Newsgroup: it.economia.borsa.estero
Titolo: Wall Street sopravvalutata?

Nick Guarino
Dear subscriber,
I started writing financial newsletters 20 years ago The issue you hold in
your hand is the biggest one I've ever written, bar none.
The reason is simple. As you know, the U.S. stock market wipeout will be the
greatest financial calamity to befall any society. It will change your life,
my life, everyone's life Most for the worst. A privileged few, for the
better.
For years I've predicted the mutual fund bubble. I've warned you about
inflation, the Fed raising rates, the dollar collapsing, the stock market
plunging.
Now for the first time, all those events are taking place at once It's one
thing to predict events It's quite another for them to actually occur.
This issue tells the greatest story I've ever written It explains the mutual
fund conspiracy The Fed finally moving to act. Their trillion-dollar
financial war chest The consequences of the collapse.
Most important, I show you what you must do to protect yourself. Because
it's here It's now It's happening.
The last part of this newsletter tells how you can turn this crisis into a
life-changing experience Rarely does the opportunity come along to join the
ranks of the truly wealthy This is like striking gold, hitting oil, and
winning the lottery all at once.
Please receive this issue in the spirit it is intended -- that it saves you
from the coming destruction, and makes you fabulously wealthy.
Sincerely,
Nick Guarino
P.S. -- All our issues are copyrighted This is your written permission to
copy this newsletter, and give it to as many friends and family members as
you like Even post it on the Internet Just one caveat I ask that you
reproduce the issue in its entirety, with no changes The life you change may
be a loved one or a family member and you may help save people from the
greatest financial ripoff in the history of mankind.
The Wall Street Underground
1144 Booth
Kansas City KS913-342-6400
September 1999
Vol. 4, No.7
Fed declares war on Wall Street
Central bankers launched their second interest rate hike in two months -
despite zero inflation. The Fed has created a trillion dollar war chest, to
cover emergency fallout from the stock market crash. And now Alan Greenspan
has bombed the markets with his most dire warnings ever.
The Fed has publicly declared war on the bubble stock market. All in a
desperate attempt to save the U.S. economy before it self-destructs.
We were the first to report to you the explosive changes in Federal Reserve
policy and its implications. Now we have another exclusive first to report
to you. The Federal Reserve has declared all-out war on Wall Street.
The Fed has informed its primary dealers -- the world's biggest banks --
that 250 billion dollars cash is available. Top banks can get that money
just for the asking, to shield the U.S. economy from the fallout of the
crash. This is only one-fourth of the trillion dollar war chest the Fed has
assembled. They will use it to protect critical financial institutions and
banks from the fallout of the coming Wall Street crash.
At the same time, Alan Greenspan is warning the Fed will raise rates as high
as it needs to, to bring down the bubble stock market. He said that is the
Fed's one hope to save the U.S. economy.
This is a revolution in Federal Reserve policy. It will permanently change
the way the financial game is played. A select few will make great profits.
Most people will get wiped out.
The Fed has been backed into a corner. They have no choice. They have to
bring down the U.S. bubble stock market. Otherwise, the U.S. economy goes
into its deepest depression ever. One it may never recover from.
The Fed knows bringing down the market will set off a domino effect. Stocks
will collapse. Mutual funds will get destroyed. That's the price they must
pay for creating the biggest bubble stock market ever. The entire financial
system will be in grave danger.
That's not all. The Fed has also set up a special reserve window. Banks can
borrow all they want, at 1.5% over the going Fed Funds rate. They call this
the "don't ask, don't tell" borrowing window. The Fed won't ask -- and banks
don't have to tell if they have the collateral to back up the loan.
On top of all this, the Fed has stashed $100 million in cold hard green cash
at the twelve Federal Reserve District banks.
This money is to cover runs on banks -- runs a Wall Street crash could
cause.In all, the Fed has put together a war chest with over a trillion
dollars. This money is for one thing. To contain the stock market wipeout.
To try to keep the fallout from spreading beyond Wall Street and the mutual
funds.
Obviously, the Fed is not playing around here. They have already started
tightening operations. Interest rates are going up. They will soon go up a
lot more. The Fed has prepared the biggest war chest any central bank ever
has put together. The long awaited wipeout of the bubble stock market has
started.
Greenspan called Wall Street spin a lie
The Federal Reserve has publicly shown that every one of Wall Street's spins
is a lie.
Wall Street claimed worker productivity is rising, and driving stock prices
higher. In recent sworn testimony before Congress, Greenspan said that is
false: worker productivity is falling. In fact, worker productivity is now
its lowest in decades.
Wall Street said corporate profits are soaring. Greenspan demolished that
myth as well. He showed how Wall Street grossly overstates corporate
profits. Even then, he said, they don't come close to justifying today's
stock prices.
The Fed Chairman went so far as to call the rise in stock prices
"inexplicable." He said Wall Street has created an "unstable bubble," that
is the result of a "herd mentality."
He even compared today's U.S. stock market bubble to the Dutch tulip bulb
craze of times past; and the Russian equities bubble that crashed last year.
Both these markets ended in disaster for their economies and nations.
Greenspan didn't stop there. He warned the Fed will raise rates "promptly
and forcefully." They have to, to bring down the "unstable bubble stock
market."
You must understand how critical this is. Past Fed chairmen never made
strong statements. They would describe the nuclear bombing of Hiroshima as a
very beneficial urban modernization. By law, they are the market's leading
cheerleaders.
But Wall Street has created the biggest bubble ever. Now the mutual fund
wealth effect has put the entire U.S. financial system at risk. The Fed must
act, or watch the U.S. economy get wiped out.
That is why the Fed is preparing for war. It's why they are taking their
most aggressive steps ever to bring the bubble stock market down.
Already the Fed has raised rates twice
in two months -- despite zero inflation
These are the most serious events I can imagine. Official inflation, as
reported in the core CPI and PPI, is zero. Yet the Fed still raised interest
rates. Not just once, but twice in two months.
In an even more unusual move, the entire Federal Reserve Board unanimously
voted to raise rates. For the first time in four years, they raised both the
Fed Funds rate AND the Discount rate. They almost never do this. When they
do, they are signaling that many more rate increases are on the way.
Incredibly, Wall Street still tried to spin that the Fed is done raising. So
just four days after the second rate hike, Greenspan again shocked the
markets. He told them more rate hikes are coming soon. He said the Fed will
keep targeting the bubble stock market. Just in case there was any doubt,
two other Fed governors said the same thing. Clearly, rates will go up over
and again.
Anyone with more than five hundred dollars cash needs to pay attention. Fed
policy affects everyone, from the McDonald's hamburger flipper to the
international financier. Especially when the Fed changes policy; repeatedly
raises interest rates; and brings down the bubble stock market; all to try
and stop the entire economic system from collapsing.
Before this stock market wipeout is over,
mutual fund holders will be reduced to a sle-
eping bag, a shopping cart and a jug of wine
This revolution in Fed policy is unprecedented. For 30 years the Fed
targeted consumer price inflation. Now they are targeting the runaway stock
market. This was brought on by one thing: the incredible success mutual
funds have had, scamming the American public.
They created a bubble market that shocked everyone. Wall Street's biggest
scam has been more successful than in their wildest dreams. Unfortunately
for them and mutual fund investors, too successful.
The lap-dog regulators aided and abetted the Wall Street conspiracy. They
refused to reign in the outrageous crimes the mutual funds committed. They
let mutual funds and Wall Street roll the dice with unsuspecting investors'
money. Worst of all, they let them play in the unlicenced, virtually
unregulated derivatives market.
At the same time, regulators misled investors. They let them believe they
were investing in the equivalent of a safe, secure, insured, high-yielding
savings account. People still don't realize they are rolling the dice in the
winner-today/loser-tomorrow Wall Street casino.
Wall Street has created the manipulator's dream: a buyonly, one-way stock
market. Except for a few fast corrections, the market has done nothing but
rocket upwards for the past 20 years. This has created the most gross
over-valuations in the history of markets. It has also created the most
gross mutual fund holder over-confidence.
No wonder people can't see the imminent crises. For twenty years their
mutual funds have soared. They are convinced a correction is a two-week
affair. A buying opportunity. They believe bear markets are a thing of the
past.
Millions of mutual fund investors have learned the wrong lesson. They have
no fear. They will ride the market all the way down, believing Wall Street's
lies. This bubble stock market and bubble economy are a serious threat to
everyone who owns more than a sleeping bag, a shopping cart and a jug of
wine. Before it's over, that will be the net assets of most mutual fund
holders.
As the Fed just announced, they are targeting financial market inflation.
That is the runaway increases in U.S. stock and real estate prices. These
runaway increases created what Greenspan calls "an unstable bubble stock
market."
Play time is over. The most powerful man in the money game has confirmed
that the "inexplicable," "unstable" U.S. bubble stock market is no longer
just a crisis for Wall Street. It is the source of future U.S. inflation and
economic turmoil.
Greenspan said the bubble is destabilizing the entire U.S. economy. He said
the Fed is directly targeting its interest rate policies at the bubble stock
market. Along with other actions the Fed is taking, this guarantees the
stock market will wipe out. The best the Fed can hope for is to stop the
market from plunging thousands of points a day and toppling the U.S. banking
system. That is why they have made a trillion dollars available to key
banks.
Remember, during the Great Depression the Fed held the U.S. financial system
intact. Japan kept its economy afloat, when the Japanese stock market
collapsed. Unfortunately, real estate and stock holders were wiped out in
both disasters. Just like
they will be this time.
Fed believes the bubble stock market is about
to launch equivalent of all-out nuclear attack
on U.S. financial system
There are times when the course of economic destiny for decades into the
future is revealed. We are going through just such a period now.
The Fed is taking steps to protect the U.S. financial system and banks from
the Wall Street and mutual fund wipeout. Like any good general they are
preparing the troops. They are marshaling their resources.
Do not mistake that to mean they will protect stock market funds, money
market funds, or the U.S. real estate market. Those markets will have to be
sacrificed. The Fed knows it.
The Fed is charged with protecting the U.S. banking system. Not the U.S.
speculative orgy on Wall Street. Not the Wall Street casino or the high
flying real estate market.
The Fed's job is to stop the excesses that could collapse the economic
system. It knows those excesses have reached crisis proportion. It is now
taking the necessary steps. The decision has been made.
The Fed knows the stock market bubble, left unchecked, will bring down the
entire U.S. financial system. They can't let that happen. The bubble has to
be brought down before all is lost. No matter what the price to mutual fund
players. It's either Wall Street or Main Street. The Fed has chosen Main
Street.
