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Man, they are coming out of the woodwork. Don't get taken, the above is just for entertainment.
Audio file at the above link.
Here is the written special report:
http://www.wsifn.com/instantfree/spe...port_banks.asp
The Fed's Secret Plan to Nationalize America’s Failing Banks
Nick Guarino's most SHOCKING revelation yet...
“In a desperate, last-ditch effort to prevent a global banking collapse, the Federal Reserve is making plans to take over America’s largest banks and investment firms -- and freeze your accounts.
"They have no choice. Many of the nation's largest banks and financial institutions are technically broke. Their assets have been vaporized in the multi-trillion-dollar derivatives wipeout. Citigroup, Morgan Stanley, Goldman Sachs and Merrill Lynch are just a few of the hundreds of U.S. banks and brokers now on Fed life support.
"In this special Wall Street Insiders report, I reveal the Fed's top-secret plan to nationalize banks and ‘temporarily’ freeze your bank accounts, your money market accounts, your retirement accounts and mutual funds. If you don't take the right steps now, one day soon you may wake up to discover you can't touch your money -- even if it is in 'FDIC insured’ deposits.
"You'll also learn in this report the only 3 low-risk investments that are 100% guaranteed to 1) NOT get frozen 2) NOT wipe out, and 3) Give you 100% access to your money at all times, in any amounts you desire. Remember, nearly all other Americans won't be able to get their dollars, by hook or by crook.
"These investments aren't just as good as gold. In fact, they are far, far better."
-- Nick Guarino
Dear Friend,
Unknown to 99% of ordinary Americans, the U.S. government is secretly making plans to nationalize our banks and financial institutions.
Wall Street, the Fed and desperate politicians are doing this for one simple reason. If they don’t, there could be a bank panic the likes of which has not been seen since the Great Depression.
The Fed's Plan A to save the banking system failed.
Get ready for Plan B: Freeze Your Accounts
During extreme emergencies, the Federal Reserve has up to $1 trillion in funds to lend out to U.S. banks. When that money is gone, the Fed is dead broke.
Even during the Great Depression, the Fed never had to tap into all of its emergency funds. Now, for the first time in history, it has. By July the Fed will have spent every dime it has, in a desperate effort to save the U.S. banking system from total meltdown.
Why has the Fed put all its money at risk? Simple: Many of America's biggest banks and investment firms are technically broke. In just the last few months, they have had to borrow close to a trillion dollars in emergency funds from the Fed.
Before this, the Fed never loaned money to investment banks. For good reason. It is illegal. Investment banks are not part of our central banking system. The Fed isn't supposed to give them money, any more than it gives money to MTV or the World Wrestling Federation.
But this crisis is so dangerous -- the stakes are so high -- the Fed decided "to hell with the rules."
It set up an emergency loan program, called the TAF (Term Auction Facility). The TAF has one purpose: to stop America’s biggest banks and investment banks from wiping out, even though they have run out of cash, and cannot beg, borrow or steal enough money anywhere else to keep their heads above water.
When the Fed opened the TAF, it expected a few desperate investment banks to come to this new lending window. To its shock, nearly every large bank and investment firm in the country (95 in all) showed up, hat in hand, to tap into these emergency funds. They are desperate for the cash to cover their derivatives debts – or they will publicly default on loans they carry on their books.
Look at the summary list below. In just a few months, the Fed has loaned out over $600 billion in cash. 2/3rds of its total assets! It only has $300 billion left.
Recent Federal Reserve Loans to Banks
1. Lent banks $10.3 billion through the discount window.
2. Lent banks $100 billion in term auction credit.
3. Lent securities dealers $76 billion through standard repurchase agreements.
4. Lent securities dealers $34.4 billion through the discount window.
5. Lent securities dealers $75 billion of its Treasuries in return for other collateral through its new Term Auction Facility.
6. Lent up to $36 billion to the European and Swiss central banks.
7. Lent $29 billion for Bear Sterns take over
8. Lent $125 billion for April Term Auction Facility
9. Lent $150 billion for May Term Auction Facility
TOTAL: $635.7 BILLION
But even that is a mirage. You see, the Fed has promised to loan another $250 billion in June. And then another $250 billion in July as well.
This means that by the end of July the Fed will be officially broke, out of money. In less than six months, it will have loaned out ALL its assets -– assets it took over 100 years to accumulate -- to try to bail out America's failed investment firms and banks.
The Who's Who of American Finance...BANKRUPT!
And here's the really pathetic thing. The Fed lending out all of its available cash didn't work! Forget Wall Street's B.S. Banks are in worse shape now than ever. They keep losing more and more money. In essence, the TAF facility provided by the Fed is merely a way to postpone the inevitable by a few months, nothing more. (See the chart of the admitted write-downs financial institutions have taken so far on bad derivatives debt.)
"The TAF ... allows the banks to borrow money against all sorts of dodgy collateral," Christopher Wood, an analyst at CSLA, a major Hong Kong-based international brokerage firm, recently told the Financial Times:
"The banks are increasingly giving the Fed the garbage collateral nobody else wants to take .... [This] suggest a perilous condition for America's banking system."
It doesn't take a rocket scientist to see why. Banks are on the hook for $800 trillion in potential derivatives losses. The $1 trillion dollars from the Fed helps them as much as a band-aid helps a heart attack. Why on earth would the Fed loan out ALL its money? Because it has a backup plan. "Plan B" as Fed insiders call it.
Plan B is the Fed's Doomsday Weapon. They don't like to publicize it. But central banks around the world have this same weapon and many of them have used it in financial crises like what we are faced with today. The Bank of England used it just 6 months ago on one of their biggest banks. It’s called nationalization. The government simply takes over the nation’s largest banks.
The Fed has the statutory authority to do this at its sole discretion. It does not need approval from Congress. The Fed can take over any bank it chooses, so long as the bank is broke and or owes the Fed a pile of money it can’t pay back. That is a situation that now describes dozens of America’s largest institutions.
Contrary to what many people believe, nationalization is not that uncommon.
The Scandinavian nations used this weapon ten years ago, when their banks wiped out. The nationalization lasted for a decade. Mexico nationalized its banks in the early 1980s. Thailand did a few years ago. England did the same thing just a few months ago, after its biggest bank -- Northern Rock – lost over $80 billion before it was taken over (nationalized) by the British government.
The U.S. government is now doing everything it can to keep the public from knowing the truth about its plans. But a senior official at one of the Scandinavian central banks told a British newspaper last month that US Fed strategists had stepped up contacts to learn what steps Norway, Sweden and Finland took when they nationalized their failed banks.
The Fed keeps a tight lid on just which financial institutions are being considered for nationalization. But by following the money and tracking their losses, I was able to obtain their names. They read like a "Who's Who of American Finance."
(The chart below shows US banks and brokerage firms with the biggest exposure to Asset Backed Securities. ABSs are a particularly dangerous derivative.)
These are just a few of the huge banks and investment banks that are on Death Row. Bear Stearns, which was at the top of the list, has already wiped out and was taken down by the Fed. The other sick institutions that head my list are Citigroup, Morgan Stanley, Countrywide, Merrill Lynch, Goldman Sachs and Wachovia.
These are banks that have taken huge derivatives write-downs, have still more derivatives exposure, and that have been forced to turn to the Fed’s emergency TAF borrowing program to stay afloat. They are losing far, far more money than they admit. Their financial statements are a joke.
Problem is, the Fed now is the single largest investor in most of America's biggest financial institutions. Those emergency loans they got from the Fed represent all their capital. If they can't pay these new loans back, Uncle Sam officially owns them. They will be nationalized in every sense of the word.
The public doesn’t realize it yet, but these big banks and investment firms already wiped out their investors’ capital. They threw their depositors’ money into highly-leveraged derivatives. Derivatives that crashed and are burning.
The banks already have lost more than they own and are owed. That is the definition of "Bankrupt."
Only one thing and one thing only has let these banks and financial institutions keep their doors open: the hundreds of billions the Fed loaned them against worthless derivatives. But that is coming to an abrupt end. In July, the Fed runs out of money.
That's when the nation's biggest financial institutions face their moment of truth. Their date with destiny.
They need money, and lots of it -- and they need it fast. They might be able to scrape up $5 or $10 billion from Arab sovereign funds -- by groveling in the sands of Arabia on all fours, begging from men in long white robes. But that is sadly, pathetically too little.
If they can't raise hundreds of billions in cash, and fast, the Fed has only one option. It will officially nationalize the banks. Otherwise the world financial system will come apart at the seams.
The top 10 financial institutions in America could be nationalized within three months of each other. As the financial system falls apart -- as more and more derivatives go bad -- that could lead to a domino effect. Hundreds of banks could soon follow.
From a central banker's perspective, nationalization is a slick move. They don't have to pay you back the money you put on deposit. That ends their crisis, temporarily anyway. They use depositors' money to cover the broke banks’ derivatives losses. They buy themselves time.
Freezing your accounts also works as a publicity stunt. The Government tells the masses, "To save depositors' funds, we have nationalized Citigroup, BankAmerica and 500 other banks. All your money is there so don't worry. You won't lose a penny. We're doing this to make sure our banks stay strong and secure."
In practical terms, it means you won’t be able to get at most of your money for months, probably years – even in FDIC-insured institutions.
The government will institute “temporary” currency transfer rules. You will no longer be able to wire money out of the country. Cash withdrawals will be limited to $50 a day. You will be prohibited from taking more than $500 a month total out of your accounts.
If you think it can’t happen here in the good ole USA, think again. It already has. During the Savings and Loan crisis of the 1980s and early 1990s, more than a thousand savings and loan institutions were taken over by Federal regulators or nationalized. The total cost to taxpayers was estimated at $124 billion at the time, although the real cost was much higher.
The S&L crisis was eerily similar to what we are seeing today – only today the crisis is 10,000 times worse.
By 1981, it was estimated that 3,300 out of 3,800 S&Ls were losing money. The S&Ls were able to make massive very risky real estate loans that went bad. Thousands of these S&Ls went bust – like Silverado Bank, run by George Bush’s brother Neil. Many depositors lined up to get their money out of insolvent S&Ls only to be told that their accounts were “temporarily” frozen. Many people had to wait a full decade to get their money, often ending up with only the insurance limit of $50,000.
In 1985, Home State Savings Bank of Cincinnati collapsed – and Ohio Governor Dick Celeste declared a banking holiday to stop a run on the bank.
The same thing is about to happen to America’s biggest banks. Only now, the disaster is so big no Federal bailout will be possible. The only recourse the Fed will have is to “temporarily” limit withdrawals, to effectively freeze accounts.
You won't get the bulk of your money back, till the bank is solvent again or officially closed and liquidated. Past experience shows this can take years. In some cases, such as Texas banks in the 1980's, it took a decade or more and in many cases big depositors got pennies on the dollar. So in my opinion if you can wait ten years to get at your money you have nothing to worry about!
Money markets funds are no better
You may think you're smart if you keep your money out of banks, and in money market accounts. Sorry. That doesn't work either.
Do you know where money market funds invest the bulk of your money? In the biggest dead-broke banks in the world. Even if they tell you they invest in government securities, odds are they invest in them through SWAPs and repurchase agreements with the same dead-broke, soon-to-be-nationalized banks.
Money market funds are the biggest buyers of bank C.D.'s: these are loans to banks. They buy repurchase agreements. Again, that money goes to banks and these deposits are not insured. They buy the exact same derivatives that are wiping out the banks.
Banks that are broke can't pay back money market funds. Neither can banks that have been nationalized. So the money market funds can't pay you. You are at the bottom of the food chain. At best, you will get a few crumbs. That means accounts frozen. And they are more dangerous than banks because they carry NO insurance. At least in a bank you will get your money back eventually (up to the insurance limit) in ten years. In a money market account, you might end up getting nothing more than a “We Are So Sorry” letter from the bankruptcy court.
