Safe Money Report

Government Bailout to Fail …
Global Panic Setting In …
Deep Depression Probable!

Protect your wealth and grow a whole lot richer as Washington panics and coughs up TRILLIONS more in taxpayer dollars from the Treasury’s honey pot.

Dear Investor,

The debt collapse is striking with full force. And it’s widely feared the economy could be sinking toward a depression.

Beware: The forces behind any rally are artificial, psychological and temporary …

They are nothing more than the government’s herculean efforts to ease credit conditions and instill the hope, especially among overseas investors, that they can somehow avert a deeper global recession.

Nothing could be further from the truth!

The forces behind the bear market are fundamental and long-term — an economy that’s coming unglued, a debt collapse that has barely begun, and the worst federal deficits of all time.

Your Money is in Grave Danger —
But You Can STILL Get It to Safety …

The value of your home, your 401(k), even your supposedly “safe” investments could fall dramatically. But you can still avoid the worst losses, provided you take advantage of any post-election recovery in the markets.

Look, I’ve been warning my readers about each new phase of this crisis at least six months in advance —

The housing bust
The mortgage meltdown
The spreading credit crunch
The debt collapses on Wall Street
The recession
The likelihood of depression and deflation

But it gives me no pleasure to see my dire warnings come true.

Right now, regardless of what the new administration may plan or do, the fact remains that the world’s speculative bubbles have burst — in housing, commercial real estate, stock markets, commodities, debts of all kinds.

And all the world’s leaders, with all their radical new measures, cannot put them back together again …

Even as the government commits new billions to be spent on financial rescues, trillions in wealth will be wiped out with a sinking economy, sinking real estate, falling stocks and bonds.
Even as the government sweeps piles of bad debts under the carpet, mountains of new debts will go bad — a new flood of mortgages that can’t be paid, a new raft of credit cards falling behind, an avalanche of companies going bankrupt.
And even as the government throws life preservers to a select group of large companies, countless small and medium-size companies will drown.

Yes, for a while longer, governments all over the world will continue trying everything in their power to stop the fall.

They will inject more money into bankrupt banks, broken brokerage firms, endangered insurers and any company they deem essential to the economy …

They will pump more resources into real estate markets, credit markets and even stock markets …

They will stimulate temporary rallies, and …

They will buy some time.

But no government can repeal the law of gravity and stop investors from selling.

No force on Earth can turn back the clock and undo decades of financial sins.

And no one can prevent what will soon go down in history as one of the WORST FINANCIAL PANICS of all time.

Since 1971, my mission has been to warn investors about the hidden dangers — dangers with the power to wipe out your savings, investments and retirement — and I’m not about to stop now …

Your willingness to assume the lonesome role …

“Dr. Weiss — This subscriber appreciates your willingness to assume the lonesome role of being a leader and the dedication it takes to tell people what they need to hear and know but are reluctant to face it.”

— Alan R., Union Hall, VA

In 2003, when the Fed pushed interest rates to their lowest levels ever, I publicly cautioned that they were seducing millions of American home buyers into a quicksand of debt they could never repay and that the future consequences would be disastrous.

Wall Street wonks just rolled their eyes: Called me a “Chicken Little” behind my back.

In 2005, when real estate prices peaked at ridiculous highs nationwide, I warned that it was a debt-driven bubble that would burst as sure as the sun rises in the eastern sky.

Real estate experts scoffed. “Impossible,” they proclaimed, “There has never been a nationwide real estate bust in history!”

In early 2007, with greedy lenders making trillions of dollars in reckless loans to under qualified buyers, I warned that the very survival of hundreds of major Wall Street firms was at stake.

The so-called “experts” on Wall Street said the crisis was “contained,” that it would be limited strictly to a few smaller firms.

Each time, I begged my readers to protect themselves — by dumping real estate and construction stocks at the top of the market in 2005 … by staying away from subprime lenders since 2006 … and by avoiding the entire financial sector since early 2007.

And even though I shouted these warnings from the rooftops — on CNBC, in the Associated Press, on the Reuters and Dow Jones news services and others — not to mention directly to hundreds of thousands of individual investors in my online and offline publications …

Each time, the “experts” in Washington … on Wall Street … and in corporate headquarters across America … said I was crazy. “Don’t worry,” they said. “It’ll be just fine.”

Even a blind man could see things were not “just fine.”

And they’re not fine now …

The Worst Financial Crisis
Since the Great Depression!

