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Tuesday, November 11, 2008

Panic and opportunity

Nearly everywhere you look, another massive corporation is announcing staggering losses and begging Washington for billions to avoid bankruptcy.

CASE STUDY #1 — General Motors: $25 billion wasn’t enough — needs $50 billion more to survive! GM’s sales are down 20% in a year. Its share price is down nearly 90% — from $31.14 a year ago to $3.36 at yesterday’s close.

The last time GM stock was this low, Harry Truman was in the White House, and Elvis Presley was in grammar school. And now, analysts are warning that America’s largest automaker may soon be worth zero.

Investors have every reason to fear for GM’s survival: Last Friday, GM posted a $2.5 billion net loss for July, August and September, bringing its 2008 losses to $21.3 billion.

Worse: Yesterday, the company revealed that despite the $25 billion in Washington aid already on the way, it is now burning through its cash reserves at the staggering rate of $2.3 billion per month.

The company’s top executives now freely admit that without a bailout, GM will likely go broke in the first half of next year.

Alarmed that an estimated 1.4 million GM workers and suppliers could suddenly find themselves out of work, House Speaker Pelosi huddled with car company executives to arrange another, additional bailout of up to $50 billion. And during his visit to the White House yesterday, President-Elect Obama urged President Bush to sign the bill when it passes Congress.

CASE STUDY #2 — American International Group (AIG): $150 billion refinancing announced yesterday!

First, the Fed gave AIG an $85 billion line of credit in a failed attempt to save America’s largest insurer.

When that failed to work, the Fed added $38 billion more through its borrowing facility.

And when the company continued racing towards failure, the Fed agreed to buy more billions of AIG’s toxic commercial paper.

Now — just yesterday — after announcing it still lost a whopping $25 billion in July, August and September, the government revealed that it refinanced AIG’s earlier loans with better terms and gave them still MORE money, for a new, total rescue package of $150 billion!

That’s just ONE single company, and already it has gotten as much money as the entire U.S. population got from the economic stimulus package of 2008.

CASE STUDY #3 — Fannie Mae: Losing money so fast, it could need as much as another $100 billion or shut down completely!

Despite the $100 billion already spent to bail out Fannie, the company has revealed that it lost a staggering $29 billion in the third quarter — an announcement that means America’s largest mortgage lender will probably need untold billions more to avoid a total shut-down.

Ten Billion Here ... A Hundred Billion There ...
Before You Know It, You’re Talking REAL Money!

Anyone who thinks that these three companies are alone — and there won’t be hundreds more lined up behind them to demand their share of the greatest bail-out bonanza in history — is dreaming.

Just yesterday, we heard more calls in Congress for a second huge stimulus package in an attempt to get shell-shocked consumers to begin spending again.

And anyone who believes the government can magically create all of this wealth out of thin air is greatly mistaken. They will have to BORROW the money. Indeed, last week — even BEFORE this latest news hit the wires — the U.S. Treasury announced that it will borrow a total of $550 billion — more than the entire deficit for ALL of fiscal 2008 — just in the last quarter.

But even that record-smashing amount is only the tip of the iceberg: Goldman Sachs analysts announced that, to finance an $850 billion federal deficit ... to buy $500 billion in bad assets ... and to roll over $561 billion in maturing Treasury securities, Washington will have to borrow TWO TRILLION DOLLARS!

Worse: That $2 trillion will almost surely STILL not be enough: Just to cover the bailout loans, investments and commitments the government has announced SO FAR, the total bill comes to a whopping $2.7 trillion. (See table at right).

As the U.S. economy continues to crater ... as federal tax revenues continue to plunge ... and as Washington continues to run amuck with new bailouts ... Washington could easily add another $1 trillion or even more to this borrowing spree!

A NEW Orgy of U.S. Government
Borrowing Is Directly Ahead!

This reality — the fact that the greatest tidal wave of Treasury bonds in history is about to slam into the markets — means two things:

1. Plunging bond prices: Like any other investment, when the supply of bonds rises, bond prices fall. Given the mind-boggling size of this borrowing binge, we’re now staring down the barrel of one of the most devastating bond market crashes ever.

2. Huge profit potential for contrarian investors like us: Investments that soar when bond prices plunge are about to give you the opportunity to multiply your money throughout the rest of 2008 ... throughout 2009 ... and beyond!

In fact, this great government borrowing binge gives us not just one, but TWO opportunities to go for windfall crisis profits in the weeks and months ahead ...

WINDFALL PROFIT OPPORTUNITY #1:
These New, Little-known Investments
Can Hand You Triple-Your-Money Gains
When Bond Prices Plunge ...

