[Money-matters] Money Matters Update Oct 14 2008

Wed Oct 15 03:14:12 UTC 2008

_/*Marc's Notes:*/_
The markets rallied Monday up 900 plus. Then down Tuesday.
An ANNOUNCEMENT juiced the market again with the FEDS buying the banks 
now, but notice the effect from their announcements are wearing off 
faster and faster.
Additionally, they are going to have to finance all this bailout money 
and therefore have to sell Treasuries (IOU's) to pay for all this.

Here is what they are not telling you.

1) They need a few hundred TRILLION to fix things due to all the bets 
these banks made and that is a whole lot of money. They DONT have that 
much money.
So the bailout wont work. Even if they did manage to get away with 
printing THAT much money, it would cause inflation like you have never seen.
Bottom line:   The bailout wont work, wont be enough and we will be 
throwing good money after bad, since if it isnt enough, it wont work, so 
why do it.
Its just throwing money away.
MARK MY WORDS- IT WONT WORK.  Why?
Here is an example: AIG insurers was promised 85 billion. It then needed 
35 billion MORE just last week. Thats 120 billion or so for just ONE FIRM.
There are literally thousands of firms. How can 700 billion bailout 
thousands of firms when ONE FIRM needed 120 billion?
ANSWER? It cant even come CLOSE!
Like I said:  "You aint seen nuthin' yet!!!!!"

2) This massive bailout AND the socialistic proposals by both candidates 
will send the debt of this country into the stator sphere. ( if it isnt 
already there already).
Eventually, the world will tire of our borrowing and stop lending. When 
this happens, our currency start to collapse, and then..... KATY BAR THE 
DOOR.

3) Pension funds are getting hammered worldwide. Now large US companies 
are looking at their pension plan balance sheets and realizing they cant 
keep the promises they made to their EX employees.. ANOTHER BAILOUT of 
the PENSION BENEFIT GUARANTEE CORPORATION is heading our way. Add this 
to all the companies and banks and states and cities now with their hand 
out to the government ( Taxpayers) and you realize.     THERE IS NO WAY 
OUT OF THIS.

4) I said in 2006,  dont be surprised if the US PAYS YOUR MORTGAGE !   
Well guess what.   Ta Da!     And now more unemployment benefits, 
another stimulus check and a foreclosure moratorium.  AND NO TALK OF 
PAYING FOR IT. THEY WILL PRINT THE MONEY!  Nothing new. Governments have 
been trying it for centuries. And they all fail. Why? It DOESN'T WORK.  
PERIOD.
Hear any talk about paying for it? HA !  Not on your life.  Because they 
think they can just PAY for it all from magic fields of jelly beans, or 
who knows what.
Bottom line?  The same as before, and before,  and before, thru 
centuries of trying.    COLLAPSE of the currency from the country that 
tries it. Dont we ever learn?
I guess not.
_/*
What will happen in the weeks to come:*/_
Guessing this is a fools game, but I love to try.  With todays erosion, 
the situation may become dire. I will not be surprised to see another 
test of the 8100 Level on the DOW.
It will probably fall thru that and continue down. Commodities are 
strengthening.  Yields are now incredible at 30 or 40% dividends but I 
CANT TELL YOU TO BUY.
If the markets continue to crater, EVERYTHING will get slammed.
Interest rates are spiking as we said they would as the US DOLLAR is 
tanking again. IF the US dollar accelerates downward, or interest rates 
spike, this will be your sign the worst is coming. PREPARE  HEDGE  GET 
GOLD ( physical metal held at a safe deposit box).

_/*What to look for:*/_
More bail out talk, more stimulus idiocy. More senseless programs.  More 
of that idiot Pelosi and Franks and Dodd.
LOOK for the erosion in markets, Look for continuing bankruptcies, look 
for more lousy earnings.
When you see MORE bailouts, even MORE govt money going to firm after 
firm, you will know whence I speak.
_/*
What to do:*/_
HEDGE     Do not be fooled by the rally on Monday. Long term direction 
is DOWN. Sell your regular mutuals and stocks into the rally.
Funds:  BEARX - contary fund ( any contrary fund will help)    RRPIX- 
rising interest rate fund       GOLD   hold the metal   Get as much as 
you can afford ( contact below)
Foreign currencies      FXA  FXF  FXC   FXF   FXY    these funds trade 
like stocks
T BILL FUNDS      SHY  VIPSX  TIP  RRPIX             HOLD ALL four   in 
equal amounts for more safety. These funds WILL BE AT SOME RISK however.
Bank CDs  for now.. Money market funds.   GOVT ONLY money market funds   
ASK YOUR BROKER TO SWEEP ALL CASH IN ONE OF THESE
Swiss Annuties- ADD   The window will close soon in my opinion.
Dividend Payers- They are down, but every month most of these stocks buy 
MORE shares at these lower prices thru the dividend reinvestment plans 
you should be on, so you get more shares at these lower prices. 
Remember, as long as they keep paying, we are getting the indicated 
yield at the price we bought them at. HTE is now paying almost 40 % !~  
HOLY COW
HOLD, or only buy SMALL AMOUNTS.  Stocks have further to go..   down...

_/*Upcoming Show:*/_
This Thursday- More call ins. Call in and ask me! Its one of the few 
times its free ! And how good is that!
Consults?   E MAIL ME      I do have time this week and next. After 
that, the pledge drive will fill it up FAST.

All for now
Marc

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