Equity markets prepare to DIVE in earnest

How do I know? The facts speak volumes.

US stocks suffered their biggest drop since 2003 yesterday, driven down by earnings concerns and rising energy prices sparked by international tensions . . .

"There was reason to sell, and . . . people did it with both hands."

I have enough knowledge to understand how our laws reward those who owe allegiance to no one and enough instincts to predict how the usual suspects and their cohorts will take advantage of a situation that they know is about to spiral out of control.

Keep in mind that the whole market does not have to work in concert, at least not deliberately. It only takes a few influential investors with inside information to make a strategically calculated move and the rest of the market, informed or not, dutifully takes the plunge. It's like herding sheep off a cliff.

Taken in the context of the events of the past week (maneuvers by the US and Europe against Iran, huge injection of cash by Fed, ongoing chaos in Iraq) and what we know will happen in the next couple of months (opening of Iran bourse, US hitting its debt ceiling, Fed ending M3 publication, collapse at Delphi; Ford; GM; among others, Abramoff spilling his beans), the scheduled events of the past few days (Franklin sentencing, OBL tape, Iran's asset shift, traders bidding up the price for oil, the precipitous drop in the stock market) tend too much in one direction to be a coincidence.

If I'm right, the stock market will NOT recover this time around, not significantly anyway. When the shit hits the fan, the plunge protection team will do everything it can to prevent a catastrophic nose dive of the markets and the dollar. But, it will be too little, too late.

I already sold the little stock I had last week and I recommend that you do the same. Of course, I do NOT recommend you flee to the blood-stained 'safety' of the bond market. If you have extra cash after stocking up on food, water, and fuel, invest in modest amounts of gold and silver coins to tie you over until we recover from the imminent collapse of our debauched and debased economy.