World Markets Slide on Recession Fears

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World markets sold off once again today. Investors are getting out of stocks for now as they fear a global recession.

And with growing signs of a weak economy here in the United States, the Federal Reserve is getting ready to take action once again.

Asia Markets Down

Asian markets had another day of dizzying plunges.

Japan's fell almost 6.5 percent, leaving the Nikkei index at its lowest point in 26 years.

The global financial crisis is forcing the yen higher, making it tougher for Japan, the world's second largest economy, to sell its good overseas. So Japan, like so many other countries, could soon see a recession.

The depressing news in Asia sent European markets down, too.

"It's obvious now that our economy, other economies across the world are moving into a recession," said Alistair Darling, the Chancellor of the Exchequer.

All this sinking of stock markets overseas has the U.S. stock market bracing for more selling.

"That doesn't necessarily mean that Monday's going to bring bad tidings," Art Hogan, chief investment officer of Jeffries & Co. said. "As you look at some of the bad Fridays we've had this year, some of the worst Fridays have been followed by moderate to upticks on Monday.

But Just How Bad Is It Out There?

Oil's trading below $62 a barrel, a 17 month low - even though OPEC says it will cut production, which should drive up prices. But instead, oil markets apparently believe the world's heading into a severe downturn that will severely cut demand for oil.

And the possibility of a weakening economy is likely to mean another Federal Reserve rate cut this Wednesday.

Click the player to watch CBN News' Paul Strands report followed by Pat Robertson's insights on the current state of the U.S. economy.

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CBN News
Paul Strand

Paul Strand

CBN News Washington Sr. Correspondent

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