Nikkei dumps 10% - the wrong week to quit sniffing glue

It's 2:00 AM and CNN International has busted in with breaking news. Richard Quest is having a cow and the anchors are shaken.

Bloomberg - Japan Stocks Plunge, Nikkei 225 Down Most Since `Black Monday'

Oct. 8 (Bloomberg) -- Japan's shares plunged, driving the equity benchmarks to the biggest rout since the October 1987 "Black Monday" crash, as the accelerating credit crisis prompted investors to unload their stock holdings.

Toyota Motor Corp., the world's second-largest automaker, fell the most in nine years after Nikko Citigroup Ltd. cut its rating. Mitsubishi UFJ Financial Group Inc. slid 6.5 percent after nationwide bankruptcies surged to the highest since May 2003. Elpida Memory Inc., the nation's largest computer memory maker, dropped to a record low as the yen strengthened to 100 against the dollar.

"It's capitulation," said Masafumi Oshiden, a Tokyo-based fund manager at BlackRock Inc., which oversees more than $1.4 trillion. "There are lots of forced sellers. If you're a fund that's going bust you need to close out all your positions."

The Nikkei 225 Stock Average sank 967.03, or 9.5 percent, to 9,273.26 as of 2:35 p.m. in Tokyo, the steepest fall since a 15 percent drop in October 1987. The broader Topix index declined 76.64, or 7.8 percent, to 900.97, also the biggest loss in 21 years.

Capitulation via investopedia

[update]

Indonesia has curbs in at 10%. Oz market down 5%. Damn. London takes a dive in a few hours. They're dumping liquidity into banking houses for interbank short term fixes and nationalization/shares. Get ready for Bank of America, and revolving credit dominoes. Durables and Christmas inventory? Damn.

None of these guys--the hedges, megabanks, the fed--have the balls to admit what they've done or let happen, and none can muster the guts to admit what needs to occur, fast, in order to throw out a big anchor. Somebody move the election up a month, please.

The wrong week. Maybe the wrong quarter. Most likely the wrong year. Lloyd Bridges explains while I ponder several wrecked 2009 projects....