Market meltdown

Global stock markets have slightly rebounded from the huge losses that wrecked havoc in the last few days.

 

With the US Federal Reserve’s intervening and reducing interest rates by .75 per cent, investors have reacted cautiously. Yet, fears that the US economy may slip into recession persist.

 

Inside Story looks at what’s driving the crisis and who bears responsibility for it.

 

And we ask whether this signals a shift of power and influence away from the US and towards the developing world, notably China and India.

 

 

Watch part two of this episode of Inside Story on Youtube

This episode of Inside Story aired on Wednesday, January 23, 2008