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-------- Original Message --------
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<th align="right" nowrap="nowrap" valign="baseline">Subject: </th>
<td>Money Update Oct 4th 2008</td>
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<th align="right" nowrap="nowrap" valign="baseline">Date: </th>
<td>Sun, 05 Oct 2008 08:46:37 -0700</td>
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<th align="right" nowrap="nowrap" valign="baseline">From: </th>
<td>Marc Cuniberti/Bay Area Process/KVMR FM/KFOK FM Radios
<a class="moz-txt-link-rfc2396E" href="mailto:bayareaprocess@att.net"><bayareaprocess@att.net></a></td>
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<th align="right" nowrap="nowrap" valign="baseline">To: </th>
<td>Money Matters Email Jtan <a class="moz-txt-link-rfc2396E" href="mailto:money-matters-l@jtan.com"><money-matters-l@jtan.com></a></td>
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<br>
<br>
<u><i><b>Marc's Notes:</b></i></u><br>
Despite the bail out passing, the market closed down Friday. Our last
email said the market might open up Friday UP and then gradually fall,
which is exactly what it did. That, from my point of view, is a very
bad sign.<br>
As indicated in the last Money Update, I encouraged you to hedge your
stocks with contrary funds by Fridays close.<br>
There is a very good chance this next week will <i><u>be the crash
week </u></i>we have been warning about. I hope I am wrong. There is
no good news on the market or the economy except the bail out. (<i><u><b><big>
I </big></b></u></i>don't think that is good news however, but
investors might).<br>
Monday will be a KEY day to indicate general investor sentiment. My gut
feeling is DOWN DOWN DOWN. The FEDS will be in there buying the <br>
heck out of the market as they see the same charts I do. Expect an
"ANNOUNCEMENT" Sunday night or Monday EARLY to stop the freight train
called "THE LEMMINGS ARE PANICKING". Monday will be critical. I will
be very surprised if it is mundane.<br>
We are in historic times. The credit expansion since the elimination of
the gold standard in 1971 is now collapsing. It took 37 years. A blip
in the grand scheme of things. The FEDS will try everything and
anything to stem the culmination, but it cannot be stopped. The grand
paper money experiment THEY think is a "new' paradigm is nothing but an
age old experiment tried countless times before, over and over by
governments of the world. The result has been the same. Like putting
matches on a can of gasoline. The result is always the same. That they
think they can bypass natural economic law is senseless and futile.<br>
Unfortunately for most Americans, while the bank fat cats will survive,
as well as their Washington and Wall Street friends, most folks will be
wiped
out, or worse.<br>
YOU do not have to be one of them. Protect yourself NOW. Feel fortunate
you have tuned in to our show. Most people in the US dont have the
means to hear what we have to say. So be it. You do. And thank God (
literally ) for that.<br>
<br>
Here are our problems and challenges in a nutshell:<br>
<br>
1) The US government is bailing out (they think) banks to stop an all
out financial collapse. They will not succeed as they are trying to fix
"past" problems of excessive debt and leverage. The bets have already
gone bad and it is in the trillions. They dont have THAT much money.
They THINK the solution is to get the banks LENDING again. This is
exactly what is NOT needed. Lending is what got us INTO this mess. The
solution is now PAYING it all back by now foregoing spending which =
recession/depression. Whats called a K WINTER in economic terms. (
Think seasons, winter is the bad one). They also keep saying the want
to avoid a recession. Thats like living in the forest and saying you
never want a forest fire. Fires clear out the rotten, and make way for
a clean slate with new growth. Markets work the same way. Managing
forests require prescribed burns for clearing out the dead wood.
Recessions do the same. The longer you prevent them however, the more
intense and destructible it is when it eventually occurs. <br>
2) Whether or not they succeed is not a necessary piece of information
to make a plan to protect ourselves. <br>
Some of those reading this think "THEY" (the FEDS) will work it out and
the market
will recover because "it always does".<br>
So be it. I wont argue with those sticking their heads in the sand.