I hope you pay attention. It's easy to see what happened after the fact. But
hindsight won't do you any good. You must know what to do ahead of time, so
you can protect your fanny. The Fed ain't going to write you a check. You
have to protect yourself.
Time and time again the Fed has let the stock market and real estate market
take a wipeout. Don't kid yourself. They are not going to bail out the
bubble market players.
This is going to cause a hell of a lot of pain on Wall Street. But the Fed
has no choice. Things have gotten out of hand. Mindless Wall Street
speculation created the biggest consumer spending orgy ever. Real estate
prices are setting new records every month. Cars are selling at their
fastest pace in history. The stock market is floating on air, skyrocketing
to new high after new high. Adding to the crisis is the U.S. money supply It
is soaring at its fastest rate ever. People are borrowing all they can. They
are rushing out to spend their mutual fund paper profits.
Increasing money supply is how inflation slams into the system. Already the
signs of higher prices are everywhere. A huge inflationary bubble is forming
in the pipeline. See the boxes starting on the previous page, and going
through page 8, for more on this. As the Fed just said, only "flaws" in the
CPI and PPI have kept them from showing the inflationary
pressures that are building.
The Fed knows this only too well. They know America faces its biggest
financial crisis ever. And they know what's causing it: Wall Street's false
wealth effect. People are buying everything in sight -- based on the paper
profits Wall Street created. But those paper profits are not real. They are
a mirage. The money Wall Street posts as profits does not exist. This is
what Greenspan warned about in his recent speech.
Greenspan warned that mutual funds create money out of thin air. Not just
billions of dollars. But trillions of dollars. This is strictly
lottery-type, phantom money creation.
That is the crisis. Phony-baloney Wall Street paper wealth is causing the
money supply to skyrocket. It is distorting every market from real estate to
consumer goods.
The Fed knows the wipeout is coming. They are trying their best to contain
the destruction. Not a moment too soon. I expected them to act before this.
Truth is, they waited too long. People are about to relearn a painful
lesson. A lesson Wall Street has taught many times in the past. The crash
will wipe out most mutual fund holders, who have mistakenly trusted Wall
Street with their life savings.
How soaring mutual fund prices are creating
the biggest consumer spending orgy ever
-- all on borrowed money
The key to all this is the money supply. When too much money is created, it
unleashes forces that can't be stopped. These forces destroy economies and
collapse markets.
Wall Street wants you to forget that critical fact. But you remember the
excess money created in the 1960's and 1970's. Government turned on the
printing presses. They needed money to pay for the Viet Nam War and LBJ's
Great Society programs. Also, the Arab oil embargo sent shock waves through
the world financial system. The U.S. economy had to swallow soaring energy
prices, almost overnight.
Back then, the Fed printed money. They had to, even though they knew the
future consequences. That extra money quickly showed up in the CPI (consumer
price index). Any time you went to the grocery store, you saw higher food
prices. Energy prices soared. So did raw material prices. That was runaway
retail or consumer-based inflation.
The CPI rose to over 10% per year. It took the Fed twenty years to beat that
inflation out of the system. They had to raise rates over and over again to
get things under control. Just like now.
The rate increases did what they always do. They brought on economic
downturns. The stock market crashed. The Dow lost nearly 50% of its value.
The average share of stock lost 90%.
The cost of borrowing money skyrocketed. This put record numbers of
companies out of business. They could not survive 20% interest rates. The
U.S. suffered deep recession after deep recession. Unemployment rose to its
highest levels since the Great Depression.
The savings and loan industry got wiped out. Real estate values plunged.
Please note, the Fed bailed out the banks, but not the stock or real estate
market. (They will do the same this time.)
All this was a result of the soaring money supply; the inflation that excess
money brought on; and the recessions the Fed caused by raising interest
rates.
This time, Arab oil embargoes and Viet Nam wars are not causing the problem.
Wall Street recklessness is. Different time, same result. In the 1960's and
1970's, soaring money supply created vast CPI inflation. Now soaring money
supply is causing vast financial market inflation.
The U.S. stock market has more than tripled in value in five years.
Companies are grossly overvalued. Their profits do not justify their stock
prices. This is proved by the fact that their earnings have barely risen at
all.
P/e (price to earning) ratios have skyrocketed from 8 to 35 and more. That
means the stock market is paying four-to-five times more for the same amount
of earnings. That's conservatively put. As the Fed and SEC just stated,
companies grossly overstate their earnings.
Mutual funds sold Americans a bill of goods. People got sucked into the
greatest Ponzi scheme ever. They are paying a lot more, for a whole lot
less. Greenspan warned this is causing the money supply to soar. He said it
is causing the runaway consumer spending boom.
Now the Fed is going to make sure the paper profits and consumer spending
orgy are gone. Problem solved. But not before mutual fund holders are wiped
out.
With financial market inflation,
you get to spend money that doesn't exist
Financial market inflation is the most dangerous of all. It's critical to
your financial survival that you understand this.
This is the inflation the Fed is targeting: inflation created by the stock
market bubble. Not the consumer-based inflation of times past.
How does financial market inflation take place? By a mechanism that did not
exist before. Stock investors can now enjoy all the benefits of soaring
stock prices, without having to liquidate their portfolios.
They don't have to sell their mutual funds. They don't have to take profits.
Wall Street has created every stock manipulator's dream: a one-way,
buyers-only market. That means the market only has buyers over sellers. On
balance, this kind of market only rises. Since mutual funds created this
buyer-only market, the Dow has gone from 800 to 11,000.
How could they make this happen? The scam starts with the accounting
technique mutual funds use. This technique is called "mark to market." Every
day, mutual funds use the closing stock prices to figure out the cash value
of their fund.
For example, suppose the stocks in their fund go up 10%. They figure 10%
more money is available to the fund holders. They show that extra cash in
the people's accounts. They do this every day.
You can write checks against this imaginary
money - charge credit card purchases --
even borrow against the paper profits
Now here's the key, the way they fool everyone.
That extra cash they show on mutual fund profit statements does not exist.
Only the stock the mutual fund holds is there. As markets all over the world
have shown, stock values can plunge in the twinkling of an eye. The money
they call "balances in mutual fund account" does not exist.
The trick here is that mutual fund holders can use and spend this
nonexistent cash. They don't have to sell the stocks. They don't have to
liquidate their mutual fund. They don't have to "realize profits," as it's
called in the business. For the first time ever, they can have their cake
and eat it too. At a horrible future price.
Wall Street accomplishes this trickery in several ways. It's really clever.
People are given false confidence the money will be there. Mutual fund
holders can write checks against their unrealized mutual fund paper profits.
They can get credit cards from their fund, and charge purchases against the
nonexistent money in their account.
Mutual fund paper profits appear just like cash in the bank. So everyone
believes those profits are good as gold. People think their mutual funds are
just a high-yield savings account. An account that safely holds their life
savings. Worst of all, they can borrow against their seemingly endless
profits -- even though the cash does not exist.
Here is an example of how the con game goes. Take a couple with $500,000
profits in a mutual fund "savings account," and $100,000 in their real
insured bank savings account. They have made some fast easy money. Everyone
has. The market has doubled every five years.
Like any lottery winner, they can't resist the temptation to enjoy their
newfound easy-money wealth. So they decide to buy a new home. One that fits
the life of their dreams, thanks to the Wall Street free-money machine. They
buy a house that costs $500,000. Far more than their income could ever
justify. But the mutual fund bubble has made them rich -- at least on paper.
With the magic of mutual fund funny money, they can afford their dream home.
They don't cash in their mutual fund, though. They need the fund to keep
rising. They need the easy money to keep rolling in. People are counting on
and spending the neverending mutual fund profits. It's the only way they can
support their higher lifestyle. (The Wall Street wealth effect.)
So they strip $100,000 out of their savings account. They borrow the other
$400,000 against their mutual fund savings account. This is why America now
has a negative savings rate. Why keep money in a safe insured 5% guaranteed
deposit, when mutual funds make 30% a year?
The lender looks at their assets. He decides they are credit worthy. After
all, they have $500,000 in a mutual fund "guaranteed savings account." He
loans them the money based on their mutual fund net worth.
They have just turned unrealized paper profits into cash. That money did not
exist. It was created out of thin air. The only thing backing their loan is
unrealized mutual fund profits.
They are literally banking on endless Wall Street casino earnings, so they
can live the good life. Something has to pay for their lavish spending.
Their wages certainly can't. But history has proved that Wall Street paper
profits always end up vanishing overnight. Wall Street does not care about
that. By making unrealized paper profits available to mutual fund "savers,"
Wall Street keeps the Ponzi scheme going.
Alan Greenspan just warned this is why the money supply is soaring. He said
it is why he is raising rates, to bring down the stock market. The nation's
financial system is rolling the Wall Street dice. The bubble stock market
has put the U.S. economy at risk. Greenspan must stop the unstable bubble,
or watch the entire economy collapse.
U.S. economy is resting on a house of cards -
that is about to come tumbling down
Mutual funds now act like banks. Banks learned a long time ago people
normally don't ask for all their money at once. So they only keep a small
fraction of cash available at any time. That is why banks are so tightly
controlled. It is why the FDIC guarantees bank deposits.
Mutual funds also only keep a small amount of cash to cover redemptions.
Typically 2%-to-5% of their total portfolio. But unlike the banks, mutual
funds have almost no regulation. They have no guarantees or insurance behind
them.
But it's far worse than that. Mutual funds roll the dice with the other 98%
of their deposits, in the casino stock/derivative market. They take risks
bankers would be put in jail for.
At the same time, their fund holders can spend the unearned paper profits in
their account -- without selling or locking in those phantom paper profits.
Everyone is happy, until the day of reckoning comes. Then people see their
losses mount. They get scared. They try to cash out. The key word is "try."
That's when they learn the bitter lesson. Paper profits are not realized
profits. Here today, gone tomorrow.
As the market drops, the paper profits evaporate. The lower the market goes,
the more redemptions. The more selling. People panic. They have spent and
borrowed against their paper profits. Profits that never existed. Now they
see the profits they already spent vanishing before their eyes. They try to
get out, and save as much of their former wealth as they can.
By this time it is too late. They get wiped out. At the end of the day, they
learn two costly lessons: 1) Never, ever spend unrealized profits; and 2)
Mutual funds are not insured guaranteed high yielding savings accounts. They
are a Wall Street crap shot. Eventually the market always rolls snake eyes.
Spending unrealized profits is the second most dangerous thing you can do.
Only one thing is worse. Basing your lifestyle on the hope that stock prices
will always go up. That is deadly. It always ends in disaster. And that's
exactly what is going on now.
