Your Last Chance to Act September 30, 2008
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The stock market plunge you’ve seen so far is little more than a dress rehearsal.
The main event — the Black October we’ve been warning you about incessantly day after day — has not yet begun.
So if you’re kicking yourself for not following our recommendations to get your money to safety — if you think you’ve missed the last lifeboat in a sinking ship — listen carefully:
There is still time to find safety and do the right thing for yourself and your loved ones.
With its deadcat bounce this morning, the market is giving you a last chance to act. It’s not too late.
Nor is it too late to convert this dramatic turn of events into an equally dramatic wealth-growing opportunity.
No, you can’t turn back the clock. But at a time like this, the last thing you need is to be kicking yourself for not reacting sooner. That’s water under the bridge. It’s what you do NOW that matters.
The lesson of recent days is very obvious:
Most Institutions and Investments
That Wall Street Said Were “Safe”
Are Not Really Safe After All.
Wall Street brokers and rating agencies said triple-A mortgage-backed securities were “safe.”
They said common stock in government-backed Fannie Mae and Freddie Mac were “safe”; and their preferred shares, “even safer.”
They said big brokers like Bear Stearns and Lehman Brothers were “rock solid”; and Merrill Lynch even more so.
Never before has the word “safe” been more misused; and never before have investors been more abused!
Safety doesn’t mean you have to make a big yield. For your core holdings at a time like this getting a return OF your money is far more important than getting a return ON your money.
So, to qualify as a safe place for your money, all that we ask is that it …
* PRESERVE what you already have,
* PROTECT you from the grave dangers in the economy, plus one more critical thing …
* Give you ACCESS. When you want your money, you’ve got it. No delays. No penalties. No mealy-mouth excuses. And by all means, no lock-ups or freezes!
Number One on My Short List:
U.S. Treasury Bills
But please do not confuse Treasury bills with Treasury bonds.
Treasury bills are short term (under one year). Treasury bonds are long term, as much as 30 years.
The primary difference: The longer the maturity, the longer you have to wait for your money. If you don’t want to wait, you can sell your notes or bonds on the secondary market. But if inflation or other factors have driven down their market value, you will take a loss.
Three-month Treasury bills, though, don’t have that problem. The most you’ll have to wait is the three months. Market fluctuations are infinitesimal and simply not an issue.
How do you buy Treasury bills? Very simple: You can open an account directly with the U.S. Treasury Department, with your Social Security number. Just go to their Web page dedicated to Treasury bills for individuals.
I like Treasury Direct because there’s no intermediary between you and your money. As the name implies, it’s direct.
[Video] Tice Says Dow May Fall Below 5,000; Gold Rise to $2,000 September 30, 2008
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Exactly What I have been predicting for the last 3-4 years Now!!!!!
[Video] Jim Rogers Says U.S. Should Let Banks Fail, Clean Out System September 30, 2008
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Latest Quotes from Peter Schiff: September 30, 2008
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Peter Schiff, president of Euro Pacific Capital, staunchly opposed the bailout and warned that it would make things much worse. He said government intervention in the markets was the problem and could not be the solution. Stephen Leeb, president of Leeb Capital Management and frequent “Your $$$$$” guest, supported the bailout and recited claims that the government could make money from the transaction.
Schiff said Americans borrowed and spent their way into bankruptcy, but by bailing out poor decisions “we’re setting a bigger fire.”
“The economy is collapsing in exactly the way I wrote that it would. But also in that book I was afraid that the government would do exactly what they’re doing now and this is worse. We’re going to die from the cure, not the disease,” Schiff said.
In the Sept. 27 CNN broadcast, Schiff spoke out against printing more money and buying up debt. “All the government can do is create inflation. They don’t have any money. They’re going to print it,” Schiff warned. Later in the program, Schiff made the point again: “We can’t solve them [economic problems] with a printing press. Go to Zimbabwe and see how well it works.”
“The bailout will confront the symptoms of the problems here, but it does not get to the core issue,” said Peter Schiff, president of Euro Pacific Capital. “Collectively, we have borrowed more money than we can pay back and the markets have become incredibly overvalued.”
This, Mr. Schiff argues, will soon begin to erode earnings for corporations, as their domestic operations will likely be negatively impacted by both the increased cost of borrowing, as well as a decline in consumer demand. “The bottom line,” he added, “is we could be on the brink of a major collapse, bailout or no bailout.”
Barack Obama on Energy September 30, 2008
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Barack Obama [2008 August]
“Now is the time to end this addiction, and to understand that drilling is a stop-gap measure, not a long-term solution. Not even close.”As president, I will tap our natural gas reserves, invest in clean coal technology, and find ways to safely harness nuclear power. I’ll help our auto companies re-tool, so that the fuel-efficient cars of the future are built right here in America. I’ll make it easier for the American people to afford these new cars. And I’ll invest $150 billion over the next decade in affordable, renewable sources of energy — wind power and solar power and the next generation of biofuels; an investment that will lead to new industries and 5 million new jobs that pay well and can’t ever be outsourced.”
