Curried Wealth Building
Finding an Edge

If you want help with your finances, give me a call at 703-791-3243.
November 16, 2008
Issue 20  -  This Will Not End Quickly

From Bloomberg:

"Freddie Mac Posts Record Loss, Asks for $13.8 Billion

Nov. 14 (Bloomberg) -- Freddie Mac, seized by the government two months ago, asked the Treasury for $13.8 billion after a record quarterly loss caused its net worth to fall below zero.

The third-quarter net loss widened to $25.3 billion, or $19.44 a share, after writing down tax assets and providing for bad mortgages and securities, Freddie said in a regulatory filing today.  The losses forced Freddie to request government funds and the company said it expects to receive the money by Nov. 29...."

Wow, a net worth of zero, sure am glad we "invested" the taxpayer dollars, or should I say our children’s tax dollars, in this turd. There is just no way that this continuous stream of handouts/bailouts is going to end any time soon. The system is just too leveraged from years of nonsense where everyone thought that you could charge your way to great wealth. It just doesn’t work that way and we are finding that out the hard way.

I see a catastrophic collapse of the system coming sometime within the next year. A system based on credit and imaginary "dollars" which are nothing more than key clicks on some Wall Street bank floor, just aren’t viable forever. The piper must be paid and the time is close. The Wall Street talking heads continue to say all is well but they are merely dancing on the Titantic. The U.S. is going down hard and LOTS of people will be wiped out completely. Again, I ask you to get some gold and silver in your hands while there is still any left to get.

Does this sound like something Obama will be able to fix?:

(from The King Report):

The Fed’s balance sheet exploded again! As of Wednesday, the Fed holds $2.249 trillion of paper.

This is an increase of $142.371B on the week and $1.3326 trillion y/y."

Think about that for a moment. We didn’t have a Trillion-dollar debt for the first 200 years of our existence and now we add more "paper" than that in a single year. Unsustainable, ridiculous, and bound to end in tears.
The powers that be are all about deception and manipulation.  Controlling how you think and live to suit their interests.  Take this as an example.  If you were to look up inflation in a dictionary that is fairly old, you will see that is says "an increase in money supply or credit."  This is the REAL meaning of inflation.  Newer dictionaries say it is an increase in prices.  Do you think this is an accident?  This is what the elite want you to think.  That way, they can blame higher prices on greedy businessmen or speculators.  Don't hear much about them now that oil is plummeting, huh?  But I'm sure congress will have an oil company rescue package.  Not!  Why is CONgress not conducting an inquiry into the oil price after it has fallen FASTER than it rose???  Rising prices are a RESULT of inflation, not the converse.  You are being duped, don't fall for it.
Congress' double standard is so obvious as to defy description. This is all a grand charade that wants to keep you in the sinking assets for as long as possible. Gold and silver are being accumulated by the elite in preparation for the explosion. I firmly believe that this is deliberate and calculated.

Free country? Not really. From the Gold Anti-Trust Action Committee:

"Dear Friend of GATA and Gold:

Your secretary/treasurer's remarks at the New Orleans Investment Conference in regard to the freedom to own gold in the United States, Russia, and China prompted a response from Adi Hadi of Hohhot, Inner Mongolia, China, emphasizing the point those remarks meant to make. Hadi writes:

"Your remarks give a deep look into reckless manipulation of markets in the so-called 'Free World.'

"I live in China -- as a foreigner of German origin -- and I can buy in a public shop just around the corner as much physical gold or silver as I want and I can keep it in my personal possession. When I buy, nobody asks me for my name, address, or any identification, and I can take the bullion with me right away. ...

"If you consider rigging and manipulating markets to be a necessary component of what you call a free country, than I must admit that you are right. But I would prefer to live in a country that protects me from those market manipulators and lets me have as much gold and silver I wish, and call it my own."

Hadi sent along a photograph of a decorated thousand-gram gold bar available for sale in China. The cartoon characters emblazoned on the bar seem happily indifferent to the few U.S. banks that are desperately suppressing gold and silver on the New York Commodities Exchange."

So let me see if I have this straight. The "Patriot" act now requires coin dealers to keep records of purchases of gold and silver in case the purchaser is a "terrorist" (whatever that is), while in COMMUNIST China they can but gold unencumbered? Something just doesn’t smell right here.  Take note.

The latest Northern Virginia real estate performance was just released (thanks Jim) and it is quite eye opening. In Prince William County for instance, house values have now reverted back to about 2001 levels. I believe we will see a drop below the long-term trend, which would be right about at 1999 levels. Buying a house today, while much cheaper than it has been, will get even cheaper. Perhaps a LOT cheaper. That being said if you can easily afford a home, by all means buy one, but know that you will more than likely lose money on it were you to sell any time in the next 20 years.

As a last note I did buy some SPY puts this past Wednesday which are slightly down in value but I’m going to hold them for at least another week or two as I see the market going down hard. I think this is a once in a lifetime downtrend, which could surpass the great depression in scope. That would take the DOW to a level of 1400. This total drop will obviously take some time as you can imagine (at least I hope so).

Make sure you have cash to get you through a month (stored where you can get it easily). Obviously, that wouldn’t include going out to eat or other pleasure activities. Eating and the basic bills are all you will need. Plan on ways to entertain at home with games and other old fashioned activities. This could be a great period for family building and "getting back to basics".  Trying times can be greatly enriching, don't fear them, prepare.  If you have any questions, again, just email at