Mutual funds keep driving the bubble stock market higher. The bubble
generates huge paper profits. Then the funds make the paper profits
instantly available. People spend those paper profits, by borrowing against
them.
Mutual funds know no one has taken profits. They know the cash does not
exist. Investors do not have that money, even though it is listed on their
mutual fund statements. Truly what they see, is what they will never get.
When the market goes down -- and it is going down -- those paper profits
vanish along with their principal. To never be recovered.
Bear markets last decades. Stocks lose 50% minimum and usually 90% of their
value. They take many years to recover. Especially after runaway bubbles.
Once the real selling starts, the market will wipe out all the gains from
the mutual fund rally and more.
At any moment the market will collapse. This has happened to every bubble
market in history. It will happen to this one. Real soon. Mutual fund
accounts holders will come up empty.
This is the crisis the Fed faces. Financial market inflation, caused by the
Wall Street unrealized-profit wealth effect. And that is why the Fed is
bringing down the bubble. They warned the market for years. They announced
they would do it. Now they are doing it.
How did this happen?
Wall Street had a little marketing problem
Wall Street had to keep the masses in the game. It's the only way the big
brokerage firms and funds could make and hold onto their billions.
They also knew that markets normally have constant profit taking. That acts
as a safety valve. It keeps stock market rallies in check.
So to pull off this Ponzi scheme, they had to produce a marketing miracle.
They had to come up with a way people could enjoy stock market paper
profits -- without selling their mutual funds. If they sold, the mutual fund
would have to sell stock. Net selling would collapse share prices and bring
the whole scheme crashing down.
Understanding investor greed, they came up with a brilliant (and deadly)
solution. I've already told you what that was: create a market of buyers
only. A market of constant buyers over sellers. Remove profit-taking, and
profits soar to the moon.(at least until people finally sell). They
succeeded beyond their wildest dreams.
Now it's important you understand what I mean by buyers only. It's one of
the oldest financial con games in the book. Of course Wall Street sees
massive selling. Every day, 1.5 billion-to-3 billion shares change hands.
But that just hides what is really going on. For nearly two decades it's
been buyers over sellers... creating the huge bubble you now see.
What buying and selling goes on takes place almost entirely between mutual
funds. Mutual fund A sells its shares of IBM to mutual fund B. (For more
than it paid, naturally.) A little later, mutual fund B sells its IBM shares
to mutual fund C. At the same time, mutual fund D sells its shares of AOL to
mutual fund E. And so it goes.
They never stay out of the market. They buy more and more and more. All this
buying has one purpose: to keep bidding stock prices higher and higher. Fund
buying covers other fund selling. It's an endless circle of net buying.
Club members constantly rotate their portfolios. Trillions of dollars of
stock trade back and forth like baseball cards. Buyers over sellers. The
ultimate Ponzi scheme. Everyone is a winner.
Yes, there is selling. But it is quickly replaced by more new buying. The
net result is mutual funds own even more shares of stocks than they started
with. Prices get driven ever higher.
It's like Monopoly money. Billion-dollar mutual funds sit around the table
with phony-baloney Monopoly money. They trade their shares back and forth.
Everyone who is a club member makes money -- at least on paper.
The whole scheme works, as long as one key thing takes place. Mutual fund
holders must keep giving them more money. People selling, taking profits, is
the nightmare that wakes these guys up screaming in the middle of the night.
They know they can't keep this up forever.
That is why I say that mutual funds are on the treadmill to hell. The bigger
they get, the more money they need flowing into the Ponzi scheme.
Eventually, the critical flow of fresh money runs out. Every Ponzi scheme
self-destructs at the same point: when they run out of their fresh supply of
new suckers' money.
That's why the Fed raising rates is the kiss of death. Rate increases slow
the economy. They cut off the critical blood supply to the brain: new money
into the market to keep prices up in the ozone.
Become a billionaire the easy way
Here's another way to think of it. Imagine you've just enjoyed Christmas
dinner. You and five of your closest friends sit around a table. You have a
pile of pretty colored rocks. The rocks are worthless. Everyone knows it.
But you all start bidding on them.
You pay $5, then $10, $15, $100 and more for each rock. You bid them higher
and higher. You trade the worthless rocks back and forth, until they command
prices as if they were diamonds.
You and your friends are driving up the paper value of these pretty rocks.
Your group controls the supply. Pretty soon you run the market. You
establish value.
As the money rolls in, people see how fast these worthless rocks rise in
price. They want in on the fast money. So you and the exclusive club members
sell them shares in your rocks. The more they buy, the higher the value of
these worthless rocks go. The more the club members make. The fact that they
are really worthless doesn't matter at all. All that matters is that people
keep buying.
Next, you go to your friendly banker. You say "Look! These rocks are worth
lots of money. People are buying them for millions of dollars. I have sacks
of them. Loan me money." Your banker is only too glad to get a piece of
these big new profits.
Two things can bring the game down. Not enough new money coming in to buy
rocks at ever-higher prices. Or too many people selling their stocks -- I'm
sorry, I mean rocks -- and taking profits.
You have to keep greed working. As long as people believe rocks will be
worth more and more, they stay in the game. They give you more and more
money. The bubble ends when the price of rocks stops rising. People want to
take their big profits off the table. No more new money comes in, to keep
bidding these worthless rocks higher. The price of these grossly overvalued
rock has to come crashing down.
That day eventually comes. Then things snowball. The lower the price goes,
the more rock traders demand their money back. Worse, they figure out the
rocks were worthless to begin with. They realize their profits were not
real.
The most successful advertising
campaign in history
Every Ponzi scheme needs a constant supply of new money. The mutual funds
solved this problem in several ways. With the help of government and the
media, they put together the most successful advertising campaign in
history. They reported the great profits. Pick up a magazine or newspaper.
Turn on the TV. You are barraged by the mutual fund marketing machine.
This non-stop marketing has brought in a constant supply of
new rock traders. They don't know what they are buying. They don't care, as
long as they can get the free money Wall Street is giving away.
The higher the stock market goes, the more new money comes into the game.
That drives the paper profits higher and higher. This is the horrible secret
to the stock market. Stocks hit record high after record high for twenty
years for one reason: there was a constant supply of new buyers. That's it.
The only reason the market has soared from 800 in 1980, to over 11,000 in
1999. A twenty year buying spree!
Funds also had to keep investors in the game. They told them not to miss out
on the great profits to come. They made mutual fund accounts work as savings
accounts. They let them borrow against their profits. In these ways, they
were able to keep everyone in the rock game, without taking out their money.
Now that's over. The Fed is shutting down the party. They are raising rates,
over and over, to bring down the bubble. Tight money stops the blood flow to
this Wall Street tumor. No new blood and the tumor dies.
The stock market is about to fall fast. Next comes the dreaded snowball
effect. Not only are people seeing those never-ending future profits
disappear. The profits they borrowed against are starting to erode. Their
mutual fund dreams are turning into a nightmare.
The one thing Wall Street has avoided for twenty years is about to hit: a
prolonged bear market. Stocks go down and stay down. Why? Because endless
buying turns into endless selling. That's what a bear market is. Sellers
over buyers.
Mutual fund holders were constant buyers as their profits rose. Now they are
about to do the only logical thing they can. Take what's left. Cash in by
selling.
Only one little problem here. There is no pool of money to cash them out.
Not on Wall Street. Not in banks. Not even at the Fed. The numbers are too
big. There is no available pool of cash to pay off all the zeroes on the
mutual fund statements.
The profits never existed to begin with. Now the paper profits are gone. So
is the principal people gave mutual funds.
The value of people's mutual fund "savings accounts" is tied to one thing.
The stock market. That constant wave of buying will be replaced with a
constant barrage of selling. The more people who want out, the lower the
market goes
Fed's dilemma: they are stuck
between a rock and a hard place
The Fed knows the market is about to crash. They have given warning after
warning about this. But the Fed cannot run into a movie theatre that is on
fire and yell "Fire, Fire!" The stampede to the exits would kill everyone.
So they are sending the ushers to the people one at a time. They are
whispering, "We know you are enjoying the movie. We know you're having a
good time. But you really have to leave now." The good time is over.
They hope they can get as many people as possible out in an orderly manner.
The profits will be gone. But maybe, just maybe, they can avoid an economic
wipeout and collapse.
Hopefully people won't lose everything. Greenspan wants to avoid turning the
classic bear market wipeout into an all-out, full-blown depression. I wish
him luck. No central bank has ever succeeded in doing this. They sometimes
are able to save the economic system. But at a horrible price.
In the meantime, people smart enough to understand how Wall Street works --
who know what the Fed is doing -- will get out. The vast majority will not.
You and I will make a killing, shorting the falling stock market. It's
unfortunate it has to be this way. I did not create this bubble. Neither did
you. We happen to know about it, and what to do. And life rewards people
with foresight. People who can think for themselves and rise above the pack.
Mutual fund holders are in the greatest mindless herd ever created. You know
as well as I do that people caught up in these kinds of events never end up
doing well. History has shown they become Wall Street's latest victims.
Greenspan was read to raise rates three
years ago. Here's how he was forced NOT to...
You see the economic war that has started. You know the wipeouts that are
coming. You may wonder why the Fed let things get so far out of control.The
Fed has known for three years that Wall Street was creating a dangerous
bubble stock market. They knew excess would wipe out the stock market -- and
had the potential to wipe out the economy. Their job is to stop that excess.
Where was the Fed? Why didn't they act?
The horrible truth is the Fed wanted to bring the market down years ago. But
they couldn't. Their hands were tied. In effect, the Federal Reserve was
blackmailed from doing what it knew it should.
You remember when the Dow was around 6000. Fed Chairman Alan Greenspan gave
a series of warnings. At the time, they were unprecedented.
He said the market was a "bubble" that must "burst." He called stock prices
a dangerous case of "irrational exuberance." That's when the market was
about half its current level. The media reported his warnings.
But the media never revealed a key fact. The Fed wanted to raise interest
rates then and there. They knew they had to cool off the speculative bubble.
They were stopped from doing so.
Here's what happened. Greenspan and the Fed were ready to act. Their
internal stock market valuation gauge showed stocks were way overvalued.
Mutual fund managers had been given more money than any human beings ever on
earth. They were under almost no regulation. No supervision. And they were
buying everything in sight. Not millions. Not billions. But trillions of
dollars of stocks. They were creating the fabulous buy-only market we talked
about earlier, sucking in every dollar that was not nailed down.
Greenspan knew they couldn't be allowed to continue. They couldn't keep
bidding up stocks, no matter what the value. If so, he said, the bubble
stock market would burst. He said the consequences would be disastrous.
