Global markets were back in the red Wednesday, tracking Wall Street's major selloff, as poor earnings results and falling commodity prices fanned worries of a global recession.
The dollar climbed to 20-month highs versus the euro after the U.S. government revealed plans which would involve the Federal Reserve lending as much as $540 billion to money-market funds to restore their liquidity.
As the fears of a protracted economic slowdown deepen, with the Bank of England's governor, Mervyn King saying that Britain is entering a recession, CNBC's experts weigh in on when the gloom will finally abate.
Recession May Extend into 2010
If we're in a recession, we're at the beginning of a global recession, says Ron Ianieri, chief markets strategist at Options University. He tells CNBC that the recession could last as long as two years, till the end of 2010.
Recovery Process Could Take 5 Years
Resumption of normal financial activity will take place at least 18 to 24 months from now, says Kirby Daley, senior strategist at the Newedge Group. He tells the recovery process could take as long as five years.
Recovery Could Take 20 Years
The ongoing financial turmoil and economic gloom will take 10 or 20 years to heal, Hugh Hendry, partner at hedge fund Eclectica, told CNBC.
Is the US Only Left with 2 Options?
Depending on how the financial crisis pans out, we will either fall into the abyss or into a deep and long recession, says Kirby Daley, senior strategist at the Newedge Group. But Ron Ianieri, chief markets strategist at Options University believes there are other options.
A Second Disaster in the Works?
The Federal Reserve and Treasury's moves to slash rates and pump that amount of money straight into the economy were wrong, said Ron Ianieri, chief markets strategist at Options University on the U.S.'s bailout plans. He tells CNBC they may be setting themselves up for a second disaster.
China: The Only Bright Spot Left
The only bright spot in the global economy is the Chinese government's ability to effectively stimulate its economy at the right moment, says Kirby Daley, senior strategist at the Newedge Group.
RBNZ May Slash Another 100 bps
The Royal Bank of New Zealand is likely to slash interest rates by 100 bps, forecasts Jeff Halley, senior manager, FX trading at Saxo Capital Markets, ahead of its rate decision Thursday.
Bullish on the Energy Sector
Oil prices have fallen over 50% from its July highs but Puru Saxena, money-manager & CEO of Puru Saxena Wealth Management remains bullish on the energy sector.
CITIC Pacific Shares Oversold
Marco Mak, analyst at Tai Fook Securities believes CITIC Pacific's shares have been oversold, after the stock tumbled 55.2% yesterday on shock forex losses.
Opportunities in India's Tech Sector
The Bombay Sensex might fall another 5% to 10% within the next 3 to 6 months, says Adrian Lim, investment manager at Aberdeen Asset Management. But he sees opportunities in Indian tech stocks.
Insurance Sector Still Sound
Insurers' balance sheets are very conservatively positioned and the sector isn't facing wholesale weakness, Kevin Ryan from ING told CNBC Wednesday.
Worst May Be Over for US Banks
When looking at the KBW banking index, a double bottom is evident, suggesting that the worst may be behind the US banks, Clive Corcoran from Tradewithform.com said. Corcoran believes the Nikkei will only bottom once it's tested the 2003 low.