World markets continued to spiral downward overnight, with Japan's Nikkei 225 suffering its worst percentage drop since the crash of 1987.

Efforts by central bankers and governments around the world have failed to stop the bleeding in global markets. Reports that the U.S. is considering insuring all bank deposits and backing billions of dollars of bank debt have similarly been unable to halt the selloffs.

The markets plunged on fears the worst financial crisis in the U.S. since the Great Depression will help send the global economy into a recession. 

The bleeding was most evident in Asia, where the Nikkei 225 index plummeted 881.06 points, or 9.6%, to 8276.43 in its worst one-day percentage loss since Black Monday in October of 1987 when the Dow plunged 23%. Friday's losses pushed the benchmark Japanese index to its lowest level since May 2003.

Hong Kong's Hang Senx Index didn't fare much better, closing down 1146.37 points, or 7.19%, to 14796.87.

Europe continues to feel the pain, with London's FTSE 100 suffering its worst day since Black Monday and falling below the 4000 level for the first time since 2003. The index closed down 381.74 points, or 8.85%, to 3932.06. 

The Dow Jones Euro Stoxx 50 ended down 207.17 points, or 7.88%, to 2424.87 while France's CAC 40 Index slid 266.21 points, or 7.73%, to 3176.49. Germany's DAX Index plunged nearly as much, closing down 342.69 points, or 7.01%, to 4544.31.

The carnage around the world weighed heavily in the U.S. as the Dow Jones Industrial Average plunged as much as 700 points on Friday and slid below the 8000 level for the first time since April 2003. 

The freefalling markets have put enormous pressure on world leaders, many of whom are due to huddle in Washington on Friday to come to a global solution to the ailing financial systems. 

President Bush addressed the U.S. Friday morning on the credit crisis, saying: “Anxiety can feed anxiety and that can make it hard to see all that is being done to solve the problem."