Nouriel Roubini, Dr. Doom and founder of Roubini Global Economics LLC, says that there is a 50% chance of recession in the United States, United Kingdom and the countries in the Eurozone within the next year. A re-structuring plan for Greek debt will be published on October 26. If the plan is not successful, Greece may default on its sovereign debt and put Spain and Italy as the next dominoes to fall. Uncertainty as to which European banks are exposed to a Greek default are making their counterparties nervous and unwilling to extend them credit.
On the other hand, emerging markets have been aggressively fighting a recession with various stimulative measures. Indonesia and Brazil's central bank cut their interest rates and the Philippines are embarking on a stimulus package of $1.7 billion.
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