There is too much of euphoria in the financial and stock markets across the globe in the last few weeks, thanks to the stopping of flowing of negative data from Europe and US. US is reporting some stability in the housing prices and also in the industrial output.
But what needs to be seen is the continuing high level of unemployment in US and the looming probability for that to start going up once again in the coming months. There is also a strong labor unrest brewing up in the European countries especially the weaker cousin countries, that can spell trouble to the entire Europe.
Nobody in Europe or the world, is prepared for a Spain or a Greece default, but that looks quite likely. And the bomb shell could be dropped anytime on the world without notice, and that can lead to major shocks across the world.