Never forget: President Obama, Treasury Secretary Paulson and Federal Reserve Chairman Bernanke have declared — unanimously and unambiguously — that this is “the worst financial crisis since the Great Depression.”

Now, brace yourself for The Seven Horsemen of the Apocalypse that could strike in 2009 with great fury, speed and power.

Horseman I
Debt, Deflation
and Depression

Debt alone is usually tolerable. It can persist and pile up for decades. And as long as borrowers have the income — or as long as governments can continue to supply enough money — debtors can continue making payments.

Deflation alone is not so bad either. It can help make homes more affordable, a college education more achievable, a gas tank easier to fill.

It’s when debt and deflation come together that an economic depression strikes.

That’s what happened in the 1930s. And, in a somewhat different way, that’s what is happening today. We are witnessing a powerful vicious cycle in which …

Widespread mortgage delinquencies and foreclosures precipitate massive selling of real estate. Massive real estate selling causes severe price declines. And the price declines, in turn, cause more delinquencies and foreclosures.
Corporate bankruptcies — and the fear of more to come — precipitate the liquidation of common stocks, corporate bonds and virtually every kind of asset; the selling drives markets lower; and falling markets, in turn, cause more corporate bankruptcies.
Consumers, small and medium-sized businesses, city and state governments, even entire countries are caught up in a similar downward spiral; slashing their spending, laying off workers, dumping assets, defaulting on their loans.

In every sector of our economy and every corner of the globe, debt defaults cause deflation. And deflation causes debt defaults.

Despite government prodding to lend, banks recoil in horror.

Despite official prodding to spend, consumers crawl into a shell.

Despite government money pumping and printing, credit, which is many times larger and more powerful than money, virtually vanishes.

This credit collapse is what was witnessed in the 1930s. And in many ways, it’s what’s happening today. Specifically,

For millions of consumers, access to mortgages, credit cards, auto loans and student loans is being slashed dramatically across the board, regardless of their credit rating. Subprime mortgages, subprime auto loans, and many home equity loans? Already a relic of the past!
For hundreds of thousands of small and medium-sized businesses, credit is only available to those who don’t need it.
Even for S&P 500 companies like General Motors, large state governments like California, and entire nations like Iceland or Hungary, raising new funds without government help is next to impossible or simply unaffordable.

The New York Times puts it this way:

“As dozens of countries slip deeper into financial distress, a new threat may be gathering force within the American economy — the prospect that goods will pile up waiting for buyers and prices will fall, suffocating fresh investment and worsening joblessness for months or even years. The word for this is deflation, or declining prices, a term that gives economists chills. Deflation accompanied the Depression of the 1930s. Persistently falling prices also were at the heart of Japan’s so-called lost decade after the catastrophic collapse of its real estate bubble at the end of the 1980s.”

Yes. There are important lessons to be learned from both of those episodes. But the coming crisis will be different in several ways:

Unlike Japan during the 1990s, the U.S. has no booming world economy to import its goods and help prevent a far deeper contraction.
Unlike the 1930s, governments are embarking on massive preemptive strikes in a desperate attempt to hold the global economy up. But also unlike the 1930s, there are far bigger debts and bets going bad that are dragging the global economy down. And,
Unlike any comparable period in history, most governments, despite their recent bravado, are handicapped by massive debts of their own. Ultimately, even the most powerful governments of the world will have to face a singular choice: Save the private sector or save themselves. Inevitably they must opt for the latter.

In the wake of the U.S. presidential election, we may see a period of national reconciliation and optimism. But as soon as reality sets in, here’s what is likely to happen:

U.S. consumers will panic. Already, the Conference Board’s consumer confidence index has plunged from 61.4 in September all the way down to 38 in October, the single lowest reading in the 41-year history of the index.
U.S. retail sales will collapse. Already, they have fallen for three months in a row, the first time that’s happened since the government started tracking them in 1992.
U.S. manufacturing industries will nosedive. Already, U.S. auto sales in October have suffered their worst drop in 25 years. The Institute of Supply Management’s manufacturing index has fallen to its lowest reading in 26 years. And industrial production has suffered its single largest decline in 34 years, with steeper declines ahead.
U.S. unemployment will surge to double digits. In October, the pace of layoffs exploded: 1,200 at Qwest Communications, 5,000 at Chrysler, 7,000 at American Express and 7,200 at Merck, with many more to come. The U.S. unemployment rate hit a 14-year high of 6.5% in October. It could surge to 7% by year end and to at least 10% in the first half of 2009.

