<html xmlns:o="urn:schemas-microsoft-com:office:office" xmlns:w="urn:schemas-microsoft-com:office:word" xmlns:st1="urn:schemas-microsoft-com:office:smarttags" xmlns="http://www.w3.org/TR/REC-html40">
<head>
<meta http-equiv=Content-Type content="text/html; charset=us-ascii">
<meta name=ProgId content=Word.Document>
<meta name=Generator content="Microsoft Word 11">
<meta name=Originator content="Microsoft Word 11">
<link rel=File-List href="cid:filelist.xml@01C93C25.35038750">
<o:SmartTagType namespaceuri="urn:schemas-microsoft-com:office:smarttags"
name="City"/>
<o:SmartTagType namespaceuri="urn:schemas-microsoft-com:office:smarttags"
name="country-region"/>
<o:SmartTagType namespaceuri="urn:schemas-microsoft-com:office:smarttags"
name="State"/>
<o:SmartTagType namespaceuri="urn:schemas-microsoft-com:office:smarttags"
name="place"/>
<!--[if gte mso 9]><xml>
<o:OfficeDocumentSettings>
<o:DoNotRelyOnCSS/>
</o:OfficeDocumentSettings>
</xml><![endif]--><!--[if gte mso 9]><xml>
<w:WordDocument>
<w:SpellingState>Clean</w:SpellingState>
<w:GrammarState>Clean</w:GrammarState>
<w:DocumentKind>DocumentEmail</w:DocumentKind>
<w:EnvelopeVis/>
<w:PunctuationKerning/>
<w:ValidateAgainstSchemas/>
<w:SaveIfXMLInvalid>false</w:SaveIfXMLInvalid>
<w:IgnoreMixedContent>false</w:IgnoreMixedContent>
<w:AlwaysShowPlaceholderText>false</w:AlwaysShowPlaceholderText>
<w:Compatibility>
<w:BreakWrappedTables/>
<w:SnapToGridInCell/>
<w:WrapTextWithPunct/>
<w:UseAsianBreakRules/>
<w:DontGrowAutofit/>
</w:Compatibility>
<w:BrowserLevel>MicrosoftInternetExplorer4</w:BrowserLevel>
</w:WordDocument>
</xml><![endif]--><!--[if gte mso 9]><xml>
<w:LatentStyles DefLockedState="false" LatentStyleCount="156">
</w:LatentStyles>
</xml><![endif]--><!--[if !mso]>
<style>
st1\:*{behavior:url(#default#ieooui) }
</style>
<![endif]-->
<style>
<!--
/* Style Definitions */
p.MsoNormal, li.MsoNormal, div.MsoNormal
{mso-style-parent:"";
margin:0in;
margin-bottom:.0001pt;
mso-pagination:widow-orphan;
font-size:12.0pt;
font-family:"Times New Roman";
mso-fareast-font-family:"Times New Roman";}
a:link, span.MsoHyperlink
{color:blue;
text-decoration:underline;
text-underline:single;}
a:visited, span.MsoHyperlinkFollowed
{color:purple;
text-decoration:underline;
text-underline:single;}
p
{mso-margin-top-alt:auto;
margin-right:0in;
mso-margin-bottom-alt:auto;
margin-left:0in;
mso-pagination:widow-orphan;
font-size:12.0pt;
font-family:"Times New Roman";
mso-fareast-font-family:"Times New Roman";}
span.EmailStyle17
{mso-style-type:personal-compose;
mso-style-noshow:yes;
mso-ansi-font-size:10.0pt;
mso-bidi-font-size:10.0pt;
font-family:Arial;
mso-ascii-font-family:Arial;
mso-hansi-font-family:Arial;
mso-bidi-font-family:Arial;
color:windowtext;}
span.SpellE
{mso-style-name:"";
mso-spl-e:yes;}
span.GramE
{mso-style-name:"";
mso-gram-e:yes;}
@page Section1
{size:8.5in 11.0in;
margin:1.0in 1.25in 1.0in 1.25in;
mso-header-margin:.5in;
mso-footer-margin:.5in;
mso-paper-source:0;}
div.Section1
{page:Section1;}
-->
</style>
<!--[if gte mso 10]>
<style>
/* Style Definitions */
table.MsoNormalTable
{mso-style-name:"Table Normal";
mso-tstyle-rowband-size:0;
mso-tstyle-colband-size:0;
mso-style-noshow:yes;
mso-style-parent:"";
mso-padding-alt:0in 5.4pt 0in 5.4pt;
mso-para-margin:0in;
mso-para-margin-bottom:.0001pt;
mso-pagination:widow-orphan;
font-size:10.0pt;
font-family:"Times New Roman";
mso-ansi-language:#0400;
mso-fareast-language:#0400;
mso-bidi-language:#0400;}
</style>
<![endif]-->
</head>
<body lang=EN-US link=blue vlink=purple style='tab-interval:.5in'>
<div class=Section1>
<p class=MsoNormal><st1:State w:st="on"><st1:place w:st="on"><font size=2
color=red face="Times New Roman"><span style='font-size:10.0pt;color:red'>Washington</span></font></st1:place></st1:State><font
size=2 color=red><span style='font-size:10.0pt;color:red'> Post Staff <span
class=GramE>Writer <br>
Saturday</span>, November 1, 2008; Page D01 </span></font><font color=red><span
style='color:red'><o:p></o:p></span></font></p>
<p><font size=3 color=red face="Times New Roman"><span style='font-size:12.0pt;
color:red'></span><span id=aptureStartContent>The government may need to back
home mortgages indefinitely to keep the broader housing market from going into
a tailspin every time there is a financial crisis, <a
href="http://www.washingtonpost.com/ac2/related/topic/Ben+Bernanke?tid=informline"></span></font><font
color=red><span style='color:red'>Federal Reserve Chairman Ben S. Bernanke</a>
said yesterday. Bernanke's remarks came as a new report showed that almost one
of every five homeowners owes more on their mortgage than their properties are
worth. About 7.5 million mortgages, or 18 percent of all properties with a
mortgage, were under water, according to the report, by First American <span
class=SpellE>CoreLogic</span><o:p></o:p></span></font></p>
<p><font size=3 color=red face="Times New Roman"><span style='font-size:12.0pt;
color:red'><a
href="http://online.wsj.com/public/quotes/main.html?type=djn&symbol=JPM"></span></font><font
color=red><span style='color:red'>J.P. Morgan Chase</a> & Co.
