Brexit fears are shaking world markets once again

Government bond yields are telling you something very nasty is about to happen. Yields on 10-year U.S. government paper fell to an all-time low of 1.367% on Tuesday and continued to drop on Wednesday to 1.350%. In Japan, the yield on 20-year government bonds turned negative for the first time, in another sign of investors fleeing to safe havens.

Banks are coming under pressure, with another potential Lehman moment in the works, Italy’s banking crisis could spread to the rest of Europe. Switzerland’s Credit Suisse Group and German lenders Deutsche Bank and Commerzbank were heading to their lowest share-price closes on record.

As world markets continue to take a dive, precious metals are soaring. Gold is posting its third straight day of gains. The yellow metal is hitting $1,375 this morning—a two-year high.

It’s Starting to Feel Like 2008, the crashing bank stocks in Italy and elsewhere in Europe and the sudden trading suspensions by three UK commercial property funds.