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We’re holding an emergency video briefing at noon on Thursday, and with the market now sinking rapidly, it couldn’t be more urgent. So if you’d like to join us online, you’d better register now.
What’s most astounding about the market decline is this: It’s happening despite the greatest outpouring of government money in history.
Indeed, just in his first month in office, President Obama has quickly earned the distinction of becoming the single biggest spender in history.
First, he got Congress to pass a $787 billion stimulus package …
Next, Treasury Secretary Timothy Geithner unveiled the administration’s bank bailout plan, which could cost up to $3 trillion.
And last week, Mr. Obama rolled out his $275 billion anti-foreclosure plan.
Add it all up, and it comes to more than $4 trillion, an amount nearly ten times larger than the budget deficit for all of 2008. All in just 32, short days!
Four trillion is such an immense number that few people can grasp how massive the implications really are — both in terms of the great magnitude of disease and the massive unintended consequences of any cure.
Look at it this way: If you were a very rich man living at the time of Christ … and you could have started saving $1 billion per year every year thereafter, you’d still be only half way there! You’d need still another 2000 years to finance what Obama has committed to spending in just the one month since he began his presidency.
If you could borrow $4 trillion at 6% interest, your interest payments alone would be $240 billion per year, $548 million per day, $761,000 per second.
Without a doubt, the $4 trillion makes Obama the single most profligate spender in history — bar none.
But the truly sad side of this story is that, even this unprecedented Mt. Everest of money isn’t doing much for the stock market.
Last year, for example, each time the Bush Administration announced relatively smaller stimulus plans and bailouts, the stock market would at least stage a temporary rally. But this year, the market has developed a very serious case of stimulus fatigue: Instead of rallies, each new announcement triggers further sell-offs.
Why? Because investors are smarter than Washington. They know full well that this crisis is far too large to be ended by any one government or even all the governments in the world.
Investors realize that all the king’s horses and all the king’s men cannot put our economy together again.
That’s why, despite $4 trillion in new spending schemes and guarantees, the Dow has plunged to new, 6-year lows.
It’s why every stock index in Asia and Europe has also cratered in unison.
It’s why gold — the world’s crisis hedge of last resort — has once again shot for the moon; hitting $1,000 per ounce on Friday.
And it’s also why even the perennially optimistic Ben Bernanke has discarded his rose-colored glasses, admitting in the latest release of the FOMC minutes that there will be no recovery in 2009.
It’s clear that this bear market will be the single most important driving force for us investors for many months to come. And it’s equally clear that following bull market rules is begging for a beating.
That’s why, this coming Thursday, we are holding an emergency video briefing on …
THE 11 LAWS OF BEAR MARKET SUCCESS
How To Prudently Grow Your Wealth
Even When Others Are Losing Everything
In this fast-paced, one-hour, online video briefing at noon next Thursday, February 26, 2009, I’ll bring you quickly up to date with the latest dramatic changes that pose grave new risks — and open great new opportunities — for every dollar you have invested, including …
The Washington Bailout Disasters: How and when the new stimulus and bank rescue packages will backfire, plus what you must do now to protect your wealth and your family.
Wall Street Treachery: How big mutual funds, financial planners and Wall Street brokers have dumped pure garbage into your portfolio.
Main Street Sabotage: Why many of the investments they tell you are “safe” — “too-big to fail” banks, “insured” municipal bonds, and junk bonds masquerading as quality bonds — are little more than ticking time-bombs set to blow your portfolio apart at virtually any moment.
Bomb Disposal 101: How to quickly spot and get rid of the landmines concealed in your portfolio.
Bear Market Bonanzas: Precisely how this bear market gives you hundreds of opportunities to make money more quickly than virtually any bull market. Six types of investments that make that possible immediately.
The 11 Laws of Bear Market Success: My 11-point checklist for making money in times like these — the rules I follow to determine what I’ll buy or sell, to improve my timing, to lower my risk, and to boost the profit potential in all markets.
This must-attend briefing is FREE
and registering takes only seconds …
Just click this link to tell me you’re coming and to make sure we can get you the instructions for attending.
And when you’ve reserved your place, please also jump over to my blog — and tell me the one thing I can do for you at this event that will help you most!
Good luck and God bless!
Martin
About Money and Markets
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Money and Markets (MaM) is published by Weiss Research, Inc. and written by Martin D. Weiss along with Tony Sagami, Nilus Mattive, Sean Brodrick, Larry Edelson, Michael Larson and Jack Crooks. To avoid conflicts of interest, Weiss Research and its staff do not hold positions in companies recommended in MaM, nor do we accept any compensation for such recommendations. The comments, graphs, forecasts, and indices published in MaM are based upon data whose accuracy is deemed reliable but not guaranteed. Performance returns cited are derived from our best estimates but must be considered hypothetical in as much as we do not track the actual prices investors pay or receive. Regular contributors and staff include Kristen Adams, Andrea Baumwald, John Burke, Amber Dakar, Michelle Johncke, Dinesh Kalera, Red Morgan, Maryellen Murphy, Jennifer Newman-Amos, Adam Shafer, Julie Trudeau and Leslie Underwood.
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