The More It Stirs, The More It Sinks

This is one clearly proven fact which economists don't argue about: when stock markets head downward so do hemlines on women's skirts. This year hemlines are below the ankle and it can only bode ill for the world's stockmarkets.

It was another awful week on the world's leading stock markets and now people are loudly asking which way the global economy is headed. The worst news came once again from New York as the Dow Jones plunged below 8000. On a grim Thursday morning, it lost 123 points before lunch and hit 7718. "There's a lot of fear out there," said one broker, stating the obvious.

Wall Street's Blue Mood is always contagious. In Germany, where Gerhard Schroeder is about to take office, the Frankfurt Dax fell to a nine-month low. On Thursday, it was down 7.5 per cent at 4094 points. Germany's banking giants like Deutsche Bank took a beating once again. The mighty Deutsche Bank has seen its shares halve in value from its highest point this year. Similarly, Dresdner Bank has suffered the same fate. And this has happened just when the Germans were learning to love the equity cult.

It hasn't been much better in Britain. On another bloody Thursday, the FTSE slid by 156 points to its lowest level this year. The FTSE, which was expected to scale great heights this year, is now back at 4908. On October 1 alone, Britain's top companies saw