We repeat: In the next month or two, don’t be surprised if there are some brief improvements in some of these measures.

But … based exclusively on what’s already happened, it’s safe to conclude that the worst financial crisis since the Great Depression is rapidly turning into the worst economic recession since the Great Depression.

To help you protect your wealth from the bloodletting that is almost guaranteed to come in the weeks and months ahead, I’ve just completed an urgent survival guide — Poison in Your Portfolio (a $79 value).

This powerful new guide lists the companies that will be the most vulnerable as this great credit crisis unfolds. Many of these stocks are set to crash and others will completely disappear …

I’ll explain how to get your free copy of this must-read guide in just a moment.

But first, let me tell you about …

Horseman II
Detroit Disaster:
Big Three Headed for Bankruptcy

For years, Detroit’s Big Three have postponed their day of reckoning.

They did it with massive injections of easy credit, a grab-bag of gimmicky give-aways, and every trick in the book except the fundamental changes needed to adapt to a new world of energy efficiency and global competition.

Now their Armageddon is here.

All three U.S. automakers are melting down. And their cries for federal help merely underscore how quickly they’re sinking toward bankruptcy.

General Motors has been losing money hand over fist …

$722 million in 2007’s fourth quarter,
$3.25 billion in 2008’s first quarter,
A mind-blowing $15.5 billion in the second quarter, followed by
A shocking $2.5 billion in the third quarter.

The company is bleeding cash at the rate of at least $1 billion per month; and with its January auto sales down a spine-chilling 49%, it could soon be bleeding at twice that pace.

It’s simply running out of money.

Our forecast: General Motors will go bankrupt or require a massive federal bailout to survive.

Why are we so certain?

First, beyond the energy crisis and the credit crunch, it is rising unemployment that can deliver one of the biggest blows to auto sales. But GM is on the brink of bankruptcy even before a large number of its customers lose their jobs.

Second, the only solution offered — a merger with Chrysler — is now off the table. Chrysler is, itself, sinking fast. Pending job losses can only drive the economy into a deeper tailspin, dragging Detroit along with it.

Moody’s has slashed its ratings on both GM and Chrysler bonds to Caa2. That’s not just “junk”; it’s deep, deep junk, eight notches below investment grade. These are bonds that, according to Moody’s own definition, “may be in default” or have “present elements of danger with respect to principal or interest.”

In sum, GM is on the razor’s edge of bankruptcy even before the recession deepens.

“In the face of weakening business conditions and rapidly depleting liquidity,” says Moody’s, “GM’s overall credit quality is eroding more rapidly than previously expected.” They anticipate that GM could run out of cash by midyear 2009. We think it could happen sooner.

What about Ford’s credit rating? Only marginally better — six steps below investment grade.

Meanwhile, seven major banks that trade in GM and Ford bank loans — Bank of America, Credit Suisse, Citigroup, Goldman Sachs, JPMorgan Chase, Morgan Stanley, and UBS — have now switched to trading with distressed documents, a procedure designed to help lenders recoup more of their money if the company goes bankrupt.

Our word to the bankers: Good luck! With companies of this enormous size, bankruptcy is going to be ugly regardless of how much documentation you have.

But it’s not just the auto stocks that are hitting the skids. In my just released guide, Poison in Your Portfolio, I’ll tell you about two transportation stocks and three transportation-focused funds that are bound to tumble a whole lot further.

Horseman III
Municipal Meltdown

We don’t envy municipal and state finance managers. Just put yourself in their shoes, and you’ll see what we mean.

We sleep a lot easier …

“We started about 8 years ago with the Safe Money Report. The newsletter was a real eye opener. I have been able to have many ‘aha’ moments when economic issues have happened. Our money is growing and we sleep a lot easier knowing our money investments are safer.”

— Gerald and Janet C., Savannah, GA

Your primary job is to make sure you have enough cash revenues to meet operating costs and debt payments.

But every single source of revenue you’ve always counted on — from property taxes and sales taxes to liquor licenses and parking fines — is sinking fast.

At the same time, every expense you cannot control — unemployment benefits and social services — is going through the roof!

It’s a Category-5 financial hurricane. And with much of Corporate America already lining up in the bailout breadline, by the time Washington throws you a bone, it could be too late.

