From: The Daily Reckoning []
Sent: Saturday, May 01, 2004 2:20 AM
Subject: The Total Destruction Of The U.S. Housing Market

A Daily Reckoning Investment Alert


This 20-year-old investment research group - which has called every major market event from the fall of the Berlin Wall to the Great Japan Crash - has just issued an URGENT WARNING:

Fueled by artificially low interest rates - and the dangerous policies of Fed Chairman Alan Greenspan - millions of Americans are about to be blindsided by an event more destructive than the Stock Market Crash of 1929...

This nation's enormous consumption bubble - created entirely by the United States government - is in its final days.  In fact, the dominoes have already begun to fall in a dramatic event that will come to a head as soon as May 4...


This shocking financial scenario is not only completely's already well under way!

Find out why the burst of this bubble will have DOUBLE the impact of a stock market collapse ...and what you can do TODAY to protect yourself and your family...

Dear Reader,

Hold on to your wallets.  Like it or not, your life - and the lives of over 72 million Americans - is about to change dramatically over the course of the next three weeks.

After nearly 10 years of unprecedented growth, the bottom is about to fall out of the U.S. housing market.  The dominoes in this horrific game have already begun to fall...and the next significant move will come as early as May 4.

A total of $2.5 trillion - or more - will be wiped away in a matter of days.  But - as awful as that sounds - that's not the worst of it.  Because of the enormous house of cards created by the U.S. government over the past 10 years, the entire U.S. financial system is in jeopardy. 

Let me state that another way:  A nightmare scenario has already begun to unfold - whether the U.S. government of mainstream media admit it or not - that could collapse not just the U.S. housing market but the entire financial system as we know it.  We're talking about a collapse far greater than the 1929 Stock Market Crash  - or any of the top 10 financial catastrophes of our lifetime combined!

This eye-popping turn of events is actually the spectacular collapse of a consumption bubble that was created nearly a decade ago. 

"A rise in long-term interest rates, which would push up mortgage rates, could collapse the housing bubble faster than anything else."


BusinessWeek, April 12, 2004

It may have taken years to build up such an enormous  - and dangerous - bubble...but it will only take a few weeks for the roof to cave in.  And then 10 years' worth of prosperity will disappear before you ever realize what hit you.

As a matter of fact, as I'm about to show you, the dominoes have already begun to fall in this nightmare scenario.  Which is why you need to prepare yourself today.

In the next few moments, I'll tell you precisely what's going to cause this enormous financial catastrophe.  I'll tell you how we got many Americans will be affected...and I'll tell you exactly what you need to know in order to avoid it. 

But...the truth is I'll go one step further than that.  In fact, I'll tell you how you can learn the shocking details - including the tale of the missing report that amounts to a 'smoking gun'...and the forced resignation of the federal official who authored it - about the information the U.S. government doesn't want you to see. 

To date No other financial media outlet has dug deep enough - or been bold enough - to reveal the inside story behind this 'smoking gun'...but I'll tell you how you can learn firsthand just how 'involved' the U.S. government is in the creation of this enormous financial catastrophe...and how - despite their futile efforts - they're ultimately powerless to stop it.    

The details behind this historic financial event - including what you can do to protect yourself...and the inside story behind the report the U.S. government never wanted you to see  - are the focus of a new research report my staff and I have just released.  It's called The U.S. Housing Market Collapse of 2004: Nine Ways You Can Survive the Greatest Market Collapse of Your Lifetime.

Because this pending disaster - which may come to a head in just a matter of days - is of such great urgency, I have arranged for you to receive this special report FREE of charge and without obligation.  I'll tell you how you can get your copy in just a moment, but first I need to tell you precisely how we got ourselves into this mess and why...

The U.S. Housing Market Is on the Verge of a Historic Collapse

Regardless of whether or not Fed Chairman Alan Greenspan wants to admit it - or even if he wants you to know about it -  the United States housing market is an enormous bubble on the verge of collapse.

And this particular bubble will - without question - be far worse than any in historyWorse than the U.S. stock market bubble of the late 1960s.  Worse than the gold bubble of the late-'70s.  Worse even than the tech bubble of the late 1990s or the enormous Japan bubble.

That's because - unlike many of the other scenarios throughout history - this bubble stands to impact a far greater number of individuals than any other. 

"National housing prices going back to 1951...pretty much track the rate of inflation up until 1995.  But since then, average prices on new and existing homes have soared more than 35 percentage points beyond the overall rate of inflation.  Is that unusual?  You bet it is."


