Stephen Roach of Morgan Stanley and Nouriel Roubini of Roubini Global Economics were both congratulating themslves and each other on the presience of their downbeat assessment of the world economy last year. Why? Because they believe that the growth in the Chinese and Indian economies won't be sufficient to keep the world out of trouble, and that the downturn in the states will be worse than we think.

What's more, the Fed's emergency rate cut this week won't be sufficient to rebalance the economy - quite the reverse if it encourages Anericans to consume more than they earn. The markets squealed and the Fed delievred - no way to run a central bank according to Roach. Joe Stiglitz and George Soros have added their voices to the pessimism. Soros says we're "at the end of an era" for the US dollar as an international reserve currency. The mood's as chilly as the snowy streets outside.