US Debt Crises

Are we going to another recession..?

Last night (4 August 2011) Dow Jones drop 4.3% followed by massive equity sell down all over the world.

today KLSE drop 1.45% and STI drop around 3%

World markets have continued to drop amid fears that debt crises in Europe and the United States may provoke a new global financial crisis.

Investor confidence has been shattered by news that the United States may be heading toward another recession, and that the European Union may be forced to bail out the failing economies in Italy and Spain.

Officials in Asia have now called for greater coordination worldwide to prevent the U.S. and European crises from sinking the global economy.

Japan's Economy Minister Kaoru Yosano said it was critical for economic policymakers to work together. "The entire world is connected through finance, so what happens in New York or London doesn't just happen there," Yosano said. "So it is important that we keep all financial markets in mind.”