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Bailouts Will Push US into Depression

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18

September 13, 2008 – Comments (22) | RELATED TICKERS: UDN , SKF , SRS

FYI - CNBC is reporting:

Bailouts Will Push US into Depression: Manager

"The end result of the global economic slowdown may be the U.S. announcing national bankruptcy as the government cannot afford the bailouts that it promised and the market will not bail out the government, Martin Hennecke, senior manager of private clients at Tyche, told CNBC on Thursday.

"We expect a depression in the United States. We expect a depression, very possibly, also in Europe," Hennecke said on "Worldwide Exchange." The estimated $300 billion cost of the Fannie/Freddie bailout will probably be considered as a loss that the government will have to take, therefore passing it on to taxpayers, he explained.

"We already have $3 trillion of debt, as far as the U.S. government is concerned. These debt figures across the U.S. economy are rising very sharply." When the government can no longer pass the United States' "immense debt" on to taxpayers, it will turn to the holders of U.S. dollars, leading to the eventual downfall of the currency, Hennecke said.

"Definitely, it (the dollar) is not a safe place to be invested in, as real inflation is closer to 10 or 11 percent than the actual inflation numbers given by the U.S. government," Hennecke said on "Worldwide Exchange". Investors should avoid exposure to debt and stay away from leveraging on any investment or asset, including property, Hennecke advised, adding that "banks have been too highly leveraged in the past, private households, everybody."  

Hennecke's stock allocations are mainly Asian-based, especially in the Chinese market as the country's government has a large amount of cash and the macroeconomics are fundamentally strong.He also suggested investing in gold, despite the recent fall in price."

MY COMMENT

I think the stage is set for a Depression. Those familiar with the first US Depression will recognize the correlation between the corrupt FEDs' credit expansion in the 1920s and the extreme credit expansion by "easy al" Greenspan.  

The differences are:

1. The amount of leverage currently employed by the US financial institutions. In the first Depression, leverage was typically 10 to 1. Bear Sterns leverage was 32 to one, Fannie Mae and Freddie Mac, I understand are leveraged 80 to 1.

2. Globalization. The world has become hypercompetitive. China, India, Vietnam and Russia are now under a capitalistic model. They want the factories production that was in the US.

3. The US manufacturing is not competitive, due to minimum wages, liability coverage, OSHA, EPA etc….

4. The US lack political leadership to lead the nation. The President will inherit an amazing mess.

5. The US is involved in a military Occupation, where the local population is being bribed to maintain peace. What happens if the US dollar collapses? What will be paid to maintain the peace?

6. Most Americans have very little real wealth. Paper, backed up with digits, in banks that hold more paper. Banks use to hold gold and silver, in order

7. Heavy reliance on foreign oil and gas for transportation, shipping and power. Oil and gas in exchange for what. Dollars? Debt? NO THANKS….

8. The US has evolved into the world’s largest debtor nation. So many Americans are on some sort of government pay out (40% is the number I read somewhere).  What will these people do when/if the dollar loses it form of an exchange. Whether the US falls into a Depression or not, you should be able to address the issues above.I will write more later, I am out of time today.

UDN – Is the ultra short dollar.

I think you should own some gold and hold it. The US govenment can and has confiscated personel gold held in banks. Hold onto your job or develope job skills that can be useful in a slow down.

I do not think most Americans have a clue what is taking place. This will be a bigger problem.

22 Comments – Post Your Own

#1) On September 13, 2008 at 2:28 PM, thewindowlicker (28.36) wrote:

RYWBX is another idea. 

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#2) On September 13, 2008 at 3:37 PM, awallejr (79.57) wrote:

Reading this type of doomsday argument is becoming tiresome. People who throw around terms like we will find ourselves in another Depression, never lived through the first one or even understood why the Great Depression ever occurred.

The financial crisis will work itself out, it just takes time.  Prices passed wage growth, which caused creative lenders offering more creative products to continue the ponzi scheme when it should have stopped in 2005.  The biggest culprits are the companies failing now, Bear Stearns, Lehman, and now you will see Mer.  They should never have been allowed to be in the residential mortgage business to begin with.  Their actions along with all the pop up funding companies pretty much forced the banks to follow in order to compete.

Those who bought houses over their income level are going to lose them.  And the prices will drop and are dropping down to levels where wage income can now match (as it should have been in 2005).  And the people who are buying are now doing so within their wage income level again.

