What happened in stock markets Monday?

The S&P/TSX composite index plunged more than 1,000 points, or about 9.5 per cent, by mid-morning, which would mean one of the worst daily losses on record. The big U.S. indexes, the Dow Jones industrial average and S&P 500 stock index, were both down about 4 per cent, while European and Far Eastern markets were down sharply as well. For comparison's sake, the Canadian market dropped 11.3 per cent on Oct. 19, 1987, which is known as Black Monday, while the Dow fell 22.6 per cent.

What's driving the markets lower?

Markets in Canada and around the world are being hit hard by concern that the $70-billion (U.S.) bailout of the U.S. financial sector won't be enough to alleviate a worsening credit crunch, where major banks are drastically curbing their lending and hurting the ability of companies and even some governments to finance their operations. Worries that an economic slowdown in the United States will lead to a global recession are also hurting the stock markets. The Canadian market is being hit harder than most today because the S&P/TSX composite index is heavily influenced by resource stocks, which are being hammered on fears that demand for oil, metals and fertilizers will fall as global economic growth slows. Oil prices were off a few dollars a barrel today, putting them about 40 per cent below where they were at their July peak.

What's happening in the credit markets?

The Bank of Canada continued its efforts to add some grease to the financial system , but there was no sign of any change for the better. In the United States, pressure has been building on the Federal Reserve to push through an emergency interest rate cut to bolster confidence. There has been talk that other countries would similarly cut rates."

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To a lesser degree you would think that Miners/producers would/will be affected more so than explorers. I would think too that explorers with money will be able to weather through times like these and also possibly take advantage of what may be cheapers cost inputs as they do continue to spend exploration monies. They possible also have access to what had been a tight labor market while looking for mining expertise and geologists?