Worse than the wipeout in Japan.
Greenspan was about to go ahead and raise rates. He had his finger on the
trigger. But there were some things he had to do first. Remember, the
American public is the last to know these things.
Greenspan contacted some big Wall Street firms and mutual funds. He told
them the Fed's concerns. He tried to bring sanity back to the situation.
Normally, people tremble at the Fed's power. This time, Greenspan and the
more hawkish Fed governors were stunned. Wall Street told Greenspan to mind
his own business. Stick to regulating Fed Fund rates at banks. Don't mess
with the "free market." It's a new paradigm in stocks.
Wall Street successfully
threatened the Federal Reserve
At this time, Greenspan was up for re-nomination as Fed Chairman. Clinton
called Greenspan to Washington. He told him to stop meddling in the stock
market. Otherwise, Clinton would not re-nominate Greenspan. Alan Blinder
would replace him. Congress would 'reevaluate' the powers of the Fed,
cutting its feathers.
Greenspan realized he was about to be booted out. He knew the entire Fed
would be shaken to its foundations:
Congress would cut down the Fed's role in the new U.S. economy. So he sat
back and allowed the world's biggest bubble market ever to be created. A
bubble that will wipe out the stock market and much of America's savings.
Wall Street's tactic worked. (With an assist from Clinton.) They were able
to back down the Federal Reserve. Greenspan did nothing to stop the biggest
bubble ever. He let intense political pressure stop him. This will go down
in history as the greatest Fed Reserve mistake ever.
Wall Street got a free hand. They wanted to convince the public and the
politicians that they had found the holy grail: the mutual fund perpetual
money machine. If they could do that, the Fed agreed it would not stand in
their way. Greenspan would let the market run its course.
There was a caveat. Wall Street promised profits would grow
beyond investors' wildest dreams. Productivity would soar. This would
justify the highest valued stock market the world has ever seen. If the rosy
scenario painted by Wall Street did not occur -- if instead the stock market
kept getting more overvalued -- the Fed could eventually take action.
That is what happened. Wall Street's spin was proven false. The productivity
gains never materialized. Neither did the profits. The Fed did study after
study proving this. They showed the bubble was getting worse.
Greenspan kept warning about the U.S. stock market bubble. He said the
bubble would spill over to the rest of the U.S. economy. It would create a
vast consumer spending orgy. (The Wall Street false wealth effect.) He said
this would have catastrophic effects on the U.S. economy.
Wall Street pooh-poohed all of Greenspan's warnings. Their disinformation
campaign cranked out all the cliches. "This time it's different." "The
computer age means the business cycle is over." "Gains in productivity will
increase corporate profits." "Invest for the long haul." "Profits will
continually rise to justify the ever-rising stock prices."
Clinton insiders, such as Alice Rivlin, were placed inside the secret
meetings of the Fed. They watched over Greenspan and the other hawkish Fed
members. They made sure the Fed followed the political will of the President
and Congress. More important, they made sure Greenspan did not interfere
with Wall Street's Ponzi scheme.
For three years the Fed was
a toothIess, clawless tiger
This great bubble stock market and wipeout would never have occurred, unless
the Fed became a toothless, clawless tiger. Greenspan could only jawbone the
market in the most subtle ways. Sure enough, month after month, year after
year, the market went higher and higher. The bubble got bigger. Finally, the
Dow went over 11,000. It created the biggest bubble ever. Greenspan was
proven right.
World leader Helmut Schmidt just said U.S. economic policy is being run by
Wall Street and mutual fund psychopaths. (See the box on page 10.) IMF
economists say the same thing. And starting this spring, Wall Street's great
lie started to unravel. Early indicators showed embedded inflation was
starting to come on strong. Energy prices, minerals, and raw materials
started soaring.
Productivity gains were tiny. Nowhere near what was needed to justify a Dow
over 11,000. Wages were exploding. It became clear to everyone on the inside
that the party was over.
Wall Street insiders responsible for the mis-information campaign started
heading for the exits. The chief architect of the bubble was U.S. Treasury
Secretary (and Wall Street insider) Robert Rubin. He was forced to resign.
The Fed reestablished its authority as the independent regulator of the U.S.
financial system. It purged itself of Clinton stooge Alice Rivlin. She had
been put in the number two position at the Fed. This summer she got the
boot. Janet Yellen at the Budget Office was forced to resign as well.
With that in place, Greenspan gave sworn testimony before Congress. He said
the stock market is "a lottery" and a "fraud." He said, "rising equity
prices have created an unstable bubble in the U.S. stock market." Then he
raised rates in June; and again at the Fed's very next meeting in August. He
warned the markets he will act "promptly and forcefully" to bring down the
bubble U.S. stock market and economy. He will raise rates over and over
again. These moves will stun Wall Street.
Unfortunately for Wall Street and the mutual funds, the Fed could have
controlled a 5000+ Dow. They could have steered the market to more rational
levels. The economy would still have felt a lot of pain. But there would not
have been the devastating impact of a market that rallied three years
further, to 11,000+.
Of course for us this is a great boon. Otherwise, the greatest real
money-making opportunity ever would not have landed on our doorsteps.
The bubble is over. Fed rate hikes dry up the pool of money. They force
people to dip into their mutual fund "savings" accounts. Problem is, mutual
fund holders have exhausted their savings. They have gone deeply in debt.
They have overpaid for real estate that can't hold its value in the future.
As the stock market comes crashing down, mutual fund holders will be wiped
out. Real estate prices will plunge to levels not seen since the 1950's.
Former paper mutual fund millionaires will go begging on the streets for
something to eat.
And the greatest liar and most deceitful president ever, Bill Clinton, will
leave behind a legacy: of the greatest overvalued stock market ever, and the
biggest wipeout investors have ever suffered.
Investment recommendations
All this has been an academic discussion, until you apply what you know to
you and your situation. Here is where the rubber meets the road. In this
section we'll cover practical steps you need to take to apply what you've
seen here.
First you must protect what you have. That's your core wealth. Your core
possessions. What I call conservative investments.
You won't get rich on them. Their purpose is help you keep what you have.
(Though you can make some juicy profits. In the coming downturn, some of
these conservative investments will do better even than the stock market has
these past five years.)
Remember, things are about to get worse. A lot worse. Unless you lived
through the Great Depression, you have never seen an economic slowdown as
big as the one that is coming. This bubble market and bubble economy are
coming to a fast end. We are entering a major business slowdown. People will
have less money to spend. They will have to cut back.
Whatever debt you carry will get more expensive. More burdensome. Which
means you urgently need to get out of debt.
You will probably have less money to service your debt. Also, the credit may
not be available. There's only so much money to go around. A lot of big pigs
will be at the trough. They will try to suck up what little money is there.
You haven't lived till you experience a situation where you are current on
your credits, yet the financial institutions are still calling your notes.
I covered this in great detail in the October 1998 WSU. I talked about the
collateral calls built into almost every mortgage contract. Home prices are
booming. And because you can deduct mortgage interest payments, people are
borrowing vast amounts against their equity. One problem. They have
forgotten that real estate prices don't only go up. They also go down.
Americans haven't seen that since the real estate wipeout of the 1980's. But
if you held real estate in Asia, or Latin America, you've seen prices
plunge. The bubbles burst, as they always do. The U.S. real estate bubble --
biggest in history will burst as well.
Whatever the value of your real estate now, it will go down. Expect it to
lose half its value. If you don't have at least 50% equity, you can count on
problems with your lender.
My first and most controversial
conservative recommendation...
...is to take advantage of the real estate boom. Sell your house. Sell all
your real estate. Right now. Even if you have to discount it a little. In
the next 12 to 24 months, you will be able to buy that real estate back for
a lot less money.
If you are in love with your house, make sure you own it for cash. Pay off
any loans you have on it. If you have 80%, 100%, 110% financing on your
property, you are in big trouble.
When I talk about your home and real estate, I am on holy ground. You're
better off renting now, and waiting. In the next 12 to 24 months you can buy
much more, for far less. Whatever real estate you own in the U.S., you'll be
able to buy for $.50 on the dollar when the bubble bursts. And it's going to
burst soon.
Your business. Your job. Your retirement. Social Security will be there. So
will government pensions. The Fed will see to that. Private pensions are a
different matter altogether. You cannot count on them.
During the 1970's, pensions were grossly underfunded. Many major
corporations had to put more cash into their pension funds, to bring them up
to minimum standards. Thanks to the bubble stock market, companies have been
able to take out that cash, and put stock in it place. People think their
pension funds are solid. Nothing could be further from the truth. If your
retirement plan is tied to stock or money market funds -- and they all
are -- expect to take a big hit.
I recommend you cash in your retirement or pension plan now. Even if you
must pay the tax consequences. Get out of any IRA, Keogh, 10K, retirement
plan or pension fund. Put your money in insured C.D.'s, passbook savings
accounts, and 90-day U.S. T-bills.
I know of no mutual fund or money market fund that will not suffer huge
losses in the crash. Money market funds use derivatives. Even if they call
themselves "Government Securities" funds. They, too, will suffer huge
losses.
Like my real estate recommendation, this is controversial. Many people don't
want to hear it. But pay your taxes on your retirement fund. You're going to
have to at some point, anyway. Get those funds under your personal control.
I only want to hold dollar deposits in three places:
1. Cash under the floorboards. Make sure you can prove this money is legally
yours; and that you paid taxes on it. Keep receipts from the bank when you
withdraw the cash. Note when and where you took out money, and how much.
2. Cash in federally-insured banks. Keep less than $100,000 per bank. You
can have two accounts at the same bank, but only if they are held by
different people. (For example, you hold one and your wife holds the other.)
3. U.S. government T-bills. I love T-bills. The Fed has a $1 trillion war
chest, cash money available. That money is to defend deposits in the U.S.
banking system; and to guarantee U.S. government securities. C.D.'s at banks
(not to be confused with bank money market funds) will also be there. But
government securities are my absolute favorite cash investment.
One word of caution. Make sure you hold your government securities at the
Fed, in your own name. If you buy them through a bank or broker, you don't
own them. The bank or broker does. They are simply assets the firm owns.
Lots of banks and brokers will go under in the crash. What you thought were
your securities will just be general assets of the firm, which are used to
pay off creditors.
When you call your broker or banker, he will solemnly swear to you
everything is fine. So I repeat. Make sure your bank accounts are in
Federally-insured banks. Keep them under the $100,000 insurance limit per
account holder. Hold any U.S. government securities in your own name, at the
Fed. If you don't follow these easy steps, you're taking the chance of a
wipeout.
Gold and silver: I like gold the best for your conservative holdings. I
recommend one ounce gold coins. Canadian Maple Leafs are my favorite.
