Amen!

October 14th, 2008
2045 hrs

After riding the market up from Friday, I'm now sitting on
100% cash as it helps me to get my trading head cleared.

American Capitalism is dead. We are Fascists now.

There's talk that some of the lawmakers were cajoled into
signing the bailout bill with talk of the potential for
martial law :

http://www.youtube.com/watch?v=p6KRXnYgu5I&feature=related
http://www.youtube.com/watch?v=55lOhYw8Lxk&feature=related

I HATE this. Its similar to the whole fear mongering routine
that got us into the Iraq mess. Another gag pulled on the
public. In the present case, half of the money approved by
the bill has basically gone from your pocket to Wall Street
thorough the purchase of perpetual preferred stock.

There has been no public disclosure of balance sheet assets
and no firing of executives under whose watch all this
transpired. The purchase of perpetual preferred stock does
not dilute any of the current equity holders or bond holders
ie., does not let the capital structure of the firm absorb
the losses. Adding insult to the injury of your deeply
dented trading or investment account is the fact that you
are paying to save players in the game that helped cause the
problem!

There will no new jobs created by virtue of this bill, there
will be no stop to the erosion of housing values, there will
be nothing to stem the foreclosure situation. Several states
here in the US will cut back on their services by blaming
poor tax receipts while also increasing taxes. You are being
gouged in broad daylight and it will get worse as everybody's
borrowing costs will increase.

What this bill will do and is doing is letting the government
use your money to help out Wall Street by backstopping inter
bank lending. And the way the money will be raised is by issuing
US government bonds and by printing dollars. This will make
the value of your assets decline.

If I were you, I'd use any rally in markets to raise cash. The
markets, albeit not in a straight line, is likely to head
lower...much lower.

RIP.
Amen!

- aLV