World Markets Beset By Recession Fears

[FarCenter]

LONDON -- World stock markets took a beating Monday over fears that the U.S. economy was heading back into a recession just as the European debt crisis was heating up and the eurozone's economic indicators were slumping.

Any troubles in the world's largest economy cast a long shadow over the markets, and a report Friday that the U.S. economy failed to add any new jobs in August caused European and Asian stock markets to sink sharply Monday.

But the news from Europe was also discouraging. Wall Street, which was closed Monday due to the Labor Day holiday, braced for losses Tuesday after the yields in so-called peripheral eurozone countries -- Greece, Italy and Spain -- rose sharply against those of Germany, whose bonds are widely considered a safe haven.

http://www.thestreet.com/story/11238702/1/world-markets-beset-by-recession-fears.html?kval=dontmiss

Obama will be doing really well if unemployment is as low as 9.1% a year from now. It is doubtful whether there are adequate circuit breakers between the Eurozone and London and between London and New York to prevent a Eurozone collapse from tearing down the US financial system.