Per Paul Krugman:
Stock prices are, however, the least of our worries. The money markets are frozen; the TED spread is 4.14%.I'd have to agree. Equity market crashes are painful. No credit market = no global economy.
G7 meeting tomorrow, IMF-World Bank over the weekend. Now is the time for major action — an announcement of coordinated capital injections, liquidity measures, and more. If we’ve had nothing except vague assurances by Monday ….