It also challenges many of our fundamental beliefs about economic resilience and financial market stability. The global economy and financial markets The most frequently asked question today is whether the worst is behind us. While there are incipient signs of business confidence and consumer spending trying to gain toehold, rising unemployment, high inventories and financial stress weigh heavily on overall demand conditions.
In financial markets, although spreads have narrowed from September 2008 levels, they remain elevated while bank credit has declined and other markets remain impaired. The estimates of the expected write-downs by banks on global exposures are rising rapidly.