Global Financial Volatility: How Serious Will the Slowdown Be?

High volatility in global financial markets has even seasoned players looking askance. The world hung on tenterhooks waiting for the US to raise its debt ceiling, only to find those inside the credit ratings agencies were unimpressed by the outcome. Then, the markets crashed and the rollercoaster continued. Debt-ridden Europe is still reeling, there's even uncertainty around China. But optimists in resource-rich Australia are holding on tight. Predicting what's next is tricky as the world's financial markets are more integrated these days. However, according to Australian School of Business finance professor Ron Masulis, the question is not whether a slowdown is expected, but just how serious and how long will it be?