Australia should be concerned about US economy

The US economy is heading for recession and countries like Australia should be worried according to the chairman of investment bank Morgan Stanleys' Asian arm, Stephen Roach. The Fed will cut rates much further during 2008 but the US is going into recession anyway, something the rest of the world should be very concerned about according to Mr Roach. “What is interesting, and potentially disturbing, is that the rest of the world doesn't seem to think this is a big deal any more. There is a view that the world is somehow decoupled from the American growth engine. I think that view will turn out to be dead wrong, and this is a global event with consequences for Asia and Australia,” he said.