As political leaders around the world scramble to reassure investors, all eyes are wide open this evening in anticipation of the opening of world markets tonight, particularly in Asia. Early reports indicate that Asian markets have opened down. The news that Standard and Poor downgraded the credit rating of the U.S. for the first time in history has investors around the world on edge. Tel Aviv stocks dropped by 7% on the news of the downgrade. Added to the anxiety is the fact that Greece, Spain, Italy, and other major European nations are on the brink of economic collapse. Thus, the 'night watch' begins.
What Monday will bring is anybody's guess. As one market analyst told CBS News this evening, 'We are in uncharted territory. There is no way to know what the markets will do tomorrow.'
Many market watchers believe that there will be no major crash tomorrow, given that the various stock entities have had the entire weekend to prepare and to adjust course accordingly. This seems to be the consensus among a broad spectrum of analysts who believe that Monday's markets, though volatile, will either break even or possibly experience a modest upswing as they did Friday.
The key, however, is what follows in the coming days, weeks, and months.
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