Since wage growth really is increasing at a snail's pace, this "cleansing of inventory" process will take years.  But it will eventually stabilize and begin to grow SLOWLY.

There are proviso's.  The most important one is that the FED does NOT raise interest rates, and should even lower them another half.  That along with some patience and things should stabilize by 2010.

Biggest concern is the increasing unemployment, since that obviously impacts wage growth and demand towards reducing housing inventory.  The irony is that what US growth there was was due more to a weak dollar than a strong one.  Exports helped boost last quarters' GDP from 1.9 to 3.3 revision.  

I have no problem with keeping the dollar comparatively weak. I know Kudlow and Company would call me names.  But those guys probably have large amounts of cash and want more interest. 

This then leads to energy.  Aside from supply/demand concepts, the one argument for the strong dollar is that it causes oil prices to drop.  Well if we finally pushed an energy plan that took us off of reliance on foregin oil then at least those dollars would no longer be flowing OUT of this country but staying IN it. So high or low at least the money stays here, with corresponding increases in JOBS.  Afterall you would need more workers for the plants and support staffs here.

 

As for gold, it is for jewelry, Midas or people who want to look at shiney things. 

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#3) On September 13, 2008 at 4:01 PM, alstry (36.24) wrote:

Here is what  is so unsettling about the current situation.  Such a significant amount of profits was directly related to issuing  credit.  Now that credit is contracting so is profits.  No profits  no taxes paid.

The problem is the accumlated debt remains on the banks balance sheets as assets..... and liabilities to municipalities, corporations and individuals.

How the heck can a municipality make debt payments when its revenues are cut in half?  That is the problem CA is facing.....there just is no way for the state meet its obligations no matter how high you raise taxes.

At this point, as credit lines get cut off....expect thousands of businesses to shut down due to insufficient revenues to meet expense obligations.

Unemployment will skyrocket and expect more and more foreclosures and personal bankruptcies.

Since few can pay the banks....few banks will be able to pay depositors.

When the banks are broke......the nation is broke.  Maybe that won't be such a bad thing in the long run?

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#4) On September 13, 2008 at 4:17 PM, awallejr (79.57) wrote:

Why do you think Bernanke and Paulsen are doing the things they are doing, to thwart your scenario.  Personally I think they have been doing the prudent thing.  There will come a point in time where they can't bail out everyone and LEH may be that line in the sand. 

As for jobs, you will see declines in several sectors (financial for sure), but growth in others (medical/nurse as America ages).  Key is to encourage further growth and the Gov't can do that if prodded.  Already mentioned the energy sector if we really do push to dump foreign oil with national replacement products.  Infrastructure rebuilding is needed too.  These create internal jobs because they are LOCATED here (no outsourcing to India or buying cheap Asian manhours).

 

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#5) On September 13, 2008 at 4:18 PM, dinodelaurentis (74.04) wrote:

awallier, i understand where you're comming from. you are firm in your opinions like Ares, just predicting a different outcome.

cool.

that's why i like this place, different opinions, well articulated. like yours' are. and Ares. i'm pretty comfortable with either way it falls, frugality wears well in all climates. but since you argue against a worldwide finacial crash, making it instead to be a, let's say painful, correction, i was wondering what you might make of my little paradigm:

expanding population + dwindling resources = war for remaining sources.

call it whatever you may, nation building, protection of strategic resources, growth pains of shifting alliances, or the recent unpleasantness with our furthestmost neighbors, it is still going to be war. maybe this year, most likely not. maybe 3 years from now or even 10, but the start of some nasty conficts that will eclipse much of the last 60 years. nasty because i don't think the losers will go quietly into the night. i'd like to count on Man's Noble Nature, but that's a hard sell also.

i don't wish to rush towards this war, but i don't see anybody in world leadership trying to slow down the saber rattling today, or address the root cause of the problem, over-population. biological imperitives can be so inconvinent.

and if it is war, what to do then?

ya gotta admit, this is different than predicting depression.

and i'm not capable of calculating the incident of disease in an over crowded landscape.

what say you?

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#6) On September 13, 2008 at 4:55 PM, awallejr (79.57) wrote:

War over resources (I include land in this as well), has been going on since recorded time I suppose.  Assuming no space growth on other planets for mining new minerals (and ignoring the potential for introducing some catastrophic plague from off world), and assuming a continuing population expansion, yeah you probably will see more wars. 

