[Money-matters] Money Matters Update March 1 2009

Sun Mar 1 21:01:34 UTC 2009

Buffett Accepts Blame and Faults Others 

The renowned investor
<http://topics.nytimes.com/top/reference/timestopics/people/b/warren_e_buffe
tt/index.html?inline=nyt-per> Warren E. Buffett chided himself and the
business world at large in his annual letter to shareholders of his holding
company on Saturday as he sifted through the wreckage of his worst year in
four decades.
Marc's Notes:
As indicated in last Novembers Update when Warren Buffet told the world it
was time to buy stocks I indicated he was wrong and would get his head
handed to him. (SEE NOV UPDATE). 
Turns out the Oracle of Omaha got his head handed to him and those investors
that followed his lead and not ours also suffered a decapitation of their
funds.
Even savvy investors can make mistakes, myself included. (although I like to
think I make very few !).
There will be news on Monday of AIG posting another HUGE loss and the
government will give them more billions. Do you ever think this money give
away will stop?
This really is incredible don't you think? The billions are flying out
almost daily, yet these amounts would have been unheard of a few years back.
I don't think the average American realizes that even a few million in
government money going to a private enterprise is normally VERY RARE, yet
now we are so complacent, your government gives away literally TRILLIONS and
we still sit around Starbucks sipping our coffee like nothing is happening.
>From an economist's point of view, I am seeing something akin to God himself
landing on earth. I mean, really, this is way over the line. I will say it
again. "It wont be enough". It wont work, it never could. Issuing money is
not creating wealth. It is just creating more debt. ( M(blank) - get your
checkbook ready!) Like I said, I don't lose economic bets but once in a
decade.
This week should be a market mover due to the simple fact last week wasn't.
(much anyway).
 I suspect the Warren Buffet posting today and the AIG news on Monday will
start the week off negative and the 6000's may be in play at least early in
the day. If we "nest" there a few days, a new precedent will be set. If I
was a betting man, I suspect the 6000's will be tested this week. 
The interesting thing this week will be news items. Who knows what will
surface, but other then the Government spending more money, it wont be good.
Think of it this way. With no one buying anything or spending anything, and
consumption all but dried up, the US Government will substitute its spending
for us.
Unfortunately, Uncle Sam gets its money from you and me, and is a very bad
spender. It makes horrible deals, wastes money, skims some, losses some, and
is not a good shopper, so its money will be the most wasted of all. And at a
time when money is in short supply. This is why we can be sure what they are
doing will exasperate an already bad problem.
My dear listeners and friends. 
What we are seeing here are draconian measures. The situation is dire. We
are playing with fire. I cannot say with certainty what will happen but
truthfully I fear the worst. This is why I am diversifying my family's money
all over the place. 
Overseas, in gold, in silver, in contrary stocks, in foreign currencies. I
really don't know what will be safe, but I know what is coming won't be
pretty and could, I repeat, COULD be downright devastating. I urge you to
prepare for the worst, (yet hope and pray for the best). 
If you STILL are sitting in what your "advisor" put you in like a basket
full of US stocks or funds,  PLEASE at least consider making some of the
moves we have been talking about here on Money Matters and get some money
SAFE. 
I don't want anyone who has access to this information to say "I should have
done something". Please, you don't realize how precarious the situation is.
It MAY turn out fine in a few years, and I hope it will be, but we could be
looking at something here many are not prepared for. The good news in all of
this is that there is still time to prepare and hedge your assets. Please
review some of the recommendations made here over that past years and a make
at least some moves. If anything, at least get some physical gold and silver
and get some money hedged. (Gold buyers- see the end of this update if you
don't know where to get coins or bars).
Remember, listen to those who were right and dump those advisors who were
wrong. Don't stick with the usually mantra of buy and hold! The advisors who
told you to buy and hold are nothing more the parrots reiterating what they
heard on CNBC. They are not thinkers, they are followers. There is no talent
or thinking there. If your advisor has lead you down road of losses and
offers nothing but "hang in there" or buy some "other" mutual fund or stock,
make the change and do it now. 
I know, I know...You are thinking you're already down too far to sell? 
Think again. Like I keep saying, you WILL SELL, when you are down 70 to 80%
, you WILL SELL. This is historically when even the staunchest of "buy and
hold"  investors sell. When everyone else is selling.  
And that's when it will be time to start BUYING strangely enough.
Then after you lost your money, your advisor will tell you something like
everyone lost money and there was no way to forecast it.      I say:  BS.
We were saying it all the way down. So think for yourself, DO SOMETHING.
Read the signs. Make a move. DON'T WAIT. Markets can move south in a hurry.
Prepare and be through the door before the everyone else starts crowding
around it. Then it will be too late.
Holdings: no change from previous update.
NEWS ON USO: Oil fund. 
The SEC is looking into it for reasons which don't seem important to us as
investors as far I can tell right now. No change, but I will watch for news.
NOTE:  USO was never recommended to KVMR listeners, I just said it was a
gamblers bet and that I was considering it.  I still hold it.

