A leading financial think tank says the United States may have lost its position as the world's leading financial market.
The change may have occurred already, not least because US markets are beset by credit woes, according to research by McKinsey Global Institute, a think-tank affiliated to the consultancy.
"We think the differential growth rates are so significant that it is quite likely Europe has overtaken the US," said Diana Farrell, author of the report.
The Financial Times has the story here.
This comes during a difficult time for the American economy. 2008 has started with some sharp losses on Wall Street, the dollar continues to decline on cuurency markets and there is increasing talk that the economy will go into a recession-if it hasn't already begun.
This week brings news that several foreign nations are investing billions into American financial institutions to keep them from going into default. Kuwait is investing $4 billion into Merril Lynch. China is set to invest $9 billion into Citigroup. Both groups are set to announce huge multi-billion dollar losses in the coming days.
We have sown a huge whirlwind of debt and trouble on world financial markets. Threats to the golbal economy by last year's sub-prime crisis have caused other nations to lose confidence in America. They, Europe, Asia, and the Middle East, will not allow their rising economic status be jepp[ardized by the incompetence of American financiers. We are approaching a full blown financial crisis that is going to change our world.
I am reminded of a scripture in Hosea 7:8-9 Hosea 7:8-9  Ephraim, he has mixed himself among the people; Ephraim is a cake not turned.
 Strangers have devoured his strength, and he knows it not: yes, gray hairs are here and there on him, yet he knows not.
American King James Version×. Israel was in trouble with other nations and God's protection was soon to be removed. Yet the people and leadership did not see their foundation was crumbling. Notice, "Ephraim has mixed herself among the peoples; Ephraim is a cake unterned. Aleins have devoured his strength, but he does not know it; Yes, gray hairs are here and there on him, yet he does not know it."
America's financial strength is being devoured by other nations as they come in and buy major interests in its leading financial institutions-its economic heritage. No matter how you spin this it represents a sea change in the history of the nation. Other countries are looking at America as a sick man, needing help.
Why are they willing to invest such large sums? One reason is they are holding billions of dollars. They can't afford to lose that money. If you owe the bank $100,000 and default they can let you go under and survive. But if you you default on $100 million then they can't afford to let you go under. It is in their interest to loan you more money to keep you solvent so they do not take a loss. Other nations cannot stand by and see major American institutions go under. They will not jeopardize the global economy.
These investments will come with a price. Future decisions will have to made with the interests of these other coutries in mind. That will represent a change in American power. We are wathing momentous events unfold.