Markets Head to New Danger Zone

We hope we haven't been blogging too much on the financial mayhem taking place as of late, but if we are it's only because it's becoming more and more obvious that our financial markets in America will probably be the source of our downfall.

With that being said there are many headlines hitting the news this morning after the most volatile week EVER on Wall Street.

(Reuters) - The loss of market confidence in economic leadership in key countries like the United States and Europe coupled with a fragile economic recovery have pushed markets into a new danger zone, something that policymakers have to take seriously, the head of the World Bank said on Sunday.

"What's happened in the past couple of weeks is there is a convergence of some events in Europe and the United States that has led many market participants to lose confidence in economic leadership of some of the key countries," he said.

See it here; http://www.reuters.com/article/2011/08/14/us-economy-worldbank-idUSTRE77D0V620110814

Did you catch the word "confidence" being used numerous times?  We know the whole financial system is based on it...so losing it would be very serious indeed.