Right now, uncertainty is stretching over markets worldwide as micro issues, like the BP oil spill, and massive one’s, like the collapse of the euro, rattle traders minds.
We’ve got the most important stories, both long and short term, you need to watch here, with details of where they are and where they might head next.
Kyrgyzstan: Coup Set To Bring Down Government Of Vital U.S. Ally?
Kyrgyzstan experienced a coup just a little over a month ago, and now civil unrest is setting the country up for another spate of internal strife.
The government is now embroiled in a conflict against supporters of the previous regime, and fought to take back two buildings from the rebels on May 14.
The result is continued instability in a country that is a key part of the U.S. war effort in Afghanistan.
China: Is The Great Slow Down Beginning?
The government in China has been making moves to address what many believe is a property bubble within the country. Those moves are now having a serious impact on prices in places like Beijing and Shanghai.
Simultaneously, the government is also addressing international imbalances by revaluing the yuan against the euro.
The impact could be a slowdown in the world’s number one growth market.
Australia: Is It The Next Mega-Meltdown On The Horizon?
Australia is on the attack against rampant economic growth in its country, targeting the mining industry with new taxes set to hit profits.
This move is strange, particularly because it was the resource production industry that powered Australia through the worst of the global financial crisis.
Now the country is tightening rates as well.
Tie that in with the country’s reliance on China, and the level of indebtedness among its households, and you have the beginning of trouble.
United States: Will Upcoming Elections Create “Austerity” In America?
Fall elections in the U.S. have already found their way into policy, forcing Senators to take unlikely sides in the financial regulation debate.
The political conversation is set to get more radical as the elections come closer, as each party attempts to ratchet up the populist rhetoric and get their supporters out the the polls.
The result could be an inflamed U.S. electorate, and a more austere Uncle Sam less inclined to hand out candy.
The Supreme Court: The Bilski Decision
Any day now the Supreme Court is set to make a major decision on business model patents.
Specifically, the court will rule in the Bilski case, where an Appelate court rejected an attempt to patent a particular form of hedging.
The case could have significant ramifications for what kind of business processes can be patented. Learn more here.
Banks: Will Exposure To Sovereign Debt Ignite A New Credit Crisis?
Image: PIAZZA del POPOLO
The sovereign debt crisis in Europe is doing more than undermining the euro, its also hammering banks that hail from the eurozone.
Many of the banks, particularly Spanish, French, English, and German, have significant holdings in foreign debt which is encouraging doubts within the system.
Those doubts can be felt through the rates banks are willing to lend to one another, and are beginning to endanger the status of some of Europe’s giants.
This could lead to a new credit crisis, if the eurozone cannot resolve its financial position.
The Oil Spill: Is it headed to Florida?
Image: Flickr
The oil leak off the coast of Louisiana shows no signs of abating, even though BP is trying everything in their arsenal to tame the crisis.
It is now looking increasingly likely that this leak will persist until a new well draws from the same area, releasing the pressure. Beyond that, the big talk is that it may be headed to Florida and up the east coast.
Thailand: Could This Be The Beginning Of A Civil War?
Image: naelkung on twitter
Protests in Bangkok are rocking Thailand’s establishment and endangering long-term peace in the country.
Videos and photos of the rebellion show the seriousness of the situation, as government troops continue to shoot to kill protesters.
The risk remains that this protest movement could turn into an organized military uprising, leading to civil war in the country.
Europe: Is The World’s Largest Economy About To Break Up?
The ECB’s bailout of its fringe was meant to provide support for European debt and equity markets amid increasing doubts over the eurozone. It stopped the bleeding for a few days, but last week saw negative moves on European indices and increasing doubts over the euro’s long term survival.
Now some are suggesting a whole new currency union could be born from the ashes of the euro. Few are suggesting things could remain the same, and still produces survival.
Regulation: Is The U.S. Set To Damage The Only Industry Actually Making Money?
The U.S. is set to enact new regulations targeting the financial services industry, which could damage profits and halt the growth of a key GDP powerhouse.
Right now, legislation is being debated by the Senate that would prohibit investment banks from operating prop trading desks along with client support services. This industry breakup would have the short term impact of a massive restructuring, the long term result is unknown.
Considering the importance of the industry to the U.S. economy, however, it could be a cramp on U.S. growth for years to come.
Worried about the future? Worry about right now. See the housing markets in crisis.
Image: Wikimedia
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