European markets took a dive this morning—after the Dow's plunge yesterday and the overnight collapse of Asian stocks. London's FTSE 100 index has fallen below 6,000, its lowest level since last October. London weathered the storm yesterday, but had nowhere to run today, the Guardian reported, as the credit crisis continues to widen. Markets in Frankfurt, Paris, Madrid, and Stockholm all also fell.
Today, all attention will be turned to Wall Street, where the Dow could drop another 100 at the start. In an interview in the Wall Street Journal, Treasury Secretary Henry Paulson insisted that the market shake-up is part of the natural order of things, and that market players should not be guaranteed against losses. "One of the natural consequences of the excesses is that some entities will cease to exist," he says.