Even the main stream press now sees the danger:

Financial markets in greater danger than 2008-BoE's Fisher

LONDON | Mon Dec 19, 2011 4:46am EST

Dec 19 (Reuters) - Financial markets are facing a more dangerous situation now than during the financial crisis of 2008, Bank of England policymaker Paul Fisher was quoted as saying on Monday.
Fisher, who is the central bank's executive director of markets and sits on the Monetary Policy Committee, also said governments had fewer options to deal with the current crisis because of their stretched public finances.
"Most people in financial markets have not lived through an episode like this before," Fisher told newswire Market News in an interview.
He said that while the situation is in "some ways not as bad" in terms of market stress, it is at the same time potentially "more dangerous".
Fisher was quoted as saying that in 2008, governments had more leeway and cash available to stimulate their economies and bail out banks.
Today that "sovereign backstop is less clear", Fisher said.
"The policy out is going to be more difficult than it was in 2009, given the current position of the sovereigns."

  

Financial Turbulence

Market Chaos 'Potentially Dangerous for Humanity'

AFP

Financial markets don't function properly and endanger humanity, Woolley says.

Financial markets are inefficient and growing to the point of overwhelming the economy, according to Paul Woolley, an expert on market dysfunctionality. In an interview with SPIEGEL he explains why it's up to investors to stop dangerous trends and hold financial institutions accountable.

SPIEGEL: Mr. Woolley, you were fund manager for many years, but went on to found a research institute at the London School of Economics to study why financial markets repeatedly go haywire. Now speculators are once again betting against the euro, and share prices for big companies are falling by 20 percent in a day only to shoot back up again. What is going on?

Woolley: The developments in recent weeks have made it quite clear that the markets don't function properly. Things are spinning out of control and are potentially dangerous for society. Only a fraternity of academic high priests connected to the finance markets is still speaking of efficient markets. Still each market participant is pursuing their own selfish interests. The market isn't reaching equilibrium -- it's falling into chaos. SPIEGEL: You've compared the finance markets to a cancer. What do you mean by that?
Woolley: The finance sector can -- and is -- growing until it overwhelms the economy. In good years the US finance industry cashes in on more than 40 percent of all corporate profits. In bad years they are saved by the taxpayers. The agents are doing a devilishly good job of developing innovative, complicated new products that people can't understand. It gives them the opportunity to earn excess returns and attract the best talent. While they are acting rationally, the result is a catastrophe.

Economic predictions for 2012: PIMCO's economic forecasts for the new year

, Finance Examiner

December 22, 2011 -

As we move towards the new year and the end of a very chaotic 2011 in the markets, global economy, and in nations dealing with social unrest, it is time to look at the economic predictions for 2012.
We will continue with the predictions made by bond insurer PIMCO, and their economic forecasts for the coming year as issued on December 22th by CEO Bill Gross.

• PIMCO SEES RISK-OFF PHASE IN FIRST PART OF 2012, EL-ERIAN SAYS
• PIMCO: U.S. TO GROW BETWEEN 0% AND 1 % IN 2012
• PIMCO SEES GLOBAL ECONOMY GROWING 1.0%-1.5% IN 2012
• PIMCO SEES CHINA GROWING 7% IN 2012
• PIMCO SAYS EUROZONE ECONOMY CANNOT HANDLE SOVEREIGN AND BANKING DELEVERAGING AT THE SAME TIME
• PIMCO SAYS ECB MUST BECOME LENDER OF LAST RESORT