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<u><i><b>Marc's Notes: (OPINION ONLY)</b></i></u><br>
The bailout bill was NOT passed as I thought it would be, as public
outcry convinced politicians to look for alternatives.<br>
The margin of defeat was narrow, indicating to me it WILL be passed in
some form or another shortly.<br>
The market action today will scare the heck out of the NO votes. They
will bicker and put something together soon.<br>
IF partisan politics continues and the BILL is not passed, the FEDS
will continue to shuffle the money into the system anyway, by hook or
by CROOK.<br>
Today they loaned 630 BILLION ( with a B). More under the table we
dont know about.<br>
Wachovia flopped and was scooped up by Citigroup with money from the
FED to cover losses.<br>
The news headlines are happening so fast even the gophers know
something big is happening.<br>
Yes .. it is.<br>
The dominoes falling backwards are accelerating. We noted last week an
ORANGE alert ( serious folks).<br>
We could be staring into the abyss right as we speak. It is difficult
to give you absolutes right now. We are in uncharted territory but
territory we knew we would be in for 3 years now. ( Money Matters Show
# 1- 20).<br>
The amounts of money at risk in the system is astronomical as indicated
in previous emails. ( TRILLIONS)<br>
The trillions they are pouring in ARE NOT helping as is obvious. It is
getting worse, not better. ( See todays market action- Dow down over
700 points).<br>
I wont go on as to what happened but to say the markets are frozen with
fear and the average investor is starting to panic. Not good.<br>
<br>
<u><i><b>What will happen short term:</b></i></u><br>
The markets will scare Congress and the rest to act. The FEDS will pour
as much money as needed to help the banks for the next few days.The
real danger now is panic by the ANTS. ( US).<br>
They cant stop that. There is not enough money in the world to stop an
all out panic. Right now investors are drawing their money out of the
banks and stocks, further exasperating the crisis. Remember, because
our banking system allows a bank to lend out 9 bucks for every one you
put in, if we all go to the bank to get our money, they cant cover it.
Top that off - The elimination of the GLASS STEAGAL act enacted after
the depression to PREVENT what is happening now ( prohibited regular
banks from gambling in the stock market) and was eliminated by the
Clinton Administrations in exchange for millions in lobby money. Those
rules would have helped prevent this mess. It was put there for a
reason. Now we are right back to 1930 again, banks failing by gambling
with your deposits. <br>
Expect markets to false rally with mini bumps. A major fall may be in
play unless the FEDS act quickly. Expect another ANNOUNCEMENT to calm
us, maybe even the PRESIDENT tonight or tomorrow. Congress, not
knowing anything about economics will run scared and pass something.<br>
Major news media will cover the markets in detail tonight with the
"Dont Panic" mantra. ( Heard that before?)<br>
Dont listen. The time to act is passing quickly. How many more signs do
you need for gosh sakes?<br>
All possibilities are now in play. Anything can happen, including a
massive sell off and major melt down. The next 4 days will tell us alot
about the near term. The FEDS may do something stupid ( ha) like place
more short selling restrictions or market restrictions or even close
markets to stop the slide. That will be your sign things are REALLY
bad, and get the hell out. DONT FOOL AROUND WITH THIS MARKET.<br>
Look for an IDIOTIC and WRONG move by the FEDS any minute. Everything
they do is WRONG now. But they will keep trying. The fools.<br>
<br>
<u><i><b>What you should do:</b></i></u><br>
Get some cash on hand just in case. A week or 2 worth wont hurt. <br>
Use rallies to unload regular mutuals that are not paying dividends.<br>
HOLD dividend payers for now. They are still paying. Everything is
being slaughtered right now<br>
Most of your funds should be in T BILLS OR T BILL FUNDS OR FDIC INSURED
ACCOUNTS.<br>
Even though money markets funds MAY be insured, the measure is NOT
PASSED, so move to TREASURY ONLY money market funds.<br>
<big><font color="#cc0000">See red below:</font><br>
</big>
<p class="MsoNormal"><big><big><big><big><big><big><font color="#cc0000"><span
style="font-size: 10pt;">FDIC
Insured accounts or Government T bills or bonds only- Obtain at local
bank or T
bill at <u><a href="http://www.treasurydirect.gov/">www.treasurydirect.gov</a></u>.
