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Too Big to Save - New Martenson Report Ready

Sunday, March 1, 2009, 7:07 PM

This new Martenson Report is ready for subscribers.

In it, I make the case the the recent action in the stock prices of banks, insurance companies and GE (really a financial company when you get right down to it) speak of a predicament that may be "Too Big to Save".

Too Big to Save

Snippet from the summary:

The summary of all these charts and observations is that pretty much the entire financial universe continues to crumble. This raises the prospect that, collectively, all these companies are "too big to save," no matter what the intentions and hopes of the new administration or this nation. I see several trillions of dollars needed to merely stabilize the situation. But to return it to its former glory? Sorry, not this year, not next year, and maybe not ever.

You need to consider your situation if the financial system suffers further erosion, as the options before our government are few, shrinking, and growing less and less palatable by the day.

Best,
Chris

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36 Comments

cat233's picture
cat233
Status: Platinum Member (Offline)
Joined: Aug 20 2008
Posts: 575
Re: Too Big to Save - New Martenson Report Ready
Chris,
Thank you for this excellent, all-encompassing Martenson Report.
Yes, please share you experiences in forming local groups and your
preparations.  Feeling I don't have time to get out of Dodge, and am going to
have to do the best we can where we are now.  I know many of your fellow
students and friends of mine are also feeling trapped where they are now. 
Dogs and I have many friends on the same page, unfortunately they are
scattered here and there and everywhere, not next door.
Please expand more on the community and securing physical needs.
Thank you!
Cat
stevekane111's picture
stevekane111
Status: Martenson Brigade Member (Offline)
Joined: Feb 3 2009
Posts: 5
Re: Too Big to Save - New Martenson Report Ready

Great summary of the current financial situation, Chris. I have been in cash positions for over a year now so you can't get  me out of market any more than I already am.  Unfortunately, I cannot convert my 401k into gold ducats so I'll have to stick with the short-term treasuries and other "safe" investments.  Our situation would seem to be so dire that a few dollars here or there won't make a lot of difference anyway.

I wouldn't give up on the financial monitoring and analysis just yet.  Those in my circle of friends and colleagues most likely to discuss our financial situation most typically are unrepentant investors.  (I will forward the article to them.) Knowing what going on in the market is helpful to start conversations.  Beside we have front row seats on a historical financial implosion and I don't want to miss a detail.

We do need to prepare for a very different future but I'm not sure that there's anything you can do to completely insulate yourself and our families from the coming changes.  I feel as though given the realities of my current job, family and lifestyle making a big transition is not practical at this point. However, being psychologically and spiritually prepared is as important as growing vegetables, in my view.  Looking to your local community for support is part of this process.  My wife and I have recently joined a local UU church.  We already spend much of our time building that community.  We have started a garden and reduced our expenses, as well.   When the balloon goes up, those anticipating a new reality will be best positioned to adjust but few will have made complete transitions to solid, independent ground. 

Thanks for all you're doing to help.  Good luck to us all.

 

Damnthematrix's picture
Damnthematrix
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Posts: 3998
Re: Too Big to Save - New Martenson Report Ready

Is there any way files can be uploaded to this site?  I have just finished our third Transition Town newsletter, and it's a doozy.....  it's a great example (even if I say so!) of how community building can be achieved...  and I'd love to share it with this community.

Mike 

cat233's picture
cat233
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Posts: 575
Re: Too Big to Save - New Martenson Report Ready

Dogs and I are loaded up with puts and put-leaps.  Everyone need to educate themselves in how to make money in a down market and how to do this in the safest manner.... Buy lots of time!  My GE puts don't expire until Jan. 2011.

Cat

DavidS's picture
DavidS
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Re: Too Big to Save - New Martenson Report Ready

I was interested in your comment that suggests there is no way to tell who is buying the Treasuries - the Chinese, Japanese, etc,, or the Fed (which presumably just prints the money to buy them - i.e., monetizes the debt).

Is it correct that this is not public informattion?  In particular is there no way of determing whether the Fed is buyiing?

 I find your financial analysis to be very useful and hope you don't discontinue it.  On the point raised above, for example, I do not follow the Treasury auctions and therefore am very interested in your monitoring the situation.  It seems to me the first signs of the dollar collapsing may be that the auctions are not going well.  I believe Germany had to cancel one recently.  If that were to happen here, it could be an indication that the dollar is in immediate danger of collapsing.  There might not be time to acquirre physical gold at that point, but one could at least buy an ETF that invests in gold, silver, oil or another commodity.