See, the system works fine until people want their money. Just like with any Ponzi scheme. The truth is the banks have been wiped out trading derivatives -- and people are now starting to find out. When enough people figure it out, All Hell will break loose. It’s happened that way the world over whenever banks fail and people learn their money has vanished. They all at once want all their money back -- the dreaded “run” on a bank.
Freezing your account stops a run before it has a chance to start and everyone can pretend that all is well. No one has to tell you the cold ugly truth: that your money is gone, wiped out and sent down the derivatives poop shoot.
This is not just some hypothetical "could-maybe-happen- in-the-far-future" thing. Banks are already broke right now. That's why they have been forced to borrow nearly a trillion dollars in emergency Fed loans. Yet despite all this new cash, every week they report bigger and bigger losses. Every week they sink deeper into default.
What about your mutual funds
and retirement accounts?
Are stock or bond mutual funds safe? What about your retirement accounts? Can they protect your money?
Sadly, no. That’s because they also invest in banks. They buy huge blocks of their stocks. They buy their C.D.'s. They buy their derivatives.
You probably thought you don't have money in Citigroup. Or JP Morgan. Or HSBC, the biggest bank in Europe.
But if you have money in a money market account or a retirement fund, odds are you do. If you have money in a mutual fund, you could also.
It's sick. Some investors took money out of banks, chasing higher yields and safety. They went into funds. These investors didn't realize that their money went right back into the dead broke banks – through stock purchases, repo's, C.D.'s and derivatives.
So when your money in the bank gets frozen, understand the Fed has the power to freeze your money market accounts, mutual funds and retirement funds, too.
Only three investments are truly 100% guaranteed not be frozen. Your money is SURE to be there. But you have to do everything exactly right. I'll get into that in a minute.
Any money you keep in banks is in extreme jeopardy. Same with your money market accounts. But that's not all.
Stock market mutual funds also hold huge blocks of shares in banks. When the Fed nationalizes the banks in mass, these mutual funds will get nothing. The value of their shares will plummet. It’s the bitter lesson recently learned by shareholders in Northern Rock in England and Bear Stearns in New York.
What about your retirement money? Well, the biggest holders of uninsured bank CD's and shares of bank stocks are retirement savers. They, too, will be unable to withdraw their cash. Their money will be frozen for years in retirement funds that continue to fall in value.
Retirees will not be allowed to withdraw serious amounts of cash that is not there. Instead, they will have to make do with the token amounts of money they can withdraw every month -- something like $500.
That means if you have money in Money Market accounts, stock market mutual funds or retirement funds, your account could be frozen for years. You will not be able to get at your money.
Cash transactions by bank cash machines could be severely restricted, limited to $50 a day and $500 a month under a national banking crisis. New reporting requirements will also be issued. Look for 24-hour, Big Brother-like financial surveillance. The Feds will monitor all withdrawals. These rules will be used to control your money in all banks.
Eventually, when the dust settles, you’ll be lucky to get out 25 cents on the dollar deposited in banks or funds.
That is why you must have money outside the banking system. You need safe, secure, guaranteed investments that will allow you to get at your money any time you want. This should be money free of the risks in banks, money market funds and the stock market. You must have investments that guarantee your money will not be lost in the derivatives casino. Money that will be there for sure, guaranteed, no matter what.
Wall Street’s last desperate roll of the dice –
and why we now have an unprecedented opportunity
to make enormous fortunes
Understand that Wall Street used derivatives to create the housing/mortgage bubble. Derivatives (bundles of low-grade IOUs re-sold as prime investments) allowed Wall Street banks to create trillions of highly-leveraged money out of thin air. It was that money that allowed people to refinance their houses, borrowing the equity and spending money they didn’t have. It was all that easy derivative money that created the housing boom.
That bubble burst: the real estate wipeout got this avalanche started. It destroyed the housing market and many people's dreams of owning their own homes.
Those same Wall Street bankers used credit from derivatives to bid up the price of oil from $30 a barrel to $130. Their manipulations have doubled the price of oil in less than 12 months. Another huge artificial bubble that will burst.
But what they've done lately takes the cake. They have sent damn near EVERY cash commodity soaring, to all-time record highs.
Why are they doing this? The answer is simple: To save their asses, that’s why!
In February, Wall Street big shots got a rude wakeup call. Northern Rock, England's biggest bank and derivatives trader, collapsed. The British government nationalized Northern Rock, at a cost of over $200 billion. Shareholders got exactly zero: nothing.
Then the Bear Stearns collapse really drove home the point. Partners in Bear Stearns overnight saw their millions become a few pennies on the dollar when their firm wiped out. Shareholders in Bear Stearns fared no better. They got only ten cents on the dollar when it collapsed and the Fed organized its liquidation.
If it happened to Bear Stearns, it can happen to anyone -- since all these big firms hold the same derivatives that are now wiping out in mass.
Investment bankers, billionaire traders and the people who run huge money center banks realized that they are a hop, skip and jump away from being eligible for food stamps. In Bear Stearns, many of the partners went home to caviar and champagne on Friday night, very wealthy millionaires, and came to their offices on Monday morning to find out they were wiped out.
And let me tell you: blond, silicone-enhanced trophy wives don't do food stamps. For these guys, it's all or nothing.
Investment bankers and big money center banks are wounded and they are scared. But like an injured lion, they are also dangerous. If you wait for CNBC or the Wall Street Journal to give you the news, you will never learn the truth: that the world's financial system is teetering on the edge of a cliff. And the only solution left to avoid a complete melt-down is bank nationalizations.
As I'll show you a bit later in this report, because of these desperate investment bankers, supply and demand no longer matter much. If they have their way, these greedy bastards will end up destroying the entire world financial system in a desperate, last-ditch effort to save their own skins.
In my 30 years of analyzing markets, I've never seen a crisis like this. That includes the near-runaway inflation of the late 1970's...the 1987 stock market wipeout...the Japanese bubble bursting... the Long Term Capital Management collapse...the year 2000 Tech Wreck...and the 911 terrorist attacks.
After 911, I saw the Fed drop interest rates to 1% and pump $50-to-$75 billion into the U.S. financial system. They had to, to keep things from falling apart.
But that pales in comparison to the trillion dollars they have given money center banks and Wall Street investment brokers over the past several months.
The Fed does not want you to know what's going on. The fact is, close to a trillion dollars in emergency funds have been loaned to dead-broke banks in a desperate attempt to keep them solvent -- and it’s not working. In fact, the massive losses continue. If the American people knew the truth and understood the staggering losses the banks are still taking, it could cause panic and a nationwide run on the banks. That’s why in the past ten days, no fewer than 30 Fed spokesmen have given speeches on the same theme:
"The crisis is solved. Happy days are here again."
Eerily reminiscent of the reassurances given the public in the early stages of the Great Depression.
Behind the scenes, the Fed tells a very different story. There the Fed is warning our banker buddies that the central bank will soon run out of money to loan them -- and the bankers better come up with lots and lots of capital on their own and damn fast. The wounded lions of capitalism -- the investment banks and money center banks -- are desperately hunting for cash.
And here's how they plan to bag the big bucks they need.
FIRST: They are using the vast loans from the Fed -- not to make loans to businesses and people, as the Fed expected and which would theoretically jump-start the economy -- but to shore up their own balance sheets.
SECOND: They are once again leveraging those hundreds of billions (soon to be a trillion) of new loans from the Fed and going back into the derivatives casino. They’re taking that new money and attempting to corner the world's cash commodities markets through their surrogates, the mega-funds.
This is just like Bunker Hunt and the oil cartel did in 1980 when they cornered the cash silver market (with eventually disastrous results). Bunker Hunt ending up buying 100,000 ounces of silver at an average price of $20 a ounce and selling it for $5. He lost a billion dollars in the days when a billion was a lot of money and ended up bankrupt.
But this time it’s far worse. The central bankers are not just cornering silver. They are also cornering oil and gasoline. Plus gold, copper, platinum and palladium... zinc, steel and lead.
And that's just the start. Not happy with only cornering oil, the precious and industrial metals, they've gone where no manipulator has gone before. THEY ARE NOW THE MODERN DAY ROBBER BARONS. They have decided to manipulate all the world's agricultural markets as well.
Corn. Wheat. Oats. Soybeans. Sugar. Soybean Oil. Palm Oil.
Most tragically, they are manipulating the staple that feeds the majority of the world's population. Rice. This is why you see food riots around the world.
I've seen many market manipulations. Many bubbles. But I've never seen all markets manipulated at the same time. I have never seen so many bubble markets that are about to collapse. It’s incredible what they have done.
These manipulations, besides being immoral, are illegal. They also are destroying the capitalistic system. Supply and demand no longer determine price. Wall Street Robber Barons’ manipulations do. They have distorted markets in fatal ways.
There is no longer a level playing field. Instead, Wall Street is the 10,000-ton gorilla. It has all the leveraged cash, and sets the cash prices it wants. The capitalistic system cannot work like that.
You are seeing the wealthiest, most powerful bankers in the world try to put off their date with the hangman. These men are super-egotists. They bet the ranch on derivatives. They lost. Now they are doing everything they can to come up with money, before they get thrown off the farm. It's that simple.
This is bringing untold suffering, pain and death to the world's poor. In the past year, food and grain prices have soared 50% to 200%. The U.N. says a billion people or more can no longer afford the basic staples of life.
The Fed bought a lie
The Fed knows what's going on. Yet it is looking the other way. Why? Because it bought a lie.
The Fed is willing to let the banks’ surrogates (the mega-funds) corner virtually every cash commodities market in the world, creating these massive price bubbles on everything from gasoline to rice. They’re allowing this on the tiny chance that it can prevent the nationalization of the world's biggest banks. It's a very dangerous political decision, in a very political election year.
Maybe they can make it to the election. Maybe to the end of the year. I can't see this game going longer than that. By this time next year, we could well be in a full-blown depression. The odds are that your bank accounts will be frozen by then. And depending upon what you do right now, your financial situation will be dramatically different. You could be very, very rich – or very, very poor.
The rationale the Fed Governors give themselves for letting the mega-banks and investment banks corner the world’s cash commodities is that it’s the lesser of two evils. They believe they have only two choices.
One, let the banks corner the world's cash commodities markets and shoot prices to the moon. This lets desperate, dead-broke bankers make billions – but allows up to a billion people to go hungry. The hope is that, even though it destroys the market-based, supply and demand system, it may hold the financial system together with chewing gum and wire. The Fed (a creature of the banking system) believes this is better than a global banking wipeout.
Their second option, they tell themselves, is to leave the markets alone...and let the banks and Wall Street brokers go under. The Fed thinks this will destroy the entire world financial system and they believe anything would be better than this scenario.
This is the lie the Fed has bought. The lie the government has bought. It's why they are turning a blind eye to the most incredible, Robber Baron cash-commodity market manipulations in history, far worse than anything that preceded the Great Depression. It's also why they have allowed these bubbles, these manipulations, to occur.
Look, these investment banks and money center banks turned their entire balance sheets into party poker chips. They went into the derivatives casino and lost, pure and simple.
They are card-carrying members of Gamblers Anonymous. They are like a guy who gambled away all of his family’s assets, spent his wife’s inheritance, wagered his kids’ college funds on the horses – then goes to the bank, gets a final equity loan on his house, and proceeds straight back to Vegas with the cash from the bank loan to try to win back all of his losses.
All the insiders know the derivatives they hold are plunging in value. They lose more and more every day. Soon they will be worthless.
These dead-broke institutions have convinced the Fed they are too big to be allowed to fail. That they have some kind of divine right to gamble away all the money entrusted to them -– and then expect government to bail them out.
