Moving Forward in this Market Environment

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I've had many requests to not kill off the weekly client onference calls and updates. In fact, new renewals doubled, since I announced the cancellation of services. Unfortunately, this market is beyond irrational. It is now criminal. There is nothing we can do when regulators allow the corruption we have seen. Here are just two examples:

1 – Stephen Friedman, former CEO of Goldman Sachs and most recently the Chairman of the New York Fed, was allowed to own, buy and trade Goldman Sachs stock while overseeing Goldman Sachs banking issues in New York State and the AIG bailout dollars that flowed to Goldman Sachs and to basically run his own little mafia style racketeering organization. In fact, Friedman, his family and friends made millions on his own personal crime family. This is the guy that hand picked Tim the Tax Cheat, and this is the guy that made sure Tim the Tax Cheat replaced Paulson . . . and other Goldman Sachs bankster. So where is Andrew Cuomo? Hiding. And where is AG Eric Holder? Well he works for Goldman Sachs . . . indirectly, so he's not going to say a word. And where is the SEC? Goldman runs the SEC, full stop, period, end of discussion.

2 – Ken Lewis accuses Paulson and Bernanke of mafia tactics. He does this under oath. Bernanke, also under oath, tells Congress that Lewis is a liar. Two men under oath calling the other a perjurer, yet no one investigates. No one even questions this.

In any event, no matter how much I know or read or can discuss, the markets are beyond irrational. These markets are 1940's style casinos, where they are rigged, and unless you are very lucky or on the inside, you are going to get crushed. Capital One is a perfect example. The stock moves up 75% in a week, even though they have told us they are only prepared to deal with 8.5% unemployment through the end of the year. We are already passed that point. BUT . . . Goldman Sachs said BUY, so the stock moves higher, crushing shorts to buy more. And the regulators are only concerned about the uptick rule, when the real crime is front running, as Goldman Sachs just did with COF and hundreds of other stocks over the past two months. In fact, Goldman Sachs has issued more BUY recommendations over the past two months than any other company on the face of the earth, and far more than they traditionally issue.

I will continue to offer a monthly conference call to the general public. I will also continue to write a detailed piece once a month. That is the best I can offer right now.

I will also continue to offer managed accounts, but these will be limited in nature regarding trading. Fees will be reduced, and I will deal with new clients on a case-by-case basis. For managed accounts I will offer a special monthly conference call and written update. If you are interested, email David@Morgan7.com and he will set up time for us to talk.
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