launched an ambitious plan Friday to modify the terms of $70 billion in
mortgages for borrowers who are behind on their payments or soon could be.<o:p></o:p></span></font></p>
<p><font size=3 color=red face="Times New Roman"><span style='font-size:12.0pt;
color:red'>The move by the New York bank will cover as many as 400,000
borrowers. They'll be moved into loans carrying lower interest rates, smaller
principal amounts or other more-affordable terms.<o:p></o:p></span></font></p>
<p class=MsoNormal><st1:State w:st="on"><st1:place w:st="on"><font size=2
color=red face="Times New Roman"><span style='font-size:10.0pt;color:red'>Washington</span></font></st1:place></st1:State><font
size=2 color=red><span style='font-size:10.0pt;color:red'> Post Staff <span
class=GramE>Writer <br>
Saturday</span>, November 1, 2008; Page D01 </span></font><font color=red><span
style='color:red'><o:p></o:p></span></font></p>
<p><font size=3 color=red face="Times New Roman"><span style='font-size:12.0pt;
color:red'></span><span id=aptureStartContent>Several big insurance companies
this week reported big losses on investments in the last quarter, raising fresh
questions about the financial stability of the firms as the <st1:country-region
w:st="on"><st1:place w:st="on">U.S.</st1:place></st1:country-region> government
considers investing in them. <a
href="http://www.washingtonpost.com/ac2/related/topic/The+Hartford+Financial+Services+Group+Inc.?tid=informline"></span></font><font
color=red><span style='color:red'>Hartford Financial Services Group</a>,
a <st1:State w:st="on"><st1:place w:st="on">Connecticut</st1:place></st1:State>
insurer, lost $2.63 billion in the third quarter. <a
href="http://www.washingtonpost.com/ac2/related/topic/Prudential+Financial+Inc.?tid=informline"></span></font><font
color=red><span style='color:red'>Prudential Financial</a>, the <st1:State
w:st="on"><st1:place w:st="on">New Jersey</st1:place></st1:State> insurer, lost
$108 million. Assurant, a <st1:State w:st="on"><st1:place w:st="on">New York</st1:place></st1:State>
provider of specialty insurance, lost $111.4 million.<o:p></o:p></span></font></p>
<p><font size=3 color=red face="Times New Roman"><span style='font-size:12.0pt;
color:red'>Nov. 1 (Bloomberg) -- Freedom Bank of <st1:place w:st="on"><st1:City
w:st="on">Bradenton</st1:City>, <st1:State w:st="on">Florida</st1:State></st1:place>,
became the 17th U.S. bank seized by regulators this year as the deepest housing
slump since the Great Depression triggers record foreclosures and mounting losses.<o:p></o:p></span></font></p>
<p><font size=3 color=red face="Times New Roman"><span style='font-size:12.0pt;
color:red'>Nov. 1 (Bloomberg) -- India's central bank unexpectedly cut interest
rates for the second time in two weeks and reduced the amount of money lenders
need to keep in government bonds and as cash reserves to boost growth amid a
global slowdown.<o:p></o:p></span></font></p>
<p><b style='mso-bidi-font-weight:normal'><i style='mso-bidi-font-style:normal'><u><font
size=3 face="Times New Roman"><span style='font-size:12.0pt;font-weight:bold;
mso-bidi-font-weight:normal;font-style:italic;mso-bidi-font-style:normal'><o:p><span
style='text-decoration:none'> </span></o:p></span></font></u></i></b></p>
<p><b style='mso-bidi-font-weight:normal'><i style='mso-bidi-font-style:normal'><u><font
size=3 face="Times New Roman"><span style='font-size:12.0pt;font-weight:bold;
mso-bidi-font-weight:normal;font-style:italic;mso-bidi-font-style:normal'>Marc’s
Notes:<o:p></o:p></span></font></u></i></b></p>
<p><font size=3 face="Times New Roman"><span style='font-size:12.0pt'>Firstly
let me say we again had email issues- now my router/ modem went out so nothing
was sent for the last week. I also apologize for taking some time getting back <span
class=SpellE>toall</span> your emails. When I got up and running my emails
clicked up to several hundred for each 48 hours I was down. Holy cow! I finally
got thru them all. This update is long as I am catching up on what is happening
while offline. So here it is. Take a deep breath, get a cup of tea or coffee and
take it all in<span class=GramE>..</span><o:p></o:p></span></font></p>
<p><font size=3 face="Times New Roman"><span style='font-size:12.0pt'>Look at
the above articles- Lets take them one by one to get you caught up. <o:p></o:p></span></font></p>
<p><u><font size=3 face="Times New Roman"><span style='font-size:12.0pt'>Article
1</span></font></u>- As I said before, the Government will eventually realize
what we have been trying to tell them. The underlying problem is HOUSE PRICES.
