This from a newsletter pub - and it makes alls kinds of sense..

Events this past week have prompted me to send out this communication regarding the sudden collapse of the precious metals prices.

Here is what is happening.

The demise of Bear Sterns, which was reported to the public Sunday evening and Monday, has in turn caused their assets to be sold off in masse this week.

On their book of liquid assets was a rather large, long gold position. It is being sold off in order to raise cash to offset their massive losses. The spot prices have been hammered because of this activity. It will be short-term in nature. If you're looking to buy physical precious metals to diversify your portfolio at this point, you are being given an unexpected gift to do so. It won't last long.

Another item in Bear Sterns closet was a massive short-position in the ten year treasury. This off course is being unwound this week, which is making the dollar looking a bit stronger than it really is. Don't be confused by this nonsense. The dollar will soon resume its downward trend.

The fact that Bear Sterns was shorting the dollar to such a degree shows that they were not playing along with the game of the establishment Federal Reserve banking crowd. They have been severely punished by the powers that be.

What brought Bear Sterns to their knees was their own riverboat gambling mentality that not only jeopardized them, but the financial system as a whole. This kind of story is just the beginning of what will be a long list of companies that meet a similar fate. Will the Fed and the citizens of the United States be able to bail out all the financial sewage that is about to be uncovered?

What the Fed is doing is nothing more than sleight of hand trickery to give to itself the assets of Bear Sterns. As I have said before, the Federal Reserve is no more "Federal" that Federal Express. It is a private organization owned and controlled by shareholders, the largest of which is J.P. Morgan Chase. J.P. Morgan Chase in other words is the Federal Reserve, so don't be surprised that they end up with the assets while you and I pay for the debts from the whole mess.

When are people in the United States going to wake up to the ugly realities that are now upon us? This ongoing calamity of financial chaos is going to cause extremely serious consequences to each and every American. Your wealth, security and lifestyle are all at stake as the coming months and years unfold.

You should be doing everything you can to:

1. Avoid, pay down, pay off debt
2. Buy physical precious metals - particularly gold and silver
3. Get money outside the country or at least in a better currency
4. Get away from dollar denominated risk
5. Get a food storage - you can't eat gold or paper dollars!

There are going to be banking failures in the United States and around the world. You should be evaluating the merits of who you bank with. Most of the big banks are in a world of hurt. The smaller, independent banks have not leveraged themselves like most of the big banks have. They may fare better, even though they don't offer all the nice, online services the big banks have.

As far as our junior mining stocks go, they will rebound. Right now they are getting hit yet again as investors like us prepare to write checks for our capital gains taxes. Yes, it appears many of us have waited till the last minute to raise monies to pay for these taxes. Most of us will have to sell something to pay for this.

So, in the next few weeks, expect further weakness as this takes place. The better companies will be hit with this activity as well. Those who have the cash to buy will be given the best opportunity to buy low and sell high.

After tax season however, and as the precious metals prices begin to make very large moves in April taking them to much higher levels, the juniors will finally begin to move again.

My message is to stay the course in your good positions, especially our Top Ten companies that are listed as Strong Buys.

As we move forward in the next six to eight months, I see a time where we will begin to beef up positions in companies that are either in production (such as Excellon, Jinshan, and Capital Gold, or are near-term producers. Companies that are more speculative and do not have any near-term production capacity will be eliminated. The reason for this is that the risk capital markets are going to be getting much tighter moving forward and many juniors who are still in the speculative phase will find it much harder to raise monies moving forward. I will be talking more about this in the coming months.