Get Ready to Rumble! Euphoria Over! Round 2 Up Next! Update May 23, 2010

Marc's Notes:

The markets tumbled the day I left as well as the following day as I suspected they would. Friday brought a bad sunburn to my extremities due to lack of sunscreen but the market had a technical bounce which materialized only during the last hour to close up 125 points DOW and change. The FEDS work no doubt. Reality will most likely set in this week as our RED ALERT remains in effect. I wouldn’t touch this market with YOUR 10 foot pole and recommend you take the steps indicated in my last newsletter I sent out before I left. (All newsletters are on the site).

I can’t be sure on market direction nor can anyone but here is what I suspect.
Deflation still rules as massive debt is being paid off or defaulted on. The Governments of the worlds will continue to try and re-inflate bubbles that can't be re-inflated but these guys are pretty much economically ignorant so they will try by printing massive amounts of money and instigating program after program to try and “do something”.
More people will need handouts so they will instigate more give-a-ways to get votes in the upcoming elections. Housing credits and programs are ending so now you will see the real housing market. Devoid of government handouts, the housing market will now crater once again and those buying in the last year will see what I meant when I said “See how much of a good deal you got next year”. Next year will arrive this summer and unless the government instigates ANOTHER PROGRAM, expect housing to start down HARD again. Commercial real estate will lead the fray and you home buyers “aint seen nuthin’ yet”. Unless the Government inflates everything and instigate another home buyer credit, the housing market will TANK UNBELIEVABLY and sales will grind to a halt.
Ouch!

Look for a new home buying credit or some asinine program to use more of our tax payer monies to prop up this market.

Meanwhile the US GOVT, thru Fannie Mae and Freddie Mac ARE the only ones giving mortgages so look for losses of 500 billion or more shuttled to the taxpayer. Like I said, the original 700 billion TARP plan was just the price of admission (see AUG 2008 update) and the bailouts will top 10 TRILLION overall!

The US DOLLAR has one more rally in it and you’re seeing it now. Interest rates will begin to inch up soon. In fact the LIBOR, (London Interbank Overnight) is inching up as we speak.

Look for gold, silver, oil, natural gas and other commodities to follow the DOW but gold and silver will break eventually and rise on their own as the LAST CURRENCY STANDING. You had better own some or suffer carnage.

I suspect the DOW will now resume a horrific downtrend in the months to come, only bolstered by inflation programs and money printing by our socialistic government and Heir Mac Obama. The FEDS stock team will allow us rallies from time to time but beware. Goldman Sacs, JP Morgan, B of A, Citibank and all the other “banksters” are selling and have been for months. (See my last 10 or so updates). This was an indication that we warned you about and was a clear road sign to this current downdraft.

Crash alert remains.

See last update for recommendations. Seriously consider adding a Swiss Annuity. As an “annuity”, if the confiscate IRA’s, this annuity may be regarded as a “contract” and possibly be exempt from assimilation. It also functions as OFFSHORE money that you alone control. Without YOUR permission, not even the US GOVERNMENT can take it from you as of today. (That can change). So don’t delay. Order the booklet and read about them. Click on the banner on the right side of the website entitled “Swiss Advantage”.

Expect the markets to either exhibit lackluster direction or hard down depending on how successful the FEDS are at buoying the market. They are trying to suck in the fools to buy the big guys shares from them. Don’t fall for it. This market is dangerous. If you haven’t figured that out by the last 2 weeks of bipolar movement, you may fit into the “fool and his money” costume.

All for now but don’t forget, the KVMR PLEDGE drive is going to be extended this week so there is still time to get access to my website and all portfolios and shows by pledging $250.00 to KVMR which is tax deductible. Check out the site to see what we offer. You will get access until the fall drive so you will have plenty of time to download everything you want as often as you like.


Marc