Krugerrands and U.S. government one-ounce gold coins (eagles) also are o.k..
Make sure you keep your gold coins in your possession. Never, ever let a
broker hold your gold for you.
If you own silver, my preference is old U.S. silver coins; one-ounce silver
coins; and least of all, 100 ounce silver bars.
At one time, 100 ounce silver bars were very popular. They are problematical
now. If you own 100 ounce bars, it's not a bad idea to trade them in for
gold coins. The gold to silver price ratio is now under 50. The low gold
price makes this a good play.
Currencies: the dollar is at or near the highest price it will be for the
next 20 years. America's trade disaster and the coming stock market wipeout
guarantee this. You absolutely should diversify into foreign currencies.
My favorite currencies are the Japanese yen and the German mark. The dollar
will lose half its value or more against these currencies. The mark gives
you another benefit: it is a great way to get in on the Euro. Euro's will be
the world's second-most used money. Maybe the most used. So opening accounts
in marks -- that you later transfer to Euros -- is ideal.
Some European banks already let you hold accounts in Euros. Here's a fun,
easy way to do this. You can arrange for round-trip airfare to Europe and a
nice hotel, for under $1000. (If you shop on your Internet computer you know
this.) Bring your passport, and a letter of recommendation from your bank.
Open a Euro account.
Of course, foreign bank accounts and income received from them are subject
to U.S. taxes. You must disclose the accounts and the income on your tax
returns. Talk to your tax professional for details. But under no
circumstances let that stop you from opening your account.
Another easy way to invest in foreign currencies is to go to an
international bank. Tell them you plan on travelling overseas at some point,
and would like some currencies.
Still another way is go to an international airport. They have foreign
exchange booths. You can buy currencies there. As is often the case,
knowledge is power. Check the currency exchange rates, before you make any
transactions. Being a knowledgeable buyer can save you a lot of money. You
can put those foreign currencies under the floorboards with your gold coins
and cash U.S. dollars.
Art, collectibles, fancy cars, antiques. All a definite sell right now.
It's boom time. Antique and collectible cars are commanding premium prices.
So is art. Anything you are not emotionally attached to, liquidate now.
eBay and the other auction sites are great places to research the value of
your treasure; and then sell them. Whatever you sell now, you should be able
to buy back later. At much lower prices.
An important note: if you're not on the world-wide web, you need to be. It
is a great resource: like knowing how to read and write was a thousand years
ago. The Internet is easy, fun, and a great tool. You're never too young or
old. Later on, I'll tell you how to get an Internet computer for free.
Some of these recommendations may surprise you. But we live in bizarre
times. The U.S. is about to enter a depressionary inflation. The plunging
dollar will make certain things much more expensive. Other things, will be a
lot cheaper. Here are some examples.
Precious metals prices will soar. Why? Because metals prices are tied to the
dollar, and the dollar will fall. But jewelry, art and collectible prices
will drop. Only the Wall Street wealth effect drove them up in the first
place. Soon the people buying these items will be broke and desperate. They
will be forced to liquidate.
Coffee and other imported foods prices will rise. So will other imported
goods. The plunging dollar will make them more expensive. Real estate will
collapse. Here again, only the wealth effect drove prices up artificially.
Once that's gone, prices are gone, too.
Nickel, steel, cooper and aluminum will soar. Those are mostly imported, and
the crashing dollar will make them more expensive. Car prices will plunge,
especially exotic cars. Demand will collapse.
These are not guesses. We've had many laboratories. Most recently the Asian,
Russian and Latin American bubble collapses. They all show the same pattern.
Businesses plunge in value. Profits collapse. Debt crushes them. Fine
business assets become available at bargain basement prices.
Pay will go down. People will get laid off in record numbers. Unemployment
will soar, wages will fall. This happens in every depression.
Inflationary depressions are the cruelest of all. At the very time people
have less money, many basic things they need -- like gas, energy, and
food -- soar in price.
You must be 100% liquid. Don't get too attached to things. Especially your
home, your antiques, your cars, your real estate, your business. You'll soon
be able to buy these back, for a lot less.
Those who have access to cash -- real money, not Wall Street funny money --
will buy the treasures of the world's richest nation, for pennies on the
dollar.
Aggressive recommendations
(How to make a fortune in the coming crash)
As you can see, the conservative recommendations keep your wealth intact.
Your goal is to shed assets that will fall in value. Once your house is in
order, I recommend you put a small percentage of your liquid net worth into
investments that can make you lots of money. In this section, I will show
you ways
you can make money as the market collapses.
When the market goes down trading stock market indexes, you will make a lot.
If the market goes up, you will lose. So don't speculate with money you
can't afford to lose.
Same thing with the aggressive currency and metals trades I recommend. The
speculative bubble is generating huge inflation. Its collapse will send the
dollar plunging. You position yourself to make money on these events.
These are sure-fire events. For a long time the question was when. Finally
we have an answer: now.
One word of caution here. This newsletter has been published every month or
two lately. That means you have to have a pretty good feel for what you are
doing. Between issues, I can't give you changes in strategy.
At the same time, I feel anyone who puts in a little time and effort can
learn how to take advantage of these strategies. In the old days, people
learned how to weigh gold, and how to assay it. You learned how to handle
your checking account, your ATM card. These aggressive money-making
instruments are so much a part of the market, everyone should understand how
they work and what they do.
It's a modern society. Like it or not, trading markets are here to stay.
They affect your income. Your wealth. Learn to deal with them, and you can
create the life of your dreams. Ignore them, and you will get wiped out with
the rest of the masses.
Stock indexes. The stock indexes -- i.e. the S&P500 and Dow Jones
Industrials futures contracts -- are becoming complicated trades. For
several reasons.
First, this is where the action is. Almost everyone you know is in the stock
market, one way or another.
The stock indexes truly are a boon. Individual stocks may vary in value. The
indexes let you trade a basket of stocks. That way you smooth out the
individual stocks, that may go against the overall market trend.
By trading the baskets, or indexes, you trade the overall stock market.
Traders have used the stock indexes for years. I have recommended stock
index trades in the past as a way to jump on falling markets, with excellent
results.
I recommend WSU subscribers short, or sell, the stock indexes. In a falling
market, selling these indexes does very well. Right now, the active futures
contract is the December contract. But as soon as volume justifies it, I
will recommend you trade the March contract. (This will probably take place
in late October or early November.) Reason is, the December contract may act
funny, as people use various Y2K strategies. The March contract will get you
well beyond that.
Stock indexes are critical for you. When everything else is going to hell in
a handbasket, they let you make huge amounts of money. With the dollar
collapsing, business in for a major slowdown, real estate collapsing, and
the U.S. economy about to enter a major recession, selling or shorting the
stock indexes can make you a fortune. Even as everything else is falling
apart.
The formula is simple. Stock market up; the index trades lose money. Stock
market down; you make a killing.
People with $50,000 to $100,000 or more to speculate with should trade the
S&P500 futures contract. You will short, or sell, the market. Start putting
on your positions now. Do this by selling one December contract at the
market. Sell another position every 1000 to 1500 points higher or lower.
Traders drop the decimal point on the S&P500. So 1000 points is the
difference between 1320.00 and 1310.00. (132000 - 131000 = 1000.)
If you have less money, trade the Dow Jones Industrials futures contract.
Sell another December contract every 100 to 150 Dow points higher or lower.
Whichever contract you trade, the overall strategy is the same. When this
market starts falling, you will use the extra money you are making to add
more and more positions.
This will be hard for you to do, if you don't have a link to the market. But
that is where the real money is made. As the market plunges, you pyramid
down. You use the profits you've made to add more positions. Those extra
positions make you still more money; which you use to add more positions.
The power of leverage makes you incredible sums of money.
One key market event is about to happen: another major stock market
downturn. The best way to take advantage of this -- the greatest
money-making opportunity to present itself in the past 75 years -- is
selling stock indexes. Period.
I've recommended this strategy for years. It works great. But my experience
is that most people do not have the discipline. It takes a lot of hand
holding. Wall Street and your broker sure aren't going to make things easy
for you.
At the risk of repeating myself, this is the greatest moneymaking
opportunity of our lifetime. It's only going to be here for a short while.
Once the bubble stock market goes down, and we all know that's going to
happen, this opportunity is gone forever.
Currencies: I've been jumping up and down, screaming and yelling, about the
overvalued dollar for some time. Month after month, the U.S. racks up
record-high trade deficits. Now the impact of America's huge appetite for
imports is finally hitting home.
As I rush this WSU issue off to the printer, the dollar is trading at 3-year
lows against the Japanese yen. Subscribers who followed my yen
recommendations have had several great paydays. As incredible as it sounds,
people who followed the yen recommendations in my eWSU newsletter turned
$5000 into $2,740,000. And the yen is still going to go a lot higher.If you
would like to trade this strategy, buy one December Japanese yen futures
contract, every 100 points higher or lower. 100 points is the equivalent of
one U.S. penny.As soon as there is enough volume, add all future positions
in the March contract. This should be around the end of October or early
November.When to take profits? That's a hard one. Unfortunately for you, but
fortunately for people in regular touch with me, I don't choose a number
beforehand. Trading doesn't work that way. I watch the monetary flows. The
government interventions. Plus a host of other factors, as I pick profit
points in trades.Suffice it to say, the dollar has a lot of work to do on
the downside. It could be quite some time, before the dollar finds its
proper valuation.One thing makes the yen difficult. The Japanese government
tries to keep the yen as low as it can. This is part of their domestic
economic policy: a low yen, that subsidizes Japanese exports. I might add,
in this runup since our last WSU issue, intervention has failed. All they
can do is try to slow the ascent. Barring that, the yen is going a lot
higher.German mark: this is my other favorite currency. Germany is Europe's
powerhouse. It's the currency I recommend you use in place of the Euro. The
Euro is not fully implemented yet. So it's very hard to trade. The mark
tracks the Euro very nicely.The E.U. runs a huge trade surplus with the U.S.
The dollar is by far the most overvalued currency that has ever existed. If
you live in America, you are stuck in a dollar world This is a way you can
diversify yourself. It's critical.I recommend you buy one December German
mark futures contract, every 100 points higher or lower. (As with the yen,
100 points equals one U.S. penny.) In another month and a half or so, you
should start adding new positions in the March contract.The mark is not as
volatile as the yen. But like the yen, it is greatly undervalued. And like
the yen, these long mark contracts will make you huge profits as the dollar
plunges.Precious metals: due to be great winners, when those inflation eggs
finally hatch, and the stock market bubble chickens come home to roost.Gold
is trading a little over $250 an ounce. In constant dollar terms, that's the
cheapest it's been in most of our lifetimes. Gold has been held artificially
low, by the very vocal threatened IMF sales. Those sales have been canceled.