New York Governor Paterson has already declared the state is flat broke, facing a deficit of $1.5 billion in the current fiscal year, $12.5 billion next year and $47 billion through 2013, by far its largest in history.
California’s deficit, also nearing $12.5 billion, has grown so big so fast, it’s impairing the state’s ability to market bonds or borrow money to ease its cash-flow crunch.
New Jersey, with more debt per person than any other state in the country, is also confronting a mounting deficit.

Nationwide, even assuming an average recession, state governors are estimating total deficits of $100 BILLION next year.

Their biggest problem: Debts coming due!

They have short-term municipal paper that has to be rolled over, special auction notes coming due, plus TRILLIONS in bonds that paid for schools, highways, hospitals, airports, and sewers.

Their ratings are sinking, their interest costs are surging and, unless manna falls from heaven, many will have no choice but to default — a fatal event that will make it impossible to borrow for years and will send local economies into an even faster nosedive.

Horseman IV
Real Estate Panic

One of the greatest blunders of our time is made by those who blindly assume home prices are so low they couldn’t possibly go any lower.

In reality, they don’t stop falling at some particular level that appears to be “cheap.” Nor does the decline end simply because prices match some previous low.

The end of the decline in real estate will come only when there are no new economic forces driving them down.

When will that be?

We’d love to say it’s just around the corner. But everything we see tells us that, despite the sharp declines already recorded, a steeper plunge is dead ahead.

The reason: So far, most of the troubles have been caused by bad mortgages going sour.

Meanwhile, the more traditional causes of housing slumps — high interest rates, rising unemployment, and recession — are just starting to kick in. Worse, the most powerful causes — depression and deflation — are still on the horizon. Here’s what we see coming next …

First, nearly all sources of financing will dry up as more lenders fail and surviving banks shut down their mortgage divisions.

With few exceptions, the only way you’ll qualify for a mortgage loan is if you don’t need the loan in the first place. And even if you do qualify, the interest rate will be so high, you probably won’t want to touch it with a ten-foot pole.

Second, home sales will plunge even further.

Right now, existing home sales are down by more than 28% from their peak, and any temporary improvement is related primarily to the backlog of foreclosed homes that are coming to auction. As the recession deepens and millions more foreclose on their homes, expect a new glut of unsold homes on the market, and expect home sales to fall even further.

The trend in new homes will be somewhat different …

Already, the construction industry is close to depression levels, with September housing starts down by a devastating 64% from their peak, and with building permits — an indicator of future construction — down to their lowest level since 1981.

Third, banks, builders and homeowners will dump their properties in panic, driving prices down at a faster clip.

Many will be near bankruptcy, desperate for cash, willing to sell at almost any price. Buyers, meanwhile, will be mostly scavengers, looking for a quick bargain and a quick resale.

Already, last August, the average price of a home in 20 top metropolitan areas plunged 16.6% from a year earlier, its sharpest decline on record. And that was before the credit paralysis that struck in September and before the surge in layoffs we are witnessing now.

Commercial real estate will collapse and come to a near standstill.

Vacancy rates will surge. Rents will plunge. Financing will disappear. Existing projects will be cancelled midstream.

Already, an index measuring conditions in the U.S. market for rental apartments has plunged to its worst reading in almost seven years.

At the same time, the vacancy rate of office space has surged to the highest level in almost three years. And these indicators do not yet reflect the recent credit market freeze-up or the latest plunge in the economy.

If you own investment property, I think your choice is clear: Sell!

And to help you get the most in this lousy market, I’ve just put the finishing touches on a second survival guide for you: How to Sell Your Real Estate Efficiently (a $79 value). In this guide, I’ll walk you through the 12 steps that can get you the highest price in the shortest time.

Horseman V
Insurance Company Failures

Starting three years ago, we alerted Safe Money members that hundreds of subprime lenders would bite the dust. And they did just that.

We warned that giant banks like Washington Mutual and Wachovia would suffer a similar fate; they did.

We cautioned that major investment banks like Bear Stearns and Lehman Brothers would be bought out, bailed out or wiped out. And that, too, is history.

Now, get ready for the next major financial industry to feel the sting of failure: Insurance.

You’ve already seen the de-facto failure of one of the largest insurers in the world: AIG, a bottomless pit of losses that has swallowed a jaw-dropping $150 billion of government bailout money, more than four times the cost of bailing out Bear Stearns. Plus …

Hartford Financial Services shares have lost almost 81% of their value as of 02/11/2009. And in early February it posted a fourth-quarter net loss of $806 million on writedowns of investments in Fannie Mae, Freddie Mac, Lehman Brothers and AIG.
Shares of global insurance giant ING have plunged 72% as of 02/11/2009, with the most recent blood-letting striking when the company announced a staggering loss of $5 billion on stocks, bonds, structured credit and real estate.
The shares of Aegon, the Dutch owner of Transamerica Corp., are down nearly 64%. It posted a huge third-quarter loss of $423 million due to investments in Lehman Brothers, Washington Mutual and other assets.

