We are TOAST!

Ok folks some of you have been reading my blog and can vouch it is 100% predictable than the idiots who come on TV. I am tired of beating the dead house telling people the market is broken but hey I can't force the horse to drink the water. I really truly am predicting the DOW to see 5000 in the near future so don't listen to the idiots who tell you we going to new highs.

Here is the inherent problem with the notion that this is the same as other bear markets. Bear markets are usually based on a few factors, one of which is valuation. That, in my opinion, is the least of the issues. Others include valuation based things like "bubbles". More importantly, though, is the economy, which includes unemployment, manufacturing, sales, etc. Even more importantly is consumer confidence and investor confidence. ALL these factors point to MUCH lower prices. BUT, none of them is the most important in this instance. In this instance you have what happened in 1929, a confluence of events and factors that has created what I've dubbed the PERFECT STORM of investor disaster, or the real Y2K, but of the stock market. Today we heard from Hank Paulson who I have no respect for, said what I have been saying for the longest while that $700 Billion is not enough to fix this problem because they dont know how to fix it PERIOD. They force fed everyone, including congress and the senate and investors and "main street" the notion that the government was going to buy all these toxic assets, create a market for them and the government would then be able to make money on these "assets". This NONSENSE has been repeated AGAIN AND AGAIN AND AGAIN all over the financial media, as though it was true. Fund manager after fund manager has trekked onto CNBC and other places and told YOU that this is a good time to buy. This market will NOT be higher in 10 years, you can all write it down and call me in 10 years. I remember when I called NASDAQ @4800 the top people called me a FOOL, now it is 1499 and heading to 800.
Back to the rational of this bailout, how can you guarantee profits? The same dumb thing that caused people to buy houses to invest because everyone in the real estate business said buy real estate you can't lose! REALLY? Listen up folks their is a major conflict of interest and it doesn't work out for the people at the bottom of the ladder. The notion that you should buy now and hold for 10 years and that historically that has paid off is another LIE that is perpetrated by the media, and by fund managers alike.

Paulson's speech today is so bad that anyone buying bank stocks now is crazy. I believe the following banks will be in deep trouble soon Citibank (which I called to single digits, when it was $35, now @ $9), Wachovia, looks like it will be @$1 ultimately, Bank of America will be single digits soon and the credit card banks as Capital One and American Express are going to see much lower prices. The GS puts you should all be in from monday are up 90% just amazing and I think Goldman goes much much lower ($30 area). Folks I was listening to Rush Limbaugh today and what an idiot he is! talking about the market is down on Obama. Obama is not in power, maybe he didn't read that 1.25 millions jobs have been lost since January, Best Buy this morning said this is the worst retail environment they have ever seen, Intel after the close said things are horrible and Goldman is saying 10% unemployment is very likely. I mean don't listen to these morons, they will make you lose it all PERIOD.
Do you realize how many of these guys called the bottom of the financials in July, saying to buy Citibank, wachovia etc. I said buy SKF and we all know how that is doing! SKF will go over my $200 in the long run for sure and those who listen when I said buy on any dip below $90 were handsomely rewarded.


$700 Billion wont save us because Citibank has $300 Billion in toxic assets, MER has $260 Billion and the many others, so do the MATH. There should be an immediate investigation into our money folks. The bill of goods the American people were sold is shameful. Do Paulson and Bernanke claim they didn't know these assets were worthless when they said that taxpayers should be on the hook for $700 BIL that I said from day 1 was throwing our money away?
Someone else needs to be in charge here, Paulson and Bernanke are clueless. Its going to get worse. The GM bailout again will be sold as an INVESTMENT, and sold that GM is too big to fail. This is another TOTAL LIE! GM has to be allowed to go into bankruptcy and to reorganize, otherwise its a 100% guarantee that they will keep coming back for more and more money. It's theft, folks, plain and simple. $700 BIL that WE will be on the hook for, just like AIG who has now borrowed $150 Billion up from the original $85 Billion.

Listen, I am just a person who cares about people who work hard to put their money in the market. I am tired to see people pay others to lose their money based on lies. It takes alot of my time to put plays on the Blog and trade but I think all of us need to help each other in the World. The path these financial institutions are putting us on is the mark of a deep depression. I hope I am wrong but I have been right 99% of the time. Notice the magic number 1000 on the S&P I spoke about last week, we hit is one time and that was it, the beauty of technical analysis.


TRADE CALLS up huge here GS puts +90% in 2 days and GOOGLE puts up over 50%, I think GOOG puts will be a double.


MARKETJEDI