20 Warning Signs Of A Global Doomsday

Wednesday, July 6, 2011
By Paul Martin

by EconMatters

Worries of a Lehman-like financial crisis spreading through Europe and the world has made Greece talk of the market lately. Not to let Greece dominate the spotlight, the U.S. debt ceiling debate is also getting to be as traumatic since a failure to raise the debt ceiling could mean imminent default and credit downgrades for the United States sovereign debt.

In the midst of all these different crises, global markets rise and fall in lockstep with news coming out of Europe and the U.S. The U.S. stock market, after suffering a correction phase since April, snapped back last week, scored the best week in two years, but only to retreat again after the long July 4th weekend. The commodity and currency markets are not immune either, with investors switching back and forth between risk-on and risk-off trades.

In this environment, one has to ask … are there other indicators signaling a global market doomsday?

According to Oxford Analytica, there are 15 “Global Stress Points” ranging from medium to extreme high impact to the entire world. These are listed below ranked by their potential impact by Oxford (see graph). Around 60% of the “stress points” are related to geopolitics, war or unrest, while only about five events could be classified as financial crises.

Dollar Collapse
Taiwan / China Armed Hostility
Israel / Iran Armed Conflict
Mexico State Hollowing
Global Protectionism
Latin America Hydrocarbon Disruption
Iraq State Institutions Collapse
Russia Military Aggression
End of Euro
India / Pakistan War
Pakistan State Collapse
Argentina Sovereign Default 2.0
North Korea Military Conflict
War in North Africa
Lebanon Civil War

The Rest…HERE

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