A Slowdown Anywhere Means A Slowdown Everywhere

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		Tech Entertainment Wall Street Markets Strategy Sports Lifestyle Politics Europe Video Latest Monday, September 26, 2011 A Slowdown Anywhere Means A Slowdown Everywhere While Europe tries to put a firebreak around Greece, there may be no way to put a firebreak around Europe, nor around the developed world. This is what happens in a highly correlated world. A chart from Citi shows the rising correlation of regional economic growth to the global aggregate. For the past decade all regions have been moving in harmony, with correlation peaking right about now. Globalized trade, cross-border financial links and faster-moving information have all contributed to the trend. One major outcome of high correlation is volatility. Citi warns that spillover from Europe will be the biggest threat to America's outlook in the months ahead. Roubini warns that a G7 recession could turn into a global financial crisis as bad or even worse than 2008. Read » Also On Money Game Today: 16 Countries With Serious Youth Employment Problems The Most Expensive Housing Markets For Billionaires WARNING: Stagnant Wages Can Support Only So Much Consumer Debt – We Appear To Have Hit The Ceiling Again Coke CEO Says China And Brazil Are More Attractive To Business Than U.S. Advertisement CHART OF THE DAY: Financial Conditions Are At Their Weakest Level Since Lehman CHART OF THE DAY: On Those Massive Funding Needs Of European Banks CHART OF THE DAY: The Best News On Housing Share this: Facebook Twitter Digg Reddit StumbleUpon LinkedIn The email address for your subscription is: dwyld.kwu.wyldside@blogger.com Change Your Email Address | Unsubscribe | Subscribe | Subscribe to the Money Game RSS Feed Business Insider. 257 Park Avenue South, New York, NY 10010 Terms of Service | Privacy Policy

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