The stock market continues its dramatic slide today. Sounds like folks are getting spooked:

Bill Gross of bond fund Pimco said that hedge funds were starting to liquidate their positions in a bid to preserve their capital – a worrying “mini relapse” towards 2008 territory.
Andrew Roberts, head of European rates strategy at RBS, said “Great Depression II” could now be approaching, adding: “It now has potential to speed toward its conclusion; a European $1trn package which does little and political panic tells you we are about to reach the end of the road. The world should be discussing deflation, not inflation.”
The global stock market sell-off continued for a third day on Friday in Europe and Asia and world equities are heading for the biggest monthly fall since October 2008.

Meanwhile, Paul Krugman says Greece is not the model the US should fear; it’s “a Japan-style lost decade, trapped in a prolonged era of high unemployment and slow growth.”