Traders will be gargling the Maalox in the morning as the Egyptian tensions flare. Classic sell the riots, buy the eventual overthrow? Look for market volatility at greater than usual doses until Hosni is on a plane to a villa somewhere. If the guy resists in the coming days, he risks being a candidate for a casket. The not running again in September idea is a non starter.
Crude and gold will be important tells in the coming days.
When food prices rise in high per capita countries it is an annoyance since food is less than 10% of household spending. In poor countries where food costs may end up being 50% of a household budget, the picture is dramatically different. More riots to come elsewhere. While we're able to pay up and live with more expensive Klondike Bars and Dinty Moore Beef Stew, unaffordable basic staples like rice and bread in far away places with strange sounding names is like showering the fabric of those poor societies with a flammable agent. Then it only takes a spark. Fun world.
No comments:
Post a Comment