Davos's picture
Davos
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Re: Too Big to Save - New Martenson Report Ready

Hello Cat:

Too funny, Marsh and I are on the same page. We like puts, like betting on a horse, if your horse trips you win, if he stumbles you might be out the price of a ticket. Lamos are easier to pick then winners. Take care 

SagerXX's picture
SagerXX
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Re: Too Big to Save - New Martenson Report Ready

"From here on out I may switch from observing and cataloging the financial decay to sharing my experiences in forming local groups and making preparations that are less about finances and more about community and securing physical needs."  (CM)

 Yes, please! 

cat233's picture
cat233
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Posts: 575
Re: Too Big to Save - New Martenson Report Ready
Davos wrote:

Hello Cat:

Too funny, Marsh and I are on the same page. We like puts, like betting on a horse, if your horse trips you win, if he stumbles you might be out the price of a ticket. Lamos are easier to pick then winners. Take care 

Hey Davos,
In this example I am trading.  I am not gambling on anything, I have reason
(charting and others) to be in the trade.  I am looking for a reason to leave
the trade, take my profits, call it done and wait for the next reason to
press... enter.  I buy lots of time so I am not fighting the time decay
component of the option. I never bet with the market, all of my trades are
focused and disciplined.... Otherwise, I will lose my shirt.
Cat

 

admin's picture
admin
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Posts: 346
Re: Too Big to Save - New Martenson Report Ready
Damnthematrix wrote:

Is there any way files can be uploaded to this site?  I have just finished our third Transition Town newsletter, and it's a doozy.....  it's a great example (even if I say so!) of how community building can be achieved...  and I'd love to share it with this community.

Mike 

Mike,

The upload file functionality is only currently available to administrators.  We don't have it turned on for the wider community.  There will be some new capabilities coming before long that will help you to accomplish this.  Thanks for your patience while we continue to improve the site!

Ron

capesurvivor's picture
capesurvivor
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Posts: 963
Re: Too Big to Save - New Martenson Report Ready

Hi Chris,

Informative and scary. I would second the thought of discussing community and security preparations; many of us are going to be where we are.

Of, course giving us your view of when the balloon finally has gone up would also be helpful, LOL, though it may have made it beyond the financial markets by then.

 

SG

mktqwn's picture
mktqwn
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Posts: 22
Re: Too Big to Save - New Martenson Report Ready

Chris,

I look forward to each and every Martenson report.  I am blessed to have Cat and Dogs as wonderful friends but unfortunately we do not live next door but one hour away.  I agree with Cat's Post #1 above and would love to hear more about how to prepare living in our current home, priority of things to purchase, how to expand our communities, etc.   Hope to learn from your experience since this is unfolding at a much faster pace than I had anticipated.

Thank you, Becca, Davos and the entire team for everything you do. Teresa

 

 

 

tom.'s picture
tom.
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Re: Too Big to Save - New Martenson Report Ready
Damnthematrix wrote:

Is there any way files can be uploaded to this site?  I have just finished our third Transition Town newsletter, and it's a doozy.....  it's a great example (even if I say so!) of how community building can be achieved...  and I'd love to share it with this community.

Mike 

Mike, email it to me. If I can read it I will post it online as a PDF.

[email protected]

Woodman's picture
Woodman
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Posts: 1028
Re: Too Big to Save - New Martenson Report Ready

There has been previous discussion about what to do with existing bank accounts with some of the ailing companies you listed.  What about if they hold your mortgage?  Or if they hold your line of credit you might want to tap a bir more from in the near term?

Brandon's picture
Brandon
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Posts: 145
Re: Too Big to Save - New Martenson Report Ready
Damnthematrix wrote:

Is there any way files can be uploaded to this site? I have just finished our third Transition Town newsletter, and it's a doozy..... it's a great example (even if I say so!) of how community building can be achieved... and I'd love to share it with this community.

Mike

Mike,

Alternatively, you could post the file under "Files" here:

http://grou.ps/martensonbrigade

I set this up for this purpose. Once it's uploaded, you can create direct links without sending people there. Just one option.

 

cmartenson's picture
cmartenson
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Re: Too Big to Save - New Martenson Report Ready

I posted it here...

Let me know if you can't access it...I am not entirely clear on the file permissions set in the forum area.