In reality that is the worst thing that we, as a free capitalistic society, can do. It means the "chosen-from-on- high" mega-banks can take as big a gamble as they want with other people's money. When the deals go bad, we the American taxpayers must pay the price.
But it's even uglier than that. The world's banks have lost so much money in derivatives, the Fed doesn't have a prayer of saving them. No bailout of any kind can help them now. The derivatives casino is more than $800 trillion dollars. That means the dead broke banks and brokers are too big to save. Someone has to take a huge loss in this. Now let me ask you a question: Who do you think the losers are going to be? You got it: ultimately the depositors, the people who have to buy food and energy, the trusting, naive masses.
Of course, Citigroup couldn't care less about this. They would vote in a New York second to destroy the world's cash commodities markets... make gasoline $10 a gallon... and starve a third of the world's poor... if it meant they could survive and continue their fat-cat lifestyles.
Citigroup wants to save its own ass at all costs. If it means the teeming masses of poor can no longer afford three bowls of rice a day, because Wall Street is manipulating cash commodities markets and making basic food staples unaffordable, so what? Citi doesn't give a damn.
Mega Funds now control
80% of world cash commodities markets
In the past, mega-banks and funds controlled only about 10% to 20% of the world's commodities markets. The vast bulk of cash commodities was held by producers and users, not speculators.
Now the exact opposite is true. Thanks to derivatives and these new Fed loans, speculators now control 70% to 80% of world cash commodities markets. They have cornered the markets, held supplies off the market, and created artificial shortages to pump up prices. All on derivatives leverage, borrowed money from the Fed.
This is not an act of strength. It is an act of desperation. When the money driving these markets higher and higher finally dries up – as is happening right now -- you will see the greatest cash-commodities price collapse in world history.
And not just one commodity will plummet in value. Not just a few. ALL commodities will crash! They've all been manipulated up: they are all bubbles waiting to burst. They all will come crashing down.
Housing was first to become a bubble. You're already seeing it start to collapse. Other markets will soon follow. This will go down as the greatest cash commodity corner and crash in the history of the planet. And they will lose, not billions of dollars but trillions.
Tell me this. Do you really believe we are running out of gasoline, diesel, crude oil, soybean oil, gold, silver, copper, platinum, corn, rice, soybeans and wheat -- all at the same time?
Do you really think it’s all because the teeming hordes of Asia (on their dollar-an-hour jobs) suddenly can afford to buy new products?
Of course not! There are no real shortages. Supplies have not changed that much in the past year. It's all manipulation from mega-funds.
Dead-broke, desperate investment bankers are taking the last of the Fed's money. They are then leveraging it up a thousand times with derivatives, and using that new credit to drive up the prices of the world’s commodities. It's a last, desperate roll of the dice on a scale never imagined before. The greatest illegal manipulation of cash commodities markets the world has ever seen is unfolding before your eyes as we speak.
But here’s what you must understand – and this knowledge has the potential to make you richer than you ever imagined possible:
Derivatives are now crashing. The money that keeps these vast trading machines blowing bubbles in most of the cash commodities has finally dried up. The casino has just notified the guy holding the dice that his credit has now run out. It’s his last roll of the dice.
What that means is that you could see the biggest cash commodities bust in history. There is a fortune that could be made here.
We think these commodities bubbles will pop -- and soon. The same thing that is happening right now in real estate will happen in gold, oil, grains, and all the other cash commodities that are nothing short of massive bubbles.
They will crash big time. I am deadly serious when I tell you that the greatest bubble wipeout in history could make you a millionaire in a matter of weeks.
What’s more, you don't have to trade futures, or take on that kind of extra risk, to get in on the action.
What happens when $1000 gold falls to $300?
We make a fortune!
My friend, this is the single biggest trading opportunity I've ever seen in my life. Bar none.
Gold costs $1000 an ounce? Yeah, right. $2000 platinum? What a joke. They say it’s demand from Asia driving these price increases. What bull. The truth is that jewelry demand has actually plunged (especially out of Asia!) precisely because of the high prices.
Gold has gone up in price for one reason and one reason only: Because mega-funds have bought a pile of the stuff! Funds now are the world's 6th largest holder of gold. They hold more gold than the central bank of Japan.
$135 dollar a barrel oil, rising $25 in a week? It’s not a result of a supply shortage. Far from it. It is a direct result of market manipulation. Insanity. There is more oil than ever above ground in inventory. In fact, there is so much excess oil today that oil producers -- having used every available storage tank on land -- are now turning supertankers into floating storage facilities for all the excess oil. These markets will soon fall by 70%, 80%. Maybe more. Just like real estate.
Copper at $4.00 a pound? Just a few years ago, it was at 60 cents. The cost of producing it even at the most expensive mines is under a dollar a pound. Copper supplies have not fallen. Demand has not risen. What the hell is that?
And $7.50 corn? Beans in the teens? Give me a freaking break. This rally in agricultural prices has the farmers grinning ear to ear -- while it lasts.
You saw housing prices go higher and higher, you remember? Most people thought they would never stop going up. And they got suckered into the real estate bubble. Look where they are now.
These are dangerous times, but we should thank our lucky stars that we are alive to see this day.
That’s because the investment bankers made one fatal mistake. They didn’t foresee that a brand-new trading vehicle would totally undermine their plans.
Wall Street and the banks believed they could keep the cash commodity markets at these insane high levels longer than ordinary investors and consumers could afford to go against them. For a number of years, they were right.
You see, with commodities there is always a holding cost. It costs money to hold commodities – and the higher the prices go, the more it costs to hold inventories. Even when you’re right about the ultimate direction of prices, temporary swings in the market can force you out. The super-rich mega-funds can afford to hold these cash commodities and bid the price higher and higher, but smaller investors often are forced to bail out.
This is what is meant by cornering a market. It’s what robber barons do. When you have enough money, you can afford to buy more and more of a cash commodity, pushing prices ever higher and squeezing out everyone else by the sheer magnitude of your buying power.
But here’s what the mega-funds failed to take into account. New trading instruments have totally altered this dynamic. Unlike futures contracts, these new trading instruments let you hold a position in a commodity or a basket of commodities till the cows come home. That’s because they are technically shares of stocks, not futures.
That means small investors can sit and wait them out. No futures margin calls, no roll-over losses, no expiration, no putting up extra money to hold your position. When the markets tank, you could make a fortune. You can afford to sit there and wait out the insanity without margin calls and the other associated problems of futures contracts.
Listen, I've had a 30-year career at this. In fact, because of what I know and what I have published I am forever banned by a court order from trading the futures markets. See the disclosure and disclaimers button near the end for the gory details.
But I’m actually delighted by this order! That’s because there is now a better way to trade the coming crash in the commodities bubble. It’s a way that lets you stake out a position to potentially make an enormous fortune if the commodities market crashes – but without the carrying costs and margin calls of futures contracts.
If you had told me in 1998 that the next ten years would finish with the greatest bubbles ever... in all cash commodities...all at the same time... all driven by the same robber baron entities (the mega bankers)... I would have said you were delusional. No one could give us such staggering opportunities.
I can't believe our good fortune. I have to pinch myself to make sure I'm not dreaming.
Don't let anyone kid you. Behind these commodities bubbles are the pension mega-funds. Retirement funds. Mutual funds. Money market funds. Hedge Funds. Money center banks. All the surrogates of the dead-broke derivatives driven banks and brokers. They are driving these cash commodities markets higher and higher with their insane buying.
And don't let Wall Street's Goldilocks spin fool you either. I've got the numbers to prove it. I've got the insiders skinny. One thing is driving these cash commodities bubbles: mega fund/broke bank manipulation.
They broke the laws. They bid the markets higher and higher. They took prices from the sublime to the ridiculous to the insane.
You are seeing market manipulation on a planetary scale. It is the dying act of the criminal organizations that the desperate, mortally-wounded, dead-broke banks and brokers have become.
What they did in housing was nothing short of entrapment. They lured in tens of millions of gullible people, talking them into taking on absurd loans. The bankers knew these people could never afford these outrageous ARM loans. But they made them anyway!
Now the derivatives scam is blowing up in their sleazy faces. As a result, they are using their enormous leverage to milk the world's poorest people out of what they have. The little money they have to buy food.
They are literally taking the food out
of babies’ mouths in their desperate bid for survival.
This is a plan straight out of the pits of hell.
But guess what? The plans of the world’s top robber baron investment bankers are doomed to fail.
It’s a law of economics as rigid and unbending as the law of gravity: What goes up eventually does come down. All market bubbles burst – whether they are in dot.com stocks, real estate or, now, commodities like gold, oil and grains.
What’s new and exciting is that these new trading instruments, for the first time in history, could allow ordinary investors to be ready to make a killing when the inevitable crashes occur. Without the risks associated with highly leveraged futures and futures margin calls.
All you do is position yourself and wait. No futures, no futures margin calls, no extra risk, no more money to keep your positions.
You could wake up one day, and it's like someone blew a whistle. Prices for cash commodities could drop like a lead balloon that fell out of a C-140 Cargo plane at 10,000 feet. Without a parachute.
But there are two things you must understand.
First, these cash commodities are bubbles. They will burst.
Second, you must act right now. If you wait for the bubbles to crash to put on your positions in these new instruments, it will be too late. You could miss the moves.
Bubbles crash fast. If you're not there ahead of time, you won't be able to get at them.
Get ready for 1980 all over
again in the Gold Market**
For example, the whole world now believes gold will continue climbing higher and higher as the dollar plummets. Wall Street talking heads are predicting $2000 an ounce gold. What a joke. Just like in 1980, they are in for the shock of their lives.
The gold market has been driven by one thing: incredible amounts of leveraged money from derivatives. That money was given to hedge funds, to buy gold. But derivatives are wiping out. Hedge funds don't have any more money left. And with the banks and stock market in a nuclear meltdown, their funding is drying up. We truly believe this is their last hurrah.
What's more, we're in a recession. As more people lose their jobs and homes, prices go down, not up. There is no more cash: derivatives used to finance housing are wiping out. The derivative losses banks are taking are getting bigger, not smaller as they would have you believe.
And contrary to Wall Street myth, Asian demand for gold is NOT soaring. They can't afford it on their $1 an hour jobs. Higher gold prices are KILLING demand. 70% of all mined gold goes for jewelry. Today's prices are just plain too high. In a recession/depression, gold gets killed. Prices fall. Inflation? There will be no inflation when the unemployed masses (now out of credit) can no longer go on shopping sprees.
We had the greatest rally ever in stocks and the housing markets. Gold went up with them. Now stocks have peaked and are coming down. Real estate is crashing. Gold will do the same.
I expect gold to fall and fall hard. Just like in 1980, no one is expecting this. And just like in 1980, you could make a huge, huge fortune.
Again, I’m not talking about futures trades. There are much better ways you can do this.
They are called ETF's. Exchange Traded Funds. Once the exclusive domain of billion-dollar mega-funds, they are now traded on the world’s stock markets. Hedge funds made massive amounts of money with them. Now it's our turn.
ETF's trade just like stocks In fact, they are shares of stocks, which means stock market rules apply, not futures rules. It is not futures trading!
Take the gold ETF. One share is equivalent to 1/10th ounce of gold. They trade under the symbol GLD. You can sell shares of the ETF. You can also sell options on the ETF's, that give you outstanding leverage.
How much could you make? With $10,000 invested in ETF options, a $200 drop in gold could make you $50,000. A $400 drop in gold (that only takes gold back to where it was trading last September!), could make you $100,000. Bigger drops could make you far more.
At the same time, you limit your losses to the small option price. You get nearly unlimited upside -- with tiny, strictly limited downside. The best of both worlds.
Remember, when gold was $270 an ounce, and Wall Street called it "the barbaric relic of the past," I told you it was the bargain of the century. I begged you to scoop up all you could, with both hands.