Obama’s acceptance speech. Better than McCain’s plan, but Obama needs a lot of help too.
Here comes $500 oil September 30, 2008
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If Matt Simmons is right, the recent drop in crude prices is an illusion – and oil could be headed for the stratosphere. He’s just hoping we can prevent civilization from imploding.
http://money.cnn.com/2008/09/15/news/economy/500dollaroil_okeefe.fortune/index.htm
September 30, 2008
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Dow 778-Point Plunge: What’s Next?
The Dow’s 778-point plunge today was the worst since the Crash of ’87.
But that doesn’t mean today was a selling climax or that the stock market decline is reaching an end.
Quite to the contrary, the overwhelming majority of investors are still holding on to their shares.
They’re hoping that Congress will still pass some kind of legislation to bail out sinking banks.
They’re hoping that the Fed will continue to inject massive sums into the credit markets to prevent a money panic.
And they’re assuming that these efforts will somehow turn the market around.
Today’s Market Plunge Is
Telling You That They’re
Stubbornly Wrong.
As we have been warning for many months …
Whether the Congress passes the bailout legislation or not, the outcome will be similar: The debt crisis will continue to deepen and spread. Many more banks will fail. The economy will sink into a severe recession. And those who stubbornly hold onto vulnerable investments will suffer some of the greatest losses in modern times.
Bottom line: The Black October we’ve been warning about has barely begun. The worst is yet to come.
But never forget: No matter how bad things may get, it is not the end of the world. We have been through worse before, and we survived. We will survive this one too, and we will do it together.
Ten Reasons to Oppose the Wall Street Bailout September 30, 2008
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1. In a market economy capitalists justify their profits by the risk of losses that they take. Gamblers cannot keep their profits and pass their losses to the taxpayers. They have to take responsibility for their bad decisions.
2. Much of the toxic (garbage) debts were based on fraudulent practices – opaque financial instruments unrelated to real assets (but which generated huge commissions). Bailing out swindlers only encourages more swindling.
3. The US Treasury will purchase worthless paper, the private banks will retain any assets of value. We buy the lemons, they drive the Cadillacs.
4. The chance of the Treasury recovering any value from their purchases of bad debt is near zero. The taxpayers will be stuck with paper with no buyers.
5. The long-term effect of a bailout will be to double the public debt and undercut funding for Social Security, Medicare, Medicaid, education and public health programs while increasing the tax burden of future generations.
6. The dollar will devalue as the government debt will decrease its attractiveness overseas, increasing the cost of imports and resulting in an inflationary spiral which will further undermine working people’s living standards.
7. The channeling of funds to Wall Street will divert funds from getting us out of this deepening recession.
8. The bailout will deepen the financial crisis because, according to the Director of the Congressional Budget Office, it will expose the fact that many institutions may be carrying many more ‘toxic assets’ and reveal that those institutions are not solvent. In other words, the Treasury and Congress are freeing up bad debts to insolvent institutions.
9. The bailout is aimed at facilitating lending; but if the problem is not credit but (as the Congressional Budget Office has shown) the insolvency of the financial institutions, the solution is to create solvent financial institutions.
10. The bailout totally ignores the financial needs of 10 million homeowners facing foreclosures; the bankruptcy of small enterprises facing a credit crunch and the loss of workers’ jobs and health plans for their families because of the recession.
Alternatives to the Wall Street Bailout
The speed with which this gigantic amount of public funds had been made available by the Treasury and Congress puts the lie to their argument that popular programs cannot be funded or need to be cut back. In fact, investing $700 billion in the health and education of American workers will increase productivity, open markets and expand consumer power leading to a virtuous circle increasing public revenues and eliminating the budget and trade deficits.
Public funds invested in manufacturing, construction, education and health care leads to products with real use value and has a multiplier effect on the rest of the economy instead of ending up in the pockets of billionaires who speculate and invest in mergers and overseas buyouts.
The Treasury and Congress have inadvertently revealed that federal financing is readily available to rebuild the US economy, guarantee decent living wages and provide health care for everyone if we choose elective officials who are committed to the needs of the US workers and not the Wall Street billionaires.
Not passing the “bailout” was the right thing to do… September 29, 2008
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Why? Quoting my mentor Peter Schiff: “The urgency for passing this bailout bill is based on the claim that the American economy will collapse if nothing is done. If the government were to stay out, and allow the market to function, there will certainly be a great deal of economic pain. Companies will go bankrupt, banks will fail, real estate and stock prices will keep falling, and many people will lose their jobs. However, government action will not prevent any of this. At best, it will merely delay the inevitable, but only at the cost of increasing the severity of the underlying problems, thus making their ultimate resolution that much more painful to endure.
The bottom line is that there is no way to resolve our economic problems without a severe recession, and our politicians need to level with the public. As a nation, we gambled on the alluring riches of real estate and we lost. The price must be paid. Contrary to the Bush Administration rhetoric, the fundamentals of our economy are not sound. If they were, we would not be in this mess. Recessions are meant to restore balance, purge excess, and liquidate mal-investments. On that score we have a lot of work to do.”
