Markets: Something awful for the weekend

Friday is proving an awful day in the financial markets. As of New York morning, equity markets were down 7-10%, the euro was off 2.5% against the dollar, the dollar off 9% against the yen, gold up from an earlier 6% drop and the Itraxx index of spreads on investment grade debt 16 basis points wider at 113bps (up from 88bps on October 14). During the credit bubble many markets rose together, thanks to mutually reinforcing positive trends: increased investor appetite for risk, above-average econo...