The Day's News...

• European and Asian stock markets plunged Monday following declines on Wall Street last week amid investor pessimism over the U.S. government's stimulus plan to prevent a recession. Investors dumped shares because they were skeptical that an economic stimulus plan President George W. Bush announced Friday would shore up the economy that has been battered by problems in its housing and credit markets. The plan, which requires approval by Congress, calls for about $145 billion worth of tax relief to encourage consumer spending.

• The London stock market was in meltdown today as nearly £60 billion was wiped off London shares. A combination of poor economic figures and the worsening global credit crunch sent the FTSE 100 plunging. At one stage the drop was the biggest since 9/11 in 2001, although the index of Britain's biggest companies later clawed back some of the losses. At lunchtime the Footsie was down 250.1 points to 5647.8. It is also the worst start to the year for the stock market since records began in 1936. "I smell the acrid stench of fear and uncertainty," said markets commentator David Buik of BGC Partners.

• For much of the world, the United States is now on sale at discount prices, according to a faintly jingoistic article in the New York Times. With credit tight, unemployment growing and worries mounting about a potential recession, American business and government leaders are courting foreign money to keep the economy growing. Foreign investors are buying aggressively, taking advantage of American duress and a weak dollar to snap up what many see as bargains, while making inroads to the world’s largest market.

• Brief commentary in place of a Strategy Quote: Today is Martin Luther King Day, which means U.S. stock markets are closed. When they open tomorrow, it is almost certain that they will fall considerably. By how much, I have no idea, but it's rare that you have a full day's warning for an event such as this. I refer readers to a C.S.A. post on recession and encourage anarchists everywhere to find the strategic opportunities, whether in propaganda or action or both, in stock market turmoil.