The financial crisis that originated in the United States shows no sign of abating despite congressional passage last week of a $700 billion financial rescue package. There is a danger that it could further damage the real economy.

On Wall Street, the Dow Jones index finished at 9,955.50 Monday, ending below 10,000 for the first time since late October 2004, and finished at 9,447.11 Tuesday, ending below 9,500 for the first time in about five years. Panic selling also hit Asian and Europeans stock markets. In Japan, the Nikkei index finished at 9,203.32 Wednesday, marking the lowest level since June 30, 2003.

The U.S. bailout package, which allows the U.S. government to buy toxic mortgage-related securities and other devalued assets held by financial institutions, was expected to provide a way out of the crisis. But market players appear to have concluded it will not work instantly. The falling trend in stock prices could adversely affect the real economy as consumers tighten their purse strings and business enterprises reduce their capital investment.

French, German, British and Italian leaders who held crisis talks in Paris on Saturday failed to come up with concrete measures such as a pan-European rescue fund for financial institutions. Although it was thought that Japan would not be greatly affected by the U.S. subprime mortgage crisis, the slowdown of the U.S. economy has led to a big reduction in Japan's exports. Japan registered a trade deficit in August for the first time in 26 years. The August unemployment rate stood at 4.2 percent, the worst since it hit 4.3 percent in June 2006.

U.S. auto sales have been declining for 11 consecutive months on a year-on-year basis, with unit sales dipping below 1 million in September — the first time since February 1993. The troubled U.S. auto industry could deal a heavy blow to the U.S. economy.

In their meeting in Washington on Friday, the Group of Seven financial ministers and central bankers should adopt strong cooperative steps to avert simultaneous worldwide recessions. The Japanese government also should implement emergency measures to abate the impact on the economy. Political leaders have no time to waste over political wrangling.