Interpreting Middle East Economic News and Analyzing Market Trends

Archive for June, 2013

Are oil and GDP related? The answer is in the charts

http://gailtheactuary.files.wordpress.com/2012/07/world-oil-supply-growth-compared-to-world-gdp-growth-v2.png

Source: Ourfiniteworld.com

Does the supply of oil affect GDP growth?  The chart above suggests so.  It also suggests that new oil supplies are not coming to the market fast enough to replace declining fields.  We have been blind-sided by news cheering for the rise in US shale oil production.  Headlines have already appeared suggesting the US is on it’s way to become an oil exporter.  Unfortunately, the much talked about shale revolution is an over-hyped story by Wall Street bankers looking to cash in before the game is over.

 

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What’s really behind the protest in Turkey

Protests in Turkey, which began as a protest against government plans to develop a city park, have now engulfed the country into nationwide protests.  It’s no longer about a park, or even stricter laws on alcohol sales as some have suggested.  The police clamp-down on park protesters was merely the spark that set everything thing else off.  It was the tipping point.

 

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The world’s local bank can’t seem to stop breaking the law

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HSBC Bank, formerly known as The World’s Local Bank, can’t seem to catch a break lately.  Barely six months since the bank was ordered to pay $1.9 billion to settle charges of money laundering, the bank is being sued again.  This time, the law suit is coming from New York State.  Here’s the story from BBC News:

 

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Another sign that the situation in Saudi Arabia is getting out of control

As if the world needed another sign that life in Saudi Arabia is miserable for millions of Saudis (not to mention foreign laborers).  Here’s a story from Al Arabiya:

 

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Basel III: How The Bank For International Settlements Is Going To Help Bring Down The Global Economy

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We are re-posting this article on the Bank of International Settlements and Basel III because of its global importance.  Implementation of Basel III, which banks will start phasing in this year will have great implications on the entire financial system.  The concept and theory behind Basel III are prudent and well-intended.  However, it’s a bit too late to put these in place as they will ripple through the financial system causing serious damage to an already fragile system.

  

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