Global Financial Crisis Worsening?

The stunning collapse of US investment bank Bear Stearns is just one example. It shows the global financial crisis is more serious and more widespread than policy makers realised even a few weeks ago, the head of the International Monetary Fund (Dominique Strauss-Kahn) said.

He further add, "The risks and dangers are very high. The economic environment is still worsening." He said that US woes will impact other economies and will require a "global answer".

Not admiting, US President says "the United States is on top of the situation." while acknowledging that the economy is going through "challenging times".
(source : The New Paper, 18 Mar 08)


Even Chinese Premier, Wen Jiabao, is concern about the US economy, as quoted "I am paying great attention to the world economy, I am especially worried about the US economy," Wen said at a press conference at the end of China's parliament.

"What I'm worried about is that the US dollar continues to depreciate, when will we see it hit the bottom? What kind of monetary policy will the US take and what direction will its economy take?"

With the global economy increasingly linked, fluctuations on the world market were bound to influence China's economic growth, Wen said.

The US subprime loan crisis was not only driving down the dollar, but also interest rates and stock markets around the world, Wen said, all the while pushing up the price of oil to over 100 dollars a barrel price.
(Source : http://sg.news.yahoo.com/afp/20080318/tbs-china-economy-inflation-us-wen-ec2362a.html)