BusinessWeek, April 12, 2004

Imagine your largest investment - your family's home -  losing 50% or more of its value overnight.  Sounds like a personal nightmare, right?  Now imagine that same scenario happening to everyone on your street...or everyone in your town.  In fact, imagine for a moment this event sucker-punching nearly every resident of every town in the United States

This scenario - as scary as it sounds - is far worse than a personal nightmare, although millions of those nightmares will soon become commonplace.  Instead, this financial disaster - created entirely by the U.S. government - is about to become an enormous national tragedy. 

That's because this market collapse -  the total destruction of the U.S. housing market - will have a direct impact on more Americans than any other financial event in history.   Your friends...your neighbors...your family members...EVERYONE who fails to take the proper steps - which I'll outline for you for FREE in my new report - will soon be blindsided by a number of market forces they most likely do not understand. 


Calling the "Big Trends": the Key to Successful Investing - By William Bonner

Dear Reader,

For the past two decades, Strategic Investment has helped investors protect and grow their assets by doing one thing better than anyone else in the industry: spotting the 'Big Trend.'

That's because with every historical milestone - such as the fall of the Berlin Wall, the end of the Cold War or the coming U.S. Housing Market Collapse - the rules of the investment game completely change. 

For over 19 years here at Strategic Investment, our analysis has started with identifying the big trend...and then identifying specific investment opportunities designed to take advantage of the coming changes.

During our two decades of investment success, we've had the privilege of working with - and profiting from - some of the brightest minds in the investment universe.  And Dan Denning - the person I handpicked to take the reins of Strategic Investment just 4 years ago - has produced as impressive a track record in as short period of time as I have ever seen.

During the past 4 years, Dan has produced gains such as: 

  • 89% and 88% respectively in a pair of stocks - one a defense stock and the other a gold play - closed out on the same day! 
  • An average of 17.9% returns on the 11 closed positions in the SI portfolio in 2003... 
  • 171% gains - in just 3= months - from an option trade closed last summer... 
  • Incredible short-term gain of 77% in just eight days from another summer 2003 recommendation...and 65% in just 21 days from another...

Dan started his career the old-fashioned way - on the ground floor.  And in a very short period of time, Dan has risen from that ground floor to the top of one of the world's most prestigious investment advisories. 

Each and every day, Dan has unlimited access to leading politicians, business figures, financiers, investment bankers, journalists - almost anyone in a position of authority.  And Dan uses this access to identify the Big Trends most important to Strategic Investment readers...along with specific advice on how to profit.

Dan's latest report - The U.S.Housing Market Collapse of 2004 - is, in my opinion, his most important piece of work to date.  I urge you to sign up today to receive your copy FREE of charge so you can see exactly what I mean.

The Dominoes Have Already Begun to Fall... and a Dangerous Rate Hike Is on the Way

Over the past three weeks, seemingly every report coming out of Washington has pointed to the same thing - a conclusion Alan Greenspan himself conceded in his April 21 remarks - like it or not, interest rates will soon be going up.

The wheels are already in motion...yet millions of Americans have not yet begun to take the steps necessary to protect their homes...and their financial future!

April 4: 'Job gains raise expectations of interest rate increase' -  USA Today

April 14: 'Largest increase in core measure of prices since 2001 feeds rate hike speculation' -  CNN/Money

April 22: 'Greenspan Elaborates: Rate Hikes Are Coming' -  Investor's Business Daily

May 4: Results of Fed's latest meeting are announced...

The Slightest Rise in Interest Rates...
Will Trigger an Absolute Disaster

It's frightening to think about just how devastating the collapse of the housing market will soon be for most Americans. 

But the fact of the matter is that the slightest rise in interest rates - something that is already a foregone conclusion - over the next three months could trigger an absolute disaster in this country.  Home values will plunge.  Debtors will default in record numbers.  Countless American 'dreams' will be washed away.

Alan Greenspan himself - not exactly a man known for publicly forecasting danger - has even acknowledged this problem in recent testimony before Congress, calling for immediate action to be taken regarding this danger...and conceding that a rate hike - the spark that will ignite this historic fire - is a foregone conclusion.

What's worse, however, is that this threat is potentially far more dangerous than simply a reduction in the value of your home.  It's entirely possible that the collapse of two entities -  created by the U.S. government -  could spell doom for not just the housing market but for the entire financial system as we now know it.

That's because once this crisis begins to build up steam, the entire financial community is in jeopardy, including the institutions currently charged with holding the retirement savings of millions of Americans.  The very survival of these companies is intimately linked to the welfare of the homeowner...the scale of this crisis could easily bring down Wall Street.

Because of the enormous 'credit machine' - created by the U.S. government and now spinning hopelessly out of control - 52% of U.S. household assets are now exposed to an enormous risk that is about to become a hideous reality.

