Curried Wealth Building
Finding an Edge

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December 21, 2008
Issue 25  -  The Looting of America Continues

The gold and silver stocks have started to make a run after a long period of declining.  They are moving without the metal price moving which is a key indicator of a change in the market.  I believe the next year will produce huge gains for the major gold and silver stocks and at some point the smaller companies will just go bananas.  As I’ve said many times, the gold and silver markets are so small compared to the general market that once money starts to flow in, the flood gates will be open.  I have recently bought some Silver Standard Resources (SSRI) in the 12-13 range and I expect this stock to hit 24 at a minimum.

The new year will have to come before a major take off can occur as there is a good deal of tax selling on stocks that are down for the year (which almost all of these are).  If you have gold or silver stocks that are down, I would sell them before the end of the year and move the proceeds into another gold or silver stock.  That way, you can have the tax loss and benefit from any gains in the sector.  Give me a holler if you want advice, it’s free and well worth it.  ;-)

The news this week is just getting worse and worse.  Do NOT listen to CNBC as they are shills who only care about ratings or running their friends book.  Which means that they have hedge fund manager friends who let them know what they are doing and then the prattle matches what will benefit said friends.  This is entirely illegal, but who cares, no one is doing anything to the crooks.  Like this shows:

“SEC Official Married into Madoff Family
Madoff Boasted of Close SEC Relationship, "My Niece Even Married One"
By BRIAN ROSS and JOSEPH RHEE

Dec. 16, 2008—

A top Securities and Exchange Commission compliance official who worked for the SEC when it found no problems at Bernard Madoff's firm in 2005, later began to date and married Madoff's niece, who was a compliance lawyer for the company.

A spokesman for Eric Swanson, who has since left the SEC, said Swanson "did not participate in any inquiry of Bernard Madoff Securities or its affiliates while involved in a relationship" with Shana Madoff.

The failure of the SEC to detect the alleged fraud carried out by Madoff, estimated by Madoff himself at $50 billion, has raised questions about the SEC's performance.

"The Securities and Exchange Commission failed the American people," said Senator Charles Grassley (R-IA).

Since 1992, the SEC has at least twice dismissed concerns about Madoff's firm, following complaints.

At a business roundtable meeting last year, Madoff boasted of his "very close" relationship with a SEC regulator, chuckling as he said, "in fact, my niece even married one."

A spokesman for Swanson, the former SEC official who married Madoff's niece and compliance lawyer, said Swanson met the niece "through her trade association work in the industry. Throughout his career, Eric has displayed the highest ethical standards and his reputation has been and continues to be above reproach."

Madoff formally registered with the SEC as an investment adviser in 2006, but the SEC failed to conduct the standard review that normally follows such a new registration.

Was Madoff Running a Ponzi Scheme?

Madoff made headlines last week when an unsealed criminal complaint in federal court in New York charged that he has been running a decades long Ponzi scheme that defrauded investors of $50 billion dollars.

A former chairman of NASDAQ, Madoff was an investment advisor who catered to a handful of high net worth clients, one of whom told ABC News that Madoff was so sought after that, as recently as two months ago, he was turning down potential new business. His handful of clients routinely expected -- and received -- double digit returns, up market or down.”

So this guy has relatives in the investigative body and lo and behold he was doing things that would make Charles Ponzi blush.  The truth of the matter is that we can not trust the authorities as they are entirely captured by the bodies they are supposed to regulate.  A clean slate will be needed to fix anything.

Let me ask you this.  The total sub prime mortgage market is estimated at $1.3 trillion.  The TARP was intended to “save” the common man and his mortgage.  So why is the current expended /authorized fund now over $8 trillion?  Hmm?  The reason is it was never intended to save the common man, just the Wall Street hucksters.  They are going to clean out the cupboard and then the collapse will happen, probably next year sometime.  Following that a call for world government or mass socialism will be made.  Herd the sheeple into a lifetime of servitude and the elite will be all set.  That's why you are hearing calls for a below market mortgage program which will be subsidized by the government.  Then after the housing market totally collapses, these borrowers will "working for the man" as they won't be able to sell the house.

This cartoon is pretty descriptive:

We are loading banks and thieves with “free” money and it is doing NOTHING to help the common man.  This quote from goldseek.com is very enlightening:
 
“$8.5 Trillion Dollars would buy exactly 80% of all the mortgages outstanding in America. So imagine for the same money that your government or is it the bankers government? have already given to the bankers they could have instead sent you a cheque for 80% of your outstanding mortgage, that would be some Christmas present. Instead they decided to send all of this money, YOUR MONEY to a select band of Wall Street insiders."

