----- Original Message -----
From: Bruce Majors
To: deonm
Sent: Sunday, September 21, 2008 5:36 AM
Subject: [American-Citizens-for-Truth] Warning: Nasty Surprises Coming Next Week
Warning: Nasty Surprises Coming Next Week
MONEYANDMARKETS» Weekend Edition
Sunday, September 21, 2008
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Warning: Nasty Surprises Coming Next Week
by Martin D.. Weiss, Ph.D.
Dear Subscriber,
America's $47-trillion bubble of debt has burst.
America's $180-trillion balloon of derivatives has popped.
And all the president's men cannot put them back together
again.
Last year, they tried three different mortgage work-out
plans. This year, they tried a massive economic stimulus package. They resorted
to a myriad of unprecedented lending facilities. They even bailed out Bear
Stearns, Fannie Mae, Freddie Mac and AIG. Each attempt was more radical than
the previous. And each attempt failed miserably.
Now, appearing before the American people at the White
House Rose Garden, they've declared that they're going to try again, this time
with an even bigger, more ambitious plan: A structure to buy up the bad debts
of sinking banks ... a guarantee for money market funds ... a prohibition on
certain short selling activities.
And with all this, they say, they're finally going to
"restore confidence" and "end the debt crisis."
But there are a few, not-so-small dangers they're not
talking about plus a few nasty surprises, shocks and wake-up calls coming as
early as next week:
The fear factor: Their actions are so much more extreme
than anyone expected ... they're inadvertently sending the message to smart
investors and speculators around the world that the crisis must also be far
more extreme than anyone expected. Rather than reducing uncertainty, the
president's men are creating more fear.
The selling stampede: These investors are more anxious
than ever to sell and get the heck away from risk. They're waiting for the
knee-jerk market rally to end. And they're getting ready to sell with both
hands.
Leading lenders to water: Millions of Americans continue
to default on their mortgages. Hundreds of millions of homes continue to fall
in value. So the risk of lending today to consumers is astronomical.
With this backdrop, Mr. Bernanke and Mr. Paulson can pump
all the money they want into sick and dying lending institutions, but there's
nothing they can do to get the lenders to drink - to lend that money to
high-risk borrowers.
No free lunch: Where do the Treasury, the Fed and Congress
get the money? Contrary to popular myth, they cannot just "print" it out of
thin air. They have to either borrow the funds from investors or raise it from
taxpayers.
$1-trillion tab: Just for the rescues and bailouts
announced to date, the most conservative estimate of the bill is $1 trillion.
The federal budget deficit is already projected to be well over $400 billion.
These new measures could easily double and triple that deficit.
What's Next?
On Friday, in a special edition of Money and Markets, I
answered your urgent questions on Washington's latest moves. Now, let me ask
you a couple of questions:
Q: What happens when the government tries to borrow a
massive sum like $1 trillion? You know the answer: They automatically drive up
interest rates ... crowd out other borrowers like corporations, consumers or
local governments ... and make the entire debt crisis far worse.
Q: What happens when the government tries to raise the
money with higher taxes? You know that answer too: Tax hikes can only crush the
already-mangled consumer ... and make the recession far worse.
And This Is Supposed to Be Their Master
Plan to Save America from More Misery?
Not only won't it work ... but to the degree that it does
have some impact, that impact can only backfire.
Already, on Friday, the interest rate that the U.S.
Treasury must pay to borrow 10-year money surged by 33.2 basis points - one of
the greatest single-day rises in history and an early omen of far sharper rate
rises in the future..
Also on Friday, gold resumed its surge - a warning to all
governments that seek to defy the power of free markets.
These dramatic moves in interest rates and gold are
telling you that if there ever was a time to position yourself for protection
and profit from the next phase of the debt crisis, this is it.
Our recommendation is unchanged: As we've told you from the
outset, every time the government attempts to fight this debt crisis spurs a
temporary rally, you have a golden opportunity to sell any vulnerable stocks
you may still have.
Plus, it's also the very best possible opportunity to
position yourself for huge profits as the crisis continues to spread.
Your next urgent step: Read our latest report on this
crisis. It shows you what you must do to protect your wealth and multiply your
money ... as America's debt pyramid continues to collapse ... and as Washington
continues to stumble in its efforts to put it back together.
Indeed, Washington's latest effort to goose up stock prices
gives you a unique window of opportunity to find true safety and position
yourself for profits before the next big decline.
But never forget: As soon as investors around the world
start selling en masse, that window is going to snap shut. So be sure to click
this link to read our report before it's too late.
Good luck and God bless!
Martin
.
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