OECD says Market Turmoil will Hit World Growth

We will now suffer the consequences of the bubble bursting, as with all overly speculative stock markets. When the rich gamble the people pay:

Market turmoil and the woes in the US subprime mortgage market will crimp world economic growth this year, the Organisation of Economic Co-Operation and Development said on Wednesday, as it called for better regulation to address the “serious imperfections” in US housing markets and credit markets worldwide.

And there could be more to come:

“Downside risks have become more ominous in a context where overall financial market conditions are likely to remain durably tighter,” it said.