Global Train Wreck Continues

* Asia down 5%, Europe down 2% (Russia crushed), dollar flat, oil $56, gold $711

* Germany joins recession club: “It’s very serious… It raises the risk of a German contraction of more than 1 per cent next year and we will have to revise down our forecast for the euro area as well.”

* Global hedge funds lose $100 billion [is that all?]. World HF index down [a pleasantly modest] 3.3%.  “This wave of redemptions in the hedge fund industry is going to last for at least another six months… “There are some funds that halted withdrawals, but those funds would eventually have to defreeze, and that means another wave of redemptions.”

* Russia market collapses, Kuwait market closed to prevent collapse. “Alarm bells are ringing…”Weaker oil raises a number of issues for deterioration in terms of trade and budget assumptions which are now being seriously called into question.”  Prices of Russia CDSs fly.

* Demolished Citigroup may boot Chairman Win Bisschof, replace with Dick Parsons.

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