Want to know what happens when a market completely ambivalent about risk suddenly wakes up and smells the coffee? Look at your trading screens. Bonds are screaming ... stocks are tanking ... the Japanese yen is flying ... volatility indices
like the VIX
. These are all indicators that a four letter word long forgotten is being remembered in a big way. Now, the question becomes: Is the worst over? Or is this Long-Term Capital Management all over again? If only the answer were clear...