[Money-matters] Money Matters Update Feb 10 2009

Wed Feb 11 03:59:06 UTC 2009

Bullion sales hit record in rush to safety

By Javier Blas in London 
Published: February 9 2009 18:16 | Last updated: February 9 2009 18:16
Investors are buying record amounts of gold bars and coins, shunning risky
assets for the relative safety of bullion amid renewed fears about the
health of the global financial system. 

Feb. 10 (Bloomberg) -- Treasury Secretary
<http://search.bloomberg.com/search?q=Timothy+Geithner&site=wnews&client=wne
ws&proxystylesheet=wnews&output=xml_no_dtd&ie=UTF-8&oe=UTF-8&filter=p&getfie
lds=wnnis&sort=date:D:S:d1> Timothy Geithner pledged government financing
for as much as $2 trillion of efforts to spur new lending and address banks'
toxic assets, seeking to end the credit crunch hobbling the economy.

Marc's Notes:
Sorry I've been so sporadic with these. I can't type to well and get sore
quickly when I do. Oh well. This will be short but I wanted to at least get
you guys something ~
I watched the testimony today of Treasury Secretary Giethner (the tax
evader) and couldn't help to think these guys really are flying by the seat
of their pants.
Now they are talking about 2 Trillion more just to the banks (See article
above). You really have to be kidding right? As I keep saying "it won't be
enough".
And it won't be. Yet these hacks continue to think throwing more money/debt
into the hole will fix it. My  My.  They are beginning to realize they must
address the underlying problem which is housing!  Not banking. Housing is
causing the hemorrhaging, not banking. Banking caused the wound, but the
bleeding is plummeting house prices. They will wise up eventually and come
out with a housing fix, which won't work by the way, but they will try. Free
checks for everyone!
Trying to fix a crashing housing market will prolong it into 5 years or
more, a slow painful grind down, where reworked loans will default AGAIN and
AGAIN, handcuffing the government to more bailouts, over and over again.
Let's hope the US dollar holds out and we can continue to sell our debt.
THIS is the KEY to our survival now.
Look for a massive house bill, more money into the bank hole, more money to
auto companies, auto buyers, insurers, brokers, hedge funds, retailers,
cities, states, pensions,  you name it, they will give them your tax money,
all in the name of "maintaining the stability of the system". 
And now that Wall Street got bailout money, they HAVE to give MAIN street
money or face a lynch mob. It is now written in stone. Trillions are being
loaded into the helicopters to drop all over the good ol' USA, so get your
hand out ~   Its disgraceful and heart wrenching for me to watch these fools
make mistake after mistake, dooming our once great currency to the garbage
heap of worthless paper, much like the Peso and hundreds of other currencies
before it.
What to expect:
Look for haggling over how best to "spend/ waste" our money. As mentioned in
August, the original bailout was only the price of admission folks! See what
I meant now?
"You really aint seen nuthin' yet!'
TRILLLLLLLLLLLLLLLLLLLLLLLLLLIIIIIIIIIIIIIIIIIIIIIIIONNNNNNS  will be spent!
And all for naught.
Only the foolish or ignorant believe these bailouts will work. True students
of economics (not the hacks that Obama has surrounded himself with) realize
a "bad" bank, or massive bank bailouts, or housing fixes will only
exasperate the problem in the long run. Sure, you will see market "noise"
with rallies, hopeful talk and spin about how it is helping from time to
time, but talk to me in a year or 2. You will see what I mean then. 
We will be MUCH WORSE off, with the same problems, some NEW EXOTIC problems,
even MORE debt and a currency in crisis. It won't be pretty. It is indeed
more painful then I imagined as I see these day to day mistakes, brought to
us by the same people who caused the problem. 
Albert Einstein said' You cannot expect the people who caused the problem to
fix it".   A brilliant man indeed.
You will also see more bank problems. B of A is now near the cliff.
Incredibly. Yet true. Citi is the walking dead. Insurance companies are
dying as we speak. 

