Unfortunately, it’s put buying across the board and not the usual concentration around commodities or foreign countries as in the past so this time around, I am a bit worried.   I’ve long suspected this fed induced eurphoria wouldn’t last and with interest rates already near all time lows, I’m not sure where we go from here except a bleak depression and perhaps war.     I hope I am wrong, I hope nothing bad happens over the next month or two but the “future ain’t what it used to be.”

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The ONLY thing supporting this stock market is essentially free money the fed is pumping into the economy which gets recycled back into the financial markets to support more paper.   It’s all totally worthless or at the very least worth less than it should be now.   I consider the market recovery from when the Dow crashed down to 6000 a blessing but the recent recovery is not sustainable by any measure.    I have been slowly cashing out at every opportunity while continuing to sell short the market.

Yes, the Dow may rise and even hit 12k or above again and it may as the Fed continues to pump money but at some point, it is going to get real, very real for everyone and those that aren’t preparing are going to hurt the most.    Quite a few people I know have cashed out and I plan on using my next employer bonus to pay off remaining debt and shoring up savings and emergency funds.   I remain mostly in cash with a few exceptions such as commodities to hedge against inflation or a hard crash.

If you recall from December 2008, the Fed was injecting money into the “system” back then and by March the Dow had crashed down to 6k.   We’re in December 2010 and the Fed continues to pump money into the “system” yet again.  I won’t go so far as to say March is when the next crash will hit because QE3 may be right around the corner but rest assured I think there are greater odds of the Mayan end of the world prophecy to come true than for a miraculous economic recovery.   Oh well the Mayans end date was December 2012 so we’re only two years away!

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I also have bought about $1,500 worth of wine over the past few months rebuilding my inventory that was depleted during my six month involuntary vacation from my previous employer.   I currently have a total of 130 bottles of delicious Malbecs, precocious Merlots, titillating Rieslings, sultry Cabernets, and sassy sauvignon blancs.   I had my kids do a count twice because I wanted to know precisely when I would run out of wine assuming two wine bottles per week and wanted to make sure I had at least a one year inventory.  52 weeks x 2 bottles = 104 bottles plus a few extras for guests and emergencies.

With the economy starting to sour again, I’m ready for the next layoff…nay…I am taunting the world for the next layoff.    Bring it on!   Seriously, I’ve noted that a few of my exec peers that had been let go, found jobs are being let go again so that doesn’t bode well.   It’s the canary in the coal mine and with unemployment benefits not looking promising for renewal, we could be in for a world of hurt.

Stock up on food, silver, gold, and extra cash cuz we’re in for a LONG winter chaps.

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So the only obvious question that is begged here is when to get out?    Dow 12k or 13k  or maybe tempt fate and try to ride it all the way to Dow 14k?   This will be my last ride up and I suspect it may be a ride through December 2012 but I have no plans on “investing for the long term” in the Wall Street Casino.    There are just too many baby boomers that are starved for cash and whatever money they have in the “market” will simply be pulled out over the next decade.   Generation Y and below is saddled with poor job prospects and trying to get by TODAY much less planning for 40 years into the future.   Generation X is a bit disillusioned and trying to find their footing as the crash of 87, 2001, 2007 have left a bitter taste in their mouth.

So there you have it from Boomers to Millenials, the stock market is dead.   You’re all getting one last ride; Enjoy it; Profit from it; Cash out before the fall.

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“I never thought I’d be out of work for six months and looking at jobs that paid HALF of what I was making…”   from “Bob.”

“It’s been two years and I’m ready to get back to work but nothing is out there and I’m getting desperate!”  from “Sally.”

“I’ve moved in with my mom and we’re getting by on babysitting money….”  from “Cindy.”

I know it is only a matter of time before these people will tap me for money.   A few will be too proud to ask for money and will likely end up suffering the humiliation of being homeless, living out of a car or ending up in a shelter and a few won’t be too proud and ask for money and try to make a go of it but putting a band aid on a severed limb will only provide superficial help.

