Dow Cracks thru 11,000. Greek problem spreading. Contagion! Update May 6, 2010

Marc's Notes:

Markets gyrating down now due to the Greek problems. We mentioned in the last few updates that this debt disease was obviously spreading to entire countries, signaling what I have been saying since this whole thing started.
It wont be enough.
The question is now can the IMF and the Central banks stop further spread. Knowing what I know about the trillions in losses worldwide being papered over with money printing, the off balance sheet shenanigans the countries and the companies are pulling to hide the real losses, my answer is no.

Fact: The stimulus money is the only thing holding us up. The recovery is bogus.
Fact: The new accounting rules allowed by the FEDS allowed the banks AND countries to mask the real state of their assets (See our show “Mark to Make Believe”)
Fact: Greece is a microcosm of what is now the “norm”. Print more money, take on more debt, to try and solve a problem caused by these very same actions.
Fact: Greece wont be able to rein in its spending as promised as the citizens of Greece will not allow it. They do not understand money and years of social programs are crippling its balance sheet.
Fact: The citizens over the entire world with few exceptions are the same. They don’t understand money nor how social spending wrecks economies. Politiicans wont stop spending until they are forced to.
Fact: More nations in the EURO will go under and the EURO is in trouble. Severe trouble.
Fact: You are seeing the future of the US dollar.


What to do:
What we’ve been saying all along. Get cash, get gold, hold dividend payers, interest rate funds and foreign currencies. Contrary funds also add insurance as does offshore money.
(Swiss Annuities or any other way you can move money OUT of the US.)

Holdings:
You should have added a small amount of TBT when it hit 45. Continue to add below 45. Today it is at 43. This fund moves down when the dollar moves up and the dollar is moving up as the markets move down as indicated in past newsletters. The US DOLLAR has more rally in it before it starts down on possibly its final major devaluation.

Natural Gas and Oil: Now falling with the markets. Gamblers can add oil and natural gas here in the form of UNG  GAZ  USO  or options. Long term holders no change.

All long term investors should just be adding small amounts of TBT mentioned above and RRPIX.  Also Physical gold and silver anytime. They are the last haven for real money and big players know it.

Market alert is now orange. Careful here. Now that we are under DOW 11,000, lower levels come into play with a much stronger correction possible. Reread past newsletters to see the signs we warned about such as inside selling indicating this correction was coming.

All for now. Show today at noon. Health Care!

Marc