Now I'm telling you gold has gone way too high, and must come crashing down. Yet Wall Street naturally wants you to buy $1,000 an ounce gold which is at record highs!
As always, Wall Street wants you to sell on the lows, and buy on the highs. I think it works out better if you do it the other way around.
How you could make a fortune when
the price of oil finally plummets.
Another great market, that offers unprecedented opportunities, is crude oil.
Oil prices have soared on nothing short of insanity. In fact, formal investigations by government regulators have started into the price manipulations. Hedge funds got unlimited money from highly leveraged derivatives loans. Then they bought the shit out of oil. Things got so bizarre, hedge funds bought oil storage facilities. They had to! There was too much oil coming to market. Oil traders are chartering supertankers to store massive amounts of oil offshore. There is nowhere else to put the oversupply. It is the only way they can park the huge volume of oil they were forced to buy, to keep prices sky-high. And hold the oil in secret, not counted in global inventories.
Now the perfect storm is forming in the oil market. First and foremost, oil supplies are soaring. Everyone wants to get in on this sky-high oil bonanza. The most money in history has been spent bringing new oil production to market. Now, the oil is coming in. The market is getting swamped with new oil. Also sky-high prices is killing demand and making alternative energy economics work. For the first time since World War II rationing, Americans are driving way less So are Europeans. People around the world have now started to buy Smart Cars and Prius hybrids.
Second, hedge funds are running out of money, due to the banking crisis, derivative wipeout and their bad trades in stocks. The source of money to keep pumping up oil prices is drying up. The biggest force in the oil market, that drove prices to over $135 a barrel, is going broke.
And now the one thing no one wanted is hitting the market: the crumbling global economy. This is really killing demand for oil. High prices, the derivatives wipeout and the spreading global recession have come together to destroy demand for oil. You can see this in the chart below. Contrary to the spin put out by oil robber barons, global production is increasing, not declining.
At the exact same time, oil supplies have skyrocketed. Soaring supplies and falling demand mean one thing. Prices will come crashing down. Contrary to another market myth there is surplus oil and the supply has been increasing.
There is a fantastic new way to trade oil. An ETF that trades on the American Stock Exchange. Symbol USO. You can also trade an option on this ETF. You strictly limit risk, to the low cost of your option. Yet you get up to 30 to 1 leverage.
How much can you make? I believe this ETF could easily fall $20 or more. You could make hundreds of thousands of dollars, on a $10,000 starting investment. Your loss is strictly limited to your modest initial investment.
Conservative trade with speculative profit potential:
could double in six months, with just about ZERO risk
Here is a conservative trade...guaranteed by the U.S. government...that could make you 100% profits in the next 12 months.
Every time the Fed lowers interest rates, you make money with this trade. If rates stay the same, you don't lose a penny. And the investment itself is completely guaranteed by the U.S. government. Here is how it works.
The U.S. Treasury issues an instrument called the Zero-Coupon Bond. This bond increases in value as interest rates fall. The more rates fall, the more you make.
One nice feature of this bond is that the upside is four times greater than the downside. That means you make four times as much if rates fall by one point, compared to what you lose if they rise by one point.
But the chances of rates going up are somewhere between slim and none in my opinion. The Fed is in crisis. Despite the inflation spin, they have to keep lowering rates, back down to under 1%. Maybe even lower.
I expect Fed Funds rate to drop to 0.5%. I believe the 20-year zero coupon bond will drop by 2 more points.
Since I started recommending zero's, they have more than doubled in value. By following the simple trading strategy I will give you, you could make another 100% profits. Not bad from a conservative investment, guaranteed by the U.S. government, whose downside risk is next to zero.
What happens to the stock market
when every major financial institution wipes out?
I saved the best for last. This one has me drooling. We had the biggest stock market bubble in history. Now it is starting to crack. Please believe me when I tell you the truly big moves are yet to come.
Every major financial institution in America is facing wipeout. The biggest banks and brokerage firms are getting killed as we speak. They are borrowing so much money from Arabs, they will soon have to follow Sharia law and close down for Muslim holidays.
Sales in industry after industry are collapsing. The global economy is in a major slow down.
And the biggest companies -- the petroleum companies -- will be in a major crunch as oil collapses.
The main investment most people hold is their home. It is wiping out. Home equity loans kept consumer spending up. Not any more. The retail spending orgy is over. The U.S. economy is in big trouble.
The stock market is due to come crashing down. How much? A few months ago the Dow traded at 14,200. Now it's fighting to get back to 13,000. I expect the Dow to fall to 7000 in the next 12 months. Over the next few years, it could fall as low as 2000. Huge plunges are in line on the near horizon.
You can make a fortune, get great leverage, and completely limit your risk, by trading stock market ETF options. Again, no futures. No futures margin calls. Very small, completely limited downside.
My favorite ETF's are the SPDRs. They trade on AMEX. There are six in all. Each represents a different sector of the market. They let us pinpoint which parts of the stock market will get hit the hardest.
One SPDR is Consumer Discretionary Spending -– i.e. spending on non-essentials. Consumer Staples Select sector is another. So is Financial Select Sector. Others are the Health Care Select Sector... Industrial Select Sector... Energy Select Sector.
One of my favorites is the energy sector. I think you could make a fortune here in the next several months. For the simple reason that I think energy prices are going to come down. That means stocks of energy companies will plunge like never before. Global demand for oil will sink, along with oil prices, in the coming global recession.
I also like Consumer Discretionary. In a recession people have less money to blow. Another great ETF to trade.
Many stocks in the Financial Sector have already dropped a lot. But still more institutions will wipe out due to their derivatives exposure and slowing economy. I expect us to do quite well with this ETF. As every dead-broke bank admits to more and more losses, the lower their stock price will go.
Industrial Sector: another real good one. Industrials will get hit hard in a slowdown. And I expect this recession to be the biggest one in 70 years.
Profit potential: if the Dow falls 4000 points, $10,000 could turn into $300,000. Depending on the sector and the amount of options you hold. Since I expect the Dow to drop more than that, the potential profits could be much bigger.
Wall Street Insiders: our new publication,
dedicated to helping you get rich in
the bank nationalization wipeout
The new newsletter I edit is titled "Wall Street Insiders." It shows you how to keep your money safe and sound when the Fed nationalizes our banks.
It also gives you a real chance to turn the current derivatives wipeout into a fortune.
WSI comes to you on the Internet. You get all my analysis on the economy. Every specific recommendation I think can make you a lot of money.
Some of my analysis comes in audio files. You can listen to them on the website...or you can download them as MP3 files, and play them when you wish.
Nick's Picks: you also get every recommendation in writing. "Nick's Pick's" gives you my “generalized non- personalized, futures-free investment advice,” in full detail. You get entry points... the specific instruments... a discussion of risks and potential rewards. When it's time to take profits, I let you know at once.
The really good part is none of our recommendations is in the futures markets. You have no ugly futures margin calls. Your risk is strictly limited to your initial investment. These reco's let you sleep at night.
At the same time, they give you great leverage. You could make huge profits, with little initial investment.
Some markets I cover for you are precious metals, like gold, silver and platinum. These cash markets are doing moon shots. They cannot sustain these unbelievable prices. In a massive recession like the one we are fixing to have, prices go down, not up.
You also get reco's in the important industrial metals, that are trading at or near record highs: copper, nickel, lead and zinc. Wall Street spin is that supplies are running out. Total B.S.
They forget to mention that hedge funds drove these markets sky-high. They don't dare liquidate: they would collapse the markets. And now the global economy is sucking shut. So what little real demand was out there is disappearing. Fantastic opportunities for us.
I also give you some great trade ideas in U.S. government bonds and foreign currencies. Year after year, these have done really well. With the derivatives wipeout, I expect them to perform even better.
I cover a dozen or more special cash markets in all: the ones that should make the most money for you in this recession and derivatives meltdown. Some have already started to crack apart.
WSI is constantly updated each day. So you get my hottest recommendations, literally within seconds. When something critical comes up, that you need to act on at once, I send you an emergency email.
A one-year subscription is $5000. No discounts. If you can’t write a check for $5K and not even think about it, you have NO BUSINESS subscribing. This is for people who want to protect their hard-earned wealth from the banking crisis – and who want to learn how they could turn the coming collapses into big money.
I have correctly warned about market wipeouts many times in the past. But this time, far more money is at stake. Over a hundred times more dollars. I think this derivatives wipeout could be our biggest winner, by far.
And you get more in WSI. Tragically, most people are about to lose everything. Their bank accounts. Their money market funds. Their retirement accounts and pensions. Even their homes.
In WSI, you will learn how to keep your assets safe and sound. There are still a few places to put your money, that are guaranteed secure. I will show you what they are and how you can take advantage of them. This alone could be worth many times the subscription.
It's our turn to make a fortune
I'm not going to B.S. you. For me, this is not simply about making money. Not even about making a hell of a lot of money.
The bastards pushed things too far. Now I'm pissed. I am roaring mad. I am spitting fire. I am a predator and I smell blood.
I’ve already told you that they hurt me bad. They tried to ruin me for being right and telling the truth. But you know what? I survived. I am coming back bigger and better than ever.
What really makes me mad is what they are doing to our nation – and to the world’s poorest people.
They are wiping out the little guys. They are taking the middle class houses away and driving up the prices of the staples of poor people, their beans and rice. The are literally triggering a worldwide famine.
These people are not as fortunate as I am. They don't have the knowledge or the experience to bounce back. They don’t have a clue about what they must do to protect themselves.
Warren Buffet is right: America’s middle classes will become land surfs. They don’t know how to turn the tables on these "financial weapons of mass destruction" Bankers are using to corner world commodities markets.
But we do, my friends.
Many of your friends and relatives are in severe danger. They are going to lose their homes. Their savings. Everything they spent their lives working for.
That makes me sick. No one can stop this -- it's too late for that. But there is something you and I can do. We can get back at the Wall Street investment whores. We can become the big winners, as their trillion-dollar scams blow up in their faces. We could get rich in the process.
I know what's coming. And I know how to make massive profits from it. Nothing is going to stop me. You can be there, too. I know deep down inside you see what is coming. I know you feel it in your bones.
Join with me. I am putting together a small army of little guys. Enlightened people who want to turn this curse into a blessing.
Wall Street wants to wipe us out? The government wants to freeze our bank accounts? To hell with that! Let's make tons of money, on every sleazy Wall Street derivative wipeout and bank nationalization crash.
Let's get wealthy, as the big investment banks go under, the Fed runs out of money, and the U.S. government nationalizes America’s biggest banks and freezes most people’s accounts.
Remember how much money we made in 2000, 2001, 2002 and 2003?
You ain't seen nothing yet. The wipeouts of the world's biggest banks and brokers are just the warm-up to the main event.
It is our turn at the switch. Our turn to cash in. Everything we planned and predicted years ago is finally taking place.
The stars are finally aligned. All systems are go. There's more money than dirt to be made if you know what you are doing. I damn well intend to make a fortune. It will be a tragedy if you are not there with me.
One key thing you do need to know. This is the last hurrah. I believe the current recession will end in a global depression.
After this massive liquidation of debt, many markets will shut down, and never open again. Trading will be dead for decades. Just like in the 1930’s and the 1970’s.
You have to be there now. You can't wait for things to shake out. Either you're there ahead of time, or you are not there at all. You’ll miss out. It's now or never!
Wall Street and the U.S. government tried to shut me up, stop me from publishing. But guess what -- they failed. I’m back. And I’m not just here to get even. I’m here to make a fortune. A very, very large fortune.
Call me at 1-913-871-0701 – or click on the order button below. I’ll help you get your money safe so it can’t be frozen when U.S. banks are nationalized – AND potentially make enormous profits when current run-up in global commodities finally collapses and prices fall.