They are also the ones that said Merrill Lynch, or Wachovia, or
Washington Mutual, or Countrywide, or Lehman Brothers, or Bear Sterns
would never go under. Now they accept this as fact. Only fools ignore
the obvious.<br>
3) We must prepare OUR assets to survive no matter what the FEDS do.
Most people will think this will "work itself out". I am telling you
now, either believe the signs your seeing and protect yourself, or have
an astonished look on your face when you lose half to three quarters of
your net worth in the next 12 months. If you can stomach that kind of
loss, more power to you. I WONT be one of them and you dont have to be
either.<br>
4) No one can say for sure (me included) what will happen next. If
someone tells you they know for sure, do not
believe them. NO ONE can say for sure what is next. One thing I do
know. Those of you reading this and think
you can " hold for the long term" and be ok, you are in for a nasty
surprise. DONT SAY YOU WEREN'T WARNED!.<br>
5) Since all we do know is that the FEDS will keep creating money, we
can look back in history to see what has preserved peoples wealth in
the past under money printing governments. This experiment has been
tried before countless time, so we know the outcome.<br>
6) We CAN look at the signs intelligently and draw the most logical
conclusions from those signs, and arrive at the best plan with the best
hope for asset preservation, given the limitations presented to us.
History guides us.<br>
7) <u>The signs are: </u><br>
Trillions in leverage bad debt, frozen credit markets, an exploding US
Government debt, a US govt. hell bent on printing as much money as it
takes.<br>
A Congress bought and sold by the highest paying Lobbyist. Two
presidential Candidates that are ALL THE SAME in their socialistic,
pandering views, thinking the govt. can solve our problems. ( They
cant- trust me on this one). A public that looks to THEM to "save" us,
when in truth they will end up taking everything you have, or close to
it. A crashing housing market. ( the largest in history). An economy
which relies on consumers ( US) to generate 70 % of it income, while
consumers (US) are tapped out, borrowed out, up to our eyeballs in debt
and no longer able to afford to support ourselves, let alone by a new
SUV. (Which is why auto sales are CRASHING beyond belief).<br>
Add to this a crushing debt held by the GOVT and Joe Sixpack, and there
is
no hope of ever paying it back. You arrive at the conclusion you
either protect yourself with uncommon means or get in line with
everyone else as you lose everything or most of it in a crashing
economy.<br>
Cant happen you say? LOOK AROUND YOU. Your economy is CRASHING. Your
banking system is GOING BANKRUPT. And you think the Government can
still save you? HOW MANY MORE SIGNS DO YOU NEED MY FRIEND? Wake up
and smell the toast or be prepared to get burned BIG TIME.<br>
8) You can decide to take the steps to insure you and YOUR LOVED ONES
to at least have SOMETHING left right now, or lose the opportunity. IT
IS NOT THAT DIFFICULT! Or you can trust in those that led us here,
and reap what you have
sowed. We are at a critical junction here. Either move or be run over,
the choice is yours.<br>
9) I cannot guarantee any result, nor can anyone else, but together we
can arrive at a diversified and intelligent plan based on what WE DO
KNOW and looking back at what other people have done in similar
situations.<br>
10) And what is the one thing we DO KNOW? They will PRINT more money.
And knowing that
is enough to make a plan.<br>
<br>
<u><i><b>The Plan:</b></i></u><br>
<br>
Diversification is the key. This is NOT owning a basket of mutual
funds. Doing this means you are betting ONE WAY, in ONE MARKET, in ONE
CURRENCY, in PAPER ASSETS ONLY. This, in a simple terms, is NOT
DIVERSIFIED.<br>
To be truly diversified, you must be in multiple currencies, in other
then "paper" assets, in "contrary" funds, in multiple markets and in
assets which HISTORY tells us survive paper currency devaluation, which
is what is headed our way as we speak. <br>
To be truly diversified you should consider a mix of:<br>
<br>
1) US STOCKS , but right now mostly "CONTRARY " stocks that GO UP when
markets GO DOWN. In the coming collapse, you will MAKE MONEY and
increase your wealth.<br>
2) Any money in stocks LONG ( hoping they go up) should yield dividends
north of 10 %. These should also be mostly foreign and commodity based.
