Meanwhile, the strength in the dollar and yen means that both the U.S. and Japanese governments have the option of selling their bonds to finance economic stimulus. The strength of currencies with eroding economies is surprising but it reflects the idea among global traders that the two largest economies in the world -- the U.S. and Japan -- are least likely to collapse. I hope that proves true.

So why are global markets plunging? I suspect that few individual investors are trading in the stock market these days so the extreme up and down movement in the global markets is due to a smaller number of big traders being forced to trade due to shareholder redemptions, margin calls, and computer-programmed trading rules.

Regrettably, no reliable information is available on who is trading and why -- so we get non-explanations that attribute major market movements to financial reports of individual companies which should not come as much a surprise to anyone who has been following the news.

And if a lack of information is not a good enough reason for investors to lose faith in financial markets, surely Alan Greenspan's admission yesterday that its underpinnings -- "free" markets and deregulation -- are intellectually bankrupt will push them over the edge.

Furthermore, if markets close today as badly as they open -- look for another weekend rescue package by Sunday night.

Peter Cohan is President of Peter S. Cohan & Associates. He also teaches management at Babson College and edits The Cohan Letter. He has no financial interest in the securities mentioned.