THE NIKKEI IS BEING RANSACKED

The NIKKEI 225 is at the lows of the morning session, off more than 635 points, or 3.6%.

Crude oil is off by another 1.4% and the Hang Seng is down 3.3%. China, naturally, is down again to the tune of 1%.

U.S. futures are down 0.7% and european futures are fairing much worse, with the DAX indicating a 1.5% drop at the open.

In short, we’re in a deflationary vortex, one that sucks capital out from the system and into bonds. There is nothing more telling than Irish 5yr sovereigns trading with a negative yield. After all, the Irish are all drunks and haggards. Their economy is a mess and yet they’re able to make money by borrowing money.

GET YOUR AFFAIRS IN ORDER.

UPDATE: Oil has stabilized, now flat. As such, U.S. futs have recovered much of their gains and the NIKKEI is down just 400 or so points.