A collapse in a company’s shares doesn’t necessarily imply a collapse in the company’s finances; some may still have enough capital to cover their risks. But it’s a first warning sign that major insurance company failures are likely.

Horseman VI
International Interest
Rate War

Ours is a debt-addicted economy. And a major additional weakness we have is the fact that a large portion of our debt is borrowed from abroad.

So far, we have not suffered a mass exodus of foreign money. And, if anything, the dollar benefits from the international flight to quality.

But for a sneak preview of how the flight of foreign capital might impact our economy someday, just look at what’s happening in emerging markets.

Let’s say, for example, you live in Hungary. And let’s say you’ve borrowed money to buy a home or build a business. If you borrowed in the local currency, the forint, you make your debt payments in the local currency. And, assuming a fixed rate of interest, your monthly payments will not go up.

But if you’ve borrowed in a major currency like the Swiss franc or the euro, that’s a different matter entirely: When the forint falls in value, it’s going to cost more forint to buy back the foreign currency and make the payment. As the value of your local currency plunges, the size of your monthly payment surges. Think of it as a teaser-rate mortgage on steroids.

To prevent the currency from sinking even further, the central bank in your country has no choice but to jack up its interest rates dramatically to help dissuade international investors from pulling out. Those higher interest rates, in turn, smash your local equity markets and gut your economy.

A fictional scenario? No! This is precisely what has happened:

The Hungarian forint plunged as global investors pared risk and withdrew funds from higher-risk emerging markets. To defend its currency, Hungary’s central bank was forced to jack up the nation’s benchmark interest rate to 11.5% — an increase of a full three percentage points.
In Argentina, the country’s bonds and currency tanked after President Kirchner announced a plan to seize $29 billion of private pension funds. The Merval stock index plunged 11% in a single day, then another 10% the very next. It’s down a whopping 44% for the 12 months ending 02/11/2009.
In Iceland, the currency has lost more than half its value in two years. The country’s three biggest banks have been nationalized. And last October, it had to announce a gigantic six-percentage-point rate hike to 18%, in a desperate attempt to prevent more capital flight.
In India, the rupee plunged while foreign exchange reserves dwindled by $68 billion. Overseas funds have dumped a record $12 billion of Indian shares so far this year.
Japan’s benchmark Nikkei-225 Stock Average dropped to 7,682 in January 2009, close to the lowest level in 26 years! If you had bought the average Japanese stock at the Nikkei’s peak (38,957 in December 1989), you would have lost almost 80% of your money.

Right now, unlike emerging markets, the major industrial nations like the U.S. and Japan are seeking to lower their interest rates in a last-ditch attempt to avert a depression.

But in nations that desperately need to retain or attract international capital, the dramatic rate hikes stand out as a stark warning of a new possibility: An international interest rate war — many countries bidding aggressively for international capital.

In the 1930s, it was different: Many countries raised import tariffs competitively, and that’s what sabotaged world trade, helping to plunge the globe into depression. So this time around, the leading nations will do everything possible to make sure they don’t repeat the same mistake.

In this crisis, however, it could be competitive interest-rate hikes that emerge as a catalyst for depression. In that scenario, all the talk of international cooperation and central bank coordination that you’ve heard in recent weeks will be reduced to just that: Talk and nothing more.

Horseman VII
Government Blunders

Most consumers have the right instinct about what went wrong in America and what they need to do about it. They’re anxious to get out of debt, cut back on spending and save more.

But every time they try, the knee-jerk reaction from our leaders in Washington has been to wave their arms frantically in the air and shout: “No! Don’t do that! We want you to borrow and spend more — so we can keep this economy going.”

I can’t thank you enough …

“I made radical changes to my portfolio based upon direction from Safe Money one year ago and am so grateful for the excellent advice. My portfolio has continued to increase in both safety and in value. I can’t thank you enough.”

— Steve M., Louisville, KY

Most investors also have a clear vision of their errors: They took too much risk with too many stocks or with new-fangled securities, and their natural response is to run to safety.

