[soprofaxel]

Because there is global overcapacity that is being covered up by artificial aggregate demand (Quantitative easing). Countries because of fiscal pressures and rising deficits are pulling back. US is supposed to end their QE in March although politically I suspect they will continue it but maybe not until after a market correction. The Eurozone however has got the PIIGS and eastern europe debt that is going to drag them down and they can't continue their QE. The fact is that private demand is anemic and gov't induced artificial demand cannot continue ad infinitum. Thus you have massive growth worries going forward. That is not good in a globalized economy that is so interconnected and wrought with counterparty risk. It also doesn't help that companies that depend on demand are multinational....hence the pressure on equities. The US has a massive budget deficit it has to service this year so the flight to the least worst currency (the dollar) will actually alleviate some of the pressure on the US sovereign debt situation in the short term but it will cause a second leg down in the market...wash, rinse and repeat