They can throw all the money at the system they want (and they have) but until
they figure out a way to STOP the slide in house prices, no amount of money
will fix it. That is because all those mortgages and equity lines have been
sliced up and packaged and sold off all over the world. You <span class=GramE>cant</span>
renegotiate millions of loan packages that were leveraged a hundred to one and are
owned by thousand of investors. But if you stop the slide in home prices, you
catch the underlying problem at the root of the cause. So the government is
finally waking up to this fact <span style='mso-spacerun:yes'> </span>(they
are not very bright up there) and you are now seeing calls for a MASSIVE ALL
OUT pay off and bailout for all late mortgages as well as <span
style='mso-spacerun:yes'> </span>programs aimed at halting foreclosures. (Listen
to our real estate show #9 ’06<span class=GramE>) <span
style='mso-spacerun:yes'> </span>and</span> you will hear me say “ don’t
be surprised if the Federal Government pays off your mortgage all together”.
<span style='mso-spacerun:yes'> </span>No one thought that was possible
when I said it so now I can say “I told you so”.<o:p></o:p></p>
<p><font size=3 face="Times New Roman"><span style='font-size:12.0pt'>As
incredible as that seems, <span class=GramE>its <span class=SpellE>gonna</span></span>
happen one idiotic way or another. Realize MOST of us are NOT being late on our
mortgage. Those that are encompass a minority. And 8 out of 10 people are
AGAINST any bailout for dead beat homeowners. But since the BANKS are getting
slammed with these mortgages, the FEDS do not care what the majority thinks, and
they will throw trillions ( with a T) of dollars more with some sort of new “ANNOUNCEMENT’
about some sort of new program to spread the misery even more.<o:p></o:p></span></font></p>
<p><u><font size=3 face="Times New Roman"><span style='font-size:12.0pt'>Article
2</span></font></u>- Stable as a “rock”. Look at all these insurers
who told you to invest with them for annuities and the like. AIG has burned
thru its 85 billion dollar loan like I said they would and are now up to 125
billion and still hungry. Now look at the new members in the food line. More
insurers are lining up for free tax money. Bond insurers also <span
class=GramE>cant</span> pay all the defaults and have their hand out as well.<o:p></o:p></p>
<p><u><font size=3 face="Times New Roman"><span style='font-size:12.0pt'>Article
3</span></font></u>-<u> </u>Another bank hits the dirt face down. There will be
many more. Remember, the FEDS pick and choose who fails and who doesn’t.
It is crony capitalism at its best. Expect hundreds more to fail and your tax
money (FDIC) to bail them out. <o:p></o:p></p>
<p><u><font size=3 face="Times New Roman"><span style='font-size:12.0pt'>Article
4</span></font></u>_-<span style='mso-spacerun:yes'>
</span>Countries around the world need to get the banks “lending again”
(dumb huh?) to get us “borrowing” again so we can get even deeper
in debt to keep us “consuming” more to somehow fulfill their plan
of getting us to consume our way to prosperity again. <span
style='mso-spacerun:yes'> </span>I don’t need to tell you that
premise of “consuming our way to prosperity” <span class=GramE>is</span>
flawed to the core. Think about it. You have to “sell” stuff to
make money. You <span class=GramE>cant</span> just borrow more.<o:p></o:p></p>
<p><font size=3 face="Times New Roman"><span style='font-size:12.0pt'>Can a
house bailout country wide work. Not really. <st1:country-region w:st="on"><st1:place
w:st="on">Japan</st1:place></st1:country-region> tried something like it and
has failed miserably. They are 20 year or so into the recession, the one we
just arrived at. Remember, if you prevent the fever from happening, the body
will never get well. The jest of the matter is this. House prices got too high
and nobody could afford them. If you allow them to come down, people will be
able afford them again. If you try and prevent them from coming down, people<span
style='mso-spacerun:yes'> </span><span
style='mso-spacerun:yes'> </span><span class=GramE>WONT<span
style='mso-spacerun:yes'> </span>_</span> _<span
style='mso-spacerun:yes'> </span>____ __<span
style='mso-spacerun:yes'> </span>_____<span
style='mso-spacerun:yes'> </span>_THEM. <span
style='mso-spacerun:yes'> </span><span
style='mso-spacerun:yes'> </span>(<span class=GramE>you</span> fill in the
blanks!)<br>
<span class=GramE>Its</span> that easy!<o:p></o:p></span></font></p>
<p><font size=3 face="Times New Roman"><span style='font-size:12.0pt'>If people
<span class=GramE>cant</span> afford them, nobody will buy them. So you have to
let them correct. But they will try and prevent it. Remember, the 12 words you
should never believe.<o:p></o:p></span></font></p>