Sincerely,
Nick Guarino
The Fed's Secret Plan to Nationalize America’s Failing Banks
Nick Guarino's most SHOCKING revelation yet...
“In a desperate, last-ditch effort to prevent a global banking collapse, the Federal Reserve is making plans to take over America’s largest banks and investment firms -- and freeze your accounts.
"They have no choice. Many of the nation's largest banks and financial institutions are technically broke. Their assets have been vaporized in the multi-trillion-dollar derivatives wipeout. Citigroup, Morgan Stanley, Goldman Sachs and Merrill Lynch are just a few of the hundreds of U.S. banks and brokers now on Fed life support.
"In this special Wall Street Insiders report, I reveal the Fed's top-secret plan to nationalize banks and ‘temporarily’ freeze your bank accounts, your money market accounts, your retirement accounts and mutual funds. If you don't take the right steps now, one day soon you may wake up to discover you can't touch your money -- even if it is in 'FDIC insured’ deposits.
"You'll also learn in this report the only 3 low-risk investments that are 100% guaranteed to 1) NOT get frozen 2) NOT wipe out, and 3) Give you 100% access to your money at all times, in any amounts you desire. Remember, nearly all other Americans won't be able to get their dollars, by hook or by crook.
"These investments aren't just as good as gold. In fact, they are far, far better."
-- Nick Guarino
Dear Friend,
Unknown to 99% of ordinary Americans, the U.S. government is secretly making plans to nationalize our banks and financial institutions.
Wall Street, the Fed and desperate politicians are doing this for one simple reason. If they don’t, there could be a bank panic the likes of which has not been seen since the Great Depression.
The Fed's Plan A to save the banking system failed.
Get ready for Plan B: Freeze Your Accounts
During extreme emergencies, the Federal Reserve has up to $1 trillion in funds to lend out to U.S. banks. When that money is gone, the Fed is dead broke.
Even during the Great Depression, the Fed never had to tap into all of its emergency funds. Now, for the first time in history, it has. By July the Fed will have spent every dime it has, in a desperate effort to save the U.S. banking system from total meltdown.
Why has the Fed put all its money at risk? Simple: Many of America's biggest banks and investment firms are technically broke. In just the last few months, they have had to borrow close to a trillion dollars in emergency funds from the Fed.
Before this, the Fed never loaned money to investment banks. For good reason. It is illegal. Investment banks are not part of our central banking system. The Fed isn't supposed to give them money, any more than it gives money to MTV or the World Wrestling Federation.
But this crisis is so dangerous -- the stakes are so high -- the Fed decided "to hell with the rules."
It set up an emergency loan program, called the TAF (Term Auction Facility). The TAF has one purpose: to stop America’s biggest banks and investment banks from wiping out, even though they have run out of cash, and cannot beg, borrow or steal enough money anywhere else to keep their heads above water.
When the Fed opened the TAF, it expected a few desperate investment banks to come to this new lending window. To its shock, nearly every large bank and investment firm in the country (95 in all) showed up, hat in hand, to tap into these emergency funds. They are desperate for the cash to cover their derivatives debts – or they will publicly default on loans they carry on their books.
Look at the summary list below. In just a few months, the Fed has loaned out over $600 billion in cash. 2/3rds of its total assets! It only has $300 billion left.
Recent Federal Reserve Loans to Banks
1. Lent banks $10.3 billion through the discount window.
2. Lent banks $100 billion in term auction credit.
3. Lent securities dealers $76 billion through standard repurchase agreements.
4. Lent securities dealers $34.4 billion through the discount window.
5. Lent securities dealers $75 billion of its Treasuries in return for other collateral through its new Term Auction Facility.
6. Lent up to $36 billion to the European and Swiss central banks.
7. Lent $29 billion for Bear Sterns take over
8. Lent $125 billion for April Term Auction Facility
9. Lent $150 billion for May Term Auction Facility
TOTAL: $635.7 BILLION
But even that is a mirage. You see, the Fed has promised to loan another $250 billion in June. And then another $250 billion in July as well.
This means that by the end of July the Fed will be officially broke, out of money. In less than six months, it will have loaned out ALL its assets -– assets it took over 100 years to accumulate -- to try to bail out America's failed investment firms and banks.
The Who's Who of American Finance...BANKRUPT!
And here's the really pathetic thing. The Fed lending out all of its available cash didn't work! Forget Wall Street's B.S. Banks are in worse shape now than ever. They keep losing more and more money. In essence, the TAF facility provided by the Fed is merely a way to postpone the inevitable by a few months, nothing more. (See the chart of the admitted write-downs financial institutions have taken so far on bad derivatives debt.)
"The TAF ... allows the banks to borrow money against all sorts of dodgy collateral," Christopher Wood, an analyst at CSLA, a major Hong Kong-based international brokerage firm, recently told the Financial Times:
"The banks are increasingly giving the Fed the garbage collateral nobody else wants to take .... [This] suggest a perilous condition for America's banking system."
It doesn't take a rocket scientist to see why. Banks are on the hook for $800 trillion in potential derivatives losses. The $1 trillion dollars from the Fed helps them as much as a band-aid helps a heart attack. Why on earth would the Fed loan out ALL its money? Because it has a backup plan. "Plan B" as Fed insiders call it.
Plan B is the Fed's Doomsday Weapon. They don't like to publicize it. But central banks around the world have this same weapon and many of them have used it in financial crises like what we are faced with today. The Bank of England used it just 6 months ago on one of their biggest banks. It’s called nationalization. The government simply takes over the nation’s largest banks.
The Fed has the statutory authority to do this at its sole discretion. It does not need approval from Congress. The Fed can take over any bank it chooses, so long as the bank is broke and or owes the Fed a pile of money it can’t pay back. That is a situation that now describes dozens of America’s largest institutions.
Contrary to what many people believe, nationalization is not that uncommon.
The Scandinavian nations used this weapon ten years ago, when their banks wiped out. The nationalization lasted for a decade. Mexico nationalized its banks in the early 1980s. Thailand did a few years ago. England did the same thing just a few months ago, after its biggest bank -- Northern Rock – lost over $80 billion before it was taken over (nationalized) by the British government.
The U.S. government is now doing everything it can to keep the public from knowing the truth about its plans. But a senior official at one of the Scandinavian central banks told a British newspaper last month that US Fed strategists had stepped up contacts to learn what steps Norway, Sweden and Finland took when they nationalized their failed banks.
The Fed keeps a tight lid on just which financial institutions are being considered for nationalization. But by following the money and tracking their losses, I was able to obtain their names. They read like a "Who's Who of American Finance."
(The chart below shows US banks and brokerage firms with the biggest exposure to Asset Backed Securities. ABSs are a particularly dangerous derivative.)
These are just a few of the huge banks and investment banks that are on Death Row. Bear Stearns, which was at the top of the list, has already wiped out and was taken down by the Fed. The other sick institutions that head my list are Citigroup, Morgan Stanley, Countrywide, Merrill Lynch, Goldman Sachs and Wachovia.
These are banks that have taken huge derivatives write-downs, have still more derivatives exposure, and that have been forced to turn to the Fed’s emergency TAF borrowing program to stay afloat. They are losing far, far more money than they admit. Their financial statements are a joke.
Problem is, the Fed now is the single largest investor in most of America's biggest financial institutions. Those emergency loans they got from the Fed represent all their capital. If they can't pay these new loans back, Uncle Sam officially owns them. They will be nationalized in every sense of the word.
The public doesn’t realize it yet, but these big banks and investment firms already wiped out their investors’ capital. They threw their depositors’ money into highly-leveraged derivatives. Derivatives that crashed and are burning.
The banks already have lost more than they own and are owed. That is the definition of "Bankrupt."
Only one thing and one thing only has let these banks and financial institutions keep their doors open: the hundreds of billions the Fed loaned them against worthless derivatives. But that is coming to an abrupt end. In July, the Fed runs out of money.
That's when the nation's biggest financial institutions face their moment of truth. Their date with destiny.
They need money, and lots of it -- and they need it fast. They might be able to scrape up $5 or $10 billion from Arab sovereign funds -- by groveling in the sands of Arabia on all fours, begging from men in long white robes. But that is sadly, pathetically too little.
If they can't raise hundreds of billions in cash, and fast, the Fed has only one option. It will officially nationalize the banks. Otherwise the world financial system will come apart at the seams.
The top 10 financial institutions in America could be nationalized within three months of each other. As the financial system falls apart -- as more and more derivatives go bad -- that could lead to a domino effect. Hundreds of banks could soon follow.
From a central banker's perspective, nationalization is a slick move. They don't have to pay you back the money you put on deposit. That ends their crisis, temporarily anyway. They use depositors' money to cover the broke banks’ derivatives losses. They buy themselves time.
Freezing your accounts also works as a publicity stunt. The Government tells the masses, "To save depositors' funds, we have nationalized Citigroup, BankAmerica and 500 other banks. All your money is there so don't worry. You won't lose a penny. We're doing this to make sure our banks stay strong and secure."
In practical terms, it means you won’t be able to get at most of your money for months, probably years – even in FDIC-insured institutions.
The government will institute “temporary” currency transfer rules. You will no longer be able to wire money out of the country. Cash withdrawals will be limited to $50 a day. You will be prohibited from taking more than $500 a month total out of your accounts.
If you think it can’t happen here in the good ole USA, think again. It already has. During the Savings and Loan crisis of the 1980s and early 1990s, more than a thousand savings and loan institutions were taken over by Federal regulators or nationalized. The total cost to taxpayers was estimated at $124 billion at the time, although the real cost was much higher.
The S&L crisis was eerily similar to what we are seeing today – only today the crisis is 10,000 times worse.
By 1981, it was estimated that 3,300 out of 3,800 S&Ls were losing money. The S&Ls were able to make massive very risky real estate loans that went bad. Thousands of these S&Ls went bust – like Silverado Bank, run by George Bush’s brother Neil. Many depositors lined up to get their money out of insolvent S&Ls only to be told that their accounts were “temporarily” frozen. Many people had to wait a full decade to get their money, often ending up with only the insurance limit of $50,000.
In 1985, Home State Savings Bank of Cincinnati collapsed – and Ohio Governor Dick Celeste declared a banking holiday to stop a run on the bank.
The same thing is about to happen to America’s biggest banks. Only now, the disaster is so big no Federal bailout will be possible. The only recourse the Fed will have is to “temporarily” limit withdrawals, to effectively freeze accounts.
You won't get the bulk of your money back, till the bank is solvent again or officially closed and liquidated. Past experience shows this can take years. In some cases, such as Texas banks in the 1980's, it took a decade or more and in many cases big depositors got pennies on the dollar. So in my opinion if you can wait ten years to get at your money you have nothing to worry about!
Money markets funds are no better
You may think you're smart if you keep your money out of banks, and in money market accounts. Sorry. That doesn't work either.
Do you know where money market funds invest the bulk of your money? In the biggest dead-broke banks in the world. Even if they tell you they invest in government securities, odds are they invest in them through SWAPs and repurchase agreements with the same dead-broke, soon-to-be-nationalized banks.
Money market funds are the biggest buyers of bank C.D.'s: these are loans to banks. They buy repurchase agreements. Again, that money goes to banks and these deposits are not insured. They buy the exact same derivatives that are wiping out the banks.
Banks that are broke can't pay back money market funds. Neither can banks that have been nationalized. So the money market funds can't pay you. You are at the bottom of the food chain. At best, you will get a few crumbs. That means accounts frozen. And they are more dangerous than banks because they carry NO insurance. At least in a bank you will get your money back eventually (up to the insurance limit) in ten years. In a money market account, you might end up getting nothing more than a “We Are So Sorry” letter from the bankruptcy court.