Also, other central banks have sold or announced they will sell gold.Despite
the falling price, gold is selling in record amounts. Investors around the
world are diversifying into the yellow metal. As the dollar plunges -- as
U.S. inflation becomes the undeniable problem it really is -- as the stock
market caves in under the pressure of continuing Fed interest rate hikes --
gold will be a big winner.The best way to trade gold is by buying the
December Comex gold futures contract. Buy another contract every $5 higher
or lower. Please note, this is a change from my previous recommendation.
Until now, I recommended you add new positions every $10.If you have
followed my recommendations, you have been able to buy some real
bargain-basement gold. One day you will wake up and really love this
trade.Silver: ah, yes, silver. Silver has been volatile lately, swinging
between $5.10 and $5.70 and ounce. Big players accumulated huge amounts of
silver. They still hold that silver, and are adding more. They feel a lot
more comfortable, now that silver is out of the headlines.I recommend you
buy December Comex silver futures positions. Buy a new position every $10
higher or lower. Silver has been more volatile than gold. But it is very
tradable.A trade that should soon make you a small fortune:There is one
other trade I like, but hesitate to give you. That is crude oil.OPEC and
non-OPEC producers have given the market the bum's rush. As we go to press,
crude is trading over $24 a barrel. But OPEC's average cost to produce oil
is $7 a barrel. That's net, delivered, on the barge, at the pipeline, ready
to go. Oil is in vast oversupply. By holding back supplies through a market
conspiracy, oil prices have gone higher.In this modern world, Big Oil is the
only industry that has the luxury of selling its product at three times
cost. But oil giants can have all the consolidation they want. OPEC can make
all its supply-fixing agreements. With so much oil spread out over the
planet, and so many desperate sellers, oil prices cannot stay at this high
level. A more realistic price for oil is $10 a barrel.I don't see crude
prices going a lot higher. So trading oil is not real risky. The problem is,
crude may stay at these levels a good while longer. You trade crude by
selling one NYNEX futures contract, 3-to-4 months out. That is, if it's now
October, you should sell the January or February contract. Sell another
position every $1 a barrel higher or lower.Like all the recommendations I
give you, oil is hard to trade blind. But it's easy with a little guidance.
These markets are such powerful money-makers, I strongly recommend them to
you.There's a sense of urgency here. Most everything you own, most
everything you do, will soon undergo a big change. The U.S. economy is about
to enter its biggest slowdown in generations. You need investments that make
you money. Even as your home, your job, your business, and the value of your
dollars, all make you less. That's what the aggressive trades do.There you
have it. Every recommendation I know that will make money, and capitalize on
the great economic changes taking place. Problem is, a printed publication
is a slow way to trade markets that change at the speed of light. It is
impossible for me to give you the blow-by-blow, day-by-day, sometimes
minute-by-minute analysis it takes to capitalize on one of the biggest
financial crises of our modern times. But this gives you an excellent guide
to my thinking on future events.We're about to enter the land of milk and
honeyThose of you who have been with me for awhile understand what a
critical time this is. We have gotten to know each other fairly well during
this outrageous runaway stock market. It has been an incredible ride
upwards.Now the event we have waited for is here. The rally is coming to an
end. A very dramatic end. Stocks are well off their record highs. Interest
rates are soaring. This is the deadly combination that signals the end of
every Wall Street rally.As you know, I've broken story after story about
this stock market bubble. I've given you the inside events, and showed you
how the greatest stock market bubble ever was created. "Manipulated" is a
better way of putting it.This market has confounded a lot of people. For one
reason. It has been an inside, rigged, set-up, put-up, manipulated market. A
market that rallied beyond any sense of true value. Six trillion dollars
have been sunk down the Wall Street rat hole... never to be recovered. That
makes it the greatest con in the history of the world.Six trillion dollars
buys a lot of souls. Especially on Wall Street. But right now Wall Street
has a big problem. The devil has come to collect.People aren't stupid. I'm
not stupid. Neither are you. Wall Street can fool most of the people for a
long time. But they can't fool any of the people all the time.They may
convince people black is white, and white is black -- for awhile. Everyone
may believe the rally will never end. That doesn't change the truth.
Eventually the people figure it out: that they've been had, that the
greatest bubble ever is about to burst. Then the party on Wall Street is
over.Wall Street sold its soul to the devil. But you gotta say they sure got
a high price: six trillion dollars of hard-working Americans' savingsThis
Wall Street/mutual fund ripoff is like the U.S. Army, Federal Reserve, and
U.S. Treasury looting Ft. Knox of all America's gold. In place of the metal,
they put wooden bars painted gold.Everyone in the scam knows what they did.
Just like on Wall Street, they were all in on it. Otherwise they could have
never pulled it off. No one wants to get caught. But more and more people
start questioning whether the gold is there. So the conspirators have to
convince everyone that wooden bars are really solid gold.This stock market
rally is the exact same thing. All the major players took part in the scam.
Wall Street. Mutual funds. Big Ten accounting firms. The Clinton
administration. Key Fed officials. Crooked politicians. Regulators, who
allowed incredible sins to be committed.Too many people are involved. The
truth can't be hidden for long. Especially when the market starts to turn
profits into massive losses. As it is beginning to do now.Wall Street
insiders knew they were creating a bubble. They knew this would lead to a
wipeout. They went ahead anyway. They looted the safe, secure, insured bank
savings of tens of millions of Americans.Americans were betrayed by their
most trusted informant: the free pressMost guilty of all is the free press.
They are supposed to be America's watchdogs. The people charged with
informing and protecting the nation. Wall Street had to get the financial
press to play along. Without their help, the mutual funds could never have
pulled it off. The con job would have been widely exposed. People would not
have given the funds all their money.Americans trust the press. They believe
the news is independent and fair-minded. The financial press barraged them
with story after story of fast, easy, safe, guaranteed profits. The media
spread the lie about "investing for the long haul." They told people they
would retire as millionaires: just put your money into mutual funds.This
sucked people in. First a trickle, then a sea of money came pouring into the
funds. Soon people felt confident enough to strip away their savings. They
threw all their money into the mutual fund casino.Incredibly, they believed
they were investing in a high-yielding savings account, tied to the stock
market. The press never told them these "savings accounts" were based on a
bubble stock market. A market that would eventually crash, and wipe them
out.Why didn't the press warn people? The answer is simple Money. Lots of
it. Newspapers and TV networks have had tough times. Advertising dollars
have been tough to come by. They could not warn the investing public,
without putting their businesses at risk of going under. It's clearly
understood: too many negative stories about the rally, and the ad dollars
dry up. This is why the media have severe conflicts of interest reporting on
mutual funds.
Far and away, mutual funds are the biggest advertisers for the financial
media. That is true for television, radio and print media (newspapers,
magazines). Financial publishers live and die on mutual fund/Wall Street
advertising. Without that advertising, many would be out of business. But
the scandal is far worse than that.Wall Street and the funds control
information tighter than the Soviet communist politburo did. They control
all earnings reports. Profit projections. Press releases. Financial
reporting. Even accounting procedures (scams). The Wall Street/mutual fund
establishment orchestrates it all. They run the stock market and all
information associated with it.The average share of stock is selling for
four-to-five times its true valueThey have created an incredible
disinformation machine.Wall Street hand-picks the analysts, who give the
glowing reports. Mutual funds dictate who sits on the Board of Directors.
They even write the stories they want printed -- bending the rules and
misrepresenting the facts, to drive stock prices ever-higher.Want proof?
Simple. The average share of stock is selling for four-to-five times more
than it's worth. Pie ratios on the major companies have soared that much
during this bubble market. For Internet stocks, pie ratios have gone even
higher. You don't pull that off without a hell of a lot of; shall we say,
help. It takes a lot of convincing to get people to pay five times more than
something is worth.There is no longer any independent analysis. No critical
review. Investors get hammered by only one thing: Wall Street spin. All set
up to sell them on mutual funds.Everyone tows the line or else. And "or
else" is pretty serious. Try standing up to the party line. Try questioning
this absurd rally. Do a story on a stock market crash, a bubble market
bursting, investors being wiped out. You get no more press calls. Your
advertising dollars disappear. All of a sudden, you get a lot of regulator
scrutiny.Right now regulators are making a huge effort to silence the
independent financial newsletter business. Government agencies have tried to
silence us. Wall Street's biggest firms have threatened us. They never
succeed. We have the law and the truth on our side. But you hold in your
hands the one publication Wall Street never wants you to see. Especially
this issue, that puts the scam together for you -- that reports the
devastating processes that have been put in motion to bring this rally to an
abrupt end.What about analysts? A sick joke. They work for Wall Street: the
very firms that sell the stock they are "analyzing." These firms own vast
amounts of that stock. Their conflicts couldn't be greater.Do you really
think a Wall Street firm can be critical of a stock they make a market in?
Or of the other club member firms they are in bed with?Not a chance. It's
the buddy/buddy system: you don't rain on my parade, and I won't rain on
yours. The investing public is naive. They believe these "analysts" tell the
truth. Truth does not exist in the traditional U.S. financial media. Truth
is the first casualty of a bubble market.Never forget: Wall Street is the
paid stock salesmen. They make money selling stocks. Rallies are the planned
created event where everyone cashes in. When this rally started, 60 million
shares of stock traded in a day was huge volume. Now, between NASDAQ and the
NYSE, 1.5 to 3 billion shares trade a day. That's a lot more commissions
than when it was a mere 60 million shares a day.They have every incentive to
get people to buy. The higher the price, the more trading the more money
Wall Street makes. There is no incentive to get people to sell. The key to
this is information. A rigged, put-up, fraudulent flow of information. All
designed to lure buyers into the market.Trillions of dollars now ride on the
market. Stocks must go ever higher. Otherwise, the bubble bursts. Welcome to
the Wall Street treadmill to hell.Wall Street conflicts are nothing short of
criminal. They play both sides of the street. They sell stocks to the mutual
funds and public. They advise investors on value. At the same time, they own
vast amounts of those stocks themselves.They sit on the Boards of these
companies. They advise the accountants who cook the books. They put together
the profit-and-loss statements. They make the market in stock. They handle
the pensions. The trading. The compensation of officers.It gets worse. Wall
Street underwrites the stocks. They advise the companies listed on the stock
exchanges. They even advise the mutual funds who buy these very stocks from
them. Most important of all they are the paid-for commissioned salesmen.
