Wednesday, June 16, 2010

Sell stocks aggressively!!!

Spending cuts are now starting to bite. For the first time in years, we have a fiscal situation where the Federal Gov't is taking in more than it is spending. This is MAJOR FISCAL DRAG!!

In my daily analysis of the Treasury Statement, you can see that the Treasury's cash balance is positive year-over-year. This is a RARITY!!! It has only happened several times in the past and when it has...the market and economy have plunged!! (March 2000 and May 2007!)


Treasury now taking in more money that it is recycling back into economy.
MAJOR FISCAL DRAG!!!



Tax receipts are now above the level of last year! MAJOR FISCAL DRAG!!!

Do yourself a favor...RAISE CASH, GO SHORT, SELL FUTURES, BUY PUTS...WHATEVER YOU CAN DO to position your self for a big market and economic downturn.

Most people believe that cutting spending is the answer. Most people will look at spending reductions and cheer them. However, don't be fooled...when private credit is contracting (as it is) and government does not replace the money lost from the collapse in credit, then a FULL BLOWN DEPRESSION WILL RESULT!!!

This is the beginning of a major collapse. Protect yourself! Go short; raise cash, but whatever you do, prepare for a big market downturn.

(You can short the Euro like crazy and clean up on this!!!) Buy my Euro Crash Alert for $39.95 and get 10 ways to profit from a Euro crash!!

3 comments:

Matt Franko said...

Mike,
I believe this CY is the first time in history or at least a looong time that there was NO COLA in Social Security, zippo this year. Also, my contacts in the Medical billing Depts of Health care providers are informing me that there are CUTS in reimbursements for many procedures under Medicare that are draconian this year.

maybe this rare fiscal event is coming from a lack of withdrawls in this regard. In recent memory, all you ever heard about were the INCREASES in these 2 areas.

Mike Norman said...

Matt,

As I'm sure you have seen as well, HUGE cuts in education spending! More to come! Tax increases, spending freezes, the deficit is going to narrow dramatically, but stocks and the economy are going to tank! Check out SKK (double short ETF)

googleheim said...

MORE AUSTRIAN CRAPOLA !

ARE THEY TRYING TO BALANCE THE BUDGET ?

THE REAL ECONOMY IS IN FOR SOME UNREAL ENDO'S, DUDE.

THIS WILL RAISE RATES