Ironically and what infuriates me to no end are these planned “shopping” trips that a few of my relatives are planning for the X-mas season.  Yeah, that’s right, despite the horrible economy, potential for total financial collapse, there are people I know out there that are still interested in buying crap at outlet malls or other places to exchange gifts.  Oh well, I guess if no one buys anything the economy will worsen so maybe shopping is a good thing but crap is still crap.

Like I’ve written before, either you are employed and doing the work of three people or you are unemployed with little or no prospect because someone is doing your job for you.

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Oh sure, it’ll start off slowly, just 1% here or 3% there then it’ll get to 10% or 20% then the government will fiddle it all away like social security.  If this rule is enacted I think I will be done with ever investing in the 401k.  What about the free match you ask?   Well there’s nothing for free and especially if the government is going to take it.   We’ll see what happens in a couple of weeks…

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First, you need to drive to the airport and waste a huge amount of time and gas to get there, then park car and spend more money.  Then there’s that bag fee that doesn’t seem to be included in the price of airfare any more.  Secondly, you need to walk through a virtual strip search because someone might blow up the plane.  If you wait and stop to think about that for a minute, it gives anyone pause to wonder why anyone should ever fly…strip naked to be sure the plane won’t be blown up.  Oh yeah and it irks me that there are 20 TSA guys just standing around doing nothing but collecting salaries and likely absurd pensions.

Then it’s another wait until you board the plane and consider yourself lucky if the flight isn’t delayed because of weather or something else because the airlines run on a skeleton plane schedule, you’re next flight might not be till the next day.    When you finally get on board, it’s generally a horrible experience with crap seating, little or no food, and flight attendants that might pop the hatch and jump off the plane with a beer.

Finally, you arrive at your destination and pay more fees, taxes and god knows what when you rent a car and head to your final destination.   The whole system simply isn’t sustainable any more and it will all come crashing down soon.   As for this family, we’re avoiding the air hassles and simply driving to our destination!

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I have been working 12 to 18 hour days starting early in the morning and working late into the night.  I don’t dare complain because there are hundreds of people applying for jobs at McDonald’s.  The situation is pretty grim for most of my peers and few complain about it because they’re too deep in debt with their McMansions and other lifestyle perks.   Personally, I have sufficient cash to pay off all debt and be out for a while but right now is not the time to do it as the economy will continue to deteriorate over the next 12 months.  I continue to bank cash for the great fiasco coming.

At some point in 2012, I anticipate a huge labor crunch as people seek greener pastures in droves but that is over a year away!

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Really all we need now is a large electromagnetic pulse to wipe out chips in cars, trains and airplanes and we’d be instantly royally screwed.  Why not have a large x-ray burst do us in while we’re at it?  Supposedly airlines have lost over 1 billion dollars and are now seeking bailouts from governments which means taxpayers – some business model huh?

All anyone can do is have a little bit of preparation…only 974 days till Galactic Solstice…..

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This poor woman has contributed $100,000 under the false assumption that her grand kids college education would be taken care of but now the state is struggling to keep up and finding all sorts of loop holes to not fulfill their obligations.  Hmmm…..sound familiar?

Patti Lambert wanted to pay the college tuition for her eight grandchildren. So for the past 16 years, the real-estate agent signed onto the state of Alabama’s prepaid tuition program. She invested more than $100,000—a daunting amount but a good deal because the prepaid plan promises to cover tuition no matter how much it increases.

Or so she thought. Facing a severe funding shortfall, Alabama is trying to renege on its promise to foot the whole bill. Instead, the state wants to pay the average tuition rate, potentially forcing schools and families to make up any difference.

When my wife and I first got married, we went through our finances and my wife showed me some contributions she was making to a similar program for her younger sister.  I immediately told her to quit paying it and request a refund.  She got all of her money back and we put it in savings.   I told my wife that when the time came, we would help her out as much as we could but that ultimately the plan wasn’t going to work.   A few years after the state froze the program and significantly modified the plan, making many people unhappy.    My sister in law graduates this May and my wife’s been helping her along the way with tuition and other items.

I’m still waiting for the day when the exact same thing happens to social security and at the current rate of disintegration that should only be a few years away.

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