World stock markets fall as U.S. ills spread

By David J. Lynch, USA TODAY
No place to run. No place to hide.

As the sun moved west Monday, it shone on one market bloodbath after another. First Tokyo, then Hong Kong and Bombay. Later, Moscow, Frankfurt, Paris and London joined the casualty list. Market indexes in every important capital ran red.

"It's a scary time in markets worldwide. This is turning into a crisis of confidence around the world," said Eswar Prasad, former chief of the International Monetary Fund's financial studies division.

If the rest of the world once hoped it might decouple from the sputtering U.S. economic engine, those hopes have been shredded. Monday's comprehensive market rout was both a verdict of "not good enough" on the United States $700 billion financial rescue plan and a stark expression of the investor fear that is spreading without regard to borders.

"This is global, and this is the downside of globalization," said Stephen Wood, senior portfolio strategist with Russell Investments.

Source: http://www.usatoday.com/money/markets/2008-10-06-world-markets-us-link_N.htm