The Ukraine fallout will hit markets hard

Without the US as the world's policeman, any deterioration in the crisis in Ukraine could pose a significant threat to global stability.

The fact that markets have not reacted more strongly to the turmoil in Ukraine is a sign that the world is not yet appreciating the seriousness of the situation. 

If my contacts in Europe are right, then a dangerous economic and geopolitical cocktail is on the way, which will create great turbulence in European and global markets.

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