Sentiments and the World markets

Today again we hear the news of a rapid decline in the world share marketsFrom LSE to DAX,french,everywhere there has been a sharp decline.Apparently this rapid decline was accentuated by Taiwanese negative report on its own growth, ofcourse because of export reduction but also with  Morgan Stanley stating that the world economy is precariously close to world recession.Infact, there is lot of anxiety among investors and people in general.M & S comment came after two quarters of contraction in economies of United states & Europe.Morgan stanley has cut the growth forecast to 3.3%  approx from more than 4 % As we see, share markets are the barometers of the sentiments prevailing in the world finance.With investors selling stocks in hoards and running to either keep the money as liquid cash or probably still going for US treasury bonds,which is still considered the safest bet,even though the country has taken so much battering .Though it hard to imagine how a country which has world's most top 100 corporates headquarted, is facing the worst crisis of the century.According to some doomsayers all this happening because of the callousness of politicians across the globe.