It all keeps coming back to this chart from Morgan Stanley:
Unless this time it’s different, we’re bound to have a period of sovereign debt crises, and indeed, that seems to be the only big macro story folks are intersted in (that, and China’s bubble).
Once again, the chatter overnight is about Greece, Portugal, California, and the rest of the fiscal bad boys.
A key member of the Bank of Japan even invoked Greece in warning about his own country.
Asian markets generally slide overnight, while the dollar strengthened, which is classic flight-to-safety behaviour.
S&P futures are heading south, as well: