A more dangerous phase?
China Daily | Updated: 2010-05-08 07:32
The brief but breathtaking plunge of the Dow Jones industrial average by almost 1,000 points on Mary 6 may turn out to be largely a result of unjustified investor panic. Nevertheless, possibility persists that the Greek debt crisis may not only morph into a European crisis, but can also become global.
The market anxiety has helped shed much needed light on the fragility of the global recovery. If global leaders do not respond quickly, the world economy may enter a more dangerous phase than the international community has anticipated.
A broad-based global recovery led by emerging economies since later last year has been fueling optimism, even though sovereign debt problems have become obvious in some countries.
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