The truth is this enormous threat was actually identified publicly on February 4, 2003, in a report written by a senior government official.  But the very next day, powerful special interests had forced the author of this report to resign...and the report suddenly 'vanished' from the Internet site it had been displayed on.

These details are just now coming to light - including who wanted this report to 'disappear' and just how dangerous this entire situation really is.  You owe it to yourself to find out TODAY just how serious this danger is...and what you can do to protect yourself.  In just a moment I'll tell you precisely how you can get your hands on all of this information right now - including the story of the missing 'smoking gun' and all the details as to why this collapse will be the largest in history - FREE of charge and with no obligation.

"Economists draw a parallel between today's high housing prices and a high price-earnings ratio for a stock, usually a sign that the stock is overvalued and due for a fall."


- Knight Ridder Newspapers, March 5, 2004

Many Americans, however, will never have access to the information my research team and I would like to provide you...and as such they will remain oblivious to this imminent danger.  One of the main reasons people will fail to act is that very few actually understand the problem.  Just like the Great Stock Market Collapse of 1929 - when a relatively small percentage of Americans were actually invested in the stock market - millions will be affected by this enormous tidal wave.  But this time, the impact will be far greater. 

When you stop to think about it, it's remarkable that more attention has not been paid to just how high housing prices have risen in a short period of time.  Fueled by the enormous 'debt engine' known as GSEs - which I'll tell you more about in a moment - housing prices have jumped 51% since 1995.  That's a rate of 32 points above the overall rate of inflation!

This dramatic - and unprecedented - rise in housing prices has added an average of nearly $50,000 in wealth for every one of the nation's 72 million homeowners.

That's $50,000 or more of YOUR money - enough to pay for a child's education or perhaps your 'war chest' for future medical expenses - that stands to disappear in just a matter of weeks.  Think about it: If you had a chance to stop thieves from breaking into your home and stealing $50,000 in cash, you'd do everything in your power to stop them, wouldn't you?  Well this situation is just as easy to prevent...

But remember - this isn't just your $50,000.  Even if you're able to protect your own nest egg...imagine the impact on this country when nearly everyone loses a small fortune almost overnight.  The result will be an enormous catastrophe that will set this nation back not just years, but decades.

A Greater Impact Than All of the
Other Enormous Trends...Combined!

Alan Greenspan can call it whatever he wants...but I know a bubble when I see one.  In fact, long-time followers of my newsletter Strategic Investment know firsthand just how important global trends can be to personal wealth.  My colleagues and I at Strategic Investment have been on the front end of nearly every profitable trend for almost 20 years. 

We called the fall of the Berlin Wall in 1989.  We called the Great Japan Crash of 1990.  And we kept investors out of the U.S. stock market for the 1987 crash.

But this latest development - the coming burst of the U.S. housing bubble - stands to have a greater impact than all of those other enormous trends...combined.

We're talking about each and every American homeowner being affected in a significant way.  We're also talking about over $1 trillion in consumer debt - and over $5 trillion in corporate assets - being at risk over the course of the next year.  Clearly, this is the farthest-reaching - and most expensive - set of circumstances this country has ever seen.

If you thought the Enron scandal of 2002 was a big event...remember that was a scandal that - while certainly important - impacted just thousands of people.  The U.S. Housing Market Collapse of 2004 will impact no fewer than 72 million people. 

If you thought the Global Crossing scandal of 2002 was big news...remember that millions of dollars were lost in that debacle.  The U.S. Housing Market Collapse of 2004 will see absolute losses of well over $1 trillion when all is said and done.

And that's why I'm writing you today.  My research team and I have just finished a most important new report - the product of countless hours of research and verification - that tells you everything you need to know about the coming collapse of the U.S. Housing Market.

You'll learn precisely how this situation was created...and what you can do to protect yourself.  And - perhaps most importantly - you'll learn what happened to the author of the 'missing report' that correctly identified this situation as an enormous danger. 

Could this situation have been avoided or prevented?  Who was it that wanted this report to 'disappear'?  And just who demanded that its author resign the day after it was released? 

You'll learn all of this - including the simple, easy-to-follow steps you can take not only to protect yourself but also to profit - to the tune of 700% or more - as this entire scenario unfolds.  The report is titled The U.S. Housing Market Collapse of 2004: Nine Ways You Can Survive the Greatest Market Collapse of Your Lifetime and it explains - in plain English - how you can not only survive, but prosper from this historic event. 

It's important that you understand the implications of this entire scenario, which, again, is far more dangerous than just the collapse of home values - as soon as possible.  So I'd like for you to read this new report - today - absolutely FREE of charge.  But before I tell you how to access your copy, let me tell you about...

 To read on follow this link below:

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