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Oct. 16 (Bloomberg) -- The Federal Reserve's direct loans
to commercial banks rose to a<font color="#ff0000"><big><big> record
$101.9 billion yesterday
</big></big></font>versus $98.1 billion a week earlier as still-high
money market
rates encouraged more borrowing from the lender of last resort.<br>
<br>
<span class="t">Bloomberg: US Govt announced </span><span class="t2">Social
Security checks to grow nearly<font color="#ff0000"><big><big> 6
percent </big></big></font>-- a little help for retirees' falling
stocks.<br>
<u><i><b><br>
Marc's Notes</b></i></u><br>
<br>
Take a look at the 6 % increase the government is applying to SS. I
thought they said inflation was 2.5 %? Then why are they raising it 6%?<br>
I am FOR this increase but it just goes to show the discrepancy from
one source blatantly contradicting their own inflation figures.<br>
Like I said, inflation is al ot higher then their "official" figures
and now they just verified it.<br>
<br>
Now take a look at the FIRST headline. Central bank lending is
INCREASING ! Why are banks borrowing even MORE ? Didn't they tell us
things would get better with all this money they keep throwing around?
<br>
<br>
Like I said, its getting WORSE, and their lending proves it.<br>
<br>
And remember the BOND INSURER bail out I said was coming next? Well
look what supposedly spurned the rally today: Just out....<br>
<font color="#3333ff"><br>
</font></span><font color="#3333ff"><span class="news_story_title">Ambac,
Bond Insurers to Present Treasury With Plan (Update1) </span><br>
</font>
<p><font color="#3333ff">By Christine Richard</font></p>
<p><font color="#3333ff"> Oct. 16 (Bloomberg) -- <a
href="http://www.bloomberg.com/apps/quote?ticker=ABK%3AUS"
onmouseover="return escape( popwQuoteShort( this, 'ABK:US' ))">Ambac
Financial Group Inc.</a> and other
bond insurers are working on a plan to send to the U.S. Treasury
that would enable them to sell troubled assets to the government,
Chief Executive Officer <a
href="http://search.bloomberg.com/search?q=Michael+Callen&site=wnews&client=wnews&proxystylesheet=wnews&output=xml_no_dtd&ie=UTF-8&oe=UTF-8&filter=p&getfields=wnnis&sort=date:D:S:d1"
onmouseover="return escape( popwSearchNews( this ))">Michael Callen</a>
said.<br>
</font></p>
<p><font color="#3333ff"><font color="#330033"><font color="#000000">There
you have it. The BOND INSURER BAILOUT ! <span class="moz-smiley-s10"><span>
>:o </span></span>This is outrageous. These bond insurers made
billions taking payments to insure bonds in case of default. Now that
they are defaulting, they cant pay and are asking taxpayers to pay for
them. What kind of system is that? Is anyone asking for their bonuses
or salaries back? Of course not.</font></font></font></p>
<p><font color="#3333ff"><font color="#330033"><font color="#000000">This
is a joke. We should throw all the Congressmen and women OUT now.
Pelosi, Feinstien, Dodd, Frank... they are all crooks and millionaires
and bums.<br>
They should be hung from the trees and burned at the stake. This is
disgraceful! Our founding fathers would be turning in their graves. <br>
</font></font></font></p>
<p><font color="#3333ff"><font color="#330033"><font color="#000000">For
our next act: The next bailout
is.................................................................................The
Pension Benefit Guarantee Corporation.</font></font></font></p>
<p><font color="#3333ff"><font color="#330033"><font color="#000000">They
insure pensions. The only "guarantee" they provide is using OUR funds
to guarantee someone else pensions.<br>
I cannot make this stuff up!<br>
Like I said, WHO IS NEXT in line? Is this not getting just simply
insane or what.<br>
The rally was based on this insurer bailout. How crazy is the this? <br>
What rally it is, it wont last. These are sucker rallies to get you to
buy. <br>
<u>Beware</u>: The big firms are UNLOADING their stocks onto mom and
pop investors who haven't a clue.<br>
</font></font></font></p>
<p><font color="#3333ff"><font color="#330033"><font color="#000000"><u><i><b>Consider:</b></i></u><br>
Use rallies to get hedged. Contrary funds. If you own stocks and
mutual funds, use rallies to get OUT.<br>
You may miss a rally or 2 but be spared the pain of the BIG ONE which
is coming. <br>
Gold hammered again, but as a listener called in on todays show- She
was told there were NO SILVER COINS available. Does that sound logical
to you if the price is FALLING?<br>
Can you say MANIPULATION?<br>
I dont care. I am buying more. WHEN ( not if) the foreigners have had
enough of our PRINTING and bailouts, they will EVENTUALLY sell the
dollar.<br>
</font></font></font></p>
<p><font color="#3333ff"><font color="#330033"><font color="#000000">Want
out of this market? BANK CDS They pay 3 to 4 % and are insured. Its
all about capital preservation right now until this settles or explodes.</font></font></font></p>
<p><font color="#3333ff"><font color="#330033"><font color="#000000">This
is a VERY DANGEROUS MARKET. ( Figured that out yet?)</font></font></font></p>
<p><font color="#3333ff"><font color="#330033"><font color="#000000">Also
consider T BILLS and T BILL funds. VIPSX SHY TIP Hedge these
with RRPIX interest rate fund. Equal amounts. <br>
</font></font></font></p>
<p><font color="#3333ff"><font color="#330033"><font color="#000000">BONDS?
NO ! It is debt and I hate debt right now. Those owning bonds have
been hammered. Thats why I said GET OUT OF BONDS over 2 years ago and I
keep saying it.</font></font></font></p>
<p><font color="#3333ff"><font color="#330033"><font color="#000000"><u><i><b><br>
Advanced traders:</b></i></u><br>
A caller mentioned OIL using USO as a vehicle. Oil may continue down,
but not much farther. <br>
I may consider USO myself for a LONG TERM hedge against inflation. It
could still fall but the downside is decreasing with every tick down. I
dont expect so see oil at 40/ brl so I think USO downside is 40 with an
upside of 100, 150 or 200. I am considering a small amount placed
here. I may also option this thru IYSVD CALL 2009 strike date/
price. 100 APRIL 2009</font></font></font><br>
</p>
Retailers and Housing: SHORTS: MARRIOT CARNIVAL SEARS
NORDSTOMS JC PENNEY STARWOOD HOTELS <br>
you name it, I am shorting it. <br>
Take profits on crashes. Establish new positions on Rallies ( like
today).<br>
<br>
<u><i><b>Markets:</b></i></u><br>
Negative bias rules. I would not rule out a huge slide. Rallies may
interrupt us but the fundamentals are so terrible I just cannot see an
extended multi week rally.<br>
The wild card is the US dollar. Pray it doesn't crash. So far, it looks
semi strong, but a black event could happen anytime.<br>
I hold a lot of BEARX for hedging my dividend paying stocks which are
still paying me. I added a small amount of the dividend payers today
but these are stocks and any slide will take them down as well. The 40
% yields tempted me to tip my toe in a bit!<br>
<u><i><b><br>
Upcoming show:</b></i></u><br>
2 HOUR PLEDGE SHOW next THURSDAY at noon.<br>
Whether you pledge or not , I will have 2 hours to cover ALL your
questions so dont miss it.<br>
<br>
All the best,<br>
MARC<br>
<br>
<p><font color="#3333ff"><font color="#330033"><font color="#000000"><br>
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<p><font color="#3333ff"><font color="#330033"><font color="#000000"><br>
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<p><font color="#3333ff"><font color="#330033"><br>
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<span class="t2"><br>
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