Monday, January 31, 2011

Egypt's unrest unsettles Global Markets

And stock market might get rattled 
http://finance.yahoo.com/news/Unrest-in-Egypt-Unsettles-nytimes-4027218866.html

You can click on "And Stock" or paste the 2nd above item to read yahoo business article above. See quotes below.

“A one-dollar, one-day increase in a barrel of oil takes $12 million out of the U.S. economy,” said Jason S. Grumet, president of the Bipartisan Policy Center, a Washington research group. “If tensions in the Mideast cause oil prices to rise by $5 for even just three months, over $5 billion dollars will leave the U.S. economy. Obviously, this is not a strategy for creating new jobs.”

In early electronic trading on the Nymex oil futures market Monday afternoon in Asia, prices edged higher to $89.45 a barrel. next quote.

While Egypt’s banks and stock market were closed because of the protests there, other Middle Eastern markets declined in trading Sunday, with shares falling by 4.3 percent in Dubai, 3.7 percent in Abu Dhabi and 2.9 percent in Qatar. The markets rebounded slightly in early Monday trading.
By Monday afternoon, Asian markets were also trending lower, with the Nikkei 225 index in Japan falling 1.2 percent, while the Kospi in Seoul slid 1.8 percent and the Hang Seng in Hong Kong dropped 0.7 percent. end quotes.

It makes sense that worldwide markets would be unsettled because of this present uncertainty. It is obvious to most people that there either will be chaos there (if the government falls and some violent group manipulates the people, or there will be a democracy like Iraq come into Egypt which would be like a high wire balancing act that would take several years to accomplish, or third Mubarak or someone he appoints will continue the present government until elections can take place). I would say that of the three above options the most likely would be one or three, even though the second one would be best in the long run for the Egyptian people. But, like I said, a democratic government like Iraq has now is not an easy thing to accomplish. Look how hard it was for even the U.S. to accomplish this with Billions and Billions of dollars along with thousands of American and European lives as well as about 100,000 or more Iraq deaths. A real and useful democracy doesn't come easily to any culture.

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