Last week, In US$ valuation, the Brazil MSCI Index, symbol EWZ, dropped 20% overnight. That is the value of equity of Brazil companies in US$ was cut 20% between the time the market closed to when it opened the next day.

Meanwhile the "VIX" indicator of US market volatility remains near record lows, indicating little concern by US traders of risk of a sudden revaluation of US stock prices. And this is the case in most financial markets across the globe.

My conclusion is that the prevailing attitude is that when the boat sinks we are all going down with the ship, so why worry.