What the financial markets are saying about Japan

Japan’s stock market has lost about 20% in the past 2 days.

Currency markets are very stable given the provocation.   The Bank of Japan is throwing everything that have to avoid a financial meltdown – very likely the Fed and European Central Bank are also working very hard to keep things stable

Commodities – food, oil, gold, silver are dropping.   That suggests we’re headed back into another economic slowdown.   Things made in Japan including components for electronics and cars may be offline for a long time

European stock markets – plummeting – close to September 2008 territory. 

Interest rates – dropping a lot – money is fleeing the stock market and looking for safety in bonds.

It’s really starting to sink in this IS a really big deal.