Dow Theorist: Sell Everything Liquid, You Won't Recognize America By The End Of The Year

The Business Insider ^ | 5-18-2010 | Joe Weisenthal

[blam]

Dow Theorist: Sell Everything Liquid, You Won't Recognize America By The End Of The Year

Joe Weisenthal
May. 18, 2010, 8:57 AM

Image: US Army

WHOA!

Richard Russell, the famous writer of the Dow Theory Letters, has a chilling line in today's note:

Do your friends a favor. Tell them to "batten down the hatches" because there's a HARD RAIN coming. Tell them to get out of debt and sell anything they can sell (and don't need) in order to get liquid. Tell them that Richard Russell says that by the end of this year they won't recognize the country. They'll retort, "How the dickens does Russell know -- who told him?" Tell them the stock market told him.

That's pretty intense!

Update: By popular demand, here's more on what he sees in the market:

And I ask myself, "Am I seeing things? The April 26 high for the Dow was 11205.03. The Dow is selling as write at 10557 down 648 points from its April high. If business is even better than expected, then why is the Dow down over 600 points? And why, if there were 674 new highs on the NYSE on April 26, were there only 20 new highs on Friday, May 14? And if my PTI was 6133 on April 26, why is it down 17 points since its April high?

The fact is that I've been seeing deterioration in the stock market ever since early-April, and this in the face of improving business news. The D-J Industrial Average is composed of 30 internationally known top-quality blue-chip stocks. These are 30 of "America's biggest companies." If Barron's is so bullish on the future of America's

[snip]

The DJIA is up 62 as I post. See here.

[I Buried My Guns]

Money is a liquid asset. Where do you sell your money?

I advise buying 5-gallon buckets and filling them with beans.

Oh, and bullets in major calibers.

Oh, and any kind of medicine that you can get your hands on.

[MHGinTN]

I just search it too ... even went to Travis McGee’s ‘in forum’ listings and couldn’t find it! Hmmm, can’t figure this one out because I know that thread was up for a few days.

[drpix]

"FDR was able to confiscate gold because the people allowed it. What if they don’t next time?"

He exempted jewelry & rare collectible coins.

Obama's low & unreported income constituents will be protected by the former and his liberal elite constituents have their gold in the later - or out of the country all together.

Of course that leads us in the middle in the cross-hairs - as all does all of the Obama agenda.

[rhombus]

I took all mine out of Fidelity money market after the 2008 crash when MM shares were trading below net

Which Fidelity MM was that? There are a few in my plan?

[DuncanWaring]

120 posts in 50 minutes.

Not a good sign.

[silverleaf]

recourse varies by state- liberal states usually offer chance for owners to redeem the lien, at a profit to the lien buyer

this happened to me several years back when the county sold my condo out from under me for a $55 sewer bill that was never delivered (nor any of the follow-on notices) because the tenant threw everything addressed to me in the trash

someone bought my condo for $300 lien (cost plus penalties), I had to pay about $500 to get it back, profit went to the lien scavenger, better that than the deed to my property!

Only way I found out was my property tax payment was returned because of the unpaid lien recorded on it, lucky I had time in redemption window to respond

[silverleaf]

cash reserves

[NeoCaveman]

FDR was able to confiscate gold because the people allowed it. What if they don’t next time?

Back then their was a statutory link between gold and the value of the dollar.

Now, they can devalue easily without a gold confiscation.

[peachykeene]

blam, you buy gold and silver with your soon-to-be-worthless paper money.

[agere_contra]

You raise an important issue.

If you buy gold, bury it and - to insure against accident - tell exactly ONE other person (that you trust with your life) where it is.

If the new FDR tries to take your gold, wait him out. That gold isn’t going to rust.

[AngelesCrestHighway]

[CharacterCounts]

I saw that History Channel special and thought it was probably a pretty accurate depiction of what society would look like after an Armageddon type event.

Tribalism would rule the day and forget about gold and silver, the person with the antibiotics would be king.

[Kartographer]

beans, wheat, ammo

How much would you be willing to spend for a loaf of bread if you didn’t have any food left? Or for that matter how much of your gold would you be willing to spend for a clean cold glass of water?

[Gorzaloon]

Not a great time to be buying, but these guys who are literally trying to incite panic with their florid language irritate the hell out of me.

Shorts do well in panics.

[cripplecreek]

That was interesting because it showed people dying off in the big cities, and many congregating in the smaller communities for self-protection. But, it certainly wasn't what I would call "living" -- because even in the "safe" areas (those smaller areas where people congregated together and cooperated for protection), it was more like a dictatorship by those who controlled the smaller areas. It wasn't like "gangs" but was peaceable and controlled, but not free and like we live today.

Personally I don't buy that view. It just seemed to me that it was an urbanite view of surviving among a bunch of gun toting racist rednecks in the country.

While much of the constitution would be abandoned in the short term, I think voting would still play a major part of our lives. Hard decisions would have to be made and punishments would be stiff but I have faith in my neighbors to remain human.

I live in a tiny town with several other small towns inside of a ten mile radius. The largest of those only has some 1500 residents. I suspect that these towns would link into some kind of cooperation pretty quickly. I suspect a fair number of useful urbanites would be accepted into the fold and the heavy Christian influence would at least help some who we wouldn't accept in.

[AngelesCrestHighway]

Shorts do well in panics.

There’s always money to be made...up or down

[silverleaf]

Read or watch Harry Dent, the Great Depression Ahead (written 2008), I think he is on track with this one (even though someone always points out how he blew it with the Clinton stock market prediction)

Who said “Demographics is destiny”? I think that has validity.

Bad times in 2011-12, but the sun will eventually shine again.

It will shine brighter for people who prepare and aren’t wiped out

http://www.youtube.com/watch?v=5OuikYJBqYU&feature=related

(you can get the full 9 part lecture on youtube)

[ASOC]

FOr hard corps end of the world viewpoints, try SurvivlBlog.

Soe very strange things there from time to time.

Good stuff as well.

[Star Traveler]

You were saying ...

recourse varies by state- liberal states usually offer chance for owners to redeem the lien, at a profit to the lien buyer

This guy, yesterday (and I've known him casually for a while, being that he owns one of the houses in the neighborhood that he rents out) -- he was saying that there used to be, in Oklahoma, a period of time for recourse, but that it's been changed now and that now they give him the deed (anywhere from right then to within 48 hours), and there's absolutely no recourse by law, for the former owner. He was quite emphatic about that to me (seems he made a big point of it, too ... LOL ...) -- in that "It's over! It's done, and there's nothing the previous owner can do about it!"

I'm not kidding... he got excited about that ... LOL ...

He was also saying that "This is a great time to make money!" (talking about picking up stuff like this at tax sales).

[jpsb]

"Why would you do that if you expect the end of the world as we know it?"

Good question!