Ripple Effects

As closing the port of Mombasa in Kenya because of the post-electoral violence could potentially cause severe economic contraction in surrounding countries, so too goes the unfolding story of the financial markets. With the announcement that 2007 was a horrible year to try to find a job, the "r" word is on the lips of many experts. The most important note of the Employment Situation is that if one discounts government jobs and those in the service sector, the number of jobs fell by several thousand during 2007.

The Federal Reserve and the European Central Bank are more worried about inflation tying their hands as the crisis further unfolds.

On a positive note, the price of oil went down based on projections of lower demand in the U.S.! I'm sure that this is going to be more than lost considering that the violence in Kenya and its consequent economic ramifications will cost the U.S. far more than getting crude for a couple of bucks cheaper on the barrel.