4. All global assets reflect this and are overpriced and show, probably for the first time, a negative return to risk taking.
6. Global credit is more extended and more complicated than ever before so that no one is sure where all the increased risk has ended up.
7. Every bubble has always burst.
8. The bursting of the bubble will be across all countries and all assets, with the probable exception of high grade bonds. Risk premiums in particular will widen. Since no similar global event has occurred before, the stresses to the system are likely to be unexpected. All of this is likely to depress confidence and lower economic activity.
