"The U.S. economy is still kind of the lead dog of the world and as our economy slows, their economies are naturally going to slow," says Professor John Shoven Ph.D., the director of Stanford's Institute for Economic Policy Research.
That scenario was seen on every big board in nearly every country around the world. According to Shoven, the world lost $2.5 trillion dollars on Monday because of market instability.
"The Europeans are right in behind us and they need to do some of the things that the Federal Reserve is doing. Not that they haven't anything, they need to be much more aggressive," says Shoven.
If not, Shoven thinks Great Britain could be the next in line, to go down. Monday the British Government bailed out mortgage lender Bradford and Bingley. That company has $91 billion in bad loans.
French President Nicolas Sarkozy is now leading Europe's efforts to deal with the financial crisis there. He'll meet with the country's top banking officials in the morning.
"The Asians have reason to be concerned as well," says Shoven.
In Mumbai, India, people stopped in the streets as the market fell five percent.
"I must've today, have lost maybe a few hundred thousand dollars," says Vinod Thukral, an investor.
Thukral is heavily invested in India's infrastructure, energy, and stock market. The South Bay businessman also lost money in the U.S. market. Thukral was trying to diversity when he bought in India three years ago.
"It was growing like nine percent, after China it was growing very rapidly and in U.S. we are growing only three to four percent, so it made sense to go in the growth markets," says Thukral.
Like many investors, Thukral is re-allocating. He's not taking his money out of India or the U.S., but instead putting it in something he considers is a more stable sector like infrastructure.