But Wall Street’s scripted response is to push the opposite message. “No, don’t do that!” brokers tell their clients. “We want you to stay invested to help support the market — so we can keep this party going.”

Even bankers get the same message from on high …

“Yeah, yeah,” say the government authorities. “We know you want to pull back from making loans you think are risky. And we know that’s the prudent thing to do. But right now, we need you to do precisely the opposite. We want you to create more cheap mortgages for high-risk homeowners; we want you to dish out more cheap credit cards to anyone with an address and more cheap commercial loans to high-risk businesses.”

Why are Washington and Wall Street so anxious to perpetuate the status quo and so fearful of letting go?

Because they know that everyone is hooked on debt — rich and poor, small businesses and large corporations, cities and states, churches and schools …

They know that debt and deflation are an explosive mix, and …

They know that if they don’t revive the nation’s credit creation, a depression will likely follow.

Just look how far the U.S. Treasury and Federal Reserve have already gone out on a limb to fight the debt-and-deflation spiral. They’ve loaned, invested, or committed:

$700 billion to the Troubled Asset Relief Program (TARP) rushed into law in September
$25 billion for the Big Three auto manufacturers, $29 billion for Bear Stearns, and $123 billion for AIG
$200 billion to nationalize Fannie Mae and Freddie Mac
$144 billion to buy mortgage-backed securities (part of which is included in the item above)
$300 billion for the Federal Housing Administration Rescue Bill to refinance bad mortgages
$87 billion to pay back JPMorgan Chase for financing bad trades made by Lehman Brothers
$200 billion in loans to banks under the Fed’s Reserve Term Auction Facility (TAF)
$50 billion to support the commercial paper held by money market mutual funds — so far. (Approximately $1.3 trillion worth of commercial paper would qualify.)
$620 billion in currency swaps with industrial nations, including aid to the Bank of Canada, Bank of England, Bank of Japan, National Bank of Denmark, European Central Bank, Bank of Norway, Reserve Bank of Australia, Bank of Sweden, and Swiss National Bank
$120 billion in swaps for emerging markets, including the central banks of Brazil, Mexico, South Korea and Singapore
Unquantifiable new liabilities to cover FDIC’s new, expanded bank deposit insurance coverage from $100,000 to $250,000
And MORE!

All told, even excluding the cost of economic stimulus packages and contingent liabilities, the total comes close to $2.7 trillion.

But it’s still not enough.

It cannot save the eye-popping $51 trillion in interest-bearing debts outstanding in the U.S., which is 72 times larger than the entire $700 billion TARP program.

It cannot save the $596 trillion in derivatives worldwide (all outside the purview of any established exchange), which is 851 times larger than the TARP program.

Indeed, it is both preposterous and naive to believe that the U.S. government can save every failing entity on the planet.

No matter how much money they spend, they cannot persuade billions of consumers, millions of investors and thousands of bankers around the world to take more risk any more easily than they can talk them into jumping off a cliff.

Most important, there’s no free lunch: To fund its folly, the Treasury has just announced it must borrow a staggering $493 billion in the first quarter of 2009.

But that’s just the tip of the iceberg …

Goldman Sachs estimates the government will soon have to borrow $2 trillion to finance an $850 billion federal deficit, fund $500 billion in Treasury purchases of bank assets and equity, and roll over $561 billion in maturing securities.

And we think those estimates are low.

Nor can the government simply roll the printing presses and create wealth out of thin air. They can’t print the money fast enough.

And even if they try to go down that path, for every dollar they can add to the nation’s money supply (now $1.4 trillion), they will merely destroy two or three dollars in the value of the nation’s much larger credit supply (now at $51 trillion).

Reason: Investors and lenders, fearing a debasement of the currency, will rush to dump their bonds and loans on the market, depressing their value.

Ultimately, the government will have to throw in the towel.

They will have to honestly admit they cannot prevent the unpreventable. And that’s when you will see the final phase of one of greatest financial panics of all time.

Yet, despite everything, the United States will survive and, eventually, even thrive.

You can too.

My third survival guide, The Safe Money Banking Survival Guide (a $79 value), will help you stay safe in these troubling times. In it, I’ll show you …

How to buy Treasury Bills or equivalent
How to use your Treasury-Only money fund as a bank
Our exclusive lists of the weakest and strongest banks and thrifts in the U.S., and
Much much MORE!

The good news is, when the markets dive in value, it means that, by definition, select investment areas offer you truly huge profit potential — and opportunities to turn this long-term crisis into big, big profits.

