Reuters Poliltical Risk Correspondent Peter Apps observes:
The spread of a possible flu pandemic could see an increase in already heightened levels of government intervention in economies and financial markets as a result of the global financial crisis.
In the short term, it might serve to give governments an easy justification to impose protectionist measures that could further stifle slumping trade flows. [...]
"At the moment, markets are still making the assumption this will not be that serious," said Dresdner Kleinwort emerging foreign exchange strategist Jon Harrison. "But if it were to turn out much worse you would see a rise in government spending and government intervention. This sort of crisis would be too big for anything other than governments."
What was that we heard about not wanting to let a crisis go to waste?
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