Eject, Eject, Eject

The market feels like an ejection seat at the moment . . . you know, the plane soared until the wings came off. Then we plummeted from 14,000 to the lows of October before rocketing out of the plane in an ejection seat. Now it feels as if we're drifting downward slowly, as if hooked to a parachute on a slightly breezy day. Rest assured that we will eventually hit bottom, but that doesn't mean gravity will stop pulling.

Today a friend said that if the economy doesn't improve soon, he's moving back to Venezuela. Think about that.

Regardless of what you think will happen, it's smart to have a doomsday plan. Here is mine: (1) Take all my money out of the banking system, (2) buy U.S. government issued gold coins with about half my cash (if the shit really hits the fan, gold bullion, which sells at a discount to U.S. issued coins, will be outlawed and possession of it punishable by prison time for treason . . . I kid you not; review your history books if you don't believe me), (3) buy one year worth of non-perishable food items (frozen, dehydrated, and canned foods), (4) buy a few gasoline powered generators, (5) by a lot of gasoline, (6) install a hand pump for the water well, (7) buy farming equipment and seeds and install irrigation lines in preparation to produce food on a large scale, (8) buy guns . . . lots and lots of guns and ammo, (9) fortify the homestead, (10) defend myself against any mother fucker (individual or government agent) who tries to rip me off.

I know it may seen a little extreme, but Allan Weisbecker recently wrote a blog entry about Chase Bank not having $30k in their vault available for him to withdraw on the spot . . . his response was something along the lines of "I know a pot dealer who keeps more than $30k in an old Aunt Jemima waffle box in his freezer." Seems a little ridiculous; I know. Times are tough.

As of tomorrow, I will own GE . . . a lot of it, since the put options I sold are going to be exercised against me. That purchase doesn't worry me too badly, but I would like to be "in the money" after the exercise, i.e. $16 - premium I received > stock price at tomorrow's close. EWZ and RIO are very close to the exercise prices of the options I sold, so even if those are put to me, I should be showing a profit from the get go.

Have a wonderful evening!