(Bloomberg)
Failed Treasury Auction Portends Egyptian Disaster -- Asia Times
Investors bought less an a third of the 3.5 billion Egyptian pounds (US$580 million) worth of Treasury bills offered to the market on January 22, a red flag warning that Egypt's foreign exchange position is close to the brink.
Yields on Egyptian government debt maturing in nine months jumped to nearly 16%, but the government could not place its local-currency debt to Egyptian investors, even at that exorbitant rate.
Read more ....
My Comment: With an Islamic government
Investors bought less an a third of the 3.5 billion Egyptian pounds (US$580 million) worth of Treasury bills offered to the market on January 22, a red flag warning that Egypt's foreign exchange position is close to the brink.
Yields on Egyptian government debt maturing in nine months jumped to nearly 16%, but the government could not place its local-currency debt to Egyptian investors, even at that exorbitant rate.
Read more ....
My Comment: With an Islamic government in place determined to enforce Islamic law .... a tourist industry that has collapsed .... other parts of the economy in free-fall .... couple this with political instability between the military and the Muslim Brotherhood .... who would want to buy Egyptian securities. My prediction .... and it is not a hard one .... Egypt's economy is going to continue to implode, unemployment will go up, inflation will increase, and government funds to pay for services will get tighter.
Yields on Egyptian government debt maturing in nine months jumped to nearly 16%, but the government could not place its local-currency debt to Egyptian investors, even at that exorbitant rate.
Read more ....
My Comment: With an Islamic government in place determined to enforce Islamic law .... a tourist industry that has collapsed .... other parts of the economy in free-fall .... couple this with political instability between the military and the Muslim Brotherhood .... who would want to buy Egyptian securities. My prediction .... and it is not a hard one .... Egypt's economy is going to continue to implode, unemployment will go up, inflation will increase, and government funds to pay for services will get tighter.