DOW down 400+, below 10,000. Credit markets still tightening. World stocks extend losses: London and France down 9%.

Earlier:

WSJ: European shares tumbled Monday morning after renewed turmoil in the financial sector over the weekend heightened anxiety over the state of the global economy.

The Dow Jones Stoxx 600 Index was down 5% at 248.36, with the banking index down 5.2%. The U.K.'s FTSE 100 Index was 5% lower at 4731.10, while France's CAC-40 Index lost 5% to 3875.80. Germany's DAX Index plummeted 4.8% to 5520.89.

While the U.S. House of Representatives passed a $700 billion financial-sector bailout Friday, global investors' spirits remained low amid questions over how the plan will be implemented and how effective it may well be in preventing a global economic recession.

"We now believe national recessions in the U.S. and the U.K. will be deeper and longer than previously forecast," said Larry Hatheway, an economist at UBS in London. "For the first time, we also anticipate recession in the euro zone."

WSJ: Asian stock markets plunged Monday as investors shrugged off a U.S. bank bailout and focused instead on deepening financial turmoil in Europe.

Tokyo's Nikkei 225 Index hit its lowest level in more than four years, falling 4.3% to close at 10473.09. The Topix index of all the Tokyo Stock Exchange First Section issues fell 4.7% to 999.05.

Bank collapse and stabilization efforts in Germany partially to blame.  But let's be serious: The completely coupled global economy is headed into the tank, and there's nothing Hank Paulson can do about it.