The crisis in the Middle East has caused a heightened risk aversion amongst investors. They are worried the fighting will weigh on government budgets, travel, leisure as well as profit growth.

The governor is concerned with a crisis of affordability. He will target economic development efforts that are focused on building generations of opportunity.

If we kick this down the street, the crisis five years from now will be irreversible.

The situation is far healthier. The risk of another Asian crisis is very low.

We see a substantial risk of a financial crisis as an integral part of an Icelandic 2006-2007 recession. The funding squeeze of the banks will probably force them to reduce lending to domestic players, and force a sell off of external assets.

A crisis like this one shows that the risk is global.