It's A Worldwide Wipeout

Not only are Asian, European, and US markets tanking by 5% or more today, but emerging markets are getting slaughtered, lead by Russia's main index dropping almost 20% in value.

Emerging market stocks fell the most in at least two decades and exchanges in Brazil and Russia were forced to halt trading as the global banking crisis escalated in Europe and oil fell below $90 a barrel.

Brazil's Bovespa index tumbled 10 percent, while Russia's Micex Index plunged 18 percent before trading was halted for a second time today. Indonesia and Saudi Arabia lost the most in at least six years. The MSCI Emerging Markets Index slumped 10.5 percent, the biggest intraday loss since 1987 when Bloomberg records began.

Brazil's two largest companies, Cia. Vale do Rio Doce and Petroleo Brasileiro SA, declined more than 10 percent on concern demand for metals and fuel will weaken. Financial shares retreated worldwide as BNP Paribas SA agreed to take control of Fortis after a government rescue failed, and German state and financial institutions put together a 50 billion-euro ($68 billion) rescue package for Hypo Real Estate Holding AG. The actions spurred speculation credit losses are spreading even after the U.S. passed a $700 billion bank rescue package.

``Investors are escaping in a flight to quality,'' Francisco Busquet, who manages $150 million at Larrain Vial SA, said from Santiago, Chile. ``The main fear is greater probability of recession in developed countries and the feeling that the bailout, although good, may not be enough.''

The credit markets are still locked up tighter than a drum. Nothing's going to change that. Another week on Wall Street like today and the Dow will be back to where it was in October 2002...south of 7500.