<p><font size=3 face="Times New Roman"><span style='font-size:12.0pt'>“Hi,
I am from the Government and I am here to help”.<span
style='mso-spacerun:yes'> </span><span
style='mso-spacerun:yes'> </span>REAGAN<span
style='mso-spacerun:yes'> </span>and also<span
style='mso-spacerun:yes'> </span>“A government big enough
to give you everything you want is big enough to take everything you have”-
(I think this was Johnson).<o:p></o:p></span></font></p>
<p><b style='mso-bidi-font-weight:normal'><i style='mso-bidi-font-style:normal'><u><font
size=3 face="Times New Roman"><span style='font-size:12.0pt;font-weight:bold;
mso-bidi-font-weight:normal;font-style:italic;mso-bidi-font-style:normal'>Create
Jobs</span></font></u></i></b>?<br>
Obama nor McCain <span class=GramE>cant</span> create jobs any more then my cat
can. That’s <span class=GramE>because my cat (nor the government) doesn’t
“make” anything</span>. You <span class=GramE>cant</span> create
jobs without “making” something. Sure they can print the money to
pay somebody to build a road, but since the government gets all its money from
you, they are only allocating YOUR MONEY Let me make one thing perfectly clear”…..<o:p></o:p></p>
<p><font size=3 face="Times New Roman"><span style='font-size:12.0pt'>A
government cannot create jobs. It can only redistribute wealth from one person
to another. How they choose to do that, whether it’s a “job”
or a handout, it still is only taking a dollar from someone who works and
giving to another who doesn’t. And that, <span class=GramE>folks,</span>
is not freedom, it is called socialism. And both candidates are proposing it. <o:p></o:p></span></font></p>
<p><b style='mso-bidi-font-weight:normal'><i style='mso-bidi-font-style:normal'><u><font
size=3 face="Times New Roman"><span style='font-size:12.0pt;font-weight:bold;
mso-bidi-font-weight:normal;font-style:italic;mso-bidi-font-style:normal'>Markets</span></font></u></i></b><br>
Up, <span class=GramE>Up</span> and away. Markets tested the 8100 level as I
thought and it held and bounced up 1200 points to date. It DID not crash thru
the barrier of 8100, hyped and prodded on by every guru and cheerleader on CNBC
to get you “in” again. Bear markets are designed to suck in every
last dollar with “false rallies” like the ones we have here. Technically
our alert is dropped to orange FROM red for now. A bear market rally is
underway. WHEE!<span style='mso-spacerun:yes'> </span>10,500 is possible,
11,500 even, but that <span class=GramE>wont</span> change the fundamentals of
the long term bear. Since the consumer is 70 % of our economy, and all signs
show he his retreating like a bear in winter (pun intended), the underlying support
of the consumer will not be found. This will not include our next “stimulus”
check to get us “spending” again. The package WILL arrive in
December to rescue the retailers and make for a “happier” Christmas
(although it is not enough time for the check to get here). Another cool 200 or
300 billion is now being discussed. Retailer stocks are up and banks are up and
even housing stocks are up. Hard to tell which way markets will go short term
with the election and <span class=GramE>all.</span> I suspect a UPWARD bias
short term. That could be derailed by a large failure of somebody somewhere
however. Another is coming. With the trillions they are throwing at this thing,
its bound to eventually find its way into the market and it is.<o:p></o:p></p>
<p><font size=3 face="Times New Roman"><span style='font-size:12.0pt'>Like I
always say, they can always just print trillions and make a “<st1:country-region
w:st="on"><st1:place w:st="on">Zimbabwe</st1:place></st1:country-region>”
type stock market. <span class=GramE>( Up</span> 200,000% every few months!).<o:p></o:p></span></font></p>
<p><b style='mso-bidi-font-weight:normal'><i style='mso-bidi-font-style:normal'><u><font
size=3 face="Times New Roman"><span style='font-size:12.0pt;font-weight:bold;
mso-bidi-font-weight:normal;font-style:italic;mso-bidi-font-style:normal'>More
Bailouts coming</span></font></u></i></b>!<o:p></o:p></p>
<p><font size=3 face="Times New Roman"><span style='font-size:12.0pt'>The 700
billion was just window dressing and a foot in the door. Since then have you <span
class=GramE>noticed <span style='mso-spacerun:yes'> </span>(</span>maybe
you haven’t) that they have dwarfed that amount by lending over 100
billion a day ( yes a day) to the banks. They also upped the money to AIG without
our your consent, lent 25 billion to GM FORD, spent billions more thru FDIC by
bailing out failed banks, given billions to B of A and JP Morgan to buy up all
those failed giants like Bear Sterns and Merrill, and did you know they gave
JPMorgan close to 100 billion to make good on Bear Sterns bets to foreign banks?
