INDIA STOCK CRASH

India stock market collapses as I warned last week (Under the Radar). The election in India can have serious reprecussions in all markets. Ghandi, as I said, is an economy wrecker and she was elected by the envious of success crowd.

A record plunge in Indian stock markets on Monday left investors stunned and sent brokers to the streets to protest against Sonia Gandhi's Congress party, which is set to form a new government with communist support.

"There is blood on the street. People are just queueing up to sell," said Arun Kejriwal, director at research firm KRIS.

Be sure you link to the Forbes page above. This is very serious and the communists will make things as bad as they can.

Bad for us? Depends on how much Indian money is in our markets and in the European markets. Every crash in history was made worse by "patriotic money" fleeing foreign markets to rescue their investments at home. India was on the verge of being a major success story and it may be all over now. Oil prices could destroy struggling economies world wide. Watch for oil prices to plummet because a failing world economy will destroy OPEC too. Late add (9:40AM EDT) Dow down 100, S&P down 12. Could get worse because the technicals don't have major support til about 9600+ Dow. This from CBS Market Watch (best source for NOW news)

"We classify many emerging markets as being between a rock and a hard place of the slowdown in China and rising U.S. interest rates," said Joe Quinlan, Banc of America Capital Management's chief strategist. He's advising investors take profits on emerging markets, which saw "outsized gains" in 2003.

Nikkei is also being routed, at a three month low at close last night.