Friday, January 28, 2011

Old Fashion Sell Off: Egyptian Style!

First let me apologize for being so quiet lately.  Work has been keeping me quite busy so I haven't had time to write.  Things should lighten up later next week.

I could throw up a bunch of charts but there really is no need to.  The Middle East is now center stage.  What a frustrating day for the bulls.  They were preparing for another bold stampede down Wall St following a solid GDP number.  The private sector finally showed up in this report.  Government spending was down.

All in all it wasn't a bad report.  I am not surprised given the amount of stimulus the market has gotten from the Fed. 

I mean Christ, the private sector deserves to be shot if they can't show positive GDP growth when the Fed is handing out free money by the trillions. 

We currently live in a world where companies are essentially allowed to hide all losses via fraudulent accounting while they reap the rewards of massive money printing. 

If you can't make money now you then aren't ever gonna make money!!!! 

Profits Come at a Cost

As I have repeatedly said:  There is no free lunch.  The stock market and Wall St believe that there is one of course.....And why wouldn't they?  They have been receiving free bailouts at the cost of the taxpayer for over 3 years now. 

In other words: They have had a free lunch since this crisis started!

The reality here of course is there are "unintended consequences" when you start making risky policy decisions like deciding to print money.

They are now starting to hit and unfortunately it's occurring in the worst possible area of the world.  The Middle East has always been a complete disaster.  It's a part of the world where hate, ideology, and repression dominate their societies.

As I have said in recent posts, the Fed is creating an inflationary crisis via their money printing and the result of such actions is creating financial chaos around the world. 

The Bottom Line

The global oligarchs need to realize that they cannot continue to eat like kings at the expense of the rest.

This whole world is a mess because the top 1% has raped, pillaged, and mutilated the other 99%.   History has shown that there is a tipping point in terms of what the lower classes are willing to take.

I am very concerned that this crisis has legs because there is a structural issue within the world's societies core that's just morally wrong. 

Please let me do a little "It's just wrong" rant here.  I am sure this will make me feel better after I am finished:

It's wrong when the taxpayers are forced to bailout the banks mistakes.

It's wrong when the Fed prints money and creates inflation that forces millions across the world to starve because they can't afford rising food prices.

It's wrong when banks are allowed to hide losses and pocket profits that don't really exist in the form of bonuses.

It's wrong that the Fed can take interest rates to zero in order to save their banking buddies when it simultaneously forces senior citizens that live off of fixed income to suffer.

I don't know what else to say folks.  I am not surprised by what is happening.  I am however surprised by where it started.

The chickens will eventually come home to roost because the world is just "wrong" right now.  Hopefully we will end the corruption before it's too late for all of us.


getyourselfconnected said...

Ouch! Song choice is just mean!

I am hoping to see an Egypt protester carrying a sign saying "Down with The Bernank"!

Herb said...

Its a shame that all of our allies in the Middle East are going to get over thrown isn't it? :-)

Is it just me or are prices in the grocery stores starting to go up?

Jeff said...


I have noticed that too. The fed has some serious decisions to make regarding rates. If the uprisings continue then the pressure will be on big time for them to stop printing.


Loved my song choice lol popped into my head as soon as I started writing my post :).