That was not even reported in most arenas. And we estimate over 1 trillion in “under
the table” funds given to <span class=GramE>the<span
style='mso-spacerun:yes'> </span>banks</span> to close out bad loans, not
counting the FEDS now buying actual stock from over 30 banks, with more lining
up each day. Although the FEDS told you in June and July they estimated a 900
billion dollar bailout, I put out in the <span class=GramE>previous <span
style='mso-spacerun:yes'> </span>update</span> the amount will probably be
10 trillion or more and we are half way there already. Now hundreds of firms
are approaching the government to have them buy their stock as well. The line
of corporations with their hands out will approach 1000 or more in a month.<o:p></o:p></span></font></p>
<p><font size=3 face="Times New Roman"><span style='font-size:12.0pt'>And don’t
forget the states now are asking for money. And the FDIC, the agency that bails
out your bad banks? They went into the business of home loans. Every bank they
now take over? They stop foreclosure and rewrite the loan. <span class=GramE>BUT
ONLY IF YOU ARE LATE ON YOUR MORTGAGE.</span> <span class=GramE>Outrageous.</span>
And again, <span class=GramE>its</span> your tax money that is making up the
difference of the lower interest as the holders of those notes still get the
original interest promised.<o:p></o:p></span></font></p>
<p><font size=3 face="Times New Roman"><span style='font-size:12.0pt'>And guess
what now is being discussed. The banks have billions in bad credit card loans (no
surprise there). Now the banks have approached the FEDS to help:<o:p></o:p></span></font></p>
<p><font size=3 face="Times New Roman"><span style='font-size:12.0pt'>1)
Forgive all or a portion of the balance on past due credit cards<o:p></o:p></span></font></p>
<p><font size=3 face="Times New Roman"><span style='font-size:12.0pt'>2) Get
FED money under and over the table to help.<o:p></o:p></span></font></p>
<p><font size=3 face="Times New Roman"><span style='font-size:12.0pt'>3) Allow
the reduced amount to NOT BE LISTED AS LOSSES on their books (the real reason).<o:p></o:p></span></font></p>
<p><font size=3 face="Times New Roman"><span style='font-size:12.0pt'>4) BUT ATTENTION:<span
style='mso-spacerun:yes'> </span>They will only bail out deadbeat
borrowers!<span style='mso-spacerun:yes'> </span><span class=GramE>So<span
style='mso-spacerun:yes'> </span>let</span> see…… shall you
and I stop paying????? <span class=GramE>( HA</span> <span class=SpellE>HA</span>-
buts it really not that funny).<o:p></o:p></span></font></p>
<p><font size=3 face="Times New Roman"><span style='font-size:12.0pt'>5) BTW: If
your <b style='mso-bidi-font-weight:normal'><i style='mso-bidi-font-style:normal'><u><span
style='font-weight:bold;mso-bidi-font-weight:normal;font-style:italic;
mso-bidi-font-style:normal'>home loan</span></u></i></b> is owned by a bank
that fails, that’s good news for YOU! The FDIC, the insurer of your bank
account, now is halting all foreclosures on banks it takes over and will
renegotiate your interest rate/payment and <span class=GramE>principal <span
style='mso-spacerun:yes'> </span>to</span> reflect 38 % of<span
style='mso-spacerun:yes'> </span>your gross pay, regardless of how much
money it costs them. (That’s you by the way with your TAX DOLLARS). <span
style='mso-spacerun:yes'> </span>Remember, the FDIC previously has or had
NO AUTHORITY to get involved in the mortgage business. They didn’t ask
nor revise their charter. Sheila Barr, FDIC head, just did it <span
class=GramE>on her own,</span> using your tax money to do it. But again, you
have to be LATE on your mortgage. If you pay on time, forget it. You just pay
for the guy that IS LATE. <span style='mso-spacerun:yes'> </span>Nice huh?<o:p></o:p></span></font></p>
<p><font size=3 face="Times New Roman"><span style='font-size:12.0pt'>.<o:p></o:p></span></font></p>
<p><b style='mso-bidi-font-weight:normal'><i style='mso-bidi-font-style:normal'><u><font
size=3 face="Times New Roman"><span style='font-size:12.0pt;font-weight:bold;
mso-bidi-font-weight:normal;font-style:italic;mso-bidi-font-style:normal'>That
being said, here’s what I see coming:<o:p></o:p></span></font></u></i></b></p>
<p><font size=3 face="Times New Roman"><span style='font-size:12.0pt'>Expect unemployment
now to spike and be the party spoiler! They can hide some of this but not all of
it. This and GDP will be the news along with terrible retail sales. A classic bear
market rally is now in force. You may play this carefully if you day trade but otherwise
stay out. Hedge your shorts will fast movers such <span class=GramE>as <span
style='mso-spacerun:yes'> </span>APPLE</span> <span
style='mso-spacerun:yes'> </span>RIMM or FCX or other big large high beta stocks.<br>
I still fear a major bad news blowup arriving anytime on my front page. The US
dollar is rallying right now causing a falling price structure in commodities
and gold. This is temporary. The stronger dollar helped the FEDS for now, as
they WANTED gold and energy to fall. They don’t want you to trade in your
paper US dollars for gold or commodities so they orchestrate a wipeout and make
you think it is time got get back in the casino they call the stock market. It
is not. The US dollar rise happened as the hedge funds are unwinding their
massive bets and they needed US dollars to do it, as all these were denominated
in US dollars. So all those listeners’ who asked why the dollar was
rising in face of all this printing? That is why. The <st1:country-region
w:st="on"><st1:place w:st="on">US</st1:place></st1:country-region> now pays 13%
of its GDP (prices for all transactions in one year) for it interest and it <span
class=GramE>rises</span> everyday. No one is talking about addressing it
anymore so now we are on a one way street to eventual bankruptcy unless
Congress wakes up but that is not happening. They are now spending MORE, not
less, and planning even MORE. I <span class=GramE>cant</span> say when, but you
tell me. Can this go on forever? No. It MUST end. The stock markets rally could
