risk of sovereign default is subsiding. Risk of deflation is reducing. Capital outflow from developed to developing countried has also shown improvement. Employment situation in many develop countries is improving as well.Chances of return of problem is there in terms that current high fiscal deficit due to stimulus package in many develop countries in combination with high accumulated debt can give rise to sovereign default. Falling value of dollar combined with lower interest rates in U.S. may result in lower exports from del countries and capital outflow from U.S. this can induce the fear of deflation as well.