January 22, 2008, 9:06 am ET — Will U.S markets face a panic Today? Has the Bear Chased the Bull into Oblivion?

Global stock markets slid between 3% and 7% Monday on concerns about bond insurers and the health of U.S. financial institutions. “People are certainly nervous about a potential recession in the U.S. spilling over to the rest of the world,” said David Cohen, Director of Asian Economic Forecasting at Action Economics in Singapore,” reports AP.

“A 20 percent drop in the Dow Jones Stoxx 600 Index from its June high signaled European stocks are now technically in a bear market, weakening the euro,” reports Bloomberg.

U.S. stock futures fell over 4% on Monday, pushing U.S. markets closer toward bear market territory, indicating the markets will be in for a major decline on Tuesday.

“If the Federal Reserve fails to take emergency action before the US opening tomorrow, you will see the DJII open down 1000 points as the public joins this professional panic,” reports jsmineset.

According to Swiss America CEO Craig R. Smith, investors are selling stocks because they’re skeptical that an economic stimulus plan President Bush announced Friday would shore up the economy, which has been battered by housing and credit problems.

More than three in four Americans believe the U.S. economy is already in a recession, or will be sometime in 2008. Only 19 percent of 1,000 Americans surveyed believe the nation will avoid a recession, while 57 percent believe that there will be a downturn this year according to a Fortune Magazine poll, reports CNN.

“Congress could help steer the economy away from recession if it adopted a quick, efficient and temporary fiscal stimulus plan”, said Fed chairman Ben Bernanke on Thursday. The Fed chief urged lawmakers to boost consumer spending within 12 months, tagging the mortgage meltdown’s cost at $100 billion or more.

“I think the market clearly said it does not want the government involved. At one point it reminded me of ‘American Idol’ as some in Congress proved their incompetence by their questions. One Congresswoman did not even know Chairman Bernanke’s professional background!” Smith told FOX NEWS.

Thursday news that housing starts skidded 14% last month, the worst in 16 years, and that Merrill Lynch marked down $9.8B in bad mortgage debt together with Fed comments sent stock prices to 9-month lows on Wall Street.

Wednesday the Labor Department reported that consumer inflation rose .3% in December and 4.1% for all of 2007, the highest in 17 years.

Yesterday the government reported that wholesale inflation rose 6.3% in 2007, the highest in 26 years on rising energy costs.