As signs of a global recession begin to show, markets begin to show signs of things to come.

This week the WSJ (http://online.wsj.com/article/SB122489105149968665.html) reports of a massive domino effect occurring across the globe within the markets of largely leading industrial nations as they hunker down for the long haul. This morning (Friday the 24th), markets in the US, Asia, and Europe tumbled amongst a growing sense of trouble that has begun to instill itself in the mind of investors. The only exception being Japan whose yen currency reached a new high in market value, however even with this small victory, even the Japanese will suffer somewhat within trade overseas due to the widening gap with the dollar.
Other signs of trouble are coming into focus with the rapid decrease in earnings forcasts. Everything from retailers such as Liz Claireborne to major car manufacturers such as Citroen are announcing sharp cuts in their production for the future, due to a decrease in sales.
Countries in Latin America are also beginning to feel the credit squeeze as many have begun to fear a repeat of the crisis of 1997.
Overall this is only the beginning, until consumer confidence is restored, and the credit squeeze begins to slaken, any hopes of a sudden remedy are unlikey at best.