Usually the big decision for central bankers is to hike or cut interest rates. Now its the extent of the bail out required to support the financial system.

Global markets have moved into panic mode. Regulators are attempting to intervene in an effort to restore confidence but so far they don’t seem to be winning.

The bottom line is that investors are demanding much higher returns for taking risk and asset prices will reflect this sentiment until stability returns.

Markets like these will offer opportunities and reward those able to take a long term position and ride out this chapter of higher volatility and risk aversion.