Not very subtle, but couldn't agree with you more. Feels like the day after Lehman went BK, and the market gapped down and you knew everything was going to be different going forward, but you just stood and watched in awe rather than selling, hoping you were dreaming and you'd get a bounce to sell soon, but the free fall didn't stop until the S&P was in the 800s, and eventially saw 600s. Oh boy.
The one thing I learned from 2008 is dip buying is usually a good idea, unless the dip is caused by a financial crisis, then run for your life. Italy breaking down is the end game for the European banking system, as short term yields exceed long term yields and have balooned well above 7% means default is almost a done deal in the next 6 months, and Europe has already said that have no intentions to bail them out, not that they could unless they have an extra $2 trillion lying around.
The question is, did the banks in the US raise enough capital after the crisis, and de-lever sufficiently so that they can survive? My gut says yes, so I would think we don't see 666 on the S&P again, but 800s is certaintly a possibility over the next 6 months, with lots of false rallies in between for traders to make money.