October 11, 2008 (LPAC)--Lyndon LaRouche emphasized that he had fully expected the global carnage on the markets today, because October 10, especially on a Friday, is a special date in the U.S. financial cycle. It was the close of the past fiscal year, by which time all financial accounts had to be settled. The pressure to resolve accounts brought on things people were trying to hide, to kick under the table.

LaRouche insisted that as a result of today's developments a fundamental change in the dynamic of the system has now happened.

Moreover, the issue of creativity is the key to any competent approach to the crisis. Any other approach should be quashed as a waste of time. We are now on the verge of a new system, a new phase space.

The key thing is derivatives. These are gambling debts which have no relevance to the world economy. They are gambling debts made in a back alley. The quadrillions of dollars in derivatives obligations must simply be canceled as mere gambling obligations.

The log of today's key events follows:

• The Nikkei fell today by 9.6 percent
• France's CAC fell 7.73 percent
• Germany's DAX fell 7.08 percent
• Spain's market fell 9.23 percent
• India's stock market fell by 10%
• Brazil fell by 10%, selling was halted, then when it was resumed, the market continued to fall, but not so steeply.
• The two-day halt in trading in Indonesia was extended for a third day.
• In Russia, the opening of the markets was delayed
• In Iceland, equity trading has been suspended until Oct. 13
• Trading was halted in Austria
• In the U.S. the Dow fell over 600 points at the opening to below 8000 pts., rebounded immediately, then fell nearly 500 points, only to magically climb to plus 283 and then fall to -128 at the very end.