Years ago, unless you were a registered government bond dealer, it was impossible to profit from a bond market decline. You were not allowed to sell Treasury bonds short to profit from their decline. And later, even with the advent of Treasury-bond futures, the risk was too great.

Not any more! For the first time in history, you now can buy a simple, exchange-traded fund (ETF) that was specifically created to PROFIT from falling bond prices.

The basic principal is very simple: The more the government has to borrow, the more bond prices are likely to decline ... and the more bond prices decline, the more money you stand to make!

PLUS, for the first time in history, there is ALSO an ETF now available that lets you DOUBLE your profits as bonds crater: With each $1 decline in the bond price index, you make $2!

Best of all, you can grab that huge profit potential without buying futures or options, without selling short, and with ...

Simple, easy-to-trade EXCHANGE TRADED FUNDS: No exotic investments, no margin, no foreign accounts — just buy or sell ETFs in your regular broker account. If you can buy 100 shares of AT&T, you can just as easily buy 100 shares in these special ETFs, online or offline.

Low cost of entry: Ideal for investors with as little as $5,000 to invest and also for investors with $100,000 or more ...

ETFs that hand you TWO dollars for every one dollar that stock or bond indexes fall: When they drop 15%, you could make 30% ... when they fall 30%, you could grab 60% ... and when they plunge 50%, you could double your money!

Five layers of protection to shield you from excess risk: Designed to help you minimize risk and maximize your returns, making you steadily richer every time stocks plunge ...

All for just $2.46 per day: Recos designed to multiply your money every month for less than the cost of your morning coffee!

If, for example, bonds fall as much as they did in the bond market crisis of 1980, you could see gains of as much as 200% in my favorite inverse bond ETF.

Given the sheer size of this precedent-shattering borrowing spree, I personally think you’ll do much better. But even if bonds only fall half as much as they did in 1980, you could double your money in a relatively short period of time.

WINDFALL PROFIT OPPORTUNITY #2:
These Inverse ETFs Can Hand You
Many MORE Doubles As Crashing Bonds
Take Stocks to New Lows!

The fact is, if these inverse ETFs on bond prices were the only way to go for huge gains as the government’s borrowing binge unfolds, your profit potential would be enormous.

But the wealth you can amass directly from sinking bond prices is only the beginning.

Your second windfall profit opportunity is with ETFs designed to profit from falling stock prices — both in the U.S. and abroad. With the U.S. government borrowing massive amounts and pushing interest rates higher ...

Millions more consumers will find it increasingly impossible to make payments on mortgages, credit cards, auto loans and revolving charges, pushing more lenders to the brink of collapse ...

Companies that manufacture, transport and sell high-ticket items like automobiles and trucks ... flat panel TVs, computers and other electronics ... stoves, refrigerators and other home improvement products ... will suffer greater losses than ever — and many will go belly up ...

The stocks of those companies will crater as earnings turn into massive losses, driving the Dow, S&P and Nasdaq into the most severe tailspin we’ve seen so far ...

And the inverse ETFs on those indexes and sectors will skyrocket, spinning off gains of 46.1% ... 89.9% ... 106.7% — in some cases in as little as a few days — or even in a single trading session!

The simple truth is, with just one trade this summer, these double inverse ETFs could have helped you turn $5,000 into as much as $10,335 ...

Or $50,000 into $103,350 ...

Or $100,000 into a whopping $206,700 ...

All in just a few weeks!

On big down days in the market, you could make those kinds of gains in just a few HOURS! But I don’t stop with just helping you go for huge gains on single days: My Crisis Opportunity ETF Trader is designed to help you COMPOUND your gains — month after month — as long as this crisis lasts!

And in this super-volatile environment, only inverse ETFs can make those kinds of gains possible — all in a regular brokerage account, even an IRA!

Even last summer — between May 15 and July 15 — when stocks were far less volatile than they are now, inverse ETFs could have handed you gains of 30.9% ... 46.1% ... up to 106.7%.

Thanks to these inverse ETFs, you could have banked ...

  • A healthy 30.9% gain between June 5 and July 15 as the technology sector declined ...
  • An impressive 37.2% gain between June 5 and July 11 as the semiconductor sector fell ...
  • A tidy 37.7% gain between May 15 and July 15 as the consumer services sector dropped ...
  • A tasty 46.1% gain between June 5 and July 15 as the real estate sector plunged, and ...
  • A whopping 106.7% gain — more than a DOUBLE — between May 15 and July 15 as the financial sector cratered.

And more recently — as the markets became more volatile in September and October, these inverse ETFs could have handed you ...