That's it for now. If something occurs that you should know about, I will
let you know.

Here is the letter from the previous update. This should be emailed to your
representatives if you agree with it. You may also make your own version,
but do something. If you haven't sent it in, please do so and forward this
to as many people as you can. And have them forward to as many as they can
and so on and so forth.
Remember, if the  FEDS  continue down this path, they will have no choice
but to take your money directly by confiscation, as they will have wrecked
things by their attempts at bailout. Your rights will be circumvented under
the guise of "for the good of the people" much like FDR did when he denied
you access to your safe deposit box, YOUR private property, guaranteed by
the US CONSTITUTION. 
*	Fourth
<http://en.wikipedia.org/wiki/Fourth_Amendment_to_the_United_States_Constitu
tion>  Amendment - Protection from unreasonable search and seizure
<http://en.wikipedia.org/wiki/Search_and_seizure> .
The right of the people to be secure in their persons, houses, papers, and
effects, against unreasonable searches and seizures, shall not be violated,
and no Warrants <http://en.wikipedia.org/wiki/Warrant_%28law%29>  shall
issue, but upon probable cause, supported by Oath or affirmation, and
particularly describing the place to be searched, and the persons or things
to be seized.

"Complacency Accompanies Tyrannies Triumph":    Marc Cuniberti -2008
Don't be complacent.
Honorable Representative.

I am increasingly concerned about the future of our nation and what kind of
world we will be leaving to future generations as it pertains to our economy
and your recent actions to try and "fix" our financial crisis.
The problems we are seeing now in our economy, indeed the world, are the
result of years of mismanagement of our currency and the abuse by our
banking institutions. There are other factors as well.
Although the common belief in Washington is that something must be done, the
application of trillions of dollars of taxpayer's money is, in my opinion,
not the solution.
If allowed to function unabated, free market fundamentals will cleanse the
system. Debt levels must be paid off with "real savings", not printed money
and more debt. Insolvent and/or inefficient companies must be allowed to
fail. The impression given is that certain companies and industries are "too
big to fail". This has never been the case.
America and its citizens are resilient. We can weather any downturn if we
are told the truth. Additionally the Government should not be allowed to
decide who should fail and who should be saved. The free market is and has
always been the best allocator of resources. The free market will cure our
anomalies if left to do so and it will not be the "end of the system" nor
our country, contrary to what you and I are led to believe. The truth of the
matter is that we as a nation are over encumbered and now the debt has to be
cleansed. To encompass more debt and try and "get the banks lending again"
is not the answer and will in fact worsen the problem in the future.
As a tax payer and a citizen of this great nation, I implore you to stop the
flood of money coming out of Washington and have a little more faith in our
ability to overcome our previous mistakes.  After all, those that are
encouraging you and I to spend more taxpayer money on company after company
to "rescue" and "stimulate" our economy are the very same people that
allowed these problems to materialize in the first place. 
Keynesian economics which supports a government spending ideology has never
worked and we have many examples throughout history which confirm this.
Please stop the bailouts of all institutions immediately. The result will be
painful, but not as painful as if we continue down this path of applying
socialist solutions to a free market system. If not for us, at least do it
for our children.

Thank you for your time.

Here are the links- you can also email Pelosi or Obama direct if you like.

http://mcclintock.house.gov/contact/index.shtml

http://boxer.senate.gov/contact/email/policy.cfm

http://feinstein.senate.gov/public/

All the best,
Marc

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Buffalos, Kruggerands, Silver Maples. Gold Pandas   Generic Rounds. Peace
Dollars or Morgans. You may contact:
 <http://www.KFOK.ORG.> Monex Deposit    David Feldberg  x 2216  Ask for
David Only. He has worked well with our listeners.
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1 (800) 949 4653  (GOLD)   ext 2216  
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