Buy short term only. Cd or T bill up to one year only.<o:p></o:p></span></font></big></big></big></big></big></big></p>
<p class="MsoNormal"><big><big><big><big><big><big><font color="#cc0000"><span
style="font-size: 10pt;">Also
funds available thru your broker:<br>
CPFXX- American Century Capital Preservation Fund, DUSXX- Dreyfus US T
Bill
Money Market Fund, FDLXX – Fidelity US T Bill Money Market Fund. WEOXX
Weiss Money Market funds. These dont pay much but are virtually risk
free.<o:p></o:p></span></font></big></big></big></big></big></big></p>
<p class="MsoNormal"><big><font color="#cc0000"><big><big><big><big><big><span
style="font-size: 10pt;">One
step removed: <o:p></o:p></span></big></big></big></big></big><small><small>
</small></small><small><small>SHY<span style=""> </span>Lehman
I Share 1 – 3 years T Bond Fund, VIPSX – Vanguard Inflation Protected
Security
Fund-TIP- I – Shares Lehman Treasury Inflation Protected: Hold all 3
equally. Pays alittle more but move a bit. Most of these were up today.</small></small></font></big><small><small><br>
</small></small></p>
<font color="#cc0000"><span
style="font-size: 10pt; font-family: "Times New Roman";"><span style=""><br>
</span></span></font>Bank accounts- FDIC insured, under the limit, use
large banks like WELLS or B of A only. Check out your bank safety at
bankrate.com or google around.<br>
<br>
RRPIX- Interest rate fund. Will be down a bit today but hedges against
a falling dollar. OK to add.<br>
Foreign currency funds- Same as above. Down today but is not tied to
the stock market. OK to add<br>
Contrary funds- ADD BEARX is one you can look at. There are
others.<br>
Gold- ADD. up 30 bucks today. Panic is hitting supply. The time to
buy is now. There are already shortages.Gold Stocks- HOLD may fall
with general market. Now is the time to HOLD physical. May go up or
down but the reason you hold it is in case of emergencies, which
appears to be upon us.
<p class="MsoNormal"><font color="#cc0000"><span
style="font-size: 10pt;"><span style=""> </span><b style=""><i style=""><u>“Possession
Gold” –</u></i></b>
Standard Gold Eagles, Buffalos, Kruggerands, Silver Maples. Gold Pandas<span
style=""> </span>Generic Rounds. Peace Dollars or Morgans. You
may contact:<o:p></o:p></span></font></p>
<font color="#cc0000"><span
style="font-size: 10pt; font-family: "Times New Roman";">Monex Deposit</span><span
style="font-size: 12pt; font-family: "Times New Roman";"><span style="">
</span></span><span
style="font-size: 10pt; font-family: "Times New Roman";">David
Feldberg x 2216<br>
4910 Birch St., Newport Beach Ca 92660<br>
1 (800) 949 4653 (GOLD) ext 2216<span style=""> </span>Refer to
Marc Cuniberti and Money Matters
for best pricing. Buy NO MARGIN GOLD ( borrow the money).<br>
<br>
</span></font>(Advanced Traders Only)<br>
SHORTS: Take 1/3 to half profits. HOLD the rest for massive gains. You
did extremely well today!<br>
Retail is still a great short. Xmas will be BLEAK for all stores. Real
estate is still a great short and will be for years. Housing stocks are
still remarkably now where near their lows. What are investors
thinking? Real estate is going to get better??? Thats the joke of the
century. Use thier stupidity to cash in. There money over there in the
corner. Go pick it up.<br>
<br>
Oil Uranium Energy Stocks - Hammered again. HOLD- do not add at this
time. They are better then financial stocks! They actually produce
something! There is always value here.<br>
<br>
Misc Funds- RCS FAX HOLD- do not add at this time- still
paying. DBC HOLD inflation hedge- <br>
UNWPX- ADD precious metals. ( got gold?) We are looking for a
double from our buy in of 14. May move either way short term.<br>
<br>
Note: Those holding GLD SLV . The time may be approaching. We
mentioned sometime ago when we see 100.00 moves in Gold or silver that
these funds may be at risk. There may be tax consequences from selling
any fund. Check with your tax professional.<br>
GLD and SLV may sell short positions they may not control. I prefer
holding physical gold at this point. I can always go into stocks again
when things calm down. Use your own devices to investigate your
exposure.<br>
<br>
All for now,<br>
Get safe, do your own thinking. Read the signs. Its your money.<br>
And right now would be a good time for a prayer or 2.<br>
Lord knows I am.<br>
I suggest you do the same.<br>
All the best.<br>
Marc<br>
<font color="#009900"><i><br>
"If the American people ever allow private banks<br>
to control the issue of their money,<br>
first by inflation and then by deflation,<br>
the banks and corporations that will<br>
grow up around them and<br>
will deprive the people of their property<br>
until their children will wake up homeless<br>
on the continent their fathers conquered." Thomas Jefferson<br>
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