Quercus bicolor's picture
Quercus bicolor
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Posts: 470
Re: Too Big to Save - New Martenson Report Ready

Thanks for the report Chris,

All of the events of the past week or two had me nervous that something big is about to happen.  Some of the public comments from Treasury and the Fed give me the impression that they are they are starting to panic to the point where they can't hide just how desperate they are anymore.   I was hoping you would post a report that would give some more insights about what's going on behind the scenes.  The message I get from your report is that you're not quite sure what's happening either but the signs are clear that it's big.

Changing the subject:

From here on out I may switch from observing and cataloging the financial decay to sharing my experiences in forming local groups and making preparations that are less about finances and more about community and securing physical needs. I am interested in your thoughts on this.

Yes, please do this!  Don't shift completely away from the financial stuff, but support in  building community and meeting needs would be appreciated.

On another note, I'm spreading the word about your talk in Albany next Monday.  Unfortunately, I probably won't make it myself due to another commitment.

I truly appreciate you, your staff, and this community for all the support I get in staying focused and present on what might otherwise be overwhelming circumstances.

Steve

RJE's picture
RJE
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Posts: 1369
Re: Too Big to Save - New Martenson Report Ready

    Chris, truly engaging stuff. Up is down, and down is up. You are an invaluable resource, someone who cares enough to give back more than he takes. What a wonderful, and rewarding way to live.

    A little message to the community. Coming from a very large family (15 brothers and sisters) please take Chris's advice, and make contact with friends and neighbors. What happens in times like these is that someone has bread, someone else butter, others chickens, someone else rice. The point is you will share these items and feast. In addition safety may become an issue so the more eyes, and ears the better.

    Chris, the freezer is full, shelves are stacked, water stored. I have planned for 3 months. I have converted dollars to Canadian dollars (live in Michigan/Canadian border). I have physical gold, I have had gold jewelry appraised, and know its weighting in gold. So I think I'm prepared. I'm not rich by any means just prepared enough.

    My work is at a trickle, my wife is a nursing manager (her job should be safe) so I'll take care of the house, networking with neighbors and family. Only debt is mortgage, all credit cards, etc...were payed off just this past weekend (finally and enjoyably).

    I would like to know what to do with my IRA. Not wanting to take a hit on taxes, and penalty for early withdrawl, do you believe we are 60 days or less from the stuff hitting the fan? If you do I will pull these funds and purchase Gold immediately knowing I can get the money back into the account (should I want to) before having to pay the tax/penalty. I am unclear about this so your best guess estimate would be appreciated.

    Chris, as I sing your praises it reflects on your entire family. I know I'm incomplete without the best part of my life, and that is Barb whom I've been with since we were in high school some 37 years ago...Respectfully... Bob ...PS: I trust everyone on this site so your comments would be helpfull too.

workhorse1569's picture
workhorse1569
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Posts: 45
Re: Too Big to Save - New Martenson Report Ready

Thanks Chris for more insights.  Yes, yes, lets all keep working on relationships,  community and sharing. It is the only security.

 

Kate

Cloudfire's picture
Cloudfire
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Posts: 1813
Re: Too Big to Save - New Martenson Report Ready

 

Chris;

Thanks again for the excellent report.  As usual, it addresses many of the questions on my mind.  One question . . .I am consideromg purchasing shares in an open-ended gold ETF that trades on the Swiss stock market.  As you may know, these cannot be purchased through discount brokers, and I have found that the larger full service brokers require a large account (>$100,000) to trade on the foreign exchanges.  Wachovia is one exception, requiring no minimum account balance to trade on the foreign exchanges.  My question is this:  Since Wells Fargo, the parent company of Wachovia, is nearing financial calamity, what impact might that have on nonmargin accounts held with Wachovia.  In other words, would my stake in the Swiss gold ETF be at risk, or would I risk "inconveniences", e.g. inaccessibility of my account, in the event that Wells Fargo goes belly up? 

If this is the case, and holding securities at Wells Fargo is risky, do you know of any other full service brokers that are relatively secure, and could facilitate trading on the Swiss exchange? 

I'd also be delighted to hear any other readers' thoughts on this.  Trading on foreign exchanges is new to me. 

 Linda

 

gregroberts's picture
gregroberts
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Posts: 1024
Re: Too Big to Save - New Martenson Report Ready

We Got Your Money! 

http://www.dailyreckoning.com/

Traders may not have liked Obama’s budget proposal yesterday…but some comedians did. If you’ve ever seen the movie Zoolander, you’ll recognize these characters right away. Hmnn… In the next scene don’t they die in a “tragic gasoline fight” accident?

