Friday, December 15, 2006

Things to watch out

Paul Kedrosky's Infectious Greed: Things to Be Nervous About in 2007

Things to Be Nervous About in 2007
The World Bank has out a lengthy new global economic outlook report filled with things to fret about in 2007. Here are just a few of 'em:

* An oil-sector supply shock could disrupt growth
* A disorderly unwinding of global imbalances remains possible
* A housing market crisis could cause a recession
* Overheating could provoke a sharper slowdown
* Avian flu is still a worry
* Marine fish are under increasing pressure
* Global temperatures are rising
* Climate change could have a catastrophic impact on some countries

Whew, there is so much to worry about. On the other hand, and not to take anything from these serious issues, especially climate change, from a contrarian point of view all these worries are reassuring. After all, they're all known, and the market does climb a wall of worry, so 2007 could be a very good year indeed on the major markets as we ascend this particular Eiger.

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