The world economy is not going to collapse. This is a routine correction in the marketplace. It might be a little bit more strong then other recent corrections, but it will give way soon enough. In fact, this is a great time for investors to start putting money into the markets. However, one of the major challenges now that we are facing that we really haven't faced before is that the correlation between the major markets is getting more tight. For example, it used to be that if the US economy was going down, one of the other major economies would go up, and vice verse. But due to the increase of globalization the world economy is getting 'smaller and smaller' and are coming in line with eachother. Now it seems when one major economy starts to tumble, others are more affected by it then ever before.
However, have no fear, the market upside is near The market is 'on sale' and will be back up in a matter of 6-12 months... might seem like a long time, but its really not. There have been far worse recessions in history and this doesn't compare. It just so happens that all these major companies (majority american) are going belly-up at the same time. But we in Canada are still pretty strong (WAY better shape then the US), and europe is still hanging in there. The markets will always go up-down-up-down; but that will always been in an upward direction (over the long term). In history, there has never been a decade with less then 10% returns, even if u take into consideration the last 4 recessions we've been through.
So, moral of the story; don't worry, be happy
Where there is great challenges, there is even greater opportunities