I think we have a long way to go before we get to a "running out" point, since Canada and Russia, as actual beneficiaries of continued global warming will start unearthing more minerals under the "once" perma frost.

Hopefully wise diplomacy will prove the rule and not the exception.  But, alas, all I can do is post little blog comments heheh.

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#7) On September 13, 2008 at 5:59 PM, AnomaLee (28.73) wrote:

Video > text

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#8) On September 13, 2008 at 6:14 PM, AnomaLee (28.73) wrote:

You can't really short the dollar since the entire OECD is the same... One thing few people mention is the fact the Great Depression was a global event.

I already shorted much of this market but if I want a long play I would much rather be invested in energy than precious metals.

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#9) On September 13, 2008 at 6:37 PM, Harold71 (22.27) wrote:

"As for gold, it is for jewelry, Midas or people who want to look at shiney things."

Gold is the worldwide currency.  It is probably the only currency that will be here in 100 years with any value.  Ok, maybe the Chinese yuan.

"Heavy reliance on foreign oil and gas"

This will likely be the biggest factor influencing future price inflation.  If the US were self-sufficient in oil/gas (US imports over 60% of daily oil usage), and self-sufficient in capital (needs to borrow about $2 billion/day), I wouldn't feel so bad about the coming depression.  Yes, for many it will be a depression.  For some, it already is.

Some people say, "Well it hasn't happened yet...so everything will be OK."  This is like saying the hurricane won't hit me, even as expert forecasters warn "Here it comes."  Many people simply do not have the innate ability to see how current circumstances will dictate future events.  I find this both annoying and amusing.

"The most important one is that the FED does NOT raise interest rates, and should even lower them another half."

Let me know how you feel when oil closes in on $150 again, or goes even higher.  There is no fundamental reason for the dollar to have this much strength currently, and arguably the main reason it does is because it is still a world reserve currency.  If some little country pulled what the US has, their currency would be thrown in the gutter and left to die. 

Personally I'm prepared for more lowering of rates, but I don't know that it will happen.  My holdings would likely win big in this scenario as the world heads to the dollar exits once again.  Americans in general would not win however. 

I'm also for eliminating the Fed, AKA the bubble blower.  And yes, the Fed caused the Great Depression, cripes even Bernanke has admitted that.  They will be the root of this one as well if/when it occurs.

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#10) On September 13, 2008 at 6:57 PM, angusthermopylae (40.16) wrote:

"This, too, shall pass"

I'm fairly convinced that there will be either a severe short term Depression (capital "D") or a longer, milder depression.  (But then, I thought there was no way that Bush would get re-elected in 2004...so what do I know?)

However, doomsday scenario or not, it won't be a lifetime before things turn around (for most of us).  Figure out how to survive the next 5-8 years, and then things will be much better.

Disclaimer:  These forward-looking statements do not account for the possible impacts of WW III, space plague, man-made black holes, or collisions with alternate universes.  But that would be cool.

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#11) On September 13, 2008 at 7:19 PM, abitare (88.86) wrote:

ALCON,

Thanks for the replies.

awallejr,

Like you I get tired. I mainly get tired of the non stop optimist, who cannot grasp the current circumstance and reply with the typical it is "doom and gloom".

Most of the stocks here in CAPS have more Outperforms then underperforms. Even Fannie Mae has more Outperforms the Underperforms and they are underreceivership of the government. Like you they think everything is going to be OK!

No, I am tired of the lies, and the stupid optimist, who can only reply "it is doom and gloom", everything will be OK, just like the LIARS told us. 

I spent some months in Africa. Kids played soccer with no shoes using an empty water bottle. To poor for a ball, they were very happy and content. That was what the life they knew. It is tough for me to understand, how people cannot even fathom issues, that have happened before in US history. This is not the first depression, recession or US currency. I guess kids in Africa playing soccer with out shoes with a water bottle is "doom and gloom". 

AnomaLee,

Thanks for finding the video.

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#12) On September 13, 2008 at 7:32 PM, abitare (88.86) wrote:

ALCON,

Thanks for the replies.

awallejr,

Like you I get tired. I mainly get tired of the non stop optimist, who cannot grasp the current circumstance and reply with the typical it is "doom and gloom".

Most of the stocks here in CAPS have more Outperforms then underperforms. Even Fannie Mae has more Outperforms the Underperforms and they are underreceivership of the government. Like you they think everything is going to be OK!

