World Bank chief: Global economy entering 'new danger zone'

The head of the World Bank has warned the crisis of confidence sweeping through markets in recent weeks has resulted in a new 'danger zone' for the global economy.

Robert Zoellick said in a speech in Australia on Sunday the turmoil seen in the last few weeks has led investors to lose confidence in the ability of authorities around the world to lead their natons out of the current malaise, according to CNN. He warned, as a result, investors are now fretting about another recession. "There was a convergence of some events in Europe and the United States that has led many market participants to lose confidence in the economic leadership of some of the key countries," Zoellick said. "I think those events combined with some of the other fragilities i...