Wednesday, April 10, 2013

The Middle East and Europe

I was thinking today about the Middle East and Europe. Though the Middle East is across the Mediterranean Ocean, for example it is only 696 miles from Athens to Cairo so business has been going on throughout the Mediterranean area now for thousands of years. So, all the destabilized countries in the Middle east aren't likely very helpful in regard to trading partners nor for the safety of European employees of European Companies working in the Middle East. This also is likely affecting banks not only in the Middle East but also in Europe. And with the collapse of the banking system in Cyprus and the European Banking system stepping in to return order it makes me wonder what affect all the destabilization of the middle east is having upon all this? For example, would Cyprus Banks be having the problems that they are having if Egypt, Libya, Syria, Lebanon etc. were more stable? I think maybe the answer is possibly "No" they wouldn't be having as extreme problems as they are having. So, the Arab Spring I believe is part of the problem that Europe is having trying to stabilize their economies.

Another factor is Christians being killed and harassed more by Muslims in All Middle Eastern Countries. Coptic Christians who have been in Cairo non-stop since Jesus walked around Galilee are being persecuted and killed more than any time in my lifetime and I'm 65 so I've been around for awhile. So, this new unhappiness between Christians and Muslims is making  a bad business experience likely much worse than it would have been 10 or 20 years ago. And this I believe is part of the reason why Cyprus banks have been having problems and could also lead in the future to similar problems with other European banks in various countries. And likely the European Banking system will use the same solution there as in Cyprus and this is likely to terrify investors to move their money before they lose 20% to 40% or more of their savings and investments too just like the Cyprus depositors already have against their will.

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