These will probably do better then US stocks at this point in time.<br>
3) Foreign currencies using funds or ETF's<br>
4) Swiss annuities- enables you to park money out of the reach of US
authorities and it private<br>
5) Physical gold and silver in your possession ( BANK SAFE BOX for
most holdings due to robbery threat). I would increase this particular
holding at this juncture. Things are getting ugly quickly.<br>
6) Gold and silver funds- some pay dividends as well.<br>
7) Most of your funds in cash and in FDIC insured accounts, T BILLS, T
BILL FUND Short term
( only ) US GOVT DEBT instruments ( cash will be king). Right now,
preserving what you have is most important.<br>
8) Commodity fund such as DBC or DBA<br>
9) Interest rate funds that goes UP as interest rates GO UP such as
RRPIX. They may move down as the FEDS cut rates, but hedge against an
eventual dollar fall.<br>
10) Advanced traders can SHORT the market with puts. options and etf
funds. I prefer ULTRA short funds at this juncture for higher profits.
These also protect my LONG dividend paying stocks when they fall.<br>
<br>
Those not diversified as above may suffer massive losses in the days
and weeks to come. Again, don't say your weren't warned.<br>
<br>
<u><i><b>Markets:</b></i></u><br>
Alert level is RED. A major crash is now possible. The FEDS will try
another ANNOUNCEMENT, perhaps in coordination with other central banks
and governments of the world. Expect a possible major interest rate
cut, maybe worldwide, today or Monday. Monday futures are not up and
running as of this writing but my my guess is a major slide is in the
making. Mom and Pop investors are liquidating now. This is
unstoppable. 1 in 50 are selling. When 1 in 10 or more start to sell,
you can expect a wipe out, the likes of you have never seen. The chance
is
now 50/ 50 in my view.<br>
The US dollar will remain firm for now as investors are fleeing to the
perceived safety of US debt ( as we are). This means foreign currencies
and gold may continue to slide. This losses may be offset with your T
bill
funds in our DREAM PORTFOLIO so no need to worry there. <br>
EVENTUALLY, the US dollar will start to sell off. This will mark stage
2 of the crisis and will be even more painful. When the US dollar
starts to accelerate downward, gold and our interest rate funds may
soar. This will mean more profits for you. Until then, gold and oil may
continue to gyrate, but I dont expect a major downturn in gold ( below
500/oz) except under extreme deflation which I expect the FEDS to try
and prevent thru massive money printing and injections. <br>
The market <u><i><big><b> may</b></big></i></u> initiate a slow
erosion instead of a crash, leading to
painful declines, causing a "death by a thousand cuts" instead of an
October wipeout. Either way, pain is headed toward you, Mr. average
investor. <br>
Think I am being all doom and gloom? Sorry. I didn't make the
crises, I'm just the weatherman telling you a storm is coming. Don't
blame me. If anything, I am suggesting ways you can profit or maintain
your purchasing power while everyone else losses theirs. And that news
aint so bad. <br>
Monday ( tomorrow) is critical. The rest of the week is as well. Expect
major volatility. This could be our "crash" week. We will see.<br>
Keep tuned to Prudentbear.com. They will be the first to cover the
"ANNOUNCEMENT" today or tomorrow, the one I forecast is coming within
36 hours from now. Lets see if I get it right again. <span
class="moz-smiley-s3"><span> ;-) </span></span><br>
<br>
<br>
<u><i><b>Upcoming Show<br>
</b></i></u>Call ins all hour. Also recent market action ( there will
be a lot).<br>
Get your questions ready.<br>
Thursday at noon.<br>
<br>
All the best and God bless all of you,<br>
MARC<br>
<br>
<br>
<br>
<br>
This article is strictly for informational purposes only. It is not a
solicitation or suggestion to make any exchangeor buy/ sell any
precious metal products,
commodities, securities, stocks, warrants, options or other financial
instruments. Marc Cuniberti, author of this article, does not accept
culpability for losses and/ or
damages arising from the use of this publication or any information
contained herein. Investing involves risk. You can lose money. Please
order up the prospectus on any and all securities you may be planning
to buy and do your own research before investing. Mr. Cuniberti may or
may not hold the securities listed.<br>
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