BMO Capital Markets group (formerly known as the Bank of Montreal), in their June 8, 2010 Focal Points, advised their clients to get out of equities and get into cash or cash equivalents (the link to the newsletter is here (this is a Scribd post - there is a link in the article for a more technical overview)).

The gist of the report highlights the enormous stresses being placed against the European Union.  This, in the view of the report's author, will result in a capital market contagion sweeping the globe.

This is already being seen in the report here where Bernanke is setting up the American Public to backstop Europe (read Societe Generale and Deutschebank). So not content with help out our own TBTF, now we have to rescue France and Germany's TBTF.  The Marshall Plan was chump change compared to this bad boy!

The global economy appears to be teetering on the brink of at least partial meltdown, according to the IMF.

Not to spread too much gloom and doom, but things just are not looking too rosy.  I do believe that, contrary to the views given in the press, the recovery is just an illusion.

Now is not the time to rest easy and trust the government to fix things.  Why do we trust the same folks that got us into this mess to get us out of it?

The Bank of Montreal sees the handwriting on the wall.  Our Canadian cousins seem to be seeing things much more clearly than are we. They at BMO have pierced the veil of smoke and mirrors the Federal Reserve and Congress have put out to hide the state of affairs from the people.

Our recent seminar also pointed out many of the factors that represent clear and present danger to our economy, our way of life, and perhaps, our nation.

What are you doing to protect yourself, your family, to retain some purchasing power?

Just remember:

Gold (and silver) do quality as cash!  In fact they are the only money specified in the Constituion of the United States of America.