The New York Times: Reports on the recent 330+ dive in the US Stock Market, the article notes the following reasons, " Oil prices tumbled below $50 a barrel on Monday, spooking global financial markets....Worries about Greece’s ability to stay in the eurozone have reasserted themselves in recent days, for instance. The dollar continued its surge against the euro on Monday. "
Lets Get Real:
There is a glut of oil, thus prices will fall, the old producers of oil from the Middle East can not afford to cut back as they will lose their market share, as noted in the article there are other gas providers that can cover any space in the market. What is also noted is that Greece is back on the table, there is a snap General Election this month, the left wing Party is expected to win, the Party has stated that it wants better terms from the EU, the Germans have said NO. The German tax payer is not going cover to the promises of a left wing Party in Greece. Thus either the LEFT in Greece fold or Greece is out of the Euro, either by its own choice or thrown out. The benefit to the West of lower oil prices can be found in the fact that the UK Coalition Government will be heading in to an election with oil prices down. That always looks good for the voter. On the international field the low price of oil really hurts Iran and Venezuela, thus they need a deal with the US to get sanctions off, with a Republican Congress the Oval can whistle for any sanctions removed. It will be interesting to see how the markets react tomorrow, will people still sell shares or start to buy as share prices get lower.
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