Painful. Asia fell due to fears in the banking sector and overall global economy after the US experienced it’s worst week in seven years. German bank Hypo Real Estate required urgent financial assistance and countries across Europe have started to guarantee all savings and not just limited portions as in the past. Ireland started the trend of 100% guarantee and that has since been copied by Greece, Germany and late last night, Denmark. In an effort to prevent runs on the bank and money shifting from an unprotected to a fully protected banking country, other countries will surely follow soon.

In Europe, heads of state gathered as more financial problems arrived in the banks. Attempts were made to build a US-like rescue package though they were unable to agree on a coordinated plan. The bank guarantees only highlighted the banking problems and at opening, Europe has fallen over 4%. This is going to be the first real test of both the euro and the European Central Bank (ECB, which is like the Fed) as the Eurozone economies head into recession.