Global financial markets are in meltdown as investors react to fears of another US recession and a worsening European debt crisis.
The turmoil began in Europe after unsuccessful efforts by the Central Bank to calm fears over a growing debt crisis that threatens to engulf Italy and Spain.
As the markets appear to panic, can Europe control its runaway debt? And is the US economy likely to contract even further?
Inside Story discusses with guests: Andrew Lilico, an economist from Europe Economics; Aly Khan Satchu, a financial analyst at Rich Management; and Francis Lun, the managing director of Lincean Holdings Limited.
This episode of Inside Story aired on Friday, August 5, 2011.