Generally speaking, US dollar is used in most international transactions, so if anything happens with the US economy, it will affect global economy as well.
With the gas and fuel prices going up, slowdown in real estate market and the dollar not worth as previously, then consumer’s spending power will be decreased. Subsequently, this may cause major companies to earn less and their share price definitely will drop. Indirectly, other countries will suffer less demand from US and then the export of goods will be affected too. Try imagine how danger’s was it!!!
US is the world economy’s boss, many people waiting for their reaction to change current financial situation. I think what US government are trying to do now is to solve this financial tsunami temporary only. However, they should do something to combat this current issue by stimulating the global economy in order to win back people confidence.
If stand from positive point of view, US dollar become weaker is not all bad since foreign travelers can get more for their money during currency exchange and they will choose US country as their dream destination. Am I right?