that the global financial construct, based as it is upon huge piles of debt, is bankrupt and that we haven't yet figured out what to replace it with. Those who should know better are still beating a dead horse .