US continues to drag down the rest of the world… further.

Now that the American Banks (and companies) have all announced further losses, more huge job cuts, closures and scandals, one can only assume that the asian markets will be hurt just as bad. Japan has already announced the same due to their heavy dependance on foreign sales and exports. It’ll be back to the 90’s for them.

• GM and Chrysler together ask for an additional 22 billion.

• Mining giant AngloAmerican announced it will layoff 19,000 people today.

• Saab gets creditor protection.

European banks have just started another round of banks breaking down and billion dollar losses. Note also that some european banks are already nationalized and have been since the last financial crisis. Many also argue that the US will have not choice but to nationalize its major lending institutions.

Many of the asian and real estate markets jumped on the real estate bubble band wagon following the North American market once it became saturated and mature. I know of many investors even from Canada who went overseas to invest in real estate markets outside of Canada. When the curtain falls, it will fall hard unfortunately. Properties in China had already reached level similar to North America in a country where many earn less than 1/4 of a canadian in a low income tax bracket. Real estate developments in Malaysia will suffer the same effect as rapid development everywhere will come to a standstill if not already. Meanwhile, Vancouver should count itself lucky as it prepares to host the Olympics in February 2010. It’s a huge party which Canada cannot afford to cancel.

France’s second largest bank Paribas announced huge losses directly from the continuing financial crisis. Whatever Obama does can barely slow things down as the stimulus plan will not provide relief for all the people with investment properties regardless of whether or not the property was bought for a quick flip or was to be rented out. With the previously rampant availability of credit, many average home dwellers jumped on the real estate bandwagon looking to cash in. Up until 2008 that is.

With job losses never before seen in my own lifetime at record highs and nearly 5 million people freshly unemployed in the US and counting, some have predicted this figure may double.

Its like a domino effect as today the North American exchanges will drop past eleven year lows. Countries tied heavily with the US will get dragged down sooner than others.

Initially I had thought that the world economy would recover faster because we’re in an electronic internet age. However on the flip side, the same technology combined with the extensive media access means that everything can crumble much faster as well.