The situation in Lebanon is very grave, but to infer that all out war in the middle-east will emerge from it is a little bit far-fetched if not disingenuous. First all, the standing armies in the region, Egypt, Jordan and Saudi Arabia have clearly no intention of getting involved. Syria's army is old and weakened. Should Iran itself decide to get openly involved as a military force, it will ruin all its chances of ever getting its nuclear program off the ground. The Arab league countries have condemned Hezbollah and it is very doubtful oil shipments will slow down, unless of course Iran stops its production, but that is doubtful as well. The markets are reacting hysterically and eventually they will come to. Bearish sentiment is at a historical extreme and this is no time to bet the house on the end of the world, which just about every financial web site is doing. It's nonsense.
This entry was posted
on Sunday, July 16, 2006 at 10:54 AM.
