Money Matters Newsletter

Money Matters Dinner started out normally then things went horribly "right". $225.00 worth of Margaritas and another 400 bucks in food and appetizers and we ended up closing the place down!  And check out those new MONEY MATTERS T SHIRTS!, Available on this site soon. We will DO THIS AGAIN FOR SURE!  Email me if interested! Maybe when its gets hot!

All

Marc's Notes:

Treasury 10-year note yields rose above 4 percent for the first time since June as evidence the economic recovery is gaining traction added to concern debt sales will overwhelm demand as the U.S. funds record deficits. Ten-year yields touched the highest level in 18 months as a gauge of service industries and pending sales of U.S. homes rose more than forecast. A report on April 2 showed the U.S. added the most jobs in three years last month. Further gains in 10- year yields, the benchmark for everything from mortgages to corporate bonds, may dampen the recovery if higher borrowing costs for the government are passed on to consumers.
What this means is for the US to continue to fund itself, it has to issue more and more IOU’s and as it does, the world is getting more and more nervous about the US ability to pay off on all this debt. Remember, the Federal Reserve might set interest rates here in the US but the world sets interest rates on US debt and right now the world is raising the stakes and demanding more interest. As the interest rate for US debt rises, it costs the government more and more money to pay the servicing of this debt.

Money Matters Airs Today Thursday April 1st, 2010

The topic is INTEREST RATES and why they are so important to the average investor and why even more so now!

www.kvmr.org

89.5 FM  105.1 FM

TUNE IN!

Marc's Notes:

Well, here it is, the mortgage write down plan I said was coming. HA!. More tax dollars to the ignorant. They finally figured out what I’ve been saying for over a year. They will actually PAY OFF PART OF YOUR MORTGAGE BALANCE!.  And the circle completes itself.

Incredible. (READ BELOW)

Money Matters Show # 9 “Real Estate” made in 2006 comes true. I said on that show over 4 years ago:
 “Don’t be surprised if the FEDS just say, don’t worry, you don’t have to pay for it, we’ll pay your mortgage for you.”

How silly is this? What will they pay off next.  Prepare. Prepare. Prepare.

Marc


(Reuters) - The Obama administration on Friday announced a $14 billion effort to try to stem a rising tide of home foreclosures by giving lenders incentives to erase some mortgage debt and slash mortgage payments for the unemployed.

The new aid programs, funded from the $50 billion allocated to housing rescue under the Treasury Department's Troubled Asset Relief Program, will also allow borrowers to erase mortgage debt down to a maximum of 115 percent of their home's value by refinancing through the Federal Housing Administration.

Marc’s Notes:
Bank of America just announced it will go forward with another house bailout plan to reduce actual mortgage principal. I hate to say I told you so, but “I told you so”.
The under the table prodding with funds from Uncle Sam was of course a big factor here as well as the topic of show # 86, should you stop paying your home mortgage.
As house prices continue to drop, (new report out today says a double dip in housing is beginning) the banks want YOU to own the house, NOT THEM. And even if it costs them some money, they know the drop in the house price will be worse then your loan forgiveness costs to them. The plan here is to keep you in the house as it continues down in value, then when you no longer can afford to stay there, nor want to, they foreclose anyway, keeping all the money you paid them. Take a read here:

http://www.bloomberg.com/apps/news?pid=20601068&sid=aToSv9PXNo3g

Or did you think the banks just got compassionate?
Have they ever been “compassionate”?
You can expect similar announcements from other lending institutions soon. Don’t kid yourself; the banks aren’t doing this on their own. This is a government sponsored, back door deal, done because of all the flack they would take by announcing another overt government handout to bad homeowners.
The money has to come from somewhere, right? And just out in the news to prove the banks KNOW housing is still plummeting? Sales of new homes in the U.S. unexpectedly fell in February to a record low, according to Bloomberg, today. As I said, they want YOU to own the house while it plummets in value, THAT’S why they are reworking your loans.

Marc's Notes:

Markets trending sideways but it is perhaps the calm before the storm.  As deficits skyrocket, a US DOLLAR crash or fall is my worst fear, and the worst fear of the Ex-head accountant of the US Govt. the US COMPTROLLER,  Mr. David Walker. His interview is free for download on the site under FREE SHOW.

Meanwhile Greece’s problems with their deficits are a microcosm of things to come. If the EU bails out Greece, the Euro will be seen as a printed currency cancer, much like the US DOLLAR. If they don’t bail out Greece, Greece may opt out or be KICKED out of the EURO and that won’t bode well for that currency either.

Marc's Notes:
Let's take care of business! Show #65, The U.S. COMPTROLLER interview with David Walker, the head accountant for the U.S. Government is now free on the "FREE SHOW" tab on the left of the site. Hear what he has to say about our debt. He should know, he is "their" chief accountant. If you doubt what I have been telling you, listen to him.

Next, the DREAM PORTFOLIO and SUPER DIVIDEND PAYERS LIST were both update in the 2010. Subscribers get the new editions. Those wanting it no not subscribing, click on each or the YEAR SUBSCRIPTION.

Update on Natural Gas. Our "gamblers" play with options is near the SELL point as time is eroding. SELL all options you just bought when UNG was at 9 ( you bought in at 9 or over) if UNG goes under 8. SELL the OPTIONS in any case by the end of next week. This short term play is not going our way and it is time to "bite the bullet" and take the loss. Sometimes the bear gets us. Long term holders of UNG or GAZ or USL, place a stop (not a stop limit) at 50 % of your buy in price or higher. Otherwise we hold until it plays out. They ain't gonna give it away.In any case, these purchases should always be a very small percentage of your monies, less them 1/10th of a percent to 1/100th of a percent of your total stock monies as always indicated in these news letters.

Visiting old Favorites:

I thought I would take a look back at some old recomendations in the last 4 years and see where they are now and what we said about them.

DBC and DBA. Agriculture commodity funds. These were called our "grocery funds" and protected us against inflation. They served the purpose well and then when the market crashed, prices came down with it. These pay no dividend and still should be held by high net worth individuals for protection.