Dow Futures Down 400 From Monday Highs After Asian Open Flash-Crash

After Japan’s Tankan disappointed greatly and various talking heads from Japan came out to deliver the credibility-destroying-phrase of the day: that “the economic recovery is progressing smoothly” despite all evidence to the contrary… USDJPY took a dive. And when USDJPY takes a dive, all its risk-on, carry-trade-imbibed friends take a dive. Dow futures cratered 230 points in minutes only to bounce back modestly when some enterprising sell-side analyst reminded the machines that “bad news is good news.” But that didn’t last and US equity futures are sliding rapidly in the overnight session…