Saturday, January 29, 2011
Egypt
Whether the pro-American Mubarak government can hold onto to power or not remains to be seen. The real danger in this whole situation is that Egypt becomes another Iran, turning the Arab world's most populous nation into an Islamic theocracy run by The Muslim Brotherhood. For investors, this uncertainty and turmoil will create short-term market volatility and enough of a correction to present a buying opportunity for long-term investors.
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Let's hope it is short-term. Economics I think has a Yin and Yang sort of aspect to it sometimes that is not generally appreciated. It seems wealth creation creates the seeds of destruction. Students are lazy because they don't have much to work for - unless they come from poverty ridden countries. Poor people get cell phones and the internet. The wealth creation enables them to see how the rich and the politically well positioned live. And they riot.
ReplyDeleteIt wouldn't surprise me to see many power struggles globally as the 21st century proceeds. Of course, with China and the U.S. sensitive to the control of strategic elements it ramps up the impact on global politics.
It will be interesting to see what the next few weeks bring. I wonder what will happen to Syria. Similar situation to Egypt: oppressed, poor population, not a whole lot of natural resources.
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