Morning Brief: Crash

Spencer Platt/Getty Images News

Falling by more than 20 percent over seven straight trading days, the U.S. stock market’s recent performance now meets the standard definition of a crash.

Investors have lost an estimated $8.4 trillion dollars over the past year, with the Dow Jones industrial average sinking another 678 points or 7.3 percent Thursday.

In this morning’s trading, markets in Asia and Europe fell by a comparable amount.

Hoping to find ways to stem the panic, the U.S. government called an emergency meeting of global financial leaders, set for Saturday in Washington. Finance ministers and central bankers in town for the IMF and World Bank meetings will also be discussing the situation at the Treasury Department today.

“They’d better announce a coordinated rescue plan this weekend,” Paul Krugman argues, “or the world economy may well experience its worst slump since the Great Depression.”

“The US and advanced economies’ financial system is now headed towards a near-term systemic financial meltdown,” warns Nouriel Roubini.

For the first time, the Wall Street Journal‘s panel of economists is predicting a downturn in economic activity for the next two quarters.

Yet somehow, Warren Buffett became $8 billion richer from Aug. 29 to Oct. 1.

Decision ’08

The candidates tangled Thursday over John McCain’s mortgage rescue proposal.

Despite his work on immigration reform, McCain is having a tough time attracting Hispanic voters. He may also be in trouble with the white working class.

Meanwhile, Barack Obama is facing increasing scrutiny over his relationship with former Weather Underground member William Ayers.

Americas

U.S. state governments are slashing budgets and stopping big construction projects.

The notion that math is “uncool” is hurting U.S. competitiveness, according to a new study.

The U.N. Security Council is likely to approve peacekeeping troops in Haiti for another year, the AP reports.

Asia

The United States might remove North Korea from the State Department’s list of state sponsors of terrorism as early as today.

As Singapore enters a recession, China seems increasingly worried about the global financial crisis.

The Dalai Lama’s gallstone-removal surgery was successful, a spokesman said.

Middle East and Africa

IAEA inspectors suspect a Russian scientist of helping Iran conduct nuclear weapons research.

In Abu Dhabi, newspapers are still a growth business.

Europe

Finland’s former President Martti Ahtisaari wins the Nobel Peace Prize.

Montenegro and Macedonia recognised Kosovo.

British PM Gordon Brown is considering taking legal action against Iceland.

Today’s Agenda

Drink heavily.