Former Morgan Stanley CEO Sees This As A Threat

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Former chairman and CEO of Morgan Stanley, John Mack, told CNBC this week that “geopolitical risk” may be the biggest threat to global prosperity and financial markets.

Mack appeared on Squawk Box and said, “Hopefully, nothing happens. But there’s a lot of turmoil, whether it’s in the Middle East … North Korea … or China and their [disputed] islands.”

He has cited the risk of a “geopolitical blow-up” as his top concern.

“All it takes is for one person to make a mistake. And then you have a global event,” he added.

In regards to China, Mack is bullish. He owns stocks in China and believes the government there will solve, over time, the forces putting a drag on the world’s second-largest economy.

“I’ve always been bullish on China. Are they have having some issues and problems? The answer is yes,” he commented. But he admitted, “I have a lot of confidence in the leadership of that country.”

Mack served as chairman and CEO from 2005 to 2009.

Disclaimer: We have no position in Morgan Stanley (NYSE: MS) and have not been compensated for this article.