I see that the "panic stage" that I warned of only two days ago has already set in.
However, it is not the markets that panicked first, but the politicians (whose panic has in turn spooked the markets).
Germany hit the panic button and "declared war" on speculators, including a ban on "naked" short-selling.
German Chancellor Angela Merkel warned of "incalculable" consequences if the Euro fails.
Needless to say the action of banning shorting, and warning of dire consequences if the Euro fails scared the hell out of the markets.
1 It is clear that the EU intends to curb free market activities, thus attacking the profits of the financial companies that operate in Europe.
2 Predicting dire consequences focused world markets' attention on the perilous state of the eurozone.
"This challenge is existential. And we have to rise to it. The euro is in danger. If we don't deal with this danger, then the consequences for us in Europe are incalculable."
This is a remarkably foolish own goal by the Germans, which has kick started a market panic and sell off of the Euro.