20080908PM

DOW 11,510.74 +289.78
NASDAQ 2,269.76 +13.88
S&P 500 1,267.79 +25.48
World and USA markets were up with volume.
Treasury took over Fannie and Freddie, which effectively bails out their bond holders.

DUG 40.72 (UltraShort Oil & Gas ProShares) Sold near end of day at 40.78. Wanted to close this exposure in case a hurricane shakes up the energy supply. DIG is the opposite.
FNM .73 -6.31.
FRE .88 -4.22.
PAAS 20.79 -1.78. 52 week low with volume. Silver miner short for a few months?
COP 74.69 -.74. Potential short term buy.
PG 72.37 +1.59. Six month high. 52 week high is 75.18.

Jim Rogers: How the Federal Reserve Will Fail and the One Sector Every Investor Should Be In
Saturday, September 6th, 2008
Keith Fitz-Gerald

VANCOUVER, B.C. - The U.S. financial crisis has cut so deep - and the government has taken on so much debt in misguided attempts to bail out such companies as Fannie Mae and Freddie Mac - that even larger financial shocks are still to come, global investing guru Jim Rogers said in an exclusive interview with Money Morning.

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In 1918, the U.K. was the richest, most powerful country in the world. It had just won the First World War, et cetera. By 1939, it had exchange controls and this is in just one generation. And strict exchange controls. They in fact made it an act of treason for people to use anything except the pound sterling in settling debts.

(Q): Treason? Wow, I didn’t know that.

Rogers: Yes…an act of treason. It used to be that people could use anything they wanted as money. Gold or other metals. Banks would issue their own currencies. Anything. You could even use other people’s currencies.

Things were so bad in the U.K. in the 1930s they made it an act of treason to use anything except sterling and then by ‘39 they had full-exchange controls. And then, of course, they had the war and that disaster. It was a disaster before the war. The war just exacerbated the problems. And by the mid-70s, the U.K. was bankrupt. They could not sell long-term government bonds. Remember, this is a country that two generations or three generations before had been the richest most powerful country in the world.
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