World events continue to rattle US market

March 24, 2011 in Economy, Stock Market 

Not long ago, national economies were more or less isolated from one another, and major shake-ups in one country – whether geopolitical (civil unrest, military coup, invasion) or natural (earthquake, tsunami) – rarely affected the economy of another.

formulaThings are different in the Internet-era globalized economy today, and rarely there had been so many international incidents occurring in such rapid succession.

In a matter of weeks, Egypt overturned its 32-yr old regime, which in turn fueled civil unrest in Bahrain, Yemen, Libya, Syria and even Saudi Arabia. Then came the devastating double punch of earthquake and tsunami in Japan. And before the dust settled there, USA and its NATO allies began bombing Libya.

Considering Japan’s status as the world’s third largest economy, and America’s dependence on Middle East’s oil supply, little wonder US market feels the strain of such global uncertainty, especially when the economy is on a slow rebound from one of the worst recessions in history. And this may continue for a while, as this CNN Money article muses.

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