continue, maybe another 1000 points, maybe <span class=SpellE>alittle</span>
more. But consumers are pulling back. A<span style='mso-spacerun:yes'>
</span>FED ANNOUNCEMENT of a HOUSE BAILOUT, like the one we have been talking
about would JUICE the market AGAIN, so they still have some ammo left but not
much. A wide spread and all encompassing house bail out might be the biggest
announcement yet. A bailout of credit card bills may also be next. (Wow –
can you believe this? <span style='mso-spacerun:yes'> </span><span
class=GramE>Now its Credit Cards??)</span><o:p></o:p></span></font></p>
<p><font size=3 face="Times New Roman"><span style='font-size:12.0pt'>The
election may juice the market some as well but that is not as clear cut. An
OBAMA win COULD cause the markets to go down as Wall Street traditionally does
not like Democrats. But the OBAMA “hope” factor could bring Joe
Investor in. Eventually, fundamentals or a bad news item will again start the
BEAR market down again. BEAR MARKETS are designed to suck in every last dollar
by bringing you in again to get your very last dollars! <span
style='mso-spacerun:yes'> </span>That’s why they call them BEAR
MARKET RALLIES. This is nothing new. Don’t fall for it.<o:p></o:p></span></font></p>
<p><font size=3 face="Times New Roman"><span style='font-size:12.0pt'>Consider this
small factoid. Volvo sold 41,900 big trucks in 2007. <span
style='mso-spacerun:yes'> </span>Compare that to 155 (<span class=GramE>YES<span
style='mso-spacerun:yes'> </span>only</span> 155) in this quarter !~ Now that’s
a 99 plus drop! <o:p></o:p></span></font></p>
<p><span class=GramE><font size=3 face="Times New Roman"><span
style='font-size:12.0pt'>Bottom line.</span></font></span> We racked up
trillion in <span class=GramE>debt</span>. <span
style='mso-spacerun:yes'> </span>Economic law says when the bubble <span
class=GramE>collapses,</span> the debt has to be forgiven by the lenders as no
one can pay. Only this time, the Government is going to try and pay it all off
for us. Economic law is still in force. Lenders <span class=GramE>cant</span>
afford to write off all our bad debt so the Government is going to insanely attempt
to pay it all off! <span style='mso-spacerun:yes'> </span>Since it is<span
class=GramE>, <span style='mso-spacerun:yes'> </span>we</span> think about
500 TRILLION, you tell me if they can succeed. They cannot. Bottom line though,
they will try. Result?<br>
<span class=GramE>A doomed US dollar.</span> <span
style='mso-spacerun:yes'> </span>Next week, next month, next year, next
decade…. But eventually…. You <span class=GramE>cant</span> PRINT
THIS AMOUNT OF MONEY AND GET AWAY WITH IT.<o:p></o:p></p>
<p><b style='mso-bidi-font-weight:normal'><i style='mso-bidi-font-style:normal'><u><font
size=3 face="Times New Roman"><span style='font-size:12.0pt;font-weight:bold;
mso-bidi-font-weight:normal;font-style:italic;mso-bidi-font-style:normal'>Holdings:<o:p></o:p></span></font></u></i></b></p>
<p><font size=3 face="Times New Roman"><span style='font-size:12.0pt'>As
indicated in the last 2 or 3 weeks emails updates, I really couldn’t say
to add anything short of showing you what I was doing. Here is what I did.<o:p></o:p></span></font></p>
<p><font size=3 face="Times New Roman"><span style='font-size:12.0pt'>I added
SLV silver trust at about 9.70. This is not a “stock” per say, but
reflects the price of silver as silver could go up with other stocks going down
in a bad market. (<span class=GramE>we</span> saw this in our last correction).
<span style='mso-spacerun:yes'> </span>This is why I added SLV and not a
silver stock. I wanted exposure to silver but not to the market. My play on
this was I perceive a long term downside of 5.00 or so with an upside of 100 or
more- who knows. With the government printing trillions and trillions (I don’t
need to tell you that though right?) the US dollars will devalue eventually and
Silver should skyrocket. But this could take months, even years. I only hold
this in my IRA as SLV is considered as a “collectible” and taxed at
a higher rate. I also added USO (as an option call). This is oil. Since oil has
a downside in my opinion of 40 or so <span class=GramE>( The</span> OPEC folks
have my back on this one) and the upside is 150.00 of more (where it was a few
weeks back) , then the downside is limited to 15 more bucks down or so with an
upside of 150 or more. <span class=GramE>Similar to our SLV trade.</span><o:p></o:p></span></font></p>
<p><font size=3 face="Times New Roman"><span style='font-size:12.0pt'>I also
added a small amount of stocks on the DIVIDEND payers list we put out, as the
yields were HUGE at their beat up stock prices. We are still collecting
dividends and all are still paying! Makes the pain <span class=SpellE>alittle</span>
less right? <span style='mso-spacerun:yes'> </span>I felt energy stocks
had inherent value of which was being ignored and would soon be “discovered”
again and the market agreed with me as energy has moved up with the general
market. I also closed out a lot of retailer shorts, including striking it big
with Whirlpool, Tiffany, Marriot and Nordstrom, selling into the falls as
indicated and buying into the rally. I now only hold puts on CCL (Carnival
Cruise) and <span class=GramE>JCP<span style='mso-spacerun:yes'> </span>(</span>
JC Penney) and HOT (Starwood Hotels). All these bet on a FALLING MARKET. <o:p></o:p></span></font></p>
<p><font size=3 face="Times New Roman"><span style='font-size:12.0pt'>BEARX- up
from about 6.00 or so depending on where you got in. Now at about 7.80<span
style='mso-spacerun:yes'> </span>HOLD and ADD<span
style='mso-spacerun:yes'> </span><span class=GramE>Will</span> pay
2 % dividend or so in DECEMBER.<o:p></o:p></span></font></p>
<p><span class=GramE><font size=3 face="Times New Roman"><span
style='font-size:12.0pt'>CGMFX- Our long mutual stock fund.</span></font></span>
<span style='mso-spacerun:yes'> </span>Hit hard with the market drop. The
manager of this fund is now in financials for the first time and out of commodities.
