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The latest chapter in the saga of the global economic crisis – tenuous at best
Two weeks ago, we entered a new chapter in the global economic crisis. After the announcement of the astronomic $1 trillion dollar U.S. bailout of Greece by the IMF and European Union, the initial stock market euphoria has turned into caution and unsettled fear.
Now Britain has their first coalition government in 70 years and will they be able to rein in their ballooning debt? Governments have been living beyond their means and drastic cuts are needed now to avoid defaults.
The markets are asking will it buy enough time for the Euro fiscal misfits to get their finances in order? Will they be able to pass enough belt tightening measures without massive riots and turmoil?
Can the people in the affected countries ratchet down to a beans on toast lifestyle after enjoying caviar benefits? Is this just a temporary financial bailout that will come back to haunt the euro/global markets in two or three years?
How much will these social and financial changes affect global energy demands?
All this uncertainty has significantly driven up the investor flock’s fear quotient and they are moving away from selected currencies and commodities and diving into the safe glitter of gold.
So, what exactly does it all mean? Find out what our analysts are saying in this week’s Energy Report. Send your email to info@en-pro.com to sign up.
By: Roger McKnight, Senior Petroleum Advisor