They sure look happy.

Greg

Davos's picture
Davos
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Re: Too Big to Save - New Martenson Report Ready

deficit.png

Davos's picture
Davos
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Re: Too Big to Save - New Martenson Report Ready

budget-deficits-global.png

jrf29's picture
jrf29
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Re: Too Big to Save - New Martenson Report Ready

Davos, that chart doesn't make sense to me.  "US budget deficit" isn't a country, and so of course the US budget deficit is equal to exactly 100% of the US budget deficit.  Isn't line 1 the line which should be highlighted?

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Davos
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Re: Too Big to Save - New Martenson Report Ready

Hello Jrf29:

I agree, line 1. I just put it up there to show we are the biggest debtor nation...with the biggest deficits, take care 

cmartenson's picture
cmartenson
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Re: Too Big to Save - New Martenson Report Ready

Jrf29,

The chart reads, "If the US budget deficit were a country with an economy, it would be the 9th largest in the world."

Wow.  Now that's worth thinking about.

gh6gh6's picture
gh6gh6
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Re: Too Big to Save - New Martenson Report Ready

Hi Chris

From here on out I may switch from observing and cataloging the financial decay to sharing my experiences in forming local groups and making preparations that are less about finances and more about community and securing physical needs. I am interested in your thoughts on this.

Please don't stop observing and cataloging the financial decay.

If it were not for the Crash Course and your subsequent observations I would not have loaded up on gold and silver bullion and coins and shares in gold miners and cash. I share the course and web site with many. It is your even handed analysis which moves people through the five steps. The desire to stick my head back in the sand decreases with each of your financial observations.

 So far as community and securing physical needs I am still pretty much a deer in the headlights. I know it's coming but I can't bring myself to get out of the way. I (we) need you to do both. I don't know what to stock up on, I can't decide if I should put in a pellet or a wood burner. Should my generator run on gas or diesel? How will I keep the deer out of a garden that I don't know how to grow in the first place? I don't know how to start getting like minded people together. Most of the people I associate with including my wife think I have lost my marbles so I have learned to say a little from time to time and wait for the evidence to pile up. Please keep pilling up the evidence as well as help us get our communities started.  

 

"You are a den of vipers and thieves. I intend to rout you out, and by the Eternal God, I will rout you out.
If the American people only understood the rank injustice of our money and banking system, there would
be a revolution before morning. If the central bank continues to control our currency, receiving our public
monies, & holding thousands of our citizens in dependence, it would be more formidable & dangerous than
the naval & military power of the enemy. " - Andrew Jackson 1767-1845

Cloudfire's picture
Cloudfire
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Re: Too Big to Save - New Martenson Report Ready
gh6gh6 wrote:

So far as community and securing physical needs I am still pretty much a deer in the headlights. I know it's coming but I can't bring myself to get out of the way. I (we) need you to do both. I don't know what to stock up on, I can't decide if I should put in a pellet or a wood burner. Should my generator run on gas or diesel? How will I keep the deer out of a garden that I don't know how to grow in the first place? I don't know how to start getting like minded people together. 

We all know the deer-caught-in-the-headlights feeling.  I find the best way out of that is to write down my priorites (emergency food and water are usually first).  Then I start at the top of the list, and work my way down.  I spend as much time as I need to on each item, then move on.  Perfect decisions are not possible at this point because there are so many unknown variables.  I try to choose solutions that are flexible, so that I can adapt to a variety of conditions.  I have made a few mistakes, but overall I am glad that I just pushed ahead so that now I have a modicum of security that allows me to get out of crisis mode. 

No one can tell you exactly what to do, as each person's circumstances, finances, and regional strengths/weaknesses are different.  Trust your common sense, and develop the habit of doing your own thinking.  Within that context, use this site to get ideas and resources.

And know this:  being-afraid-and-wondering-what-to-do-first puts you ahead of 99% of the population.  Most of the deer haven't noticed that there's a car coming.

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Cloudfire
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Re: Too Big to Save - New Martenson Report Ready
cmartenson wrote:

Jrf29,

The chart reads, "If the US budget deficit were a country with an economy, it would be the 9th largest in the world."

Wow.  Now that's worth thinking about.

