The political and economic landscape is fraught with danger even as the global equity markets remain mesmerized by the continued liquidity from the ECB, BOJ and the Swiss National Bank. It is not only the massive amount of asset purchases sustaining the elevated equity levels, the siren call of a HUGE U.S. tax cut (OR IS IT REFORM), which will be aided by being revenue neutral, keeps Wall Street pushing for lower risk premiums, or conversely increased stock market valuations. As I noted last week, the S&P/BOND RATIO has broken out to all-time highs as it has struggled for several years to climb above the record made in December 1999. The ratio moved to an all-time monthly high Friday, an indication that stocks are the highest price to Treasury debt, ever. Are stocks over extended on a fundamental basis?