A Russian debt default is a black swan event that could severely dislocate global markets, said Lori Heinel, Chief Portfolio Strategist for State Street Global Advisors. Heinel added that the Russian central bank already bailed out one bank tied to the oil industry, but the question remains how long the public sector could keep backstopping failing private entities before Russia’s sovereign debt is imperiled. She said a ‘Eurocrisis Redux’ is another black swan worth watching, especially now that the exit of a country is no longer completely out of the question and would be massively disruptive. Finally, Heinel said a policy mistake by the Federal Reserve could lead to further asset price inflation and other pressures on the global economy.
Subscribe to TheStreetTV on YouTube:
For more content from TheStreet visit:
Check out all our videos:
Follow TheStreet on Twitter:
Like TheStreet on Facebook:
Follow TheStreet on LinkedIn:
Follow TheStreet on Google+:
source
