Will the world revert back to city states, when the western governments collapse?

As the dow jones industrial average plummets another 300 points, it is becoming apparent that the current administration's economic strategy is failing considerably. Furthermore, the European Union is on the brink of collapse. Sure bailout money can save the socialist European countries for the time beings, but the underlying fundamental conditions that have led to the economic hardship remain unchanged. As the world economy becomes more integrated, company specific risk is reduced, but the systematic risk of the market increases. Imagine one giant corporation that owns everything. What happens if it collapses? The world economy collapses. And that is what is going to happen next. So, when the markets collapses, the populations will panic and civil war will follow. Will the world revert back into city states, similar to ancient times?