For the first time, I now disagree with Kenneth <span class=SpellE>Hebner</span>
and recommend selling half of this fund and moving to our other holdings. Since
this should be only a very small part of your “mutual funds, your loss
should not be that great. <span class=GramE>If you sold when it was at 70 or so
great for you.</span><o:p></o:p></p>
<p><font size=3 face="Times New Roman"><span style='font-size:12.0pt'>Why am I
changing my position on this fund? When conditions change, I change my views.
The conditions have changed. If you want you may hold until December for its
dividend payment and we can revaluate at that time. That is what I plan to do
with my shares. IF you think financial stocks will rebound, then you can make
your own decision on this fund. I still have great respect for <span
class=SpellE>Hebner</span> and <span class=GramE>wont</span> be too surprised
if he does well. The fund has been slammed and I suspect it might be because of
his change of direction. I still don’t like financials so will wait until
B of A hits 16 or so then maybe buy a chunk for when it recovers in 2012 or so!<o:p></o:p></span></font></p>
<p><span class=GramE><font size=3 face="Times New Roman"><span
style='font-size:12.0pt'>DBC- Hold as inflation hedge.</span></font></span> Up
then down. Ok to add small amounts.<o:p></o:p></p>
<p><font size=3 face="Times New Roman"><span style='font-size:12.0pt'>UNWPX- I
hold a lot of this fund at 12, 13<span style='mso-spacerun:yes'>
</span>and 14. This bets on rising metal prices and will perform when gold
does. Ok to ADD. I am still looking for a long term gain here.<o:p></o:p></span></font></p>
<p><font size=3 face="Times New Roman"><span style='font-size:12.0pt'>Emerging
markets funds. NEW:<span style='mso-spacerun:yes'> </span>I might be
tempted to replace your CGFMX with an emerging market fund. I have no pick other
the OBCHX and IFN at this time but for a LONG TERM hold only.<span
style='mso-spacerun:yes'> </span><st1:country-region w:st="on">Japan</st1:country-region>,
<st1:country-region w:st="on">India</st1:country-region> and <st1:place w:st="on">Asia</st1:place>
are all beaten up. In a general market crash, these will still get hurt so
small amounts only and hold cash for another day. IFN just paid a whopping 6
buck a share dividend. In the long run, emerging markets will trounce the US
Market. <o:p></o:p></span></font></p>
<p><font size=3 face="Times New Roman"><span style='font-size:12.0pt'>Gold and <span
class=GramE>Silver</span> in possession- ADD for the day we will need them. Physical
coins are hard to come by right now. Many listeners are telling me they cannot
get coins! <span style='mso-spacerun:yes'> </span>This conundrum will
eventually result in an upside explosion in prices of both silver and gold.<o:p></o:p></span></font></p>
<p><span class=GramE><font size=3 face="Times New Roman"><span
style='font-size:12.0pt'>Tanker stocks and dividend payers- Ok to add small
amounts at these levels.</span></font></span> Returns are high but again they
can get hurt in another turn down. Small amounts only please.<o:p></o:p></p>
<p><font size=3 face="Times New Roman"><span style='font-size:12.0pt'>Foreign
Currency funds- FXZ <span style='mso-spacerun:yes'> </span><span
style='mso-spacerun:yes'> </span>FXC<span
style='mso-spacerun:yes'> </span><span class=GramE>FXY<span
style='mso-spacerun:yes'> </span>FXF</span><span
style='mso-spacerun:yes'> </span>These have been all over the board
but ok to ADD in equal amounts as usual. Most pay dividends/ interest and
protect against a falling dollar. FXY (<span class=GramE>yen )</span> moved up
nicely as the YEN CARRY TRADE I mentioned would happen is happening. <o:p></o:p></span></font></p>
<p><font size=3 face="Times New Roman"><span style='font-size:12.0pt'>Swiss
Annuities- Add- Currency controls are coming. Only one company now offers
these. Denominate in Swiss Francs. They pay interest and dividends (order free
booklet by emailing me). YES. They are in FRANCS so your balance has gone down
but this is the hedge they offer. If they went down, your <st1:country-region
w:st="on"><st1:place w:st="on">US</st1:place></st1:country-region> stocks went
up, right? <span class=SpellE>Nuff</span>’ said.<o:p></o:p></span></font></p>
<p><font size=3 face="Times New Roman"><span style='font-size:12.0pt'>MOST
IMPORTANT HOLDING: Treasury funds- MOST of your funds should be here and in
BANK CDs. Performing fine and paying nicely. Hold <span class=GramE>TIP<span
style='mso-spacerun:yes'> </span>RRPIX</span><span
style='mso-spacerun:yes'> </span>SHY and VIPSX in equal amounts and the
rest of your money in BANK CDs now paying 4 plus percent. FDIC INSURED ONLY.
