What to buy as Europe nears its sub-prime moment

The US is on the verge of a bear market. Yesterday, the S&P 500 closed down nearly 3%, hitting its lowest level since last September. The market has now fallen 19% since April, when it hit its post-2008 peak. That's a shade off the 20% commonly defined as a bear market. Meanwhile, currencies from the euro to the Aussie dollar slid against their US counterpart. The dollar remains the haven of choice in a panic. What's the problem? You could reel off a list as long as your arm. But it boils down to one thing – it's those pesky banks again.