See, the system works fine until people want their money. Just like with any Ponzi scheme. The truth is the banks have been wiped out trading derivatives -- and people are now starting to find out. When enough people figure it out, All Hell will break loose. It’s happened that way the world over whenever banks fail and people learn their money has vanished. They all at once want all their money back -- the dreaded “run” on a bank.
Freezing your account stops a run before it has a chance to start and everyone can pretend that all is well. No one has to tell you the cold ugly truth: that your money is gone, wiped out and sent down the derivatives poop shoot.
This is not just some hypothetical "could-maybe-happen- in-the-far-future" thing. Banks are already broke right now. That's why they have been forced to borrow nearly a trillion dollars in emergency Fed loans. Yet despite all this new cash, every week they report bigger and bigger losses. Every week they sink deeper into default.
What about your mutual funds
and retirement accounts?
Are stock or bond mutual funds safe? What about your retirement accounts? Can they protect your money?
Sadly, no. That’s because they also invest in banks. They buy huge blocks of their stocks. They buy their C.D.'s. They buy their derivatives.
You probably thought you don't have money in Citigroup. Or JP Morgan. Or HSBC, the biggest bank in Europe.
But if you have money in a money market account or a retirement fund, odds are you do. If you have money in a mutual fund, you could also.
It's sick. Some investors took money out of banks, chasing higher yields and safety. They went into funds. These investors didn't realize that their money went right back into the dead broke banks – through stock purchases, repo's, C.D.'s and derivatives.
So when your money in the bank gets frozen, understand the Fed has the power to freeze your money market accounts, mutual funds and retirement funds, too.
Only three investments are truly 100% guaranteed not be frozen. Your money is SURE to be there. But you have to do everything exactly right. I'll get into that in a minute.
Any money you keep in banks is in extreme jeopardy. Same with your money market accounts. But that's not all.
Stock market mutual funds also hold huge blocks of shares in banks. When the Fed nationalizes the banks in mass, these mutual funds will get nothing. The value of their shares will plummet. It’s the bitter lesson recently learned by shareholders in Northern Rock in England and Bear Stearns in New York.
What about your retirement money? Well, the biggest holders of uninsured bank CD's and shares of bank stocks are retirement savers. They, too, will be unable to withdraw their cash. Their money will be frozen for years in retirement funds that continue to fall in value.
Retirees will not be allowed to withdraw serious amounts of cash that is not there. Instead, they will have to make do with the token amounts of money they can withdraw every month -- something like $500.
That means if you have money in Money Market accounts, stock market mutual funds or retirement funds, your account could be frozen for years. You will not be able to get at your money.
Cash transactions by bank cash machines could be severely restricted, limited to $50 a day and $500 a month under a national banking crisis. New reporting requirements will also be issued. Look for 24-hour, Big Brother-like financial surveillance. The Feds will monitor all withdrawals. These rules will be used to control your money in all banks.
Eventually, when the dust settles, you’ll be lucky to get out 25 cents on the dollar deposited in banks or funds.
That is why you must have money outside the banking system. You need safe, secure, guaranteed investments that will allow you to get at your money any time you want. This should be money free of the risks in banks, money market funds and the stock market. You must have investments that guarantee your money will not be lost in the derivatives casino. Money that will be there for sure, guaranteed, no matter what.
Wall Street’s last desperate roll of the dice –
and why we now have an unprecedented opportunity
to make enormous fortunes
Understand that Wall Street used derivatives to create the housing/mortgage bubble. Derivatives (bundles of low-grade IOUs re-sold as prime investments) allowed Wall Street banks to create trillions of highly-leveraged money out of thin air. It was that money that allowed people to refinance their houses, borrowing the equity and spending money they didn’t have. It was all that easy derivative money that created the housing boom.
That bubble burst: the real estate wipeout got this avalanche started. It destroyed the housing market and many people's dreams of owning their own homes.
Those same Wall Street bankers used credit from derivatives to bid up the price of oil from $30 a barrel to $130. Their manipulations have doubled the price of oil in less than 12 months. Another huge artificial bubble that will burst.
But what they've done lately takes the cake. They have sent damn near EVERY cash commodity soaring, to all-time record highs.
Why are they doing this? The answer is simple: To save their asses, that’s why!
In February, Wall Street big shots got a rude wakeup call. Northern Rock, England's biggest bank and derivatives trader, collapsed. The British government nationalized Northern Rock, at a cost of over $200 billion. Shareholders got exactly zero: nothing.
Then the Bear Stearns collapse really drove home the point. Partners in Bear Stearns overnight saw their millions become a few pennies on the dollar when their firm wiped out. Shareholders in Bear Stearns fared no better. They got only ten cents on the dollar when it collapsed and the Fed organized its liquidation.
If it happened to Bear Stearns, it can happen to anyone -- since all these big firms hold the same derivatives that are now wiping out in mass.
Investment bankers, billionaire traders and the people who run huge money center banks realized that they are a hop, skip and jump away from being eligible for food stamps. In Bear Stearns, many of the partners went home to caviar and champagne on Friday night, very wealthy millionaires, and came to their offices on Monday morning to find out they were wiped out.
And let me tell you: blond, silicone-enhanced trophy wives don't do food stamps. For these guys, it's all or nothing.
Investment bankers and big money center banks are wounded and they are scared. But like an injured lion, they are also dangerous. If you wait for CNBC or the Wall Street Journal to give you the news, you will never learn the truth: that the world's financial system is teetering on the edge of a cliff. And the only solution left to avoid a complete melt-down is bank nationalizations.
As I'll show you a bit later in this report, because of these desperate investment bankers, supply and demand no longer matter much. If they have their way, these greedy bastards will end up destroying the entire world financial system in a desperate, last-ditch effort to save their own skins.
In my 30 years of analyzing markets, I've never seen a crisis like this. That includes the near-runaway inflation of the late 1970's...the 1987 stock market wipeout...the Japanese bubble bursting... the Long Term Capital Management collapse...the year 2000 Tech Wreck...and the 911 terrorist attacks.
After 911, I saw the Fed drop interest rates to 1% and pump $50-to-$75 billion into the U.S. financial system. They had to, to keep things from falling apart.
But that pales in comparison to the trillion dollars they have given money center banks and Wall Street investment brokers over the past several months.
The Fed does not want you to know what's going on. The fact is, close to a trillion dollars in emergency funds have been loaned to dead-broke banks in a desperate attempt to keep them solvent -- and it’s not working. In fact, the massive losses continue. If the American people knew the truth and understood the staggering losses the banks are still taking, it could cause panic and a nationwide run on the banks. That’s why in the past ten days, no fewer than 30 Fed spokesmen have given speeches on the same theme:
"The crisis is solved. Happy days are here again."
Eerily reminiscent of the reassurances given the public in the early stages of the Great Depression.
Behind the scenes, the Fed tells a very different story. There the Fed is warning our banker buddies that the central bank will soon run out of money to loan them -- and the bankers better come up with lots and lots of capital on their own and damn fast. The wounded lions of capitalism -- the investment banks and money center banks -- are desperately hunting for cash.
And here's how they plan to bag the big bucks they need.
FIRST: They are using the vast loans from the Fed -- not to make loans to businesses and people, as the Fed expected and which would theoretically jump-start the economy -- but to shore up their own balance sheets.
SECOND: They are once again leveraging those hundreds of billions (soon to be a trillion) of new loans from the Fed and going back into the derivatives casino. They’re taking that new money and attempting to corner the world's cash commodities markets through their surrogates, the mega-funds.
This is just like Bunker Hunt and the oil cartel did in 1980 when they cornered the cash silver market (with eventually disastrous results). Bunker Hunt ending up buying 100,000 ounces of silver at an average price of $20 a ounce and selling it for $5. He lost a billion dollars in the days when a billion was a lot of money and ended up bankrupt.
But this time it’s far worse. The central bankers are not just cornering silver. They are also cornering oil and gasoline. Plus gold, copper, platinum and palladium... zinc, steel and lead.
And that's just the start. Not happy with only cornering oil, the precious and industrial metals, they've gone where no manipulator has gone before. THEY ARE NOW THE MODERN DAY ROBBER BARONS. They have decided to manipulate all the world's agricultural markets as well.
Corn. Wheat. Oats. Soybeans. Sugar. Soybean Oil. Palm Oil.
Most tragically, they are manipulating the staple that feeds the majority of the world's population. Rice. This is why you see food riots around the world.
I've seen many market manipulations. Many bubbles. But I've never seen all markets manipulated at the same time. I have never seen so many bubble markets that are about to collapse. It’s incredible what they have done.
These manipulations, besides being immoral, are illegal. They also are destroying the capitalistic system. Supply and demand no longer determine price. Wall Street Robber Barons’ manipulations do. They have distorted markets in fatal ways.
There is no longer a level playing field. Instead, Wall Street is the 10,000-ton gorilla. It has all the leveraged cash, and sets the cash prices it wants. The capitalistic system cannot work like that.
You are seeing the wealthiest, most powerful bankers in the world try to put off their date with the hangman. These men are super-egotists. They bet the ranch on derivatives. They lost. Now they are doing everything they can to come up with money, before they get thrown off the farm. It's that simple.
This is bringing untold suffering, pain and death to the world's poor. In the past year, food and grain prices have soared 50% to 200%. The U.N. says a billion people or more can no longer afford the basic staples of life.
The Fed bought a lie
The Fed knows what's going on. Yet it is looking the other way. Why? Because it bought a lie.
The Fed is willing to let the banks’ surrogates (the mega-funds) corner virtually every cash commodities market in the world, creating these massive price bubbles on everything from gasoline to rice. They’re allowing this on the tiny chance that it can prevent the nationalization of the world's biggest banks. It's a very dangerous political decision, in a very political election year.
Maybe they can make it to the election. Maybe to the end of the year. I can't see this game going longer than that. By this time next year, we could well be in a full-blown depression. The odds are that your bank accounts will be frozen by then. And depending upon what you do right now, your financial situation will be dramatically different. You could be very, very rich – or very, very poor.
The rationale the Fed Governors give themselves for letting the mega-banks and investment banks corner the world’s cash commodities is that it’s the lesser of two evils. They believe they have only two choices.
One, let the banks corner the world's cash commodities markets and shoot prices to the moon. This lets desperate, dead-broke bankers make billions – but allows up to a billion people to go hungry. The hope is that, even though it destroys the market-based, supply and demand system, it may hold the financial system together with chewing gum and wire. The Fed (a creature of the banking system) believes this is better than a global banking wipeout.
Their second option, they tell themselves, is to leave the markets alone...and let the banks and Wall Street brokers go under. The Fed thinks this will destroy the entire world financial system and they believe anything would be better than this scenario.
This is the lie the Fed has bought. The lie the government has bought. It's why they are turning a blind eye to the most incredible, Robber Baron cash-commodity market manipulations in history, far worse than anything that preceded the Great Depression. It's also why they have allowed these bubbles, these manipulations, to occur.
Look, these investment banks and money center banks turned their entire balance sheets into party poker chips. They went into the derivatives casino and lost, pure and simple.
They are card-carrying members of Gamblers Anonymous. They are like a guy who gambled away all of his family’s assets, spent his wife’s inheritance, wagered his kids’ college funds on the horses – then goes to the bank, gets a final equity loan on his house, and proceeds straight back to Vegas with the cash from the bank loan to try to win back all of his losses.
All the insiders know the derivatives they hold are plunging in value. They lose more and more every day. Soon they will be worthless.
These dead-broke institutions have convinced the Fed they are too big to be allowed to fail. That they have some kind of divine right to gamble away all the money entrusted to them -– and then expect government to bail them out.
In reality that is the worst thing that we, as a free capitalistic society, can do. It means the "chosen-from-on- high" mega-banks can take as big a gamble as they want with other people's money. When the deals go bad, we the American taxpayers must pay the price.
