Egypt's Economy Teeters

by Patrick Appel

Moody's has downgraded Egypt's debt. Douglas McIntyre watches the markets:

The situation in Egypt is not like those of Greece or Ireland, but the outcome for investors could be similar. Greece's problem was a balance sheet issue. Egypt's is one of political stability. Either way, large international investors make similar calculations. Interest rates on Egypt's debt may swing wildly, which gives money managers plenty of volatility to make profits.

Money does not care about distress no matter who the victims or winners may be. Business is business, not personal, even if "personal" is the fate of an entire country.

(Photo: Emirati men sit under a stock market screen at Dubai Financial Market, on January 30, 2011 as stock markets in several Gulf countries, where many leading firms have interests in Egypt, dropped on mounting concerns. By Karim Sahib/AFP/Getty Images)