11 Foreign Financial Stocks Falling Fast

The debt ceiling debate provided many lessons, including insights into our future. While some believe we are witnessing the decline of the United States as a global power, the truth of the matter is we have never been stronger. Kick us when we are down at your own peril. We love a good fight in this country, and we usually win.

This time the battle is on the home front, but the result will be the same. Our work ethic, knowledge base and productivity will allow us to solve the debt crisis while at the same time power this economy forward. There is a reason demand for Treasuries is still sky-high despite our challenges. The same cannot be said overseas. As such, I would avoid these 11 foreign financial stocks:

HSBC (NYSE:HBC): The London bank is cutting about 30,000 jobs in a global restructuring. Is the London Bridge next to fall? Given the problems with the euro, this foreign financial stock is to be sold before things get worse.

China Life Insurance (NYSE:LFC): China is on an accelerated path of destruction. The U.S. enjoyed 20 years of binging before collapse. With China, things happen more quickly. The 10-year run is done, and a crash could be coming next. I would avoid this Chinese financial stock.

Banco Santander (NYSE:STD): This Spanish financial company has been hit hard by the debt crisis in Greece. With bordering country Portugal facing similar problems, Santander will have trouble escaping the morass. Shares have been descending in orderly fashion, allowing for a quick exit today. Investors would be wise to take advantage of the calm before the storm.

Royal Bank of Scotland (NYSE:RBS): What dangers lurk behind foreign financial stocks? The Federal Reserve recently ordered Royal Bank of Scotland to improve its U.S. operations oversight and risk management practices. That sounds ominous and should give investors in this foreign financial stock pause. What time bomb is ticking? I wouldn’t want to be around to find out.

UBS (NYSE:UBS): This Zurich-based financial stock could have more holes than Swiss cheese. Troubles with the euro could have vast consequences for countries such as Switzerland. Defending one’s currency typically ends badly. That one-way ticket down will bring UBS with it.