World Economy of risks ahead - Warning

The head of the International Monetary Fund, Christine Lagarde, warned on Wednesday that Europe's debt crisis risked dipping, the global economy into a ''lost decade'' and said it was up to rich nations to accept the burden of restoring growth and confidence.

Lagarde told a financial forum in the Chinese capital that European plans to bolster a rescue package for Greece were a “step in the right direction”, but that the outlook for the world economy remained dangerous and uncertain.

Lagarde said, “There are clearly clouds on the horizon and the clouds on the horizon particularly in the advanced economies and particularly so in the European Union and the United States”.

“Our sense is that if we do not act boldly and if we do not act together, the economy around the world runs the risk of downward spiral of uncertainty, financial instability and potential collapse of global demand. We could run the risk of what some commentators are already calling the lost decade,” the IMF chief said, referring to echoes of Japan’s experience of persistent deflation, mounting debts and economic impotence through the 1990s and beyond after its real estate bubble burst, an outcome many analysts fear could be repeated given the debt and property origins of Europe’s problems.

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The domino result in Europe's debt crisis

The sovereign debt crisis continues to disclose in Europe, with every country appearing to get sucked in. In October European leaders has arrive at another deal to try to stop the contagion. But which countries are most at risk and why?

Three nations in the euro zone - the 17 nations that use the euro - have been recipients of bailouts as attempts to solve the crisis keep stalling.

Italy became the latest to feel the domino effect of the markets when its debt rating was lowered, the latest in a series of downgrades.

Greece, Spain, the Irish Republic and even Cyprus have also had their ratings cut this year. The future of the euro is being questioned in a way it never has since 1999.

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US employers likely added few jobs in September

The U.S. economy will likely show its fifth straight month of slight or no job making when the Government Issue its September employment report Friday another weak month would underscore the slowness of the economy and the risk of another recession.

Economists predict that employers added just 56,000 net jobs in September that isn't enough even to keep pace with people growth or minor the unemployment rate the rate is expected to remain at 9.1 percent for a third straight month, according to a survey of economists by FactSet.

The faltering economy has led many employers to decrease hiring the economy grew at an annual rate of just 0.9 percent in the first six months of the year since then, Europe's debt crisis and stock market decline have sensitive fears that the economy will move violently to grow enough to avoid a recession.