Mark My Words

Many subscribers have kept a good dialogue on my "show some disrespect, and question authority" soapbox rant. TSA security is a good example, and in my teaching to eliminate FALSE facts, and
NOT believe in WHAT IS TOLD TO YOU TO BELIEVE, without proof, read the following article to truly understand airport security:

http://www.theatlantic.com/doc/200811/airport-security


If you read this and do not understand my lack of respect, you're missing the basics. Again and again we take away basic human rights, and NEVER really address the issues.


In the past two years the Democrats that were elected have been blocked 94 times by Senate filibuster. Do not believe that "the Democrats" are responsible because they "did nothing" this past two years. Yet another false fact circulating our news bites. Republicans love to use this, but they were the filibusters.

Greenspan, supply side economics and huge deficit spending, and lack of regulation, led to this debacle. Believing that your taxes have not already been raised again and again is best evidenced by oil at all time lows, gold and silver falling, and all stocks at values close to 1981. Don't be misled by false facts on what will happen with taxes.

Chrysler is laying off 25% of its white collar workforce, a sad statement that their lack of action, and their GREED, led to what is happening to them. They, and GM, deserve this.

We have watched a nation build debt on GREED and power in the last 8 years, and are now a nation, influencing a world, led by FEAR. I am depressed as I write this that there is not much good in my mind for Americans, as we are a polarized nation. Whoever wins, we all lose.

Under the best of circumstances we will still begin the new Presidency with a polarization of opinion so diversive that the name calling and false facts from all political candidates now is sad. The last Soviet premier Nikita Khrushchev once observed that America would be destroyed from within. If Obama wins the right will just keep ranting, feeding their Radio and TV audiences with rhetorical red meat that divides America on abortion, prayer, guns, and silly stupid things that have nothing to really do with leading our country.

What is fearful is that whoever wins cannot begin to implement any plan they have, as the economic circumstances are so extraordinary with the lack of regulation that NO ONE knows how much it will cost to fix it, and if money can be kept "real enough" (remember, paper money is CREATED value, and thusly NOT real)

Before the market opened Friday FEAR was rampant the exchange would actually "stop."


New York University Professor Nouriel Roubini said curbs placed on U.S. futures trading today shows his prediction that markets will be shut down amid panic selling is coming true.

``This morning, even before the markets in the U.S. opened, the S&P futures fell by more than their daily limit,'' resulting in curbs on futures trading, Roubini told a conference in Madrid today. ``What I said yesterday has already started.''

Roubini said yesterday that policy makers may need to shut down financial markets for a week or two as investors dump assets. Trading in futures on the Standard & Poor's 500 Index and the Dow Jones Industrial Average was limited today after declines of more than 6 percent. Trading of U.S. stocks would be suspended for an hour should the Dow Jones Industrial Average decline 1,100 points to 7,591.25.

``Things are getting worse, they are not getting better,'' Roubini said. There's an increased risk of a ``multi-year economic stagnation'' in the U.S. and ``we have a whole set of emerging market economies in trouble. Even a few of them going bust may cause systemic trouble.''

Russia's RTS exchange today stopped trading after stocks slumped more than 10 percent. Europe's Dow Jones Stoxx 600 Index slid 8.5 percent. The MSCI World index of global stocks has lost 45 percent this year as the fallout from the U.S. housing crisis toppled banks from Seattle to Paris.

Still, Roubini said he doesn't expect the economic consequences of the current crisis to be as severe as the Great Depression. ``During the Great Depression, output in the U.S. fell by more than 20 percent, I don't believe that's going to be the case,'' he said.

In July 2006, Roubini predicted the financial crisis. In February this year he forecast a ``catastrophic'' meltdown that central bankers would fail to prevent, leading to the bankruptcy of large banks exposed to mortgages and a ``sharp drop'' in equities.

Roubini said that the European Central Bank should provide ``much more monetary easing'' and governments around the world must put together a massive fiscal stimulus package after action so far failed to halt the stock-market rout. The U.S. bank bail- out plan will likely require between $600 billion and $700 billion, he said.

Floyd believes our overall investment in this debacle will be over 2 trillion. 700 billion for the first "house bailout", 135 billion to slimey old AIG, and all the rest to the banks to extend us credit again. Mark my words, as we'll see the tally within one year.

Roubini, a former senior adviser to the U.S. Treasury Department, said earlier this month that the world's biggest economy will suffer its worst recession in 40 years.

Bubbles Greenspan, in turn, only partly admits he was wrong. Bernanke is still studying his history books. Bushy boy told us three months ago that our fundamental economy was strong. McCain voted with Bush 90% of the time for 8 years; HOW is he a maverick? How are THEY not responsible?

