U.S., Europe Safe Havens in Crisis |
| Wall Street Journal - Feb 6, 2011 |
Civil unrest is spreading across the Middle East, raising concern among investors about what will happen next.
When things happen in faraway places, it is difficult to figure how they will affect markets closer to home. Sometimes these events can scare the market, but they are usually short-lived. The Asian financial crisis in 1997 led to steep losses in the U.S., but the swift recovery makes the event seem like a blip today. Similarly, the 1994 peso crisis in Mexico and the 1998 Russian debt default and financial crises had short-lived impacts on U.S. markets.
Unlike the Asian crisis of the late 1990s, the Middle East protests are political. In Egypt, millions marched and President Hosni Mubarak has agreed not to run for re-election after 30 years in charge. Before Egypt, mass protests toppled the government in Tunisia. More recently, the King of Jordan has dismissed his cabinet and the strongman of Syria, Bashar al-Assad, is talking about reform. In addition, Lebanon is going through its own messy government transition.
Read Full Article from Wall Street Journal
- Posted: 2011-02-06 03:10:21
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