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Realistbear

Hosni Quits Sending Everything Up--Well, Almost Everything

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http://uk.finance.yahoo.com/news/European-shares-end-higher-reuters_molt-1241404798.html?x=0

European shares end higher as Egypt president quits
16:41, Friday 11 February 2011
LONDON (Reuters) - Europe (news) 's shares broke a three-day losing streak to close higher on Friday, boosted by news that embattled Egyptian President Hosni Mubarak had stepped down.
The FTSEurofirst index of leading European shares provisionally ended up 0.5 percent at 1,174.88 after trading as low as 1,159.86 earlier in the day. The index was up 0.8 percent this week, extending the gains for the year to 4.7 percent.

Much of it priced in no doubt. Bit of a yawn freally. Miltitary rule backed by US until elections in September. Muslim brotherhood won't be happy campers.

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Much of it priced in no doubt. Bit of a yawn freally. Miltitary rule backed by US until elections in September. Muslim brotherhood won't be happy campers.

Don't get me wrong, I'm pleased as punch for the protestors. But the markets's reaction, as you point out, suggests we aren't about to see freedom, peace and justice.

Egypt aleady boasts a hefty misery index (product of unemployment & inflation). Mubarak recently tried to bribe public sector workers with a 15% wage rise - and they still came out striking for better pay and conditions (quite a different crowd from the Tahrir sq lot).

How will any administration cope with hopes and dreams of these supposedly liberated people?

My guess is money-printing on a grand scale. Let's face it, revolutions and hyperinflations ain't exactly strangers (eg French Revolution).

Why should western markets be bouyed by that prospect. Maybe it's because some believe this move hastens similar popular uprising threats in China. If the Chinese administration responded with better pay and conditions it would without doubt make manufactured goods MUCH more expensive .... and that would make the west more competitive.

But that's an awful lot of convoluted if-ing. Best to just let the market do what it will and not try to impose one's own sense of logic on it.

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A mass demonstration is planned in Bahrain, Saudi's Neighbour.

If the domino effect continues Saudi oil sheik's will be having an embolism.

This might have been the reason the U.S where not so keen (behind closed doors) to see Mubarak go.

Imagine the effect Saudi becoming democratic will have on the Markets.

"14th February 2011 is Revolution Day in Bahrain"

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A mass demonstration is planned in Bahrain, Saudi's Neighbour.

If the domino effect continues Saudi oil sheik's will be having an embolism.

This might have been the reason the U.S where not so keen (behind closed doors) to see Mubarak go.

Imagine the effect Saudi becoming democratic will have on the Markets.

"14th February 2011 is Revolution Day in Bahrain"

Thanks for the heads up, but can I just add that that is NOT the answer you should be giving the wife or gf, should she demand one.

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  • 312 Brexit, House prices and Summer 2020

    1. 1. Including the effects Brexit, where do you think average UK house prices will be relative to now in June 2020?


      • down 5% +
      • down 2.5%
      • Even
      • up 2.5%
      • up 5%



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