New Age of Anxiety Dawns

The global economy seems to be walking on water, shrugging off soaring oil prices, policy paralysis in Europe, unsustainable borrowing by the United States and record housing prices.

Is it because, as leaders of the Group of Eight economies would have us believe, investors are in a buoyant mood, confident in their leaders’ stewardship of the world economy? Or are we being governed by a pathology of fear, fed by events such as the recent London bombings, that is holding down long-term interest rates, thus covering up a host of simmering problems?
Australian Financial Review