[Money-matters] Money Matters Update

Mon Sep 29 21:31:37 UTC 2008

_/*Marc's Notes: (OPINION ONLY)*/_
The bailout bill was NOT passed as I thought it would be, as public 
outcry convinced politicians to look for alternatives.
The margin of defeat was narrow, indicating to me it WILL be passed in 
some form or another shortly.
The market action today will scare the heck out of the NO votes. They 
will bicker and put something together soon.
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.
Today they loaned 630 BILLION  ( with a  B).  More under the table we 
dont know about.
Wachovia flopped and was scooped up by Citigroup with money from the FED 
to cover losses.
The news headlines are happening so fast even the gophers know something 
big is happening.
Yes .. it is.
The dominoes falling backwards are accelerating. We noted last week an 
ORANGE alert ( serious folks).
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).
The amounts of money at risk in the system is astronomical as indicated 
in previous emails. ( TRILLIONS)
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).
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.

_/*What will happen short term:*/_
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).
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.
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.
Major news media will cover the markets in detail tonight with the "Dont 
Panic" mantra. ( Heard that before?)
Dont listen. The time to act is passing quickly. How many more signs do 
you need for gosh sakes?
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.
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.

_/*What you should do:*/_
Get some cash on hand just in case. A week or 2 worth wont hurt. 
Use rallies to unload regular mutuals that are not paying dividends.
HOLD dividend payers for now. They are still paying. Everything is being 
slaughtered right now
Most of your funds should be in T BILLS OR T BILL FUNDS OR FDIC INSURED 
ACCOUNTS.
Even though money markets funds MAY be insured, the measure is NOT 
PASSED, so move to TREASURY ONLY money market funds.
See red below:

FDIC Insured accounts or Government T bills or bonds only- Obtain at 
local bank or T bill at _www.treasurydirect.gov 
<http://www.treasurydirect.gov/>_. Buy short term only. Cd or T bill up 
to one year only.

Also funds available thru your broker:
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.

One step removed: SHY   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.

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.

RRPIX- Interest rate fund. Will be down a bit today but hedges against a 
falling dollar. OK to add.
Foreign currency funds- Same as above. Down today but is not tied to the 
stock market. OK to add
Contrary funds- ADD        BEARX is one you can look at. There are others.
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.

 */_"Possession Gold" --_/* Standard Gold Eagles, Buffalos, Kruggerands, 
Silver Maples. Gold Pandas   Generic Rounds. Peace Dollars or Morgans. 
You may contact:

Monex Deposit    David Feldberg  x 2216
4910 Birch St., Newport  Beach  Ca  92660
1 (800) 949 4653  (GOLD)   ext 2216   Refer to Marc Cuniberti and Money 
Matters for best pricing. Buy NO MARGIN GOLD ( borrow the money).

(Advanced Traders Only)
SHORTS: Take 1/3 to half profits. HOLD the rest for massive gains. You 
did extremely well today!
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.

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.

Misc Funds- RCS  FAX       HOLD- do not add at this time- still paying.  
DBC  HOLD    inflation hedge-
UNWPX- ADD   precious metals. ( got gold?)   We are looking for a double 
from our buy in of 14. May move either way short term.

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.
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.

All for now,
Get safe, do your own thinking. Read the signs. Its your money.
And right now would be a good time for a prayer or 2.
Lord knows I am.
I  suggest you do the same.
All the best.
Marc
/
"If the American people ever allow private banks
to control the issue of their money,
first by inflation and then by deflation,
the banks and corporations that will
grow up around them and
will deprive the people of their property
until their children will wake up homeless
on the continent their fathers conquered."   Thomas Jefferson
/

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