How does that make you feel?  It should make you angry beyond words as we, the American people are getting ROBBED and we sit and do nothing.  What will Brittany’s fragrance smell like?  Who got kicked off the island?  These are opiates for the masses DESIGNED to distract you from the thievery of money and rights that is happening in real time while we watch.  Voting for the status quo is NEVER going to change what is happening.  Educate yourself on the way money really works.  A good book to start with is The Creature from Jekyll Island by G. Edward Griffin.  It explains in great detail that the bankers set up the system so that it could be sucked dry.

This country, I am afraid, is destined for civil uprisings when the truth comes out.  In case you think I’m being paranoid how about this from worldnetdaily.com:

“IMF warns of economic riots, police ready for civil unrest
Paulson discussed worst-case scenario at bailout meeting – declare martial law

Posted: December 18, 2008
7:00 PM Eastern
By Chelsea Schilling
© 2008 WorldNetDaily

Pentagon resources and U.S. troops may be used if needed to quell protests and bank runs during an economic crisis, the U.S. Army War College's Strategic Institute reported.

"Widespread civil violence inside the United States would force the defense establishment to reorient priorities in extremis to defend basic domestic order and human security," the War College study states.

Incidents of economic collapse, terrorism and disruption of legal order could require deployment of forces within the U.S., it said.

A "strategic shock" could require the nation to use "military force against hostile groups inside the United States."

International Monetary.  Managing Director Dominique Strauss-Kahn has warned that advanced nations could face civil unrest during distressful economic times

"[S]ocial unrest may happen in many countries – including advanced economies" if the economic crises are not properly dealt with, Strauss-Kahn said. “

Couple that with some reports of the military being used to “help” police and someone thinks there is at least a POSSIBILITY of unrest.  If the economy collapses, ala Iceland, do you think that most people will just go quietly into the night? 

Gold and silver will protect you as no other asset can and while you may not make money, although I think you will, you will at least not be wiped out.  I called the housing bust 3 years ago and although I was early it did happen.  Unfortunately it is continuing with no end in sight:  (thanks Jim)

“U.S. homes lose $2 trillion in value in '08

Home prices have been hit hard, yet there is still no end in sight to the foreclosure crisis, according to Zillow.com.

By Les Christie, CNNMoney.com staff writer

Last Updated: December 16, 2008: 12:28 PM ET

NEW YORK (CNNMoney.com) -- American homeowners will collectively lose more than $2 trillion in home value by the end of 2008, according to a report released Monday.

The real estate Web site Zillow.com calculated that home values have dropped 8.4% year-over-year during the first three quarters of 2008, compared with the same period of 2007.

Some 11.7 million Americans are now "underwater," owing more on their mortgage balances than their homes are worth.

Zillow collects home values and analyzes home price trends in 163 markets; all but 30 registered price drops over the nine months ended Sept. 30, compared with the same nine-month period of 2007.

"This year marked the acceleration of the market correction, and is likely to end with the eighth consecutive quarter of declines in home values," said Stan Humphries, Zillow's vice president of data and analytics. "Homeowners in most areas we cover are struggling with foreclosures pouring into the market, large amounts of negative equity and dropping home values."

No bottom in sight

One piece of good news is that in some, although not all, of the markets hardest hit by the downturn, such as San Francisco, San Diego and Punta Gorda, Fla., home values are not falling as steeply as they were.

Offsetting that cause for optimism, however, are growing economic problems, especially increased job losses.

"When we look for a turnaround, we look for two or three consecutive quarters [of smaller price declines]," he said."We also want to see sales numbers pick up, inventories go down and improvements in foreclosure figures. Foreclosures really muddy the picture."

The foreclosure picture is not likely to clear up in the coming months, according to Humphries. He expects to see more foreclosed, vacant homes added to already bulging inventories, sending prices spiraling down and putting more mortgage borrowers deeper underwater.”

Vacant houses, falling home prices, record foreclosures, and now mass job layoffs?  I’m predicting right now that the U.S. dollar will collapse.  This will not be pleasant.  Get prepared and please learn what is really happening to this country.  You’ll be glad you did.  Need help?  Let me know. 

Have a Merry Christmas and a prosperous New Year!