No, I am tired of the lies, and the stupid optimist, who can only reply "it is doom and gloom", everything will be OK, just like the LIARS told us. 

I spent some months in Africa. Kids played soccer with no shoes using an empty water bottle. To poor for a ball, they were very happy and content. That was what the life they knew. It is tough for me to understand, how people cannot even fathom issues, that have happened before in US history. This is not the first depression, recession or US currency. I guess kids in Africa playing soccer with out shoes with a water bottle is "doom and gloom". 

AnomaLee,

Thanks for finding the video.

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#13) On September 13, 2008 at 9:20 PM, awallejr (79.57) wrote:

Harold71, Gold hasn't been the true would currency for a long time.  And while some think it is the most important thing on the planet, it is still nothing but a hunk of metal used mainly for jewelry or hiding in a vault.  No one is taking it to the store to buy food.  What you may do is sell it for, umm, dollars, and then buy something.

And Ares, no I wouldn't call myself an optimist, but a realist.  I am a real estate attorney by profession having been through all this back in the 1980's as well as now.  So my many commentaries on at least the real estate issues are based on life experience. 

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#14) On September 14, 2008 at 12:43 AM, Harold71 (22.27) wrote:

You've got something against gold, that's fine.  The lack of direct convertability to food is somehow the major draw back for you.  Who cares if you have to run to the coin store (or ebay) to sell your gold before you buy something with a local currency?  It's not that complicated. 

Gold keeps buying me more and more groceries every year.  The USD buys less and less.  Inflation is a always a disease of money, and the USD is one sick puppy.

Gold also buys something the US dollar cannot -- some peace of mind!

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#15) On September 14, 2008 at 1:15 AM, Tastylunch (29.39) wrote:

" I do not think most Americans have a clue what is taking place. This will be a bigger problem "

That may be the most incontrovertible statement of the whole bunch. The longer I work retail the more I realize Americans aren't stupid or lazy, they just aren't interested in semi-complex matters like this.

I don't know about the rest of you, but these bailouts are pushing me into depression.

also re: number 3

you neglected mention we still have Unions, none of the countries you mentioned have those I believe.

Here's to hoping you are wrong and that we can dodge the bullet, but being prepared for what could happen if you are right...

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#16) On September 14, 2008 at 1:40 PM, awallejr (79.57) wrote:

Harold71 I have nothing against gold.  It makes for some lovely jewelry.  You were the one arguing it as the world's true currency, when it simply isn't.  You just don't spend it.  And yes you can trade it for REAL currency, it's value is market based at the given moment (just like ANYTHING else, baseball cards, antiques, etc). 

Saw a commercial where a women had a bunch of gold ingots in front of her and a wad of money and asking which would you want to hold for the next ten years.  Well of course I would pick gold over the dollars if it was a question of just putting both in a vault. But that ignores the reality of investing the dollars.

But your last comment is the real rub.  Gold, I submit, is more a holding based on emotion than anything else. 

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#17) On September 14, 2008 at 5:26 PM, Harold71 (22.27) wrote:

"it's value is market based at the given moment (just like ANYTHING else, baseball cards, antiques, etc)."

And your point is?  The dollar's value is market based as well.

"Gold, I submit, is more a holding based on emotion than anything else."

It's a holding based on a logical lack of trust in Federal Reserve Notes.  The Fed has done nothing to earn my trust, and much to violate it.

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#18) On September 15, 2008 at 12:16 AM, awallejr (79.57) wrote:

Point is the DOLLAR is the currency. Gold is merely another form of investment.

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#19) On September 15, 2008 at 1:25 PM, Harold71 (22.27) wrote:

"Point is the DOLLAR is the currency."

Yep, Federal Reserve Notes still pass, for now.

:)

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#20) On October 08, 2008 at 2:08 PM, lenri (72.18) wrote:

Whew! To listen to my fellow fools the end of the world is upon us! My portfolio, which exactly matches My Caps is down 40% today. I have read the blogs here and I now see how I am at 96% rating even with such a dismal package of losses across the board. I do not ever play options or futures just stocks and I do not short. Not that there is anything wrong with them it is just that I am not good at it and its against my nature.

