After firm Standard & Poor's (S & P) lower credit ratings debt America's financial experts fear the debt crisis in America - Europe and condition weak growth could push the global economy into a last recession.
In the Financial Times, economist Nouriel Roubini - who correctly predicted the financial crisis in 2007 - criticized the S & P credit ratings debt America during the market volatility has increased the risk of U.S. into recession. Mr Roubini predicted more than 50% chance that the U.S. economy will decline over the next 12 months. Former White House economic adviser Larry Summers is also the same warning. The U.S. economy is in serious weakness: the first six months of growth in 2011 less than 1%, 9.1% unemployment rate, budget deficit has been rising.
The lower credit ratings made the debt more confidence in the economy decline. U.S. experts said a recession could also cause more damage than the recession 12-2007. The reason is that all key elements of the U.S. economy, from the labor market, average income, industrial production ... are much weaker than the previous month period 12-2007. "It would be a disaster if we fall into a recession this time, because we still have not recovered after the previous recession" - The New York Times quoted economist Conrad DeQadros the firm RDQ Economics.
A new recession in the U.S. in the context of Europe is sinking in debt crisis would seriously hurt Asian economies rely heavily on exports to the U.S. and Europe. "We still depend heavily on demand from the U.S. and Europe - the BBC quoted experts Arjuna Mahendran of HSBC - The economy recession will cause demand drop, spill pillars support for the growth of Asia. " S & P also warned that a new economic crisis will cause more severe impact on Asia than previously.
According to S & P, in general, Asian economies remain healthy thanks to domestic demand strong, the business sector efficient, abundant capital ... However there are some exceptions to the economy as New Zealand, Japan, Vietnam and the Cook Islands.
According to Reuters the recent G-7 countries and central banks in Europe (ECB) has a commitment to ensuring the stability of financial markets to limit the impact of the S & P credit ratings debt the U.S. for marketing internationally. ECB said it would buy government bonds economies of the euro area.
However, the reaction of markets (stocks, oil prices, falling dollar, rising gold prices) shows that investors are not really comfortable with the reassuring words of the ECB, G-7 and G -20. Investors still flocking to buy gold as a safe hedge in current times of crisis