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10/19/14

US Economy: 5 biggest risks that can derail the US economy - by Bryan Borzykowski

If there's one thing we can take away from this week's stock market dive that sent the Dow down more than 866 points and 5 percent in five days, it's that American's are feeling a little jittery. After five years of economic uncertainty, it finally feels as if things are back on track, yet many people are wondering whether or not the terrible times are truly in the past.

On the surface, everything seems to be humming along nicely. The S&P 500 is up about 30 percent over the last two years, the U.S. jobless rate is at a six-year low, housing starts have climbed 9 percent year-to-date, and other economic indicators are pointing to good times ahead.

"It's been pretty good so far," said Sheryl King, Roubini Global Economics' senior director of research. She thinks America's GDP will see about 3 percent growth in 2015, but only if some of the risks that people are concerned about don't materialize and derail the recovery.

A number of things could trip growth up.

1. Global slowdown, 2. Rising long-term rates, 3. Lower oil and lower inflation 4. Rising inflation,     5. Falling stock market 

Read more: 5 biggest risks that can derail the U.S. economy

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