According to press, Europe is waiting for its Lehman moment.

The increase in volatility and renewed appreciation for the greenback’s specific brand of safe haven appeal leverages the possibility for a bigger market shift developing going forward.

News that officials had devised an aid package for debt stricken Greece that would include voluntary private sector participation saw a reprieve to the heavy selling pressure the euro suffered earlier in the week.

The Japanese yen looks ahead to a volatile week as the currency’s lingering correlation with US Treasury bond yields and sensitivity to risk sentiment trends puts it squarely at the epicenter of major event risk.

Despite a surprise drop in the unemployment rate, the loonie is expected to see further downside as concerns over growth in the US and sovereign debt fears in Europe continue to weigh on risk appetite.

How come the economy is so listless? How come there are so few jobs? How come house prices are falling?

If the US debt situation is as bad or worse than Greece's, how come the yield on US 10-year notes isn't 17 percent too?

When profits are high it is usually because labor costs are relatively low. That is the case now. But that’s not good news.

Even if the US holds itself together, there’s a good chance that either Europe or China will drag it down.

This week John Maudlin looks at data from the Bank of International Settlements.