  • A 49.6% gain in just 14 days as the semiconductor sector declined between October 1 and October 15 ...
  • A 61.0% gain in just 15 days as the technology sector fell between September 25 and October 10 ...
  • An 89.13% gain in just 19 days as the real estate sector dropped between September 26 and October 15 ...
  • An 89.6% gain in just 19 days as the consumer services sector plunged between September 26 and October 15, and ...
  • An 89.9% gain in just eight days as the financial sector cratered between October 1 and October 9!

Unfortunately, you can’t go back in time to grab those gains and neither can I. But it’s crucial to understand two things: First, in each case, your money would only have been at risk for a brief time, and second, over time, these kinds of short-term gains could easily multiply your money three times ... four times ... even five times over!

And now, with soaring interest rates, global stock markets are setting themselves up to get crushed again, and my favorite inverse ETFs on foreign stock markets could give you even greater profits in a shorter period of time!

Inverse ETFs:
The Best of All Possible Worlds

I love using exchange traded funds at a time like this. Of course, losses are always possible with any investment vehicle. But like mutual funds, ETFs spread your risk over a basket of securities. And as with mutual funds, you can trade them in your regular brokerage account. You can even put them in your IRA if you wish.

But that’s where the similarities end. UNlike mutual funds ...

  • ETFs cost less to own. They never nick you for loads or 12-b1 (marketing) fees.
  • You always know what your ETF owns. You can check online, anytime, 24/7.
  • ETFs are priced continuously through the trading day — so you always know precisely what your shares are worth ... and you can buy or sell your ETFs instantly ... at any time of the day.
  • Plus, INVERSE ETFs let you profit when a particular index or stock sector goes down. And best of all, double-inverse ETFs let you earn two dollars for every one dollar the index falls!

Crisis Opportunity ETF Trader’s mission:
To protect your capital and profits
like a junkyard dog.

If history proves anything, it’s that the ONLY way to build wealth consistently over the long haul is to avoid excessive risk like the plague. Doing everything I can to limit any losses is the only way to compound your profits over time and to turn a molehill of money into a Mount Everest of money.

That’s why Crisis Opportunity ETF Trader aims to protect your money and your profits in five, crucial ways:

1. No Margin: I never, NEVER, recommend using margin accounts or borrowed money. So you’re never exposed to the high risk of shorting or speculating in any leveraged futures or options.

2. You’ll Never Have All Your Eggs in One Basket: Because I use exchange traded funds, your investment is always spread out over a basket of stocks or bonds in each fund. Plus, my strategy is to own more than one ETF at all times to further diversify your portfolio.

3. You’ll Never Get Locked in to a Buy-and-Hold Strategy: Crisis Opportunity ETF Trader is always flexible and nimble — ready to get you into a position or to take your money off the table quickly. That’s a critical risk-protection feature in today’s volatile market.

4. I Use Every Possible Tool to Keep You Where The Most Profitable Action Is: I use every cutting-edge fundamental and technical tool available to focus your investment on the sectors that I believe are most likely to suffer the greatest declines — and to get you to the sidelines when the time is right.

5. I Designed Crisis Opportunity ETF Trader to Cut Any Losses Short while Letting Your Profits RUN: Because your money is only exposed for short bursts of time, there’s little risk that you’ll be in a losing investment for more than a few days.

Plus, I Designed Crisis Opportunity ETF Trader
To Give You SIX MORE Huge Advantages ...

I named this service “Crisis Opportunity ETF Trader” because I believe that inside every crisis, there’s an opportunity. And I also believe that, since this is the greatest economic crisis since the 1930s, we now have the opportunity to go for the greatest profits we’ve seen in nearly eight decades.

And even beyond the remarkable profit potential it gives you — the very real potential to multiply your money many times over — I’ve designed Crisis Opportunity ETF Trader to give you six more strategic advantages:

1. You can start with limited capital: Because most of these ETFs go for as little as $10 or $20 per share, you don’t need to already be rich to go for gains that could make you rich.

That means it’s ideal for investors with as little as $5,000 to invest and also for investors with $100,000 or more!

2. There’s nothing to learn: Just follow the plain-English trading signals two to three times a month.

3. No new accounts to open: You just follow my trading instructions in your regular brokerage account!

4. It’s the soul of convenience: Just check your e-mail each weekday for instructions. When you get a signal, just make the trade.

5. It’s easy to follow: In each trading alert, I tell you what to buy ... when to buy it ... what you should pay ... and I even give you my profit target for each trade.

And I do the same when it’s time to sell. You can execute each trade online or simply by reading the trading instructions to your broker.

6. You'll be delighted with the profits you earn, or it's FREE: No one can guarantee profits, but you must be delighted with the money Crisis Opportunity ETF Trader makes you, or cancel for a full refund within the first 60 days. In addition, you can cancel at any time for a pro-rated refund on the balance of your membershi

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