DISASTROUS ECONOMIC IMPACT – AT 9:01 A.M. ET:  With so much attention devoted to the possibility of radiation exposure from damaged nuclear plants in Japan, there's a tendency to ignore the economic impact of the quake and tsunami.  Economic damage can also result in human misery, even starvation in some places.  From NBC News:

Japanese stocks plunged 10.6 percent on Tuesday, posting the worst two-day losing streak since 1987, on reports of rising radiation near Tokyo, suggesting any deterioration at a quake-hit nuclear plant could trigger more panic selling led by hedge funds.

And...

During the trading day Japanese officials tried to calm the market to little avail and took measures to reduce short selling, such as placing limits on broker sales of stocks for arbitrage trading.

Americans are properly concerned about the economic impact here, although, being Americans, are thoughts first go to the human impact on the Japanese people.  But clearly, if our economy is affected, the impact could be worldwide, and there could be political effects as well as we move into 2012.

We should note that many Japanese industries are entirely shut down, unable to get materials, their employees unable to get to work because of gasoline shortages. 

Watch our markets today.

March 15, 2011