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Financial news I consider important, with my opinion, which is worth as much as you paid for it.
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Wednesday, August 20, 2008

End Game Near?

Chartists indicate we may finally be entering the next break down in terms of days, not weeks.
On the break down, it should dive down hard. It won't be straight down, but it will be down.

I have said this to everyone that knows me.
1) Cash and Federal Bonds are king - "As good as cash with some interest"!
2) Fixed income cannot be trusted, unless it is Federal Bonds
3) Get the heck out of stocks! (Perhaps staples such as utilities are OK, do you homework!)

We are talking scary times, Great Depression type financial markets.
We continue to have significant bad news, but the American people doesn't care, they don't read, they don't pay attention. Investing "for long term" is bullshit if your over 55. Don't gamble with your life savings. Be cautious, be safe, be ready.

The DOW rises to 11,550, I will place the last dollar of my life savings betting we collapse, that's how sure I am we are near the end of this upswing.

NOTE: GOLD and commodities are not guaranteed to be safe! Long term they may pay well, but when we collapse it will be across the board, maybe not at same time, but in the same quarter. I may buy gold if it hits 500 dollars an ounce.

And god I hope, 2 trillion of debt magically forgiven by the Chinese tooth fairy, inflation or deflation disappears, and all banks magically become solvent. Nothing would make me happier to be wrong on this next leg down.

Some news Today...
Ebay cuts fixed charges by 70% to drum up business
Freddie Mac & Fannie Mae are about to become insolvent, last ditch efforts to get funding:
Mortgage application lowest in 6 years
Russia cuts holdings of Freddie Mac/Fannie Mae by 40% (My Spin: Other 60% covered by recent spike in oil)
FDIC Reduces price paid for over 4,000 home buyers. (My Spin: Santa Came early. Maybe I should buy a house today and immediately ask the government to cover 25%)
2 Billion Dollar hedge fund fails
Lehman brothers fails to secure (trick) Koreans to buy their (bad) debt

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