Why has the FTSE fallen so dramatically?
The FTSE has fallen in response to to a combination of issues. Further dramatic share price falls in the Asian and US money markets overnight have combined with the banking crisis in Iceland, the recession in Singapore and worries over the slowing economy in the UK.

These issues combined together have led to heightened fears in the money markets of a global recession.


Why are the markets so jittery?
The international money markets are reeling because of recession fears and the fact that the fire-fighting efforts of central banks worldwide have not resulted in any thawing of interbank lending.

Respected financial commentator Justin A. Urquhart Stewart said the mood in the City was reminiscent of the 1987 financial crash known as "Black Monday".

He said: "There's a whiff of cordite in the City that I haven't noticed since 1987."


Does today's dramatic fall mean the Government bail-out plan is not working?
Not really, the Government's plan outlined earlier this week will take some time before its effects on the money markets will be fully felt.


How will the FTSE fall affect the public?
Today's fall will only serve to deepen growing public disillusionment in the financial sector.

The financial turmoil has led to people becoming increasingly concerned about their pensions and savings and there is the now real possibility of job losses in the financial sector and the wider employment market.


What can be done to stem the crisis?
Financial experts believe that the banking sector must hold its nerve and wait for conditions to improve.

Mr Urquhart Stewart said: "We need to be calm, we need to have nerves of steel. We've got to get through this period of capitulation in the markets and the slowing of the economy."


When will the current financial turmoil end?
Experts just don't know when the current turmoil is due to subside, but with the very real threat of recession hanging above a number of major economies, the financial instability is expected to last for at least a year.