The next shoe to drop has to be bigger than the last…right?

At least that seems to be the sentiment lurking in the shadows around the financial markets…perhaps it is just my contrarian nature, but this irrational paranoia (yes, I am saying others may be becoming too paranoid) just seems to create the potential for a buying opportunity if disaster can be averted.

In other words, now that the extreme downside cases are clearly being articulated, as is discussed here (thx to WLH): CDS report: “Horrible” fall-out scenario preoccupies market, perhaps the risk of an unforeseen collapse is dissipating.

Last summer, when the powers and minds of the masses were looking forward under the guise of “containment” it seemed much more likely that they would be blindsided by the oncoming train of defaults and contraction. But now that contagion has become the theme of the day, perhaps those in the line of fire will be quicker to dodge the bullets.

That is, of course, assuming that the masses really have their eyes wide open and can move with at least some precision…or maybe I am just hoping beyond hope that the darkest scenarios can somehow be defeated by ingenuity.