In the space of just a couple of hours late last Monday afternoon, an incredible $1.25 trillion (€1 trillion) was wiped from the value of US stock markets. The sea of red has since spread to trading screens all around the world. Nowhere has been spared. Stocks and the equally important bond market have tanked everywhere. The scale and speed of the slump has left many gasping to understand what is happening and, more importantly, why.
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