another recession more for more on this as cause live professor of applied economics at cardiff business school patrick min fed. the same in fed many thanks for being with us here on r.c. now what is driving this latest out of market want to see. well there's been inflation in the world economy and there's been quite a tightening of monetary policy around the world especially in china and india and some of the other emerging markets and that has led to a fall back in growth in those countries and elsewhere and so the markets are worried about slow growth but really they shouldn't be too surprised because with the situation of raw material prices so high oil prices so high there is a big factor for a slowdown in the world economy because it simply can't grow any faster given the shortage of real materials so i think that that's what the markets are factoring in the slow growth but it's going to happen. and has been likely for some time so to put this into perspective for us how deep is the financial crisis at the moment are we talking collapse of lehman brothers bad or worse. no i think there's obviousl

budget struggles and in just a moment we can cross and live to economics professor patrick me from the cardiff business school thank you for joining us today and just getting your piece in final preparation we just heard the opinion that fat cats on wall street are actually benefiting from the u.s. economic struggles so globally speaking who else could be cashing in on america's pool crisis management. well i mean capitalism is a system whereby people make bad and that's what keeps liquidity going so i've no idea who could be making money people could be losing money people could making money according to the bets they made so i don't think this is a very. profitable line of enquiry really because we don't know now if the criticism of the us a budget deal mainly targets the lack of a long term solution i figure saying that this is only a six month solution when will washington take on the bigger picture in terms of its rocketing debt thing. well you know it's a long term problem of any democracy that it makes a lot of promises to people and when people get older those promises have to be kept all dishonored y

european growth the saying that both were dangerously close to recession patrick meant for an economics professor at the cardiff business school believes that hieron material prices and financial uncertainty is putting the brakes on. those being inflation in the world economy and there's been quite a tightening of monetary policy around the world especially in china and india and some of the other emerging markets and that has led to a fall back in growth in those countries and elsewhere and so the markets are worried about slow growth but really they shouldn't be too surprised because with the situation of raw material prices so high oil prices so high there is a big factor of a slowdown in the world economy because obviously a lot of uncertainty about the eurozone and what will happen the. close of the eurozone summit wasn't very conclusive all helpful in that respect so that's a great deal of uncertainty which is worrying the markets about the situation of buying seen europe i don't think that that i think that will be resolved but it may take some time to resolve it that's the problem meanwhile markets are very nervous wel