Last year while doing a study on Countrywide for an MBA class I began to realize what had transpired in the credit markets. It was an absolute swindle of the common people preciptated by liberal politicians who "just wanted to save the world". Liberals always judge themselves on the basis of their intentions not their results. Through the "CRA" (Community Reinvestment Act) loans were being given to people who did not have the ability to repay. Fannie and Freddie (backed by liberals like Frank and Dodd) sponsored these loans and if mortgage companies did not offer undeserved mortgages to the lower classes than they came under fire and their viability was threatened. I was in the mortgage industry for a long time and what has transpired there has thoroughly amazed me. Compounding this problem was the debentures, the mortgage backed securities based on these bad mortgages, that all of the brilliant folks on the Street bought and sold like coins on EBAY.

A thorough cleansing of the Street is what is needed now and free market capitalism, if left to its own accord, will punish the perpetrators severely. My fear is that the scumbag politicians, who never seem to get punished, will do whatever they can to thwart the cleanising, in order to save their pathetic skins. But they won't be able to stop the correction. Although they will extend the misery with their intervention just like FDR's liberal programs extended the depression.

I have so many friends who are ringing their hands and on the verge of absolute panic. They are following that bonehead Jim Cramer's advice (I have watched so many of my fellow fools beat the crap out of him in their CAPs portfolios over the last few years) and locking in those 40% losses on their stocks so that they will have guaranteed funds for table food next year. They are buying gold and hiding $$ under their mattresses (should be a very profitable few years for home invaders). They are in fact doing exactly what they should not be doing and securing their future demise by selling low now.

The number of my trades are down drastically this year and 25% of my portfolio is now in cash (wish I had more). I have locked in some profits and removed a few clunkers. If I do nothing else this year I will see a return of 9% and an ongoing 4 year return of 15% (portfolio paper losses notwithstanding). I am salivating at the prospect of picking up once high-flying stocks that I never dreamed of being able to afford (based upon valuation). I fully intend to buy and buy a lot. I will cost average many of my current holdings also. What I will not do is buy unproven small or mid caps. There is no reason to do this now. I will stick with industry leaders which in the future will eventually return to their well-deserved capitalized valuations. Many of my investment ideas will come from my fellow fools just as they have in the past. I have already started to analyze the stocks and I will be buying after the 3rd quarter earnings are in.

If this recession is allowed to be played out without too much political intervention we will indeed see that the sun will shine brightly and the robins will once again sing probably within a two-year period (just like in all past devestating recessions). If elected officials intervene (like with higher taxes) than the recovery will take longer but it will still happen. It is, I believe, inevitable.

But let's, just for the hell of it, assume that the worst plays out like Cramer and some fellow fools believe. Our economy, USA and global, goes to "hell in a handbasket". What will your dollar bills hiding under your mattress be worth? Not much but you will have an abundant supply of toilet paper and you will be trading the gilttery gold that you have been saving for this toilet paper because that cold hard metal is not kind to behinds.

Look, fellow fools, if the end days are indeed upon us then there is nothing that you or I can do that will halt the devestation...but...if it is not, like depression and recession history strongly suggests, than you should be following Jay Rockefeller's advice (and Ben Graham and Warren Buffett and Kevin Lynch) "When there is blood in the streets that is the time to buy". Now is the time to buy!!!

Wake up each morning kiss your wife, children and grandchildren, thank the Lord for good health and sit down at your computer and make more money that you would ever have dreamed of making in the markets. God bless and have a wonderfully foolish day.

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#21) On October 08, 2008 at 6:58 PM, abitare (88.86) wrote:

To listen to my fellow fools the end of the world is upon us! My portfolio, which exactly matches My Caps is down 40% today.

My portfolio is up significantly, I have no idea when the end of the world is coming. But I timed the sell off very well….

I do not ever play options or futures just stocks and I do not short.

I do, in fact I wrote about my LONG SKF position, which I closed out today.

My fear is that the scumbag politicians, who never seem to get punished, will do whatever they can to thwart the cleanising, in order to save their pathetic skins. But they won't be able to stop the correction. Although they will extend the misery with their intervention just like FDR's liberal programs extended the depression.We are aligned here.They are buying gold and hiding $$ under their mattresses

Holding Gold in the US may become illegal, like it was in 1930s.

Many of my investment ideas will come from my fellow fools just as they have in the past.

Follow the leaders, and not all ALLSTARS are created equal. There has been a major Hero to Zero process taking place.

Our economy, USA and global, goes to "hell in a handbasket". What will your dollar bills hiding under your mattress be worth?