But it's even uglier than that. The world's banks have lost so much money in derivatives, the Fed doesn't have a prayer of saving them. No bailout of any kind can help them now. The derivatives casino is more than $800 trillion dollars. That means the dead broke banks and brokers are too big to save. Someone has to take a huge loss in this. Now let me ask you a question: Who do you think the losers are going to be? You got it: ultimately the depositors, the people who have to buy food and energy, the trusting, naive masses.
Of course, Citigroup couldn't care less about this. They would vote in a New York second to destroy the world's cash commodities markets... make gasoline $10 a gallon... and starve a third of the world's poor... if it meant they could survive and continue their fat-cat lifestyles.
Citigroup wants to save its own ass at all costs. If it means the teeming masses of poor can no longer afford three bowls of rice a day, because Wall Street is manipulating cash commodities markets and making basic food staples unaffordable, so what? Citi doesn't give a damn.
Mega Funds now control
80% of world cash commodities markets
In the past, mega-banks and funds controlled only about 10% to 20% of the world's commodities markets. The vast bulk of cash commodities was held by producers and users, not speculators.
Now the exact opposite is true. Thanks to derivatives and these new Fed loans, speculators now control 70% to 80% of world cash commodities markets. They have cornered the markets, held supplies off the market, and created artificial shortages to pump up prices. All on derivatives leverage, borrowed money from the Fed.
This is not an act of strength. It is an act of desperation. When the money driving these markets higher and higher finally dries up – as is happening right now -- you will see the greatest cash-commodities price collapse in world history.
And not just one commodity will plummet in value. Not just a few. ALL commodities will crash! They've all been manipulated up: they are all bubbles waiting to burst. They all will come crashing down.
Housing was first to become a bubble. You're already seeing it start to collapse. Other markets will soon follow. This will go down as the greatest cash commodity corner and crash in the history of the planet. And they will lose, not billions of dollars but trillions.
Tell me this. Do you really believe we are running out of gasoline, diesel, crude oil, soybean oil, gold, silver, copper, platinum, corn, rice, soybeans and wheat -- all at the same time?
Do you really think it’s all because the teeming hordes of Asia (on their dollar-an-hour jobs) suddenly can afford to buy new products?
Of course not! There are no real shortages. Supplies have not changed that much in the past year. It's all manipulation from mega-funds.
Dead-broke, desperate investment bankers are taking the last of the Fed's money. They are then leveraging it up a thousand times with derivatives, and using that new credit to drive up the prices of the world’s commodities. It's a last, desperate roll of the dice on a scale never imagined before. The greatest illegal manipulation of cash commodities markets the world has ever seen is unfolding before your eyes as we speak.
But here’s what you must understand – and this knowledge has the potential to make you richer than you ever imagined possible:
Derivatives are now crashing. The money that keeps these vast trading machines blowing bubbles in most of the cash commodities has finally dried up. The casino has just notified the guy holding the dice that his credit has now run out. It’s his last roll of the dice.
What that means is that you could see the biggest cash commodities bust in history. There is a fortune that could be made here.
We think these commodities bubbles will pop -- and soon. The same thing that is happening right now in real estate will happen in gold, oil, grains, and all the other cash commodities that are nothing short of massive bubbles.
They will crash big time. I am deadly serious when I tell you that the greatest bubble wipeout in history could make you a millionaire in a matter of weeks.
What’s more, you don't have to trade futures, or take on that kind of extra risk, to get in on the action.
What happens when $1000 gold falls to $300?
We make a fortune!
My friend, this is the single biggest trading opportunity I've ever seen in my life. Bar none.
Gold costs $1000 an ounce? Yeah, right. $2000 platinum? What a joke. They say it’s demand from Asia driving these price increases. What bull. The truth is that jewelry demand has actually plunged (especially out of Asia!) precisely because of the high prices.
Gold has gone up in price for one reason and one reason only: Because mega-funds have bought a pile of the stuff! Funds now are the world's 6th largest holder of gold. They hold more gold than the central bank of Japan.
$135 dollar a barrel oil, rising $25 in a week? It’s not a result of a supply shortage. Far from it. It is a direct result of market manipulation. Insanity. There is more oil than ever above ground in inventory. In fact, there is so much excess oil today that oil producers -- having used every available storage tank on land -- are now turning supertankers into floating storage facilities for all the excess oil. These markets will soon fall by 70%, 80%. Maybe more. Just like real estate.
Copper at $4.00 a pound? Just a few years ago, it was at 60 cents. The cost of producing it even at the most expensive mines is under a dollar a pound. Copper supplies have not fallen. Demand has not risen. What the hell is that?
And $7.50 corn? Beans in the teens? Give me a freaking break. This rally in agricultural prices has the farmers grinning ear to ear -- while it lasts.
You saw housing prices go higher and higher, you remember? Most people thought they would never stop going up. And they got suckered into the real estate bubble. Look where they are now.
These are dangerous times, but we should thank our lucky stars that we are alive to see this day.
That’s because the investment bankers made one fatal mistake. They didn’t foresee that a brand-new trading vehicle would totally undermine their plans.
Wall Street and the banks believed they could keep the cash commodity markets at these insane high levels longer than ordinary investors and consumers could afford to go against them. For a number of years, they were right.
You see, with commodities there is always a holding cost. It costs money to hold commodities – and the higher the prices go, the more it costs to hold inventories. Even when you’re right about the ultimate direction of prices, temporary swings in the market can force you out. The super-rich mega-funds can afford to hold these cash commodities and bid the price higher and higher, but smaller investors often are forced to bail out.
This is what is meant by cornering a market. It’s what robber barons do. When you have enough money, you can afford to buy more and more of a cash commodity, pushing prices ever higher and squeezing out everyone else by the sheer magnitude of your buying power.
But here’s what the mega-funds failed to take into account. New trading instruments have totally altered this dynamic. Unlike futures contracts, these new trading instruments let you hold a position in a commodity or a basket of commodities till the cows come home. That’s because they are technically shares of stocks, not futures.
That means small investors can sit and wait them out. No futures margin calls, no roll-over losses, no expiration, no putting up extra money to hold your position. When the markets tank, you could make a fortune. You can afford to sit there and wait out the insanity without margin calls and the other associated problems of futures contracts.
Listen, I've had a 30-year career at this. In fact, because of what I know and what I have published I am forever banned by a court order from trading the futures markets. See the disclosure and disclaimers button near the end for the gory details.
But I’m actually delighted by this order! That’s because there is now a better way to trade the coming crash in the commodities bubble. It’s a way that lets you stake out a position to potentially make an enormous fortune if the commodities market crashes – but without the carrying costs and margin calls of futures contracts.
If you had told me in 1998 that the next ten years would finish with the greatest bubbles ever... in all cash commodities...all at the same time... all driven by the same robber baron entities (the mega bankers)... I would have said you were delusional. No one could give us such staggering opportunities.
I can't believe our good fortune. I have to pinch myself to make sure I'm not dreaming.
Don't let anyone kid you. Behind these commodities bubbles are the pension mega-funds. Retirement funds. Mutual funds. Money market funds. Hedge Funds. Money center banks. All the surrogates of the dead-broke derivatives driven banks and brokers. They are driving these cash commodities markets higher and higher with their insane buying.
And don't let Wall Street's Goldilocks spin fool you either. I've got the numbers to prove it. I've got the insiders skinny. One thing is driving these cash commodities bubbles: mega fund/broke bank manipulation.
They broke the laws. They bid the markets higher and higher. They took prices from the sublime to the ridiculous to the insane.
You are seeing market manipulation on a planetary scale. It is the dying act of the criminal organizations that the desperate, mortally-wounded, dead-broke banks and brokers have become.
What they did in housing was nothing short of entrapment. They lured in tens of millions of gullible people, talking them into taking on absurd loans. The bankers knew these people could never afford these outrageous ARM loans. But they made them anyway!
Now the derivatives scam is blowing up in their sleazy faces. As a result, they are using their enormous leverage to milk the world's poorest people out of what they have. The little money they have to buy food.
They are literally taking the food out
of babies’ mouths in their desperate bid for survival.
This is a plan straight out of the pits of hell.
But guess what? The plans of the world’s top robber baron investment bankers are doomed to fail.
It’s a law of economics as rigid and unbending as the law of gravity: What goes up eventually does come down. All market bubbles burst – whether they are in dot.com stocks, real estate or, now, commodities like gold, oil and grains.
What’s new and exciting is that these new trading instruments, for the first time in history, could allow ordinary investors to be ready to make a killing when the inevitable crashes occur. Without the risks associated with highly leveraged futures and futures margin calls.
All you do is position yourself and wait. No futures, no futures margin calls, no extra risk, no more money to keep your positions.
You could wake up one day, and it's like someone blew a whistle. Prices for cash commodities could drop like a lead balloon that fell out of a C-140 Cargo plane at 10,000 feet. Without a parachute.
But there are two things you must understand.
First, these cash commodities are bubbles. They will burst.
Second, you must act right now. If you wait for the bubbles to crash to put on your positions in these new instruments, it will be too late. You could miss the moves.
Bubbles crash fast. If you're not there ahead of time, you won't be able to get at them.
Get ready for 1980 all over
again in the Gold Market**
For example, the whole world now believes gold will continue climbing higher and higher as the dollar plummets. Wall Street talking heads are predicting $2000 an ounce gold. What a joke. Just like in 1980, they are in for the shock of their lives.
The gold market has been driven by one thing: incredible amounts of leveraged money from derivatives. That money was given to hedge funds, to buy gold. But derivatives are wiping out. Hedge funds don't have any more money left. And with the banks and stock market in a nuclear meltdown, their funding is drying up. We truly believe this is their last hurrah.
What's more, we're in a recession. As more people lose their jobs and homes, prices go down, not up. There is no more cash: derivatives used to finance housing are wiping out. The derivative losses banks are taking are getting bigger, not smaller as they would have you believe.
And contrary to Wall Street myth, Asian demand for gold is NOT soaring. They can't afford it on their $1 an hour jobs. Higher gold prices are KILLING demand. 70% of all mined gold goes for jewelry. Today's prices are just plain too high. In a recession/depression, gold gets killed. Prices fall. Inflation? There will be no inflation when the unemployed masses (now out of credit) can no longer go on shopping sprees.
We had the greatest rally ever in stocks and the housing markets. Gold went up with them. Now stocks have peaked and are coming down. Real estate is crashing. Gold will do the same.
I expect gold to fall and fall hard. Just like in 1980, no one is expecting this. And just like in 1980, you could make a huge, huge fortune.
Again, I’m not talking about futures trades. There are much better ways you can do this.
They are called ETF's. Exchange Traded Funds. Once the exclusive domain of billion-dollar mega-funds, they are now traded on the world’s stock markets. Hedge funds made massive amounts of money with them. Now it's our turn.
ETF's trade just like stocks In fact, they are shares of stocks, which means stock market rules apply, not futures rules. It is not futures trading!
Take the gold ETF. One share is equivalent to 1/10th ounce of gold. They trade under the symbol GLD. You can sell shares of the ETF. You can also sell options on the ETF's, that give you outstanding leverage.
How much could you make? With $10,000 invested in ETF options, a $200 drop in gold could make you $50,000. A $400 drop in gold (that only takes gold back to where it was trading last September!), could make you $100,000. Bigger drops could make you far more.
At the same time, you limit your losses to the small option price. You get nearly unlimited upside -- with tiny, strictly limited downside. The best of both worlds.
Remember, when gold was $270 an ounce, and Wall Street called it "the barbaric relic of the past," I told you it was the bargain of the century. I begged you to scoop up all you could, with both hands.
