Red Alert. Euro Problems Spreading. Markets set to Plunge. Update May 24, 2010

Marc's Notes:

The markets are reflecting the Greek contagion that is the result of money printing and spending governments everywhere. This is the “Black Swan” event that will trigger the next downturn. As I keep saying. “It wont be enough”. Close to one trillion in bailout money for the Euro was not even enough to keep the rout at bay more then one day. Prepare for the next downdraft and I hope you HAVE prepared as I have indicated in the newsletter. You will need that advice in the days and weeks to come. This next wave could be more frightening then the last, but making astute investors oodles of money if prepared correctly. You should be mostly in cash, contrary funds, a few dividend payers with mental stops if you haven’t already been stopped out, interest rate funds, foreign currencies, physical gold and silver, gold funds, and in Swiss Annuities.

Those gambling should be leveraged up in contrary funds to reap profits from this next wipe out. These funds will skyrocket in a market crash.

You should not be holding any private bonds or bond funds. They are about to get roasted and you with them if you own them.

The Central Banks are having trouble controlling the onslaught. The debt is just too high. More banks will again be in trouble and make the news soon. A big Spain bank just went under which is another domino starting to fall on another. Prepare for bank crisis “The Sequel”.  

Like I keep saying. “It wont be enough” and “You aint seen nuthin’ yet”.  

You will know what I mean very soon me thinks.

The US stopped its mortgage backed securities buying just last month and as I warned, any program removed will be reenacted as market forces (nature) reassert themselves. The FEDS with their stupid programs and bailouts have only prolonged the problem and exasperated it and you will witness how much worse the next wave will probably be because of their moves in the last year. It will be probably be a swifter and scarier ride this time, made worse by investors on the trigger, ready to sell at a moments notice. The worse part is it will happen despite the trillions we pissed down the rat hole. (Sorry for the word). Money we needed and should not have wasted.

Market remains at RED ALERT and a crash is probable. The question is how bad it will be. Expect the FEDS to fight it so you will see TV spin and brief rallies. Your “advisor” will again tell you to hold on. (Sound familiar?) He or she will be wrong again. And you will lose again. They learned nothing and will take you down again.

Fool me once…. Well, you know. The second part refers to the person in the mirror.

This next wave will also restart the housing crash “do over” as I have been warning. Retail sales will follow and spending will dry up and run the gambit across restaurants, hotels, vacation, remodel, store spending.. you name it, spending will cease. A great time to buy anything will appear in June or July if this crash takes place.

What’s the weather you say?

Dire?  Probably.

Profitable? Most definitely. For the prepared.

Stay alert. I hope all of you took the steps I recommended.

I will keep on these updates as events transpire.

And expect more reenacted programs, bailouts, stimulus and stupid moves from the FEDS to do more of the same. Make a debt problem worse by making more debt. These guys never learn.

Good Luck to all of you and God Bless. The next few days will be interesting to say the least.

Marc