From today's NY Times I think these two grafs are significant
European banks continue to make unwelcome disclosures about write-downs of mortgage assets, even if the losses are not as dire as those reported by Citigroup or Merrill Lynch. Banks loans across Europe are being constrained, according to a recent survey by the European Central Bank.
German banks, in particular, are still haunted by the American subprime mess. WestLB’s troubles came a week after a German property lender, Hypo Real Estate, lost one-third of its market value after it disclosed higher-than-expected losses from the credit crisis.
Today the U.S. markets were closed. Expect a huge drop when they open on Tuesday.