ALERT-There is now ACTION YOU SHOULD TAKE:
If you hold accounts with B of A that are NOT FDIC insured, if it was I, I
would go and get my money. FDIC insured ok. If you hold a safe deposit box
there, I would not worry, nor would I be concerned they hold your home loan
or any other loan. I am only talking about any money of YOURS they have that
IS NOT INSURED. You never can tell what might happen if investors learn what
we already know. They are insolvent in my opinion. But they WILL NOT BE
ALLOWED TO FAIL.
But to be safe, make sure you are FDIC covered completely. Call if you must,
but don't take any chances. They will probably be bailed out but why take
chances. If you hold B of A bonds, I would SELL them immediately. Ditto with
all bank bonds, no matter who it is with.  B of A stock is also a SELL for
all except gamblers like me.
Annuities:   If you hold any with an American insurer, I would CASH THEM
OUT. Insurers are at deaths door and only thru bookkeeping changes that the
FEDS will grant can they appear solvent. Expect MARK TO MARKET accounting to
be suspended any day now. Remember that term: MARK TO MARKET.  It will make
the news soon.
(When this is changed, the markets will rally but it will only be
temporary). Remember, if you hold an annuity and the FEDS let that company
go broke, you will likely lose your annuity and all the money you were
promised as well as what you put in. That is the reality of where we are,
sorry to say. The FEDS will probably bail them out as well, but I don't bet
my livelihood and my retirement on what the FEDS may or may not do.  
Take Heed: Good luck is usually a result of good planning.
If you hold any INSURANCE COMPANIES stocks or bonds, I would SELL. They are
the next bodies to float to the surface. 
If you hold any BONDS of any type beside GOVT bonds, I would SELL.  (Our
funds, TIP  SHY  VIPSX  RCS  FAX are ok to continue to hold). The bond
market is another accident taking place in slow motion as we speak
If you hold any financial stocks, I would SELL. ( NOTE: I continue to hold
UYG  options and USB stock for a OBAMA pop but this is gambling and NOT FOR
YOU)
If you hold any real estate REITS, or commercial real estate stocks, bonds,
trust or otherwise tied to COMMERICAL real estate, I would SELL. Commercial
real estate is about to CRATER BIG TIME. It will make the news soon. It is
the next shoe of many to drop.

NOTE: CONSULT YOUR TAX ADVISOR FOR ANY TAX CONSEQUENCES BEFORE YOU SELL ANY
ASSETS as there may be a tax liability.

Markets:
Negative bias is in effect again, but a POP may be in order on a MARK TO
MARKET announcement or other announcements. The market is temporarily short
term oversold but it is now testing 7900 on its way again to 7500.  The
market looks anemic again and I would not be surprised to see a run at 7500
take place soon. We are back to the bowling ball, it cracked thru 7900 and
indicated in last weeks UPDATE and now 7500 is in play, barring another
ANNOUNCEMENT!

Holdings:
See above notes.  
Gold and Silver- see article above- Investors are piling into gold and you
should already be there. (have you been reading these updates? )
Physical  metal,    gold stocks and funds  ADD   ADD    ADD       
Tanker stocks- Do not add- HOLD
SHY   TIP  VIPSX    RRPIX    ADD  HOLD FOR MOST OF YOUR SAFE FUNDS
BANKS CDS- DITTO ABOVE      ( I will advise when it looks time to dump
these)
Foreign Currency Funds- ADD 
Dividend Payers - Follow the plan as usual.
Contrary funds - ADD
Regular mutual funds your broker sold you- SELL if they don't pay at least
10 % in dividends. You are wasting your money and time.
Swiss Annuities - ADD    anytime    email your address for free book

Pledge Drive: 
All I can say is thanks and wow!   You came thru. Again. Money Matters
raised $23,000 or so. ( I haven't seen the  final amounts ) . THANK YOU. You
did the right thing.
It makes my shoulder hurt less ( at least a little). Those pledging to
consult with me, you will be contacted by one of our assistants shortly! I
look forward to meeting with you and just in time! Another Valentines Day
Massacre is about to happen~  
(Missed meeting with me on the pledge drive?  - Email me. Fees are
increasing at the end of the month, but the FEDS tell me there is no
inflation, maybe you can explain it to them! Email me to schedule and note
you want the January fee otherwise she will quote you the "new" fee).

All for now.

My arm feels like is about to drop off.
Marc

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