The globalized economy means that America's financial problems could spread to the rest of the world. The International Monetary Fund says there's a one-in-four chance of a global recession, as finance ministers meet in Washington to decide what to do. How closely linked are the world's economies? Will there be winners as well as losers? Should Americans be worried? Also, an update on the situation in Zimbabwe, and pirates captured after releasing 30 hostages.
FROM THIS EPISODE
The opposition to Zimbabwe's President has called for a general strike starting on Tuesday. Robert Mugabe says he won't attend a much-awaited summit with other African leaders. He's banned all political rallies, and human rights groups report that he's launched a campaign of systematic violence. Craig Timberg is Johannesburg Bureau Chief for the Washington Post, just home after three weeks in Zimbabwe.
The International Monetary Fund says America's financial crisis is so bad it will damage the rest of the world -- except for the Middle East and Asia. This as finance ministers from the major industrialized countries have gathered in Washington to figure out what to do. Not everybody's as pessimistic as the IMF, but nobody doubts that there's trouble ahead. Is the global economy faced with another Great Depression? How worried should Americans be? What should be done, and will there be winners as well as losers, both at home and abroad?
Simon Johnson, Massachusetts Institute of Technology (@baselinescene)
David Malpass, Chief Economist, Bear Stearns
Desmond Lachman, former Deputy Director of the Policy and Review, International Monetary Fund
Bill Emmott, former Editor in Chief, The Economist
Off the coast of Somalia today, French troops captures six pirates after they released 30 hostages who'd been held on a tourist yacht. France claims no public money was used to pay ransom, but the boat's owners may have handed over some money. Daniel Sekulich, who formerly worked for the Canadian Broadcasting Company, is author of Ocean Titans: Journeys in Search of the Soul of a Ship.
Daniel Sekulich, author, 'Terror on the Seas'