I am expecting CASH to be king in the short run, but in the long run the dollar is doomed. A new currency will emerge. In prison they traded cigarettes, then cigarettes were made illegal and now they trade sardines as money. My point, there will be a new currency emerge. Sardines? I like Gillette Razor blades.

FYI - Ben Graham went broke in the depression. That is why he had time to write a book.

God bless and have a wonderfully foolish day.God bless you too… thank you for the reply. Report this comment
#22) On October 08, 2008 at 8:45 PM, lenri (72.18) wrote:

Whew! To listen to my fellow fools the end of the world is upon us! My portfolio, which exactly matches My Caps is down 40% today. I have read the blogs here and I now see how I am at 96% rating even with such a dismal package of losses across the board. I do not ever play options or futures just stocks and I do not short. Not that there is anything wrong with them it is just that I am not good at it and its against my nature.

Last year while doing a study on Countrywide for an MBA class I began to realize what had transpired in the credit markets. It was an absolute swindle of the common people preciptated by liberal politicians who "just wanted to save the world". Liberals always judge themselves on the basis of their intentions not their results. Through the "CRA" (Community Reinvestment Act) loans were being given to people who did not have the ability to repay. Fannie and Freddie (backed by liberals like Frank and Dodd) sponsored these loans and if mortgage companies did not offer undeserved mortgages to the lower classes than they came under fire and their viability was threatened. I was in the mortgage industry for a long time and what has transpired there has thoroughly amazed me. Compounding this problem was the debentures, the mortgage backed securities based on these bad mortgages, that all of the brilliant folks on the Street bought and sold like coins on EBAY.

A thorough cleansing of the Street is what is needed now and free market capitalism, if left to its own accord, will punish the perpetrators severely. My fear is that the scumbag politicians, who never seem to get punished, will do whatever they can to thwart the cleanising, in order to save their pathetic skins. But they won't be able to stop the correction. Although they will extend the misery with their intervention just like FDR's liberal programs extended the depression.

I have so many friends who are ringing their hands and on the verge of absolute panic. They are following that bonehead Jim Cramer's advice (I have watched so many of my fellow fools beat the crap out of him in their CAPs portfolios over the last few years) and locking in those 40% losses on their stocks so that they will have guaranteed funds for table food next year. They are buying gold and hiding $$ under their mattresses (should be a very profitable few years for home invaders). They are in fact doing exactly what they should not be doing and securing their future demise by selling low now.

The number of my trades are down drastically this year and 25% of my portfolio is now in cash (wish I had more). I have locked in some profits and removed a few clunkers. If I do nothing else this year I will see a return of 9% and an ongoing 4 year return of 15% (portfolio paper losses notwithstanding). I am salivating at the prospect of picking up once high-flying stocks that I never dreamed of being able to afford (based upon valuation). I fully intend to buy and buy a lot. I will cost average many of my current holdings also. What I will not do is buy unproven small or mid caps. There is no reason to do this now. I will stick with industry leaders which in the future will eventually return to their well-deserved capitalized valuations. Many of my investment ideas will come from my fellow fools just as they have in the past. I have already started to analyze the stocks and I will be buying after the 3rd quarter earnings are in.

If this recession is allowed to be played out without too much political intervention we will indeed see that the sun will shine brightly and the robins will once again sing probably within a two-year period (just like in all past devestating recessions). If elected officials intervene (like with higher taxes) than the recovery will take longer but it will still happen. It is, I believe, inevitable.

But let's, just for the hell of it, assume that the worst plays out like Cramer and some fellow fools believe. Our economy, USA and global, goes to "hell in a handbasket". What will your dollar bills hiding under your mattress be worth? Not much but you will have an abundant supply of toilet paper and you will be trading the gilttery gold that you have been saving for this toilet paper because that cold hard metal is not kind to behinds.

Look, fellow fools, if the end days are indeed upon us then there is nothing that you or I can do that will halt the devestation...but...if it is not, like depression and recession history strongly suggests, than you should be following Jay Rockefeller's advice (and Ben Graham and Warren Buffett and Kevin Lynch) "When there is blood in the streets that is the time to buy". Now is the time to buy!!!

Wake up each morning kiss your wife, children and grandchildren, thank the Lord for good health and sit down at your computer and make more money that you would ever have dreamed of making in the markets. God bless and have a wonderfully foolish day.

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