That's how they make their billions of dollars. No buyers, no
commissions.Never is heard a disparaging word. No wonder. Everyone is in on
it. When the market goes up, the company does well. The mutual fund does
well. Wall Street does well. The merchant bankers do well. Financial
publications and TV shows get plenty of ads. All paid for by the very
industry they are supposedly watching.No surprise the American public
believes the only place to put their money is mutual funds. They have been
told nothing else. They certainly haven't been told the truth.Only one
problem here. All this mindless buying has created a bubble. The biggest
ever. Nothing is holding up the skyscraper. The foundation is crumbling. The
bubble has run its course.Insiders tell me they really thought they could
pull their scam offSix trillion dollars are gone. The life savings of little
old ladies, grocery clerks, hard-working Americans. Ordinary, everyday,
trusting people. They are about to get wiped out.Can you imagine the storm
when they realize they've been had? It's going to be the Spanish
Inquisition, the Nazi final solution, Mao Tse Tung's purges, and Stalin's
communist bloodbaths all rolled into one.I often speak with Wall Street
insiders (who never admit talking to me). They really believed they could
pull this off.They hoped to get the market so high, government could not
afford to let it wipe out. The hope was to make mutual funds so valuable, so
widely held, no one could let them go under.Government would bail them out,
just like it did Chrysler. Just like it did the big New York banks in the
Latin American debt collapse; and the savings and loan industry during the
19801s real estate wipeout.But they made one critical mistake. Wall Street's
con game was too successful. It worked better than their wildest dreams.
They took in too much money.Now government couldn't bail out the mutual
funds if it wanted to. Not even the Fed could. It's gone beyond what can
possibly be bailed out. The numbers are too big. The money does not exist.
They have lost more money than anyone can put together to bail them
out.Privately, the Fed told Wall Street the facts of life: that the Fed's
job is NOT to cover losses by people who speculate in mutual funds. This
shocked Wall Street insiders.Worse, they were told the Fed will tighten the
screws on stocks. It will bring the stock market down in as orderly manner
as possible. The Fed has no choice. It must keep the banks solvent through
the collapse. This is the only way the Fed can save the U.S. financial
system.Insiders are scared to death. They know the great crimes they
committed. This is why the Fed is doing its almost weekly dog and pony show.
Raising rates. Telegraphing the moves it must make. The Fed wants to cover
itself. Explaining its every move. This way, when the market comes down, no
one will be surprised. Except for previously wealthy mutual fund
holders.It's real simple. The market is coming down. That is a known fact.
It's way beyond that issue. This collapse will wipe out three generations of
Americans. And nobody wants the blame for the Wall Street collapse. Talk
about finger-pointing. Everyone is running for cover.Haven't you noticed all
the CEO's who are leaving town and retiring? The key Wall Street players? "I
need to spend quality time with my children." "I want to pursue my
gardening."Bull. These guys are trying to get out while the getting is good
so they don't spend the rest of their lives in prison.Coming soon: Wall
Street equivalent of the Nuremberg war trialsCan you imagine the Senate
hearings into the mutual fund scam? Thousands of mutual funds out of
business. One person after another telling how they got wiped out -- their
life savings gone?Can you see mutual fund traders trying to explain how they
threw billions of dollars at companies that never even made a profit? How
they paid hundreds, sometimes thousands, of times earnings? How they paid
dozens of times more than the companies were worth? How they were warned,
and kept on doing this?Many companies saw their losses get bigger and
bigger. Yet Wall Street still claimed they were worth tens of billions of
dollars. The Street issued press releases. Helped arrange stock options to
pay off management. Covered up the companies' financial problems. Took the
companies public. Spun every event as a buying opportunity.And through it
all told the public these stocks were undervalued! "Well worth the money.
Buy more." Can you see them explaining this to a jury of people who got
wiped out?Get ready for the modern version of the Nuremberg trials. Former
Wall Street traders and mutual fund mangers will be hunted down and tried.
They will be held responsible for their insane conduct. For this crazy,
buy-anything-at-any-price mutual fund bubble market. These guys will be in
jail the rest of their natural lives.Politicians will scream for blood. The
voting public will be wiped out. Can you hear Trent Loff on the Senate
floor, screaming for the scalps of the modern carpetbaggers?Do you really
believe Wall Street will get away with wiping out countless millions of
people -- the wealth of America? In the new world we live in, manufacturers
pay billions of dollars in punitive damages when even a few people are
injured. Can you imagine the uproar, as people who were misled rise up en
masse? Who Wall Street and mutual funds flat-out lied to?Do you really think
mutual fund holders will take this lying down? No way. People will riot in
the streets. Politicians will serve up the heads of Wall Street traders and
mutual fund managers on a silver platter.Wall Street and the funds took the
credit for the incredible stock market run-up. They created the most
over-valued stock market ever. They made the biggest fortunes ever. I
guarantee you, they will get the blame for the wipeout.They knewThe truth
will be told. People will figure out what really happened. It's an ugly
story. Wall Street and the mutual funds scammed the American pubic into
buying stock at five, fifty, even a hundred times more than they were worth.
They knew what they were doing. They knew the consequences. They knew
eventually the bubble would burst. Now they will have to pay the
price.Remember the warnings from the Fed. From the IMF.From top government
officials around the world. Over and over, they warned about the incredible
bubble mutual funds were creating. Wall Street was warned about the dangers
of a balloon market. They went ahead and did it anyway.Wall Street wants to
say "it's not our fault. We gave them a prospectus." No one is going to buy
that malarkey. The courts won't care about the mutual fund prospectus
written by the Philadelphia lawyers, either, with their pages of fine
print.Instead, they will see endless interviews with Wall Street elite.
Always pushing an ever-rising stock market. They will see the glowing press
releases. The TV ads, calling all downturns "buying opportunities." The
analysts hawking overvalued stock. The mutual funds who invested in those
soon-to-be-worthless shares. The incredible conflicts of interest will come
to light. The collusion. The lies.It's going to be hard for Wall Street to
deny what really happened. Their statements are in black and white. The
video tapes, the interviews, the ads are all part of the record. They will
come back to haunt them.How do you explain enticing people into mutual fund
'savings accounts' -- supposedly that pay 30% a year returns, guaranteed
safe and secure? Instead, you wiped the people out.How are they going to
explain their lavish lifestyles? Everyone in Wall Street became
multi-millionaires. They feasted on the retirement savings of unsuspecting
Americans. How are they going to explain that 20 something-year old kids
were paid tens of millions of dollars -- to take companies public that had
no chance of ever making a profit?They can't explain it. These guys
committed an incredible crime. They must answer for that crime. Jurors will
have friends, neighbors and family members who were wiped out. They will not
be very sympathetic, as Wall Street multimillionaires are brought to
trial.It will be simple for the prosecution to explain to the jury the
absurd valuations. Any basic textbook gives measures of value. Everyone in
the industry knows these measures. They blatantly ignored them. They ignored
their fiduciary responsibility. Wall Street will finally be held
accountable. They will not be able to explain it away. People will not take
this lying down.One event really helped speed along the Wall Street/mutual
fund crime through this incredible rally: industry-wide self-regulation.
Regulators stood on the sidelines. Wall Street, the exchanges, the brokers
and the funds were supposed to police themselves. That's like expecting a
school of hungry sharks to restrain themselves with bleeding swimmers in the
water.No, my friends, we are on the verge of two bloodbaths. The first has
already started: the wipeout of mutual fund holders. The second will be the
trials and public hearings of the Wall Street and the mutual fund industry,
their marketing, their trading: the greatest crime of Wall Street
ever.You're about to witness the most incredible event. Congress
investigating Wall Street and mutual fund crimes. Televised trials on all
the major networks. Traders, market makers, mutual fund managers, financial
editors, answering for their crimes. Everyone who aided and abetted Wall
Street in wiping out America's savings, brought to justice. The truth will
come out. Unfortunately, only after millions of people have been wiped
out.Remember, Americans stripped their savings accounts. They have taken
second mortgages on their homes. They gave their precious retirement money.
All because they believed Wall Street's great lies. They heard the stories
in the financial press of people who became millionaires investing in mutual
funds. When the wipeout occurs, Wall Street will be held accountable for the
greatest theft in history.Already, top New York lawyers are raking in a
fortune. They are preparing the defenses for Wall Street and mutual fund
players, when the stock market crashes. Little old ladies and hard-working
Americans are wiped out en masse. They will sue. This will be the equivalent
of environmental, asbestos, tobacco and breast implant litigation all rolled
into one.They can hire the best attorneys in the world. It doesn't matter.
They have nowhere to go. Nowhere to hide. They did the crime. Now they must
do the time. They must face the consequences. This great spending spree on
Wall Street is in its last hurrah. The condemned eat hearty.Everyone will be
affected by the Wall Street wipeout. Most as losers. But there will be a
precious few winnersAll this means there is something critical I want you to
do. I would never beg you to do this. But now is the time. It's in your own
best interest. At the risk of sounding melodramatic, it's your only
chance.At first this may seem crazy. But we live in crazy times. Sometimes
you must take crazy steps to survive.I have an advantage over you. I know
what is coming. I know you don't want to face the aftermath of the mutual
fund wipeout, unless you have a whole lot of money. Ready cash in your
pocket.So here it is. I want to give you the opportunity to lose $10,000...
$20,000... $50,000... even $100,000. That's right, I want to invite you to
lose money with me.This may sound crazy to you. But if you're like millions
of people, you're not going to get ahead in life unless something
extraordinary happens. Just the opposite. With what's about to occur, you
are probably going to move backwards.Whatever you have will be worth less.
Whatever you now make at your job or business, you will be making less.
The dollar is going to plunge. Inflation will send prices soaring. So you
will need a lot more to maintain your lifestyle. Yet at that same time, you
will have less money.Every time the Fed has raised interest rates over and
over, two things take place. First, the stock market crashes. A deep long
bear market follows. Second, the economy goes into a major recession. It's
the first part -- the crash and bear market -- that gives you such a
wonderful opportunity.And it's a good thing. Because the second part is a
killer. You've got commitments. You've got payments on the house. You've got
kids to send to college, and bills to pay. You have a pretty good life. But
the way things are going, you're never going to make any really big money.
The coming bear market and major recession guarantee it.I know you've seen
the offers for my premium electronic newsletter. I know you've drooled at
the chance to trade, and make fabulous sums of money. But you just don't
have the big money to play with. As much as you'd like to, you can't swing
it.You know, like I know, the time has finally come. All the pieces are in
place. The Fed is raising rates. Oil prices are soaring. Inflation is
spreading through the red-hot U.S. economy. The stock market is about to
crash.You know this is the greatest money-making opportunity of a lifetime.
