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Monday, March 10, 2008

Consider This The Last Warning

If there were any kind of warning system for the financial markets like there is for hurricanes, tornadoes, and other natural disasters...it would be blarring GET OUT right now. This is the last chance regular people have to get out of the way of an imminent stock market crash IMO. The signs are obvious everywhere. I will make my case one more time in the hopes that I may save some unsuspecting victims the pain of losing a great deal of their retirement portfolio.

This is from Lemetropolecafe today:

I woke up this morning and saw the US Dollar a little firmer, gold and silver softer, and stock futures about unchanged. With the news of this past weekend, I wonder, how is any of this possible? The Dollar should be in freefall, along with equities, and the metals should be "up limit". The Fed puts an emergency $200 billion into the banking system, JP Morgan says the banks are facing a "systemic margin call", Ambac raised a whopping $1.5 Billion, 70% of ARM munis failed last week, and Fannie and Freddie have had their credit quality questioned, resulting in billions being dumped on the market. This is not the recipe for disaster, this is disaster! We live on Planet Orwell. It is over. I don't know when the masses will realize this fact, but they will very shortly! What we have directly ahead is what I call a "garden hose" market. We will see $trillions trying to get out of all things paper, ie $s, bonds, stocks, you name it. This same money will then seek to enter the safe haven of the precious metals markets. The problem will be the "garden hose" syndrome. What is this syndrome you ask? It is the belief that with the push of a button, you can get out, or in. Trying to put Niagara falls through a "garden hose" just won't work! Mathematically impossible. In today's markets the doors out of paper and into the metals are small, and getting smaller everyday. Listening to CNBC, Bloomberg, etc., I can only shake my head. I'm hearing " buy the housing and finance stocks, they led us in, they'll lead us out". Or how about this one. An analyst this morning who touted the "goldilocks" or "soft landing" scenario until a week ago said, "this recession will be mild and over by June". Wouldn't it have been nice if he had given us a little notice ahead of time, warning of a recession? THIS IS SYSTEMIC! Don't listen to me, don't listen to Bill Murphy, listen to JP Morgan! They know. They created, along with other rocket scientists, this game. They have told us the banks face a systemic "margin call". Why shouldn't we believe them? Wall Street firms have the reputation of putting lipstick on pigs, painting pretty pictures, etc.. How bad must the banking system really be if they tell us of a systemic margin call? Are they being square with us, or is the systemic margin call a rosy scenario?

The point is, we are on the cusp of "shock and awe". The average person who listens to financial news and does not dig for the truth will truly be shocked and awed. I issued a Crash Alert to my clientele this past Saturday. I see no other avenue at this point. I pray I'm wrong.


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