Yesterday we got news that stocks had the worst day since the 9/11 attacks. Today doesn't seem to be faring much better as the slide in Asia which is affecting Europe and U.S. markets continues:

Asian and European stock markets headed down again Wednesday after a broad global sell-off the day before that included a more than 3 percent drop in the Dow Jones industrial average and the loss worldwide of an estimated trillion dollars in equity.

I IMd Dr. Joe to get his take and this is what he said:

People in China took profits. People who are of the same ilk as those who call me "Dr. Doom" thought the sky was falling. So, like lemmings, they sold off. Then, Dow Jones thought their calculations of the DJIA looked funny at 2pm yesterday but did not switch to the backup system. So at 3pm, their computers choked on the data flow. That made sell programs kick in, which triggered some buy programs (and some bargain hunting!) that made the day less worse. Cooler heads will prevail today and there will be bargains galore!

Maybe in comments or an upcoming Monday Dr. Joe can more thoroughly explain this "Shanghai Effect" to those of us not as market savvy.