I was thinking all weekend about how Monday would play out. Funny thing is that is was not Greece or the Euro Zone or the Euro Currency that was on my mind. It was not the lingering effects of the 9/11 anniversary either. Rather I was thinking about the Egyptian raid on the Israeli Embassy in Egypt on Saturday (of course the Sabbath).
The Israeli market index, TA 100 dropped 3.41% on Sunday, mostly in response to the raid in Egypt. Part of that drop might have been a catch-up to Friday’s global sell-off when Israel was closed.
The situation in Greece and Europe can be solved. Rationality will take hold and the European economy will be repaired. It might not happen overnight but the struggle in Europe is one of socialism versus capitalism and lazy versus hard working. Some egos might be bruised along the way but there nothing that can’t be solved though negotiation and compromise between intelligent people.
There is no religious zealotry at the heart of the matter in Europe. The days of one European nation seeking to conquer another is a matter of historical academic study. I am not expecting a World War III on the European continent because of the problems facing Greece, Ireland, Portugal, Italy and Spain. Greece is not the Weimar Republic.
My bigger concern is in the Middle East where the fundamental problem is religious fundamentalism. Whether it is storming the US Embassy in Tehran, storming the Israeli Embassy in Egypt nearly 30 years later or the 9/11 attacks on the US, we are not dealing with rational human beings. This is where our risk will be coming from.
Banks can be fixed. Budgets can be balanced. The irrational behavior of someone who wants to kill you because of religious beliefs threatens both our economic, political and personal well being.
My gut says we open on the day’s lows and maybe even touch green, at least momentarily today.
Posted By Scott Rothbort at September 12, 2011