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Random Walk Through Foreign Policy Maze!

Since Aug 21 incident in which Syrian Government supposedly used chemical weapons on its own citizens, President Obama's foreign policy looked like a random walk through middle-eastern politics. But if Sept 14 agreement  between USA and Russia turned out to be effective (only time would tell), it would turn this "random walk" or "on the fly" diplomacy most effective since Nixon/Kissinger times in early 1970s. This could would bring USA foreign policy in tune with times in which everyone need to adopt to changing situations on a moment's notice. We see that in corporate world (especially in startups) almost on daily basis. While some hard core old-timers (aka conservatives) may not be happy that Putin may get all the credit and it has put down USA in world politics, what matters is how end results can be achieved without more blood-shed (if there was Republican President, I am sure USA would have got it's 3rd war). While I was not happy in the way President Obama handled this issue (I was almost going to write my blog titled "President Obama: You blew it"), I would give him and Kerry  credit that they seem to have achieved the end goal of neutralizing Assad's chemical weapons so that there are no more horrible deaths of Syrians due to these weapons. Lot needs to happen from now till 2014. But now that Putin's credibility is also on line, I am sure this agreement would hold.
Of course these was not expected last week when I wrote about markets and get ready for "fall" in September. Now that use of military force in Syria is gone, markets would start looking to Fed "taper" and since it is already priced in, there is possibly less risk of downside to markets. What a change 5 years can make. Exactly 5 years back on Sunday, all world markets were in shambles with Lehman Bankruptcy on that fateful Sunday. These markets not only recovered fully but they are already forming next bubble (at least if you see house prices in some parts of Bay Area). But that's not new. After all markets are full of bubbles and busts. As long as one can spot peaks and valleys, he/she would be OK.
Have a great start to fall season!
/Shyam

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