The time will come to get out of these but that time is not now. <o:p></o:p></span></font></p>
<p><font size=3 face="Times New Roman"><span style='font-size:12.0pt'><o:p> </o:p></span></font></p>
<p><font size=3 face="Times New Roman"><span style='font-size:12.0pt'>Well,
that just about covers it. Remember, if emailing me, keep it to fewer than 3
sentences, don’t ask me IRA or TAX questions, or ask me on specific
stocks or funds. Don’t email me your specific situation as without a
consult I would be remiss in recommending anything. <o:p></o:p></span></font></p>
<p><font size=3 face="Times New Roman"><span style='font-size:12.0pt'>Your can subscribe
to the update or have others do it by clicking on the link that follows the
email. You don’t have to email me.<o:p></o:p></span></font></p>
<p><span class=GramE><font size=3 face="Times New Roman"><span
style='font-size:12.0pt'>All for now.</span></font></span><o:p></o:p></p>
<p><font size=3 face="Times New Roman"><span style='font-size:12.0pt'>Marc<o:p></o:p></span></font></p>
<p><font size=3 face="Times New Roman"><span style='font-size:12.0pt'><o:p> </o:p></span></font></p>
<p><font size=3 face="Times New Roman"><span style='font-size:12.0pt'>Do Not
Reply to this message directly.<br>
<br>
<span class=GramE>Direct all questions or comments to <font size=4 color=red><span
style='font-size:13.5pt;color:red'><a href="mailto:Moneymatters@kvmr.org"
title="blocked::mailto:Moneymatters@kvmr.org">Moneymatters@kvmr.org</a></span></font>.</span>
<br>
All comments or questions must be less then 3 sentences in length and must not
contain any links or articles.<br>
<br>
You can access past updates at: </span></font><font size=4 color=red><span
style='font-size:13.5pt;color:red'><a
href="http://mailman.jtan.com/pipermail/money-matters-l/"
title="blocked::http://mailman.jtan.com/pipermail/money-matters-l/">http://mailman.jtan.com/pipermail/money-matters-l/</a></span></font><br>
<br>
This article is strictly for informational purposes only. It is not a
solicitation to make any exchange, buy or 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<span
class=GramE> planning</span> to buy and do your own research before
investing. Mr. Cuniberti may or may not hold the securities listed.<br>
<br>
Produced and Hosted by Marc Cuniberti<br>
Money Management Radio<br>
"Money Matters"<span class=GramE> and</span> "Your Money
Matters"<br>
<st1:place w:st="on">Northern California</st1:place>'s<span class=GramE>
#</span> 1 "alternative" economic show.<br>
"Know the Truth and the Truth shall set you free".<br>
89.5<span class=GramE> 105.1</span> 95.1 103.7 FM
Radios throughout <st1:place w:st="on">Northern California</st1:place> and the
State Capitol.<br>
<span class=GramE>Worldwide on the web at <a href="http://WWW.KVMR.ORG"
title="blocked::http://www.kvmr.org/">WWW.KVMR.ORG</a> and <a
href="http://www.KFOK.ORG." title="blocked::http://www.kfok.org./"><font color="red"><b>MailScanner has detected a possible fraud attempt from "www.kfok.org." claiming to be</b></font> WWW.KFOK.ORG.</a></span></p>
<font size=3 face="Times New Roman"><span style='font-size:12.0pt;font-family:
"Times New Roman";mso-fareast-font-family:"Times New Roman";mso-ansi-language:
EN-US;mso-fareast-language:EN-US;mso-bidi-language:AR-SA'><o:p></o:p></span></font>
<p><font size=3 face="Times New Roman"><span style='font-size:12.0pt'><a
href="http://www.KFOK.ORG." title="blocked::http://www.kfok.org./"></o:p></span></font><font
color=black><span style='color:windowtext;text-decoration:none;text-underline:
none'><o:p> </a></span></font></p>
<p><font size=3 face="Times New Roman"><span style='font-size:12.0pt'><a
href="http://www.KFOK.ORG." title="blocked::http://www.kfok.org./"></o:p></span></font><font
color=black><span style='color:windowtext;text-decoration:none;text-underline:
none'><o:p> </a></span></font></p>
<p><font size=3 face="Times New Roman"><span style='font-size:12.0pt'><a
href="http://www.KFOK.ORG." title="blocked::http://www.kfok.org./"></o:p></span></font><font
color=black><span style='color:windowtext;text-decoration:none;text-underline:
none'><o:p> </a></span></font></p>
<p><font size=3 face="Times New Roman"><span style='font-size:12.0pt'><a
href="http://www.KFOK.ORG." title="blocked::http://www.kfok.org./"></o:p></span></font><font
color=black><span style='color:windowtext;text-decoration:none;text-underline:
none'><o:p> </a></span></font></p>
<p><font size=3 face="Times New Roman"><span style='font-size:12.0pt'><a
href="http://www.KFOK.ORG." title="blocked::http://www.kfok.org./"></o:p></span></font><font
color=black><span style='color:windowtext;text-decoration:none;text-underline:
none'><o:p> </a></span></font></p>
<p class=MsoNormal><font size=3 face="Times New Roman"><span style='font-size:
12.0pt'><a href="http://www.KFOK.ORG." title="blocked::http://www.kfok.org./"></span></font></o:p></span></font><font
color=black><span style='color:windowtext;text-decoration:none;text-underline:
none'>.<font size=2 color=black face=Arial><span
style='font-size:10.0pt;font-family:Arial;color:windowtext;text-decoration:
none;text-underline:none'><o:p></a></span></font></p>
</div>
</body>
</html>