The Stock Market Is Foreshadowing Doom And Gloom

“I believe that banking institutions are more dangerous to our liberties than standing armies.  If the American people ever allow private banks to control the issue of their currency, first by inflation, then by deflation, the banks and corporations that will grow up around [the banks] will deprive the people of all property until their children wake-up homeless on the continent their fathers conquered.  The issuing power should be taken from the banks and restored to the people, to whom it properly belongs.”  -  Thomas Jefferson

It has been, to say the least very troubling times for this stock market and economy.  I have been pretty clear that cash, gold, and silver were the places to be in this market.  Even SXC Health Solutions Corp (SXCI) failed when Obama’s budget proposal decided to wipe clean healthcare.  Far too many are looking for a massive rebound in the market and we’ve yet to see such a rally formalize.  Stocks are simply not safe no matter what CNBC says or who they bring on their programming including Warren Buffet.  The game has changed and we are witnessing a market that is a once in a lifetime event.  There is no doubt we’ll pull through eventually, but it’ll be a turbulent ride to the bottom.

Our lovely bottom callers continue to expect a massive rally in the stock market ANY TIME.  Judging by a Equity Put/Call you can certainly see this as call buying remains strong.  Although the past two days we’ve seen this ratio creep higher we have yet to see this ratio show any signs of real fear signaling a long-term bottom.  Even the VIX (^VIX) is showing a LACK of FEAR as we are well below the highs from last Oct/Nov.  Unfortunately, it’ll take a rise in fear levels to sort out a longer-term bottom and until then buying stocks for the “long-run” continues to be a foolish endeavor.

Obama’s policies are not helping this market at all.  Rather than print US Dollars at an alarming rate we should be slashing personal income taxes [if not eliminating], slashing spending, and closing bases across the globe.  We must not continue support our global empire as its costing us trillions of dollars and not too mention fostering hatred towards the United States.  Above all, we must eliminate the Federal Reserve’s ability to create dollars and price fix interest rates.  The money supply should be returned back to the congress and must be backed by Gold and Silver as stated in the US Constitution.  It is time to get smart, getting back to the founding principles will save us.

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