Capitalism is bad at fiscal policy. Capitalism is also bad at monetary policy but that’s less apparent. You cannot hear a loud hum but you can hear a small bang.

Investing is not for the faint of heart. Neither is it for the psychotic risk taker. Investing requires balance, rationality and a good deal of detached and independent thinking. So don’t listen to me. Figure it out for yourselves. Here are a few common declarations by investors and a few (loaded) questions they should ask.

The credit quality of sovereign debt is the subject of current scrutiny and debate. The business of government is a complex one with multiple objectives and indeed philosophies. Some believe that governments are inherently inefficient and therefore should have their mandate clearly defined and limited. Others see government as an arbiter that corrects market imperfections.

Its not fundamentals that are driving equity markets and responsible for the current weakness. Fundamentals were bound to weaken once the first round of inventory restocking had taken place and the benefits of cost cutting had been realized.

Debt levels as a percentage of GDP: