Market Sell Off Blamed On Egypt: Prepare For Increase In Debt Spending

Market Sell Off Blamed On Egypt: Prepare For Increase In Debt Spending

A​s if it hasn’t been enough that we had to be lied to about Ireland, Portugal, Iceland, etc. causing a pull back in the US equity markets in the past, today the news media blamed Egypt for a sell of in the Dow and Nasdaq. Reuters reports:

“Wall Street retreated from its 29-month high on Friday as escalating anti-government protests in Egypt prompted investors to move away from equities and into safer assets. Disappointing results from Amazon and Ford further triggered the sell off. The S&P 500 was on track to close below its 14-day moving average for the first time in two months.”

WTF Finance anticipated this pull back in the stock market as the Dow crossed the 12,000 mark but struggled to remain above. Decreased demand for several stocks whose companies just recently announced their earnings was another variable that lead us to believe that the markets are topped out for now. But the most important variable that made us come to that conclusion that the markets will correct had nothing to do with earnings, price action, or volume. Politics made us anticipate the beginning of this sell off.

In the fall of 2008 when the bailouts were first introduced to legislators Americans were against such an intervention. Stock market manipulation has been used for hundreds of years in order to drive agenda as the resulting Government policies are used to the benefit of certain industries who benefit from the imposed regulations. Imposed regulations are often lobbied for and it is not uncommon that industries voice opposition against regulatory changes while simultaneously funding them. Without the stock market drop of 777 points in a single day the American mass psychology wouldn’t have been ready for the $700 billion bailout plan. Needless to say economic fear has been used for centuries to implement regulation and laws in general.

WTF Finance mentioned in the past how Ireland, Spain, and the financial troubles of other European Nations can be used to distract from the economic and monetary realities of the United States. With Congress urged to increase the debt ceiling of the U.S. this sell off in the market comes at a convenient time to convince Congress and prepare the American public to further allow for a debasing of the currency, more bailouts and market interventions while continuing with the same living above your means deficit spending.

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This post was written by:

Jesse Livermore - who has written 99 posts on WTF Finance.


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  • Mike

    That’s an interesting article and looking back to 2008 you are right, the market did drop right before the stimulus bills. I looked at the charts and you could be on to something with this.

  • http://thehardrightedge.com Scott J

    WTF Indeed,

    How is it that we have come to a world in which the New York Stock Exchange is no longer located in New York. It has moved to New Jersey because this is where all the data is emitted. It has come down to physical distance that makes money, as the companies who receive the information first (next door to the “NYSE HUB” exchange in New Jersey), make the most money. Their algorithms skim the market and give great returns these pathetic “investment bankers” (Ever wonder how Goldman Sachs never has a bad days? WTF?????).

    Anyways, yes indeed, the public has been deceived once again. Debt spending is coming this way in the forms of more Quantitative Easing (even if they only call it “Extended QEII”), with higher inflation coming. Watch for the government to have to bail out states such as Illinois, California, Arizona, New Jersey, and 43 other states in 2011. Not to mention that almost all cities are broke. There is no pension funds (as they have all been burrowed against), and the IRS is a IMF agency in which is created by the UN. We pay our taxes to the UN, how about that for loss of sovereignty?

    Sometimes I wonder if this is all a big dream, unfortunately it’s not. Bless all people on this planet as we head into turbulent times. Freedom will prevail, always remember.
    -
    Buy Gold and Silver (Physical first), it is ESSENTIAL to protect yourself.
    -
    Ron Paul 2012
    -
    Scott J

    An article briefly talking about the “proximity” effect can be located here:
    http://www.datacenterknowledge.com/archives/2009/09/08/is-nyses-nj-data-center-a-game-changer/

  • http://www.wtffinance.com Jesse Livermore

    good points Scott and thank you for that informative link.

  • http://www.facebook.com/#!/pages/Swissdent-Online-Shop/142931702414969 swissdent erfinder

    Awesome post and must say it got my attention. I was browsing online and saw your site and am glad i found it.

  • http://www.sgdl-sys.com Lenore Amelang

    The banks throughout Egypt will probably open at monday for the first time following the politics problems and i think we will have some really large movements. My brother and the family members right now gone to live in Cyprus until this specific troubles settle. Hope anything returns to normalcy.

  • http://djiafutures.blogspot.com/ chaiNai

    Good DJIA post. Thanks.

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