How to Use a Stock Market Rally as
Your Best Selling Opportunity!

There are three ways you can take advantage of a stock market rally in the midst of a deepening recession:

You can use the better prices it provides to clear out of stocks that have been sinking your investment portfolio.
You can use it to buy inverse ETFs as protective hedges against the next decline.
Or, better yet, you can buy those same inverse ETFs to go for substantial profit opportunities.

We do not recommend short positions.

Safe Money Report has helped many times …

“Member for several years. Safe Money Report has helped many times to make money but now most importantly to keep it by avoiding the current banking/credit crunch crisis. Safe Money has been warning about the housing bubble well before it popped.”

— Frank B., McLean, VA

But inverse ETFs, which you can buy like any other exchange-traded fund, serve a similar function.

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

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

ETFs cost less to own. They never nick you for loads or 12-b1 (marketing) fees.
You always know what your ETF owns. You can check online, anytime, 24/7.

ETFs are priced continuously through the trading day — so you always know precisely what your shares are worth … and you can buy or sell your ETFs instantly … at any time of the day.
Plus, INVERSE ETFs let you profit when a particular index or stock sector goes down. And best of all, double-inverse ETFs let you earn two dollars for every one dollar the index falls!

And to help you get started with inverse ETFs, I’d like to send you a fourth survival guide, How to Protect Your Stock Portfolio From the Spreading Credit Crunch (a $79 value). In it, I’ll lay out the six steps you can take to make boatloads of money from this economic crisis.

All Four Survival Guides:

» Poison in Your Portfolio
» How to Sell Your Real Estate Efficiently
» The Safe Money Banking Survival Guide … and
» How to Protect Your Stock Portfolio From
the Spreading Credit Crunch …

Are Yours Free With Your Safe Money Report

Can you see why it’s absolutely essential that you get your hands on these four indispensable guides immediately?

Reading my special guides could easily prove to be the single most profitable thing you’ve done in years. That’s why I want to make sure you get them … absolutely free!

He calls it right and early …

“Martin’s integrity and dedication to his subscribers is outstanding, and his accuracy in forecasting economic events and in building an excellent organization to build your wealth is superior. He calls it right and early.”

— Tom A., Petersburg, VA

And that’s not all …

You also get my Weiss Global Investor Service!

The Weiss Global Investor Service is much more than just an investment newsletter …

It’s your income compass —pointing you towards the investments with the potential to double or even triple your yields reliably, year after year.
It’s your complete self-defense system — designed to help you protect every dollar you’ve scrimped to save and risked to grow.
It’s your own, personal B.S. detector — fearlessly exposing the wealth-destroying lies heartless scoundrels in Washington and on Wall Street love to tell you, while delivering the unvarnished truth nobody else will.
It’s your personal weather vane — constantly scanning the globe to identify the hottest profit trends and the markets, sectors and investments most likely to grow your nest egg by leaps and bounds.

Each and every issue of Weiss Global Investor Service is packed with nitty-gritty, practical, ACTIONABLE “Buy-This-Sell-That” recommendations designed to protect your wealth … grow your wealth … multiply your income … and live richer.

In fact, my Weiss Global Investor Service shows you how to create and grow TWO nest-eggs.

The first nest egg virtually guarantees a minimum income to cover your necessities.

The second nest egg, although not guaranteed, is designed to throw off the big chunks of cash you’ll want to cover your favorite extras.

Our investment philosophy is based on the recognition that ALL stocks involve risk and that losses are always possible.

We believe your first priority must always be to protect your core capital with the safest investments you can find in each country or sector.

That’s why the CORE of our Weiss Global Investor Service is our Safe Money Report. Each monthly issue gives you …

Our picks for the safest, most liquid investments in the world today — for the money you need to grow and protect at all costs.
Our objective, no-punches-pulled warnings of the financial dangers that could sabotage your financial security. Example: We warned our readers to avoid housing and mortgage stocks before their recent collapse!
Our latest worldwide buy/sell recommendations. We tell you exactly what to buy, how much, when and at what price. Then we tell you exactly when to sell — to grab your profits or cut your losses.

Safe Money Report has been rated as one of the best financial newsletters in America. And our subscribers have raved that it’s the only one that delivers more than they ever hoped for.

