[deMolay]

The crisis has hit Europe east and west. North and South America. Asia all have been hit. In many of these countries people are taking to the streets. link

Asia's economies have posted the starkest drops in economic activity, but the slide is evident from Latin America to Eastern Europe. Economists are particularly concerned about conditions in the Baltic countries, Eastern Europe and Russia, which still has a formidable nuclear arsenal. In all three areas of the former Soviet empire, deteriorating economic conditions, marked by steep falls in the value of national currencies and gross domestic product, has led to weeks of civil unrest.

Analysts are worried that problems in Eastern Europe and Russia could have a negative impact upon western currencies and banks, which are big lenders and investors in the area. They point to a sharp fall in the euro last Tuesday. The value of the 17-nation currency plunged after reports that Russian banks were seeking to reschedule as much as $400bn of foreign debts.

Russian banks had $198bn in outstanding foreign debt as of October 1 and non-financial institutions had $300bn, according to the latest data available from the central bank in Moscow.