I expect those predictions of a continued recession to eventually become visible as the second Great Depression.
The FTSE is on unsteady ground as the world's economic confidence falters after the downgrade of the US credit rating and renewed eurozone fears.
The FTSE 100 opened 1.2% down but bounced back to around 0.02% down in morning trading.
Germany's DAX fell 0.5% on opening, while the CAC40 dipped 0.13%.
Far East markets were also affected - Japan's Nikkei has closed down 2.2%, while South Korea's Kospi fell 5%, Hong Kong's Hang Seng was down 4%, and Mumbai's Sensex slipped 3%.
Investors are worried about the outlook for global growth and debt issues in the US and Europe.
Analysts warned that markets would remain unpredictable in the next few weeks.
The wobbles came despite the G7 group of developed countries and the European Central Bank vowing to support a plan for financial stability.
Standard & Poor's cut the US's top-notch AAA rating for the first time ever late on Friday, cover concerns about the country's budget deficits.
It has graded the US AA+, sparking fears the US economy will fall into a double-dip recession. Read More
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