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Suez Canal – Crisis II

January 31, 2011

Despite more unrest in Egypt and a horrible Dallas Fed Report (richmond last week was crap too) the markets are flat.
Dallas Report

Oil, however is running much higher(Brent crude topped $100). I think in general its cute to talk about who will rule the country and all that. Lets face the facts, no one really gives a crap unless:

1) the Canal gets shut down. (wiki)
The Canal connects europe to Asia. It clears 8% of world trade. One company already halted business. Doing a bit of reading on Wikipedia points out the “Suez Crisis“. Summary is Egypt tried to Nationalize the canal (which runs through their territory) and were then invaded by Britian, US & France. Interesting….

2) Riots spread to an oil producing nation.

Its pretty clear that both choices are primed and ready to go. US invasion imminent.

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