Bad day for the markets in Europe and the U.S. (Jan 14th)

Bad day for the markets in Europe and the U.S.

European Markets were hit by the bad news from the U.S. and sank between 4 and 5 percent today. Walstreet got hammered by the bad news from the retail sector and continuing worries about the banking sector.
At this hour (Amsterdam, 21.20 CET) the main U.S. indexes are down well over 3 percent with the NASDAQ going to minus 4 percent. The DJIA is going towards the 8000 level again.
The outlook for the Asian Markets tomorrow looks pretty grim.
Oil dropped below $37.- on economic worries, bulging inventories and lower demand forecasting. Google shares kept barely above $300.-.
We saw today even signs of worry from the Dutch Government, they are beginning to understand the Netherlands cannot escape the recession.

Will Banks and Financial Markets Recover in 2009?

Will Banks and Financial Markets Recover in 2009?
(From The Guatamala Times, By Prof, Nouriel Roubini) Read whole article, click on link.

So what lies ahead in 2009? Is the worst behind us or ahead of us? To answer these questions, we must understand that a vicious circle of economic contraction and worsening financial conditions is underway.
The United States will certainly experience its worst recession in decades, a deep and protracted contraction lasting about 24 months through the end of 2009. Moreover, the entire global economy will contract. There will be recession in the euro zone, the United Kingdom, Continental Europe, Canada, Japan, and the other advanced economies. There is also a risk of a hard landing for emerging-market economies, as trade, financial, and currency links transmit real and financial shocks to them.
So 2009 will be a painful year of global recession and further financial stresses, losses, and bankruptcies. Only aggressive, coordinated, and effective policy actions by advanced and emerging-market countries can ensure that the global economy recovers in 2010, rather than entering a more protracted period of economic stagnation.

Nouriel Roubini is Professor of Economics at the Stern School of Business, New York University and Chairman of RGE Monitor (www.rgemonitor.com), an economic and financial consultancy.