Now I'm telling you gold has gone way too high, and must come crashing down. Yet Wall Street naturally wants you to buy $1,000 an ounce gold which is at record highs!
As always, Wall Street wants you to sell on the lows, and buy on the highs. I think it works out better if you do it the other way around.
How you could make a fortune when
the price of oil finally plummets.
Another great market, that offers unprecedented opportunities, is crude oil.
Oil prices have soared on nothing short of insanity. In fact, formal investigations by government regulators have started into the price manipulations. Hedge funds got unlimited money from highly leveraged derivatives loans. Then they bought the shit out of oil. Things got so bizarre, hedge funds bought oil storage facilities. They had to! There was too much oil coming to market. Oil traders are chartering supertankers to store massive amounts of oil offshore. There is nowhere else to put the oversupply. It is the only way they can park the huge volume of oil they were forced to buy, to keep prices sky-high. And hold the oil in secret, not counted in global inventories.
Now the perfect storm is forming in the oil market. First and foremost, oil supplies are soaring. Everyone wants to get in on this sky-high oil bonanza. The most money in history has been spent bringing new oil production to market. Now, the oil is coming in. The market is getting swamped with new oil. Also sky-high prices is killing demand and making alternative energy economics work. For the first time since World War II rationing, Americans are driving way less So are Europeans. People around the world have now started to buy Smart Cars and Prius hybrids.
Second, hedge funds are running out of money, due to the banking crisis, derivative wipeout and their bad trades in stocks. The source of money to keep pumping up oil prices is drying up. The biggest force in the oil market, that drove prices to over $135 a barrel, is going broke.
And now the one thing no one wanted is hitting the market: the crumbling global economy. This is really killing demand for oil. High prices, the derivatives wipeout and the spreading global recession have come together to destroy demand for oil. You can see this in the chart below. Contrary to the spin put out by oil robber barons, global production is increasing, not declining.
At the exact same time, oil supplies have skyrocketed. Soaring supplies and falling demand mean one thing. Prices will come crashing down. Contrary to another market myth there is surplus oil and the supply has been increasing.
There is a fantastic new way to trade oil. An ETF that trades on the American Stock Exchange. Symbol USO. You can also trade an option on this ETF. You strictly limit risk, to the low cost of your option. Yet you get up to 30 to 1 leverage.
How much can you make? I believe this ETF could easily fall $20 or more. You could make hundreds of thousands of dollars, on a $10,000 starting investment. Your loss is strictly limited to your modest initial investment.
Conservative trade with speculative profit potential:
could double in six months, with just about ZERO risk
Here is a conservative trade...guaranteed by the U.S. government...that could make you 100% profits in the next 12 months.
Every time the Fed lowers interest rates, you make money with this trade. If rates stay the same, you don't lose a penny. And the investment itself is completely guaranteed by the U.S. government. Here is how it works.
The U.S. Treasury issues an instrument called the Zero-Coupon Bond. This bond increases in value as interest rates fall. The more rates fall, the more you make.
One nice feature of this bond is that the upside is four times greater than the downside. That means you make four times as much if rates fall by one point, compared to what you lose if they rise by one point.
But the chances of rates going up are somewhere between slim and none in my opinion. The Fed is in crisis. Despite the inflation spin, they have to keep lowering rates, back down to under 1%. Maybe even lower.
I expect Fed Funds rate to drop to 0.5%. I believe the 20-year zero coupon bond will drop by 2 more points.
Since I started recommending zero's, they have more than doubled in value. By following the simple trading strategy I will give you, you could make another 100% profits. Not bad from a conservative investment, guaranteed by the U.S. government, whose downside risk is next to zero.
What happens to the stock market
when every major financial institution wipes out?
I saved the best for last. This one has me drooling. We had the biggest stock market bubble in history. Now it is starting to crack. Please believe me when I tell you the truly big moves are yet to come.
Every major financial institution in America is facing wipeout. The biggest banks and brokerage firms are getting killed as we speak. They are borrowing so much money from Arabs, they will soon have to follow Sharia law and close down for Muslim holidays.
Sales in industry after industry are collapsing. The global economy is in a major slow down.
And the biggest companies -- the petroleum companies -- will be in a major crunch as oil collapses.
The main investment most people hold is their home. It is wiping out. Home equity loans kept consumer spending up. Not any more. The retail spending orgy is over. The U.S. economy is in big trouble.
The stock market is due to come crashing down. How much? A few months ago the Dow traded at 14,200. Now it's fighting to get back to 13,000. I expect the Dow to fall to 7000 in the next 12 months. Over the next few years, it could fall as low as 2000. Huge plunges are in line on the near horizon.
You can make a fortune, get great leverage, and completely limit your risk, by trading stock market ETF options. Again, no futures. No futures margin calls. Very small, completely limited downside.
My favorite ETF's are the SPDRs. They trade on AMEX. There are six in all. Each represents a different sector of the market. They let us pinpoint which parts of the stock market will get hit the hardest.
One SPDR is Consumer Discretionary Spending -– i.e. spending on non-essentials. Consumer Staples Select sector is another. So is Financial Select Sector. Others are the Health Care Select Sector... Industrial Select Sector... Energy Select Sector.
One of my favorites is the energy sector. I think you could make a fortune here in the next several months. For the simple reason that I think energy prices are going to come down. That means stocks of energy companies will plunge like never before. Global demand for oil will sink, along with oil prices, in the coming global recession.
I also like Consumer Discretionary. In a recession people have less money to blow. Another great ETF to trade.
Many stocks in the Financial Sector have already dropped a lot. But still more institutions will wipe out due to their derivatives exposure and slowing economy. I expect us to do quite well with this ETF. As every dead-broke bank admits to more and more losses, the lower their stock price will go.
Industrial Sector: another real good one. Industrials will get hit hard in a slowdown. And I expect this recession to be the biggest one in 70 years.
Profit potential: if the Dow falls 4000 points, $10,000 could turn into $300,000. Depending on the sector and the amount of options you hold. Since I expect the Dow to drop more than that, the potential profits could be much bigger.
Wall Street Insiders: our new publication,
dedicated to helping you get rich in
the bank nationalization wipeout
The new newsletter I edit is titled "Wall Street Insiders." It shows you how to keep your money safe and sound when the Fed nationalizes our banks.
It also gives you a real chance to turn the current derivatives wipeout into a fortune.
WSI comes to you on the Internet. You get all my analysis on the economy. Every specific recommendation I think can make you a lot of money.
Some of my analysis comes in audio files. You can listen to them on the website...or you can download them as MP3 files, and play them when you wish.
Nick's Picks: you also get every recommendation in writing. "Nick's Pick's" gives you my “generalized non- personalized, futures-free investment advice,” in full detail. You get entry points... the specific instruments... a discussion of risks and potential rewards. When it's time to take profits, I let you know at once.
The really good part is none of our recommendations is in the futures markets. You have no ugly futures margin calls. Your risk is strictly limited to your initial investment. These reco's let you sleep at night.
At the same time, they give you great leverage. You could make huge profits, with little initial investment.
Some markets I cover for you are precious metals, like gold, silver and platinum. These cash markets are doing moon shots. They cannot sustain these unbelievable prices. In a massive recession like the one we are fixing to have, prices go down, not up.
You also get reco's in the important industrial metals, that are trading at or near record highs: copper, nickel, lead and zinc. Wall Street spin is that supplies are running out. Total B.S.
They forget to mention that hedge funds drove these markets sky-high. They don't dare liquidate: they would collapse the markets. And now the global economy is sucking shut. So what little real demand was out there is disappearing. Fantastic opportunities for us.
I also give you some great trade ideas in U.S. government bonds and foreign currencies. Year after year, these have done really well. With the derivatives wipeout, I expect them to perform even better.
I cover a dozen or more special cash markets in all: the ones that should make the most money for you in this recession and derivatives meltdown. Some have already started to crack apart.
WSI is constantly updated each day. So you get my hottest recommendations, literally within seconds. When something critical comes up, that you need to act on at once, I send you an emergency email.
A one-year subscription is $5000. No discounts. If you can’t write a check for $5K and not even think about it, you have NO BUSINESS subscribing. This is for people who want to protect their hard-earned wealth from the banking crisis – and who want to learn how they could turn the coming collapses into big money.
I have correctly warned about market wipeouts many times in the past. But this time, far more money is at stake. Over a hundred times more dollars. I think this derivatives wipeout could be our biggest winner, by far.
And you get more in WSI. Tragically, most people are about to lose everything. Their bank accounts. Their money market funds. Their retirement accounts and pensions. Even their homes.
In WSI, you will learn how to keep your assets safe and sound. There are still a few places to put your money, that are guaranteed secure. I will show you what they are and how you can take advantage of them. This alone could be worth many times the subscription.
It's our turn to make a fortune
I'm not going to B.S. you. For me, this is not simply about making money. Not even about making a hell of a lot of money.
The bastards pushed things too far. Now I'm pissed. I am roaring mad. I am spitting fire. I am a predator and I smell blood.
I’ve already told you that they hurt me bad. They tried to ruin me for being right and telling the truth. But you know what? I survived. I am coming back bigger and better than ever.
What really makes me mad is what they are doing to our nation – and to the world’s poorest people.
They are wiping out the little guys. They are taking the middle class houses away and driving up the prices of the staples of poor people, their beans and rice. The are literally triggering a worldwide famine.
These people are not as fortunate as I am. They don't have the knowledge or the experience to bounce back. They don’t have a clue about what they must do to protect themselves.
Warren Buffet is right: America’s middle classes will become land surfs. They don’t know how to turn the tables on these "financial weapons of mass destruction" Bankers are using to corner world commodities markets.
But we do, my friends.
Many of your friends and relatives are in severe danger. They are going to lose their homes. Their savings. Everything they spent their lives working for.
That makes me sick. No one can stop this -- it's too late for that. But there is something you and I can do. We can get back at the Wall Street investment whores. We can become the big winners, as their trillion-dollar scams blow up in their faces. We could get rich in the process.
I know what's coming. And I know how to make massive profits from it. Nothing is going to stop me. You can be there, too. I know deep down inside you see what is coming. I know you feel it in your bones.
Join with me. I am putting together a small army of little guys. Enlightened people who want to turn this curse into a blessing.
Wall Street wants to wipe us out? The government wants to freeze our bank accounts? To hell with that! Let's make tons of money, on every sleazy Wall Street derivative wipeout and bank nationalization crash.
Let's get wealthy, as the big investment banks go under, the Fed runs out of money, and the U.S. government nationalizes America’s biggest banks and freezes most people’s accounts.
Remember how much money we made in 2000, 2001, 2002 and 2003?
You ain't seen nothing yet. The wipeouts of the world's biggest banks and brokers are just the warm-up to the main event.
It is our turn at the switch. Our turn to cash in. Everything we planned and predicted years ago is finally taking place.
The stars are finally aligned. All systems are go. There's more money than dirt to be made if you know what you are doing. I damn well intend to make a fortune. It will be a tragedy if you are not there with me.
One key thing you do need to know. This is the last hurrah. I believe the current recession will end in a global depression.
After this massive liquidation of debt, many markets will shut down, and never open again. Trading will be dead for decades. Just like in the 1930’s and the 1970’s.
You have to be there now. You can't wait for things to shake out. Either you're there ahead of time, or you are not there at all. You’ll miss out. It's now or never!
Wall Street and the U.S. government tried to shut me up, stop me from publishing. But guess what -- they failed. I’m back. And I’m not just here to get even. I’m here to make a fortune. A very, very large fortune.
Call me at 1-913-871-0701 – or click on the order button below. I’ll help you get your money safe so it can’t be frozen when U.S. banks are nationalized – AND potentially make enormous profits when current run-up in global commodities finally collapses and prices fall.
Sincerely,
Nick Guarino
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