THE WORLD WAITS – AT 7:31 A.M. ET:  The heavy dip in stock prices yesterday was worldwide, fueled in part by America's economic problems, but also by Europe's financial crisis.  While Greece has been temporarily bailed out, Spain and Italy are on the brink.

Italy is the world's eighth largest economy, and not easily bailoutable.  For decades the West Europeans have been living on a credit card, maintaining vast welfare states, made possible in part because the United States was defending them.  Now a number of European states are running out of money, and Uncle Sam cannot help.   But don't despair.  The Europeans will still proclaim their superiority over us, no matter what kind of financial suicide they commit.  They will proclaim said superiority while secretly watching American sitcoms.

Stocks in Asia have already tumbled for an eighth straight day, and Europe is also down.  We await the result in the United States, whose performance will have a psychological impact on the rest of the world when the demolition derby begins again on Monday.

BRUSSELS (AP) -- Stocks around the world tumbled Friday ahead of crucial U.S. jobs figures, continuing a losing streak reminiscent of the aftermath of the collapse of U.S. investment bank Lehman Brothers in 2008.

Growing panic about the debts of big eurozone countries like Italy and Spain, paired with fears the U.S. may be heading back into recession. Jobs figures later could well go a long way to determining whether the U.S. economy is indeed on the point of shrinking again.

The biggest one-day points decline on Wall Street since the 2008 financial crisis Thursday carried into Asian and European markets Friday, taking down oil prices as well, as investors were preparing for a slowdown in demand.

Have a nice weekend.

August 5, 2011