The massive upheaval in northern hemisphere financial markets will continue while the United States' $US700 billion ($NZ1.07 trillion) rescue plan for Wall Street, passed on Saturday, is implemented.
The United States Treasury is faced with urgently valuing mortgage-related assets no-one wants, moving them off bank balance sheets into the world's largest asset managed funds, and completing the task within a month.
Reluctant Democrats and Republicans banded together to approve the rescue plan - said to be the broadest US government intervention in decades - on a 263-171 vote in the House of Representatives.
US President George W. Bush quickly signed the Bill into law.
Treasury is facing a daunting task of trying to do something no-one else has been able to complete - putting a dollar value on the assets no-one wanted.
But it was clear yesterday that the deal will not realise instant results.
Although it was given a month to complete its part, Treasury will not buy its first distressed asset from a bank for about six weeks, and almost certainly not before the November 4 presidential election.
The New Zealand election is on November 8.
President Bush warned in a broadcast statement the US economy continued to face serious challenges.
"We have acted boldly to help prevent the crisis on Wall Street from becoming a crisis in communities across our country."
ABN Amro Craigs broker Peter McIntyre said in Dunedin yesterday that US markets had rallied on the rumour of the deal being signed and fallen after it was brought into law.
"The volatility indices are very high, inter-bank lending rates are high and the unemployment numbers in the US didn't help.
"Our market will open cautiously on Monday and take its lead from Asian markets when they open. There is a huge amount of uncertainty in the equities and money markets."
Because New Zealand was so far removed from the northern hemisphere, banks and financial institutions had been slow to take up the toxic assets which were now being quarantined, he said.
In hindsight, that was a good thing.
However, there would be some fallout in New Zealand but it could take several weeks to make a full impact.
Of immediate concern was the higher cost of credit for some businesses and other businesses getting turned down on applications of extra credit.
"The baby-boomers have been ramping up the value of their businesses in preparation for selling before retirement. That has been stopped overnight."
Mr McIntyre was at pains to stress that parts of global markets would look more attractive than others, even in the current circumstances.
Companies dealing in food and alcohol traditionally survived turbulent times.
California governor Arnold Schwarzenegger said California might need to turn to the federal government for short-term borrowing if the credit market did not soon loosen up.
Europe's largest economies have agreed to work together to support financial institutions but without forming a joint bail-out fund.
French President Nicolas Sarkozy hosted the meeting of the leaders of Britain, German and Italy in Paris.
They agreed to seek a relaxation of the European Union rules governing the amount of money individual states could borrow.
The four leaders agreed heads of financial institutions that needed to be rescued should be "sanctioned".
Each government would operate with its own methods and means but in a co-ordinated manner.
The leaders were reminded of how serious the crisis was as the talks to rescue Germany's second-largest mortgage lender collapsed.
The International Monetary Fund said the global financial crisis was a "trial by fire" and that Europe must show it could respond like the US.
The People's Bank of China praised the rescue package and said China was willing to work with the US and other countries to stabilise markets worldwide.
