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Stock Market… September 8, 2007

How we get these Future News Predictions

NOTARIZED PROOF

Despite days of good runs up, the markets will slowly trend downward. The bad news outweighs the good news and more attention will be paid to the credit and housing mess. (NEWS proof)    Banks have yet to allocate a correct amount to their exposure. Once this occurs you will see accelerated panic around financial institutions. There is a minimum amount to short left in the homebuilder’s stocks and the banks will be next. Watch for two mortgage companies to fall this week. Good time to be a bear.

QUESTION: What solutions are needed to stem the tide of the impending financial debacle?

ANSWER: Getting rid of housing inventory will be critical to build more in the future. The banks will be left holding the bag since they are where the dollar stops. The lenders are ultimate greed mongers. The homebuilders will teach the banks a lesson. People who lose their homes due to mortgage defaults will rent from homebuilders. This will get rid of inventory and provide cash flow to the homebuilders. Meanwhile, the banks will be holding used houses that they can’t sell because the people they took them from are now renting. This will be a good deal for the homebuilders and for people who want a new home.

QUESTION: Will there be a moratorium on building new homes until the demand is re-established and how long will this likely take?

ANSWER: There is already a moratorium on builder new homes. Call any builder to ask about near future plans. The cost of labor and materials did not go down, but people’s ability to spend that much did. You will know that the construction industry is coming back when you see less attention being paid to big homes and more talk about condo living and large apartment living for families.

QUESTION:At this point is a recession inevitable in the U.S.?

ANSWER: Recession is here for many already. The average person will continue to struggle to make ends meet. Soon there will be a need for people to work several jobs to survive.

QUESTION: What should the average investor do for the next month to preserve capital first and make money second?

ANSWER: Hold non-construction metals. Ultra-short ETF.’

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