Weekly Market Outlook, Monday 6/27/2011 : Possible Troubles Abound

Well folks, its been a good week here at navigatethezoo.com , traffic is starting to pick up and I appreciate that. We have our first user article request and it is a great topic but I won’t say more than that.

Even if you think the stock market is boring, and many people do, understanding the global market forces each week is possibly the best way to understand the news in the world around you. Markets tend to follow human sentiment. If people feel good they buy more stuff and certain stocks go up. If people feel afraid or nervous, other sectors perform well. Fore example, as the global economy has gotten worse, world wide personal fire arms sales have done well. A good market player always knows whats going on in the world. Furthermore, money tends to be less partisan and the coverage is often more factual.

This week I am looking at a few things that could shake up the markets. Here are the key phrases and I will elaborate on each: Greece, Europe, Obama, Libya, and Nuclear Power Plants.

Greece is been a damn nightmare and really just a preview of at least Portugal, Spain, and possibly Italy. In fact, in my honest opinion, its a preview for the whole damn world in about a year or so. They are in the same trap as all Western countries right now. The problem is that Western counties have more debt than they have surplus income to pay it off. No options are really good here for Greece because they either need to lay off like half the damn country or go bad on their loans. It kinda sounds like us right? Therefore, the major threat that I see this week is that the global markets start to realize the euro-zone party is about over.

Obama, who was damn near untouchable after the death of Bin Laden, is now playing defense. Ever since the horrible jobs report was released three weeks ago, people are starting to actually figure out that our economic recovery is a complete load of crap. Now, they are letting oil go from the strategic reserves to try and knock oil prices down, but that is not the problem. The problem is a structural one and if we do not fix trade imbalances and manufacturing, injecting money only buys a little time. Obama is also in game of chicken with the Republicans over the debt ceiling. I have read about this extensively and trust me, if we don’t raise the debt ceiling, you can kiss the economy goodbye in a big way. Its not a debate about cutting the budget, that is a separate task, we have already borrowed the money and if we do not raise it, we default on our loans and turn into a super Greece.

Libya and the whole region is a disaster. If the region continues to escalate, it could push oil prices up and threaten any hope of a recovery. In addition, Libya has now turned into a hot political football here in America that further distracts congress for trying to do anything legitimate.

Two nuclear power stations in the United States are being threatened by floods. There may not be a statistically high chance of anything happening, but lets be real, the words “flood” and “nuclear power plant” in the same sentence are not good in any way. This could end up being the blow out story this week.

Zoo Keeper