Economist Martin Wolfe was warning of the credit crash before it happened. He recently returned from the World Economic Conference in Davos. He talks with Charlie Rose on the state of the world economy, some of the rescue plans underway by governments, and realism about our long, slow recovery back to a new normal. The new normal of the future is back to our grandparents' habits where consumers spend less and save more. But there will be many casualties of the new normal. Lenders, retailers and many other industries and services must adjust to the new normal. Those that have been reliant on over-spending of discretionary income will change course or go bust. We cannot go back to the old ways that blew us up. We not doubt will go back to the old ways eventually but that will be a future generation who will not remember the pain of this time. Our generation is likely to be marked by this experience for a long time. Advance the play guide to 2:26 to start the interview on this clip: