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[LB Bear]

King Henry''s Raiders Part II
By: Mike Morgan [ (This guy is on of the good guys !!)

Fraud or Ignorance - The talking heads are really pumping this market. The guys on Fast Money and other programs that use active traders as their guest and hosts, are scrambling to put a good shine on how undervalued this market is, and what a steal it is now. That''s because they are stuck with stocks on the downside, and they need to either sell them to suckers or pump the market up artificially. If you followed their advice over the last few months, you have lost a pile of money. A big, huge pile.

Global Markets Booming - The yappie-yakkers don''t stop with touting the US market. The Global Bugs are still talking about how great things are globally . . . that''s like listening to Osama bin Laden tell you he loves you and wants to give you a hug and a wet kiss, when he really wants to squeeze the life out of you and bite out your tongue. These guys on TV are truly demonstrating just how desperate they are, and you can hear it in their voices. It''s funny how they refer to this as panic, desperation and market manipulation. Whhhhhhatttt? Who do they think they are kidding? They just got what they wanted, and the markets still went down. If they can''t figure it out by now, they need a map, a guide, and someone to hold their hand. The yappie-yakkers got scammed by the Big Boys on Wall Street.

What''s Next? - I could write about what has transpired this week, but I would be writing for three days. As my clients know, I have been working 20 hours a day for two weeks now. They''ve heard it in my voice. It''s not the desperation you hear in the voices of guys like Buffet, Wilbur Ross, Bill Gross, the Fast Money bongo-boys, Ka-Ka Cramer or any of the other con artists. So instead of writing this month''s usual report, I have been holding additional conference calls, and I will hold another big one on Sunday night at 9:30PM Eastern. It will be open to the public but limited to the first 200 to register. There is no charge to the first 100 to register. Beyond the first 100, there will be a $50 fee. On Monday, I will hold two early morning calls before the market opens. One call for General Clients and one call for Trading Clients. Of course, Trading Clients are invited to the General Client call as well.

What Do You Do Now? - If you''re a client, you are having a very good week. In fact, if you''re a client, and you''re not smiling, you didn''t listen to me. My clients are up over 50% since June 27th, when we launched the public portion of my services. My Trading Clients are up triple digits over the last 30 days alone.

If you are not a client, you should have followed my advice that was public in my blogs. I''ve told everyone to sell stocks since August of 2007. I''ve been short stocks since then and long PUTs. We have made a lot of money, while the folks that left their money in mutual funds are down 25% or more. Think about that. If you had $500,000 in an IRA invested in mutual funds in August of 2006, you now have less than $375,000. You lost $125,000. Gone. Where? In the pockets of the Big Boys on Wall Street . . . and my clients. If you would have sat in cash and then followed our model portfolio, you have $750,000 right now. Let''s see . . . $375,000 or $750,000? Dirt Pies or Ice Cream? Ka-Ka Cramer or Captain Mike?

So What Do You Do Now? At the very least, you sell all stocks on Monday. If you want guaranteed return OF capital, put it in Treasuries. After all, that''s part of Paulson''s plan. If you want to invest and earn a better return, you need to invest wisely. You can join our client roster and learn more about investing and how to deal with the financial crisis.

We''re At The Bottom - Big Rally Coming - You also believe in the Tooth Fairy, right? We are still a long way from the bottom. The yappie yakkers on TV want you to believe that Paulson''s plan of pumping your money into the pockets of Wall Street is going to help things. Nonsense. The yappie-yakkers also want you to believe the coming rate cuts will help things. NOT AT CHANCE. Read that again and again. If you buy into that, you will be sucker-scammed. You will be buying into a short rally, just like the folks did when the bail-out Bill passed on Friday. Rates ARE going down, but just like in Japan . . . even with free money, we are in deep trouble. We are in way over our heads. We have banks that are busted. We have debt that we absolutely refuse to admit. Hey, wake up Washington. We''re broke. We can''t borrow from anyone, anywhere.

So What? - So we are in a heap of trouble and if you have not planned properly, you know it. Just take a look at your portfolio. If you want to start preparing for what is still coming, join the conference call on Sunday night.

Surprises? - Absolutely. But not really surprises anymore. I now expect King Henry to change the rules, as he did this week by pressuring the IRS to change rules so his buddy Bob Steel could recoup his losses at Wachovia. Surprises? How about the fact that King Henry has already spent one trillion dollars. That will probably come as a surprise to many of Paulson''s zombies when the media figures it out. Surprises? This weekend you can expect a plethora of surprises from King Henry. And we might see a market rally on Monday. But that market rally serves two purposes. First, it gives King Henry''s men on Wall Street more opportunity to rip off the commoners and the pension funds. Second, it gives my clients another chance to put more capital to work in shorts and PUTs. The week before last I told my clients to go ALL IN. For those that did, they were handsomely rewarded. For those that did not, if we get a rally on Monday . . . push it all in.

Regards,
Mike

P.S. I heard Cramer pulled a flip-flop on Bob Steel and Wachovia. Now he thinks Bob Steel is some kind of god. Cramer really needs to be locked up along with Paulson. What Cramer doesn''t realize about Wachovia is this . . . it is toxic. It is dead. The only reason the Wells Fargo deal emerged, was Warren Buffet and his relationship with Paulson. Think about it. Buffet gets a private call from Paulson on a Sunday afternoon. Yes, he actually shared that information with the world in an interview. Buffet bails out Goldman Sachs with a special buy-in to stop the slide. Buffet gives GE mouth-to-mouth. Wells Fargo end-runs Citi, even though the FDIC favors the Citi deal, but Paulson wants the Wells Fargo deal. And you thought the Fed and the FDIC were on the same team. Silly you. There is only one team now. King Henry''s Raiders.