The market Friday went from a high of 8733 to a low of 8147. We issue new Dow projections in today's alert.

Abortion and same sex marriage have NOTHING to do with the state of our world, and no law that is created will CHANGE anyone that believes otherwise. Focus on what is important, not your own doctrines. Your doctrines may not be others. This is the stuff the wars are made of.

Trader MP sends a great article on the FEAR in the market:

"What to do in Times Like These: A Financial World in Panic
The GotForex Weekly Newsletter
by Rob Booker
The financial world is panicking again. Today I scrapped this week's idea for a newsletter when I woke up and saw that just since midnight, the GBP/JPY had fallen 1,400 pips. The Dow Jones Industrial Average futures contract fell overnight by 550 points, until further selling was frozen by the exchange because the maximum allowable drop had occurred. There are some of you who, in times like these, panic along with everyone else and now you're holding onto some really bad trades. Perhaps you're getting close to a margin call. Perhaps you're wondering if it is even safe to trade at all.

Here are some thoughts about what is happening, and what to do, to do in times like these.

1. The world financial indexes are dropping precipitously. The US dollar has, so far, been the major beneficiary. Money is flowing out of emerging market economies which attracted huge amounts of investment during the past 8+ years. Money is still flying out of real estate, technology stocks, and financial stocks, and just about anything else you can invest in.

The US dollar is gaining on all of this as investors are pouring money into US treasurys. The data above shows that purchases of perceived "safe" investments like T-Bonds and Notes have been strong, but money has been flying out of US equities. It might seem paradoxical, but so far, the US currency has been the major beneficiary of what started as a US financial crisis. The cold economic front has now moved off the east coast of the United States and is spreading to Europe and beyond, and as that happens, money has been going into what investors believe to be the safest investments possible: bonds backed by the US government. None of this means that the pattern we're seeing above will last forever. The US dollar could reverse course if the market becomes more calm over the course of the next few weeks and months. The greenback could lose ground if the world begins to perceive that the US government has taken on too much toxic debt and now looks like an irresponsible financial corporation. Or if the US job market implodes (see newsletter from a few weeks ago). There are plenty of scenarios I can imagine where the US dollar turns the other way again. None of those scenarios are playing out right now.

2. With the financial markets still in turmoil despite the efforts of global financial leaders, investors across the planet are panicking. This generally means that traders are making decisions based on their emotions -- sudden decisions without a lot of planning or thought. It also means that they are holding onto bad trades and then praying at night that the trades correct themselves. Rational thinking can be clouded by overpowering fear. Fear does not produce good trading results.

3. Are you taking enough time to be patient? In times like this, are you taking a bit of extra time before you trade, to think about how your decision could play out both positively and negatively? Before you enter an order, consider what the worst case scenario is. What is the worst that can go wrong? What do you stand to lose if your stop loss is hit? What percentage of your account will you lose if that happens? Is that an acceptable amount? It can happen, no matter how "safely" we believe that we put our stop loss. Realizing that it can happen is a big part of realizing that maybe you should just walk away from some trades.

4. What will you do if your trade goes right? What's your game plan for a trade that does move in your favor? What is your plan for managing the trade, for taking profit, for moving the stop along the way? What is the basis of your decision to do that? These are the types of questions you want to answer (and not quickly) before you enter the trade. Once the trade is on, our emotions can start to cloud our judgment.

5. Never trade alone. Do you have someone else you can trust with whom you can talk about your trading? This doesn't mean you're weak, or that someone else is going to make your decisions for you. It means that you have someone to talk with if things go really wrong. Someone that will listen to your ideas about how to get out of a trade (good or bad) and who will help you stay on track with that plan. Perhaps many of you need no such person, and you are independently able to stay on track, avoid bad decisions, and see the world objectively on a regular basis, even in the face of massive financial loss.

The most important thing in times like this is to realize that there are times when not trading is just as smart as trading. That the market is so volatile and unpredictable that it makes more sense to back away from the currencies, the stocks, the everything -- and just watch. At the same time, these could be -- but we don't know for sure, of course -- a time of great opportunity, where currencies or other investments represent a bargain.

Only you can know for yourself how should best approach trading in a time like this. What's right for you may not be right for others. What matters is that you have an understanding of risk, of how to manage a bad situation, a plan to deal with a trade that goes right or wrong, and a person in whom you can confide about your trading.

Let me know how you're doing in times like these. I'd love to hear from you.
Happy trading!
Rob"