At the same time, Bernanke's money printing has sparked inflation that has at the very least crippled Ireland, overheated India and China, toppled the government of Tunisia and now Egypt is going down the tubes quickly. Mish reports that in Egypt:
- Ports have shut down
- Gas stations have not gotten deliveries in days and are beginning to run out
- Food shortages have begun and are causing food prices to soar
- Business has ground to a halt leaving more people who have already been living hand to mouth without much hope.
- The stock market is closed
- Banks are also closed and there is great worry that if the banks open back up that people will scramble to get their money out - a run on the banks. If that happens what do you think stocks will become worth?
Anyone who thinks the stock market rebound was normal economic activity is deluded, insane or worse. All of the gains were driven by government intervention, period. I'm not saying it couldn't go up even more but at some point government intervention is not real economic pressure. It's all temporary because it's driven by debt, not real money. People will not continue lending to the US just so that Lloyd Blankfein of Goldman Sachs can give himself another raise and have another chuckle on the rest of us. If I were that guy I would lie low. I think he is really pushing his luck these days.
