Tags: Roubini | Bin Laden | osama | Retaliation | Derail | Recovery

Roubini: Bin Laden Retaliation Could Derail Recovery

Tuesday, 03 May 2011 01:13 PM

Osama bin Laden's death won't really change the course of the global economy but any retaliation for his demise could derail the recovery, says New York University economist Nouriel Roubini.

"The fact that he's gone doesn't significantly change the geopolitical situation," Roubini says, according to Forbes. "I think the death of bin Laden doesn't significantly change that."

However, things could change.

"Somebody could decide to try to show strength by attacking the U.S. or Western forces in other parts of the world. So in some sense, the risk premium might be lower today, but there is still significant risk," Roubini adds.

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Newspapers left by visitors grace the fence overlooking the crash site of Flight 93 in Pennsylvania.
(Getty Images photo)
Global economic recovery from the worst recession since the Great Depression will likely resume its influence over capital markets, analysts say.

In fact, stock prices are probably due for a breather anyhow, some say.

"Once the bin Laden news settles and earnings season slows down, we'll be due for a pullback," says Fred Dickson, chief market strategist with D.A. Davidson, according to CNNMoney.

"Bin Laden's death doesn't eliminate the risk factors and it doesn't settle the political uprising issues in the Mideast."

U.S. unemployment figures will continue to play a key role in the direction of U.S. markets.

So will oil prices.

"Oil can be a globally emotional, reactive market, and any time that geopolitical risk is reduced there is less fear in the oil markets," says Derek Hoffman, chief executive and founder of Wall St. Cheat Sheet, according to CNNMoney.

"The news that there was a successful effort to find, capture and kill the number one terrorist in the world is a positive sign."

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Osama bin Laden's death won't really change the course of the global economy but any retaliation for his demise could derail the recovery, says New York University economist Nouriel Roubini. The fact that he's gone doesn't significantly change the geopolitical situation, ...
Roubini,Bin Laden,osama,Retaliation,Derail,Recovery
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2011-13-03
Tuesday, 03 May 2011 01:13 PM
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