The Three Stooges

Lets call the Oval office and the two wings of Congress the three stooges. In their act, they would attempt to sing, tell jokes interrupt each other, respond by verbally and physically abusing one another...and of course in the process destroy everything around them. Most of the people reading this blog of have never seen this comedy act....and like most investors today they too have never been in a market environment such as this one.

On one hand we have a new President who had the audacity to tell the world last week everything we have done in the past 30 years has been a waste of time "a troubled past"...and worse yet wrong. So one man, with no real world experience in the last six months has essentially erased about half of the world's net worth. Piling yet more debt upon more debt thinking someone is going to pay for all these new world ideas. What if they don't?

As the unthinkable has happened (even his approval ratings have now fallen more than Bush W's in his first month and half in office) the big question is what do we do now? One trillion dollars was lost in the last 30 days alone ($200 billion on last Friday..one day)! Charts point to a much lower stock market from here....a next leg down has no support....so another 30% on top of the -20% ytd is probable.

The key is the continued strength of the USD and its ramifications. Weaker currencies around the world are crippling business and the financial system.....in its "flight to safety" in the USD.

Valuations don't matter anymore for now.....its all about survival. When JPM and GE reduce their dividends by 60 to 80% watch out. Much more to come...these are the deepest companies in the world....others have to follow. The fear factor reaching new levels will cause global panic not witnessed in generations.

The concept that taxes are not being raised across the board for everyone is a joke. The public was snowed into voting for this nonsense and they are about to soon realize the ramifications of giving so much power to a few very unread and and not very polished people. The rest of the world will figure this out as well and then you have game changers everywhere.

As investors and consumers retreat into their shells tax revenue will all but disappear. The worst case scenario is quickly developing.

Our goals are to not lose money in this calamity, try to make money on the downside and have ample cash reserves to not only survive the oncoming financial storm but be able to invest in the new recapitalized system when it reopens.

A major bearish market periodical this weekend calls the current situation "Breathtaking."

This past February was the worst in 76 years. January was the worst ever.......that is right... ever!

We call this "A New Era of Irresponsibility" the idea that this can now be blamed on the prior administration is text book from the Three Stooges.

In his big speech (semi state of the union) to Congress last week the president used the word defense and growth... ONCE.....this has not happen since Roosevelt in 1934.

Danny Boy seen here cooling down on top of a big snow pile.