I wish there was a triple long ETF for the US budget deficit.  LOL.

Davos's picture
Davos
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Re: Too Big to Save - New Martenson Report Ready

TRIPPLE? long, my what greed Foot in mouth

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Cloudfire
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Re: Too Big to Save - New Martenson Report Ready
Davos wrote:

TRIPPLE? long, my what greed Foot in mouth

Only kidding, Davos.  I don't have the sophistication or the prescience to play the double or triple ETFs.

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Davos
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Re: Too Big to Save - New Martenson Report Ready

Hello c1oudfire: I know, I was kidding to. On a 1:1 we all could retire and kick back. It is sick how much they are printing, the best is todays news that the banks balked about the FDIC insurance rate hike and Congress is now going to give them a $500,000,000,000.oo "LOAN" like hello? We are loaning them our money to give to us in a few weeks/months????

Cloudfire's picture
Cloudfire
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Re: Too Big to Save - New Martenson Report Ready
Davos wrote:

Hello c1oudfire: I know, I was kidding to. On a 1:1 we all could retire and kick back. It is sick how much they are printing, the best is todays news that the banks balked about the FDIC insurance rate hike and Congress is now going to give them a $500,000,000,000.oo "LOAN" like hello? We are loaning them our money to give to us in a few weeks/months????

Yikes!  The obvious absurdity of it is mind-boggling.  What really baffles me is why these in-your-face shenanigans are not obvious the the general public.  Goes to show how dumbed down the general public is.  Sad, really.  But the bright spot is that more people are waking up everyday, largely because the mischief is so blatant.  Every day I manage to start a conversation about these issues with the people I meet in the course of going about my business.  I'm finding cashiers, mechanics, healthcare workers, and bankers (yes, bankers!) who are fed up and waking up. 

In the past two weeks, I've spoken with two bankers (smallish local/regional banks) who are so disgusted with the bailouts of the large banks that they're spitting nails.  They are frustrated because their institutions managed their equity responsibly all along, and it's the irresponsible megabanks that are getting the handouts.  I never thought I'd see the day when a bank manager waxed eloquent about the crimes of the federal reserve.  We are living in unique times, indeed.

caroline_culbert's picture
caroline_culbert
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Re: Too Big to Save - New Martenson Report Ready
c1oudfire wrote:
Davos wrote:

They are frustrated because their institutions managed their equity responsibly all along, and it's the irresponsible megabanks that are getting the handouts.

very parallel to HO; the responsible pissed at the irresponsible

my mom is pissed b/c she almost has her $700k house paid off after 30 yrs. of being in her house n now the value keepS dropping-- but at least she has a "free" place 2 live even w/ 50% loss on her retirem-- she and my dad have been soooo responsible-- never fast food, flipping mtg., consumerism shopping, rarely went "out", gave over $500 per month to cath. church, never let us watch t.v., never had a video game, NEVER wasted food, and made us forage around the prop. for between meal snacks (berries & nuts), encouraged us 2 garden, made us do lots of chores; the only "cool" thing we got was a huge inground pool paid for in cash with the little $$ left by aunt who died (single & secretary all her life)

i am proud of my parents 4 being so responsible

now think of how my mom feels (dad's dead) about irresp. HO!

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Cloudfire
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Re: Too Big to Save - New Martenson Report Ready

 

Great to hear your parents story, Caroline.  Yes, indeed it is parallel.  For what it's worth, they have my respect, and would be welcome neighbors.

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caroline_culbert
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Re: Too Big to Save - New Martenson Report Ready
c1oudfire wrote:

 

Great to hear your parents story, Caroline.  Yes, indeed it is parallel.  For what it's worth, they have my respect, and would be welcome neighbors.

thanks... and most of all the neighborhood's (in country) been there for 30  years... same house etc.

dont agree w/ them about all their $$ to church

my mom has stopped going and contributing which i'm happy about (she had to go back 2 work after my dad '98 died)

she is still plugging along and doing well-- she hasn't worked for 25 yrs. of our lives but she is has a mast in lib. sci n she is now head of lib so she is doing fine and still responsible. as ever!

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Cloudfire
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Re: Too Big to Save - New Martenson Report Ready
caroline_culbert wrote:
c1oudfire wrote:

dont agree w/ them about all their $$ to church

my mom has stopped going and contributing which i'm happy about (she had to go back 2 work after my dad '98 died)

Hi, Caroline;

.

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