WHEN the United States sneezes, the world catches cold. Like it or not, this “illness,” caused by a scandal over defaulting housing loans, is spreading around the world. It is true that remedial efforts have gotten underway. A US$700 billion bailout plan has been approved by the US Congress. However, it is still difficult to stop the inevitable, given the expanding interlinks in the world economy.

Stock exchanges like the Dow Jones and NASDA