As of this writing, the NYSE has fallen, in a week, nearly halfway from it’s high of the last year to the low, and there’s fears that it may not stop soon. Losses of 2-3% a day on the TSX, NYSE and S&P 500 are beginning to add up. This comes on the heels of Standard and Poors downgrading the American national debt from triple-A (the highest rating) to AA, as well as the ongoing European debt crisis.

Obama plans to go on the news at 1pm to talk about the economy and Afghanistan. The EU has already begun buying bonds to attempt to stave off crisis, and the G7 announced last night that it’s ready to “pump liquidity into markets” and do “whatever is necessary” to “maintain stability”. It’s beginning to look a lot like 2008 all over again, and though a cataclysmic crash may not come today or tomorrow, the past week’s chaos only goes to show how close one could be.

The emerging crisis is spurring more than a little bit of discord amongst the ruling classes. Many are attacking S&P for their downgrade of America’s credit rating (and now a wide range of others). Others, though, are pointing out the unbelievably embarrassing debt-ceiling debate the other week as evidence that it was justified. Some have even called it “the Tea Party downgrade”. European nations are turning on each other over the issue of bailing out poorer economies and putting Germany at odds with the poorer nations over debt repayment. Bank of America is sinking like a rock, and Obama’s on any time now. Can he turn this around? And if so, for how long?

Update: Obama finally came on, nearly an hour late (boosting markets slightly from their hour he was MIA). His speech could be defined, in precise economic terms, as “drivel”, making claims such as “the markets still believe we’re AAA” and “our problems are immediately solvable, and we know what we need to do to solve them”. Bold words for a man talking while the NASDAQ is down over a hundred points, and the NYSE well over three hundred down. The market has resumed dropping since.

Update 2: Markets are now closed, having suffered fairly steady losses through the day. Obama’s speech was widely received exactly like above, and did nothing to stop the crash. Markets dropped 4-7% in New York, Toronto and London, leaving many wondering how tomorrow will play out. Remember it’s only an hour or so now before Asian markets start opening, and after they close; Europe. By the time we wake up tomorrow morning, this situation may have gone a long way towards getting better – or worse.