the financial cr**** currently unfolding in the us ** clearly the worst since the world war ii.whether it will lead to a mild or severe recession will depend on how well the us ** will manage the cr****.from the very beginning,in our base scenario,we h**e factored in our expectations that the us ** would react relatively quickly to contain the domino effect.the validity of such expectation and hence our base scenario for the us and indeed the rest of the world including china was he**ily questioned immediately after lehman going bust.but it seems that the violent reaction by the markets to lehman and aig cases has made the us ** fully aware of the r**k that if it doesn’t act dec**ively and quickly,the us would surely enter a severe recession and bringing down the rest of the world with it.