But you have to know what to do. More important, you must do it. I have
agonized over watching the biggest stock market move in history pass you
by.I realized two things. The coming events would really hurt you. And
worse, you are probably not going to get in on this incredible bonanza. So I
started thinking what I could do for subscribers like you.You have some
money to speculate with. Maybe not a lot. But you want a chance to get in on
the coming stock market wipeout. What makes this really urgent is how events
are unfolding. Time is really short.So here it is. I came up with a business
proposition you can t afford to ignore. It's your chance to hit the big one.
What's more, I've structured this proposition so that if you lose, I lose.
We're in it together.Now let me be perfectly honest with you. If the market
does not go down, we're probably both going to lose. Be very clear on this
point. If the market does not fall, odds are you will lose the
$15,000-to-$25,000 minimum it will take to trade this strategy. I'm probably
going to lose your subscription fee -- and eat the computer, Internet
service, fax service and pager I am going to give you as my free gifts. I
will also pay out of my pocket the extraordinary cost of keeping you in
touch with this market.But I don't care about my losses. This stock market
wipeout is going to make me fabulously wealthy. I have planned for this
event for the last decade. Drooling, as I watched Wall Street recklessly
push this bubble higher.What I potentially lose with you, I will make back
many times over. It's more important to have you protected. I want to see
you make big money from what's coming. So I am willing to take the potential
loss.You've given me the life of my dreamsI know this market is ready to
take another major downward plunge. The extraordinary events we see
unfolding mean the greatest payday ever is just around the comer.
I also know I owe you. You, my subscribers, have made it possible for me to
live the life of my dreams. I could not be happier, except for one thing.
Seeing you become wealthy, instead of one of the poor newly impoverished in
the mutual fund wipeout. This is my way of repaying you.So if you are
willing to lose thousands with me -- for a chance to make millions -- I'm
willing to take the risk with you.That $15,000-to-$25,000 is not going to
make any real difference in your life. And maybe, just maybe, we can catch
this stock market crash. And if we do, and we do everything right -- we
pyramid right, our timing is right, and the market falls just 2000 points,
the way it has several times before -- you can turn your small starting
stake into a million dollars.When the market makes the big plunge, all bets
are off. You could turn thousands into a multi-million dollar payday.I know
that sounds incredible. But I did that during the 1987 crash for people just
like you. I did it as recently as last year. That was on just a 1900 point
drop in the Dow. We're getting ready to do it again right now.Your downside
is pretty small. If things don't work out, nothing really changes for you.
You lose your modest investment. Life goes back to normal.If this pays off,
you hit the big time. You forever leave the ranks of people who struggle
over money in life. You join the ranks of the truly wealthy. At the risk of
losing my eternal soul, I swear to you this is the opportunity that is
presenting itself in this crazy market.I know the stock market is about to
crash. I feel it in my bones. I know you know, too. In fact, let me tell you
a little secret.We don't need a stock market crash to do greatAll we need is
the 20% correction that most every central banker and world leader says is
coming. By following my strategy, you make $1 million for every $20,000 you
trade. $5 million for every $100,000.If we get the crash -- like I know we
are about to -- you do even better. For example, suppose the market drops
4000 points. Every $20,000 you invest turns into $4 million.Now suppose the
market falls to the level the Fed's stock marker valuation index says it
should. To under 5000. You make $10 million for every $20,000 you invest.How
can you make so much with such a modest initial investment? That sounds too
good to be true. It's not. Here is how it works.First, you get outstanding
leverage. 25-to-i and more on each position you control. You also take
advantage of my trademark pyramiding technique.I have used this strategy for
over twenty years. It's why my recommendations have made such a killing over
and over, as the market plunges. And that is why I am sending you the tools
you need: a pager, fax service and Internet computer. To make sure we can be
in touch in an instant. No matter where you are, no matter what you are
doing, I can give you the analysis and recommendations you need to make
these kind of profits.
Let's you and I talk straight here. We are the closest we've ever been to
another 1929-style crash. Alan Greenspan has warned the world he's raising
rates to bring down the "unstable bubble stock market." He's already raised
rates twice. He has put together a trillion dollar war chest.Inflation is
starting to pick up. Energy prices are at three-year highs. The dollar is
plunging.The stock market is teetering on the edge of a cliff. Wall Street
has been in a state of shock, ever since the Fed started raising rates. They
know the end is near. It's the most critical time in the nation's financial
history.In all my years of watching this market, this is the BEST time I've
seen to take a chance. To roll the dice, on the most extraordinary market
event of all time. I know how to do this. I can give you the best shot to
take advantage of these extraordinary, unfolding events. I pray you hear
what I am saying and embrace my offer.No trading experience necessaryI've
set up an electronic publication called the eWSU, that is designed for one
thing: so you can make a killing from the coming stock market crash.eWSU is
an incredible system. You get the hottest information instantly, in three
ways: by pager, fax, and the world-wide web. Instant, blow-by-blow
information, so you know what to do to cash in on the Wall Street wipeout.On
our eWSU website, you see and hear me, as I give you charts, news and market
analysis. You get trading techniques and strategies. Market quotes that
constantly update. Trading and investment terms, clearly explained. Special
reports, on everything from trading and investing, to making your home, job
and family more secure.You also get my up-to-the-second market
recommendations. These are the recommendations that have made subscribers
millions of dollars -- that will make you wealthy when the market puts in
its next correction. I put them up on eWSU as soon as they come up. There
are no delays.No waiting around for the mail to arrive.I show you when to
get in on every trade. When to get out. How to add positions. How to protect
your profits, and strictly limit your losses. Exactly what to tell your
broker. If you don't have a broker, I'll show you how to find one.It doesn't
matter if you've never traded before. I'll be there guiding you, every step
of the way.Don't have a computer? No problem. I'll send you one FREE of
charge. This computer is Internet-ready, Pentium-based, and lightning fast.
We've set it up entirely for you. All you do is plug it in, and push a few
buttons. You immediately get all the information, all the recommendations.
We even supply your Internet access. So even if you're scared of
computers -- if you've never been on the Internet--you will find this simple
to do. If you have questions, our technical support people will walk you
through the answers.I also will send you a free pager -- that instantly
notifies you of every hot tradeAs I mentioned, the worldwide web isn't the
only way you get information from eWSU. You get faxed issues, that give you
analysis, interpretation, and recommendations.And here may be the best part.
eWSU also comes to you by satellite-based pagers. You carry the pager in
your pocket, briefcase or bag. Whenever a key piece of news or
recommendation comes up, we send it to you instantly over the pager. The
message appears on your pager screen. It tells you what to do, how and when
to do it.No matter where you are -- no matter what you are doing --you stay
in touch with what's going on. I show you blow-by-blow what you must do to
make a killing. How you can turn the stock market correction into millions
of dollars -- and the wipeout into tens of millions.So I'm inviting you to
subscribe to eWSU. We're going to trade the stock indexes and we are going
to do this aggressively. Please, only join with me if you have the courage
to go for the big one -- and you have the chutzpah to take a risk.When you
see how it works you will love it. Trading the wipeout is the most
incredible thing imaginable. I have seen tens of thousands of dollars turn
into millions in hours. As incredible as that sounds, that is do-able, as
this stock market bubble comes down.Either you make a killing trading the
stock market crash - or you get all your money backHere's the proposition I
have for you. A one-year subscription to eWSU is $5000. Try the news,
analysis, and trading recommendations I give you. If you don't make a
million dollars minimum in the next twelve months, let me know. I'll give
you a full refund on your subscription, no questions asked. The pager and
computer are yours to keep, as my gift to you.12 months is all I ask, to
show you how to live the life of your dreams. Even if you've never traded,
it will be simple. I walk you step by step through the trading
recommendations. But more important, this is your chance to make millions on
the biggest bubble market wipeout ever.I'm so excited about this I can't
stand it. The idea of a bunch of little traders taking fortunes out of Wall
Street really turns me on. How about you?Wall Street's biggest nightmare is
coming true NOWAn army of little ants carried this market higher. Pooled
together, they added up to trillions of dollars.But now that money is being
wiped out in the inevitable bear market downturn. What started as a trickle
is now a stream. Soon a river, then a sea of investors will flee from the
stock market. This is what Wall Street is most afraid of: small investors
stampeding out, and new investors into the market drying up.Big Wall Street
traders are desperate. They know it's time to pay the piper. They have done
everything they could to postpone the market's trip down death row. They
used up their bag of tricks Now it's time. The really sad part is, they
don't care how many people they take to the slaughterhouse with them.Their
time is up. The greatest con job in history is over. They've had their last
market feast. And that gives you the opportunity to leverage your modest
investment into the biggest payday you will ever see.Let me be blunt. You're
a damn fool to let this opportunity pass you by. When it's over there will
be no second chances. This bubble market will come down and stay down. Party
over. Chance to make millions gone forever.Remember, markets come down a lot
faster than they go up. Bubble markets always, always end up crashing.So
pick up your telephone and call Rachel at 
800-815-3545
. Tell her you want to
cash in on the stock market crash. You want a shot at making serious money,
at joining the ranks of the truly wealthy.Tell her, "Nick, I like your
style, you're my kind of guy. If you're willing to take a chance with me,
I'm willing to take a chance with you. Sign me up for eWSU, fully
refundable -- a hundred percent of my money back -- if I don't score the
really big bucks."I know to be successful in life, at some time you have to
throw caution to the wind and take a chance. This is the best time I've ever
seen to do just that.Sincerely,Nick
Guarino---------------------------------------------------------------------
------Dear Nick,You know, this is probably the craziest thing I've ever
done. But I have a feeling the market's going to crash, and we just might
pull this off. Count me in. Hell, I'll roll the dice with you, Nick. Let's
go for it. Sign me up for a full one-year subscription to eWSU. I will get
your complete analysis and recommendations: everything I need to make a
killing in the stock market crash.
The computer is mine to keep, no matter what. I understand that if I'm not
100% satisfied, for any reason, I will let you know for a full refund on my
subscription. [ ] 1 year $5000 US. Non U.S. subscribers must cover extra
shipping and customs for the computer. Sorry, pagers will not work outside
the U.S. [ ] Check [ ] MasterCard [ ] VisaCard
no.____________________________ Exp. Date_____Signature
________________________________________Name
__________________________________________Address
_________________________________________City
_______________________State______Zip________Fax number
 )___________________________________Phone number
 )_________________________________Send to: Wall Street Underground, 1144
Booth, Kansas City, KS 66103For fastest servicecall Rachel at913-342-64009am
to 8pmNew York time. Or fax 
913-342-6444
.

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