You’ll also discover…

Exactly how to keep your nest egg safe, sound and growing with clock-like regularity. This “safety first” approach to global wealth-building has made our readers almost fanatically loyal. That’s why our editors pound the pavement worldwide looking for the lowest risk, most profitable investments on Earth. Seeing IS believing.
TWO model portfolios for you to choose from. The first one is our safety obsessed “Mr. Conservative” portfolio designed to help protect and build your nest egg plus pay high dividends that put cash in your mailbox every month.
The second portfolio is called “Mr. Speculator” and it’s designed for you to take your extra cash (NOT your nest egg) and look for higher gains.
Protection from the hype and “herd mentality” on Wall Street. Safe Money Report acts like your anchor in a raging storm — keeping you focused on the prize: Lifelong financial security.
And so much more. Like honest answers to your most urgent money questions. New, smart ways to build a secure retirement. The secrets to organizing and simplifying your financial life — as you boost your profits globally and safely.

But that’s still not all you get when you join Weiss Global Investor Service. If you’re like most investors, you watch your money more than just once a month. That’s why we created …

Exclusive Global ALERT Services designed to keep you up-to-date every day.

Whenever we see an urgent market shift or an economic development that could have an immediate impact on your money, we rush you a detailed Flash Alert by e-mail.

And as if all that isn’t a good enough reason to try Weiss Global Investor Service, every issue also brings you valuable second opinions on the investments big brokers and stock pundits want you to buy … answers to your most pressing investment questions … and much, MUCH MORE!

And that’s only the beginning. You also get …

FREE 24-hour access to the world-class investment tools on my SAFE MONEY WEBSITE: Be one of the first to read each new issue of Weiss Global Investor Service days before it arrives in your mail box …
Keep up with the latest economic and investment news — INCLUDING news on the stocks you own …
Review Weiss Global Investor Service’s hot-off-the-press market forecasts for your stocks, bonds, mutual funds and more …
Use our powerful investing tools to get the latest stock quotes … maintain your portfolio online … get valuable, unbiased research on your stocks and mutual funds …
And much, MUCH MORE!

Join me now, save $189 on Safe Money Report, and get my 4 just-released survival guides. Use them to prepare for one of the worst financial panics of all time … Absolutely FREE!

Normally, a 2-year subscription to my Safe Money Report is a bargain at $378. But you don’t pay that. Join me now for just $189, save $189 off the regular 2-year subscription price — and receive all 4 Survival Guides (a $316 value) without cost or obligation.

… ahead of the market.

“Thank you for your wise council and being consistently ahead of the market.”

— Patricia T., Germantown, TN

Review the guides, act on my recommendations and start enjoying the increased wealth and peace of mind they give you.

When you join Safe Money Report, you’ll take advantage of our convenient automatic payment plan. We’ll automatically charge your credit card each time your subscription is about to expire. You’ll never have to worry about renewal notices or missing a single issue.

And remember, your satisfaction is 100% assured. If you’re unhappy for any reason, you can cancel anytime during the first 30 days of your subscription for a full refund, or anytime thereafter for a refund on all un-mailed issues. In either case, all the materials you’ve received are yours to keep, with my compliments, just for giving Weiss Global Investor Service a fair try.

Click here now to begin your SAFE MONEY risk-free subscription and immediately download your free guides, worth $316:

Poison in Your Portfolio. Value: $79.
How to Sell Your Real Estate Efficiently. Value: $79.
The Safe Money Banking Survival Guide. Value: $79.
How to Protect Your Stock Portfolio From the Spreading Credit Crunch. Value: $79.

Or call us at 1-800-236-0407 and mention your personal code of P509-93190 to get our special bonus pick.

So how could you go wrong? There’s absolutely nothing to lose. In fact, the only possible way to lose is to do nothing while your purchasing power, your standard of living and your very financial security is quietly stolen from you.

At this landmark turning point in our history, it’s the choices you make today that will determine your fate — and the fate of everyone that depends on you — for decades to come.

Your decision could make the difference between a successful career or a lifetime of struggle; retiring in dignity or becoming the ward of the state; enjoying wealth and health or risking poverty-stricken illness; dooming your descendents to poor education or giving them the opportunity to be future leaders.

Whatever you do, don’t procrastinate.

We will do our utmost to help you each step of the way. So follow our instructions. However imperfect they may be, they should guide you through the landmines and to a better future for yourself and your loved ones.

If you think about it, I’m sure you’ll agree that the most prudent thing to do is to accept this generous offer … right now … before you forget.

Best Wishes for Safe Investing,

Martin D. Weiss, Ph.D.
President & Publisher,
Weiