Diane Swonk, Grant Thornton:

Well, it’s really a reality check.

What we saw is that the markets had gotten very complacent about the risks out there. What we call black swans, rare events, are now the norm, everything from China slowing. And what happens in China, especially in the real estate markets, can wash up on our own shores. We know that already too many ways.

The second largest economy in the world slowing has an effect on the global economy. The Federal Reserve talking about reducing their asset purchases, taking their foot off the gas a bit, no longer providing quite as much support for the economy and for financial markets, and the shenanigans we’re seeing in Washington over the lifting of the debt ceiling.

Remember, we had a failure to lift the debt ceiling in 2011, which triggered a downgrade in our actual debt status. And the Federal Reserve had to intervene and say that Treasury bonds were still…

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