I like how the next shoe – the economy is apparently a well haberdashered millipede – to drop is supposed to be credit cards. Or insurance in some form. Or business loans. Or, or, or.

Well, thanks to the UK, eyes have turned towards sovereign nations. Thanks to S&P, the UK has been put on credit watch with negative implications. Can a downgrade be far behind? And then can the USA be next? What about any other bailout nation (sorry Ritholtz)?

The bear market rally was fun, my friends, but reality bites.

Maybe Jim Sinclair is not such a kook (not that there’s anything wrong with that)