Saudi Stocks Flop, Gold Rocks As US Weighs Action In Libya

Debka reports the U.S. naval and air fleet is repositioning around Libya for potential “hit-and-run” raids to cripple Qadaffi’s air capability.  This isn’t new news, but we’re wondering out loud if the Saudis have been consulted and are on board.

Remember,  King Abdullah was so upset after speaking with President Obama on the U.S. handling of Mubarak that he reportedly had a heart attack, which was later denied.   Saudi stocks down big,  global risk off, Euro/$ up, and gold taking out the old high.  Is this the markets voting?  Here is Debka’s  money quote,

The US is repositioning its naval and air forces around Libya, Pentagon spokesman Col. David Lapan stated Monday, Feb. 28, indicating possible military steps to break the standoff between Muammar Qaddafi’s army and rebel forces in the fighting for control of the towns commanding the roads to the capital Tripoli where Qaddafi is barricaded.  The reported rebel capture of the key towns of Misrata and Zawiya is technically correct. In fact, they are both surrounded by Libyan troops who control their road links with Tripoli. In Misrata, the army has a valuable edge over opposition forces in its control of the local airfield.

This is a very fluid and nontransparent situation and could potentially kick us into a high risk/high impact trading and investment environment.  Ain’t no time to be a hero, in our opinion.   

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