World leaders in emergency talks to prevent financial meltdown

In the past week alone 2.5 trillion dollars have been wiped off the value of global stocks.

That is why world leaders and policy makers have been scrambling over the weekend, trying to find a way out of the turmoil on the international markets caused by the debt crises in Europe and the United States.

The very real fear is that the developed world could sink back into a recession from which it has barely emerged.

France’s President Sarkozy, who chairs the G7/G20 group of leading economies, spoke with British Prime Minister David Cameron on Saturday.

Further G7 talks are planned, and finance ministers from the G20 countries held a telephone conference on Sunday morning.

Sources also report that the European Central Bank was due to hold a rare emergency meeting on Sunday.

China has harshly criticised the US after its credit status was downgraded by a major agency, although South Korea has said it still has faith in US bonds, despite of the move.

With exposure to US debt standing at around 300 billion dollars, South Korea sees no alternative.

There will be a lot more talking this weekend as the world waits nervously for the markets to open on Monday.

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