Those of you who have been following my former radio show and now, this blog, know that I have a very good track record of telling you what's coming in the markets and when.
Tonight, as I write, it is Friday, September 26 at 7:05 PM and I regret to tell you that Monday all hell is going to break loose.
The reason President Bush, Treasury Secretary Paulson and Federal Reserve Chairman Ben Bernanke pushed so hard for Congress to act this week was because they knew that the last hour of trading last Friday was a "quadruple witching hour." During that hour, contracts for stock index futures, stock index options, stock options and single stock futures (SSF) all expire.
Quadruple witching hours occur only four times a year, on the third Friday of March, June, September and December.
Bush, Paulson and Bernanke knew that if a solution was not found by close of business today, they could not hold off the rest of the world any longer. The markets would start plummeting in Asia on Sunday night (East coast time) because with all the options and futures having now expired, the market is free to "correct" itself.
Congress has now failed to act, the quadruple witching hour has taken place and there is no bailout.
If Congress does not get a Bill passed by Sunday night, we should expect all hell to break loose when Asian markets open and the "correction" hits. Look for a severe, fast, downward spiral.
I'm talking about worldwide economic calamity beginning Sunday in Asia and spiraling out of control within a week or so. Two weeks tops.
If I am right (and I hope I am not) the world will see a financial catastrophe that will make "the great depression" look like a walk in the park.
Here's what you need to do this weekend
If you haven't taken my advice and gotten out of the markets already, you're too late. The only thing you can try to do now is prepare for the fallout of the worldwide economic collapse.
Go out and get yourself canned foods; enough to feed your family for a month or two.
In addition to canned foods, go out and buy 50lb bags of rice and oatmeal. You can use the rice as a bed for the canned foods for lunch and dinner and the oatmeal for breakfast. You may want to grab some honey and / or brown sugar to put on the oatmeal. You should also have dry milk powder to be able to mix with water to make milk.
If you do not yet have a gravity-fed water filter, go get one.
If you do not yet own guns to protect yourself and your family, try to buy one over the weekend. If you already own guns, get ammunition.
The reason you'll need the weapons is because civil unrest is likely to begin very quickly.
With economic collapse, supermarkets will run out of food fast. Roving bands of savage beasts will quickly realize they're hungry and come for your food. If you cannot protect yourself, they will kill you to get it.
The police will be totally overwhelmed rather quickly, so 911 won't be any help for you.
The cities will become nightmares within days and once the cities are emptied of food, the savages will have to come to the suburbs to get more. Rest assured, they will come.
Get together with your neighbors to form neighborhood defense teams. Get Family Radio Service walkie-talkies or CB radios and have them on a set channel for your neighborhood. If trouble comes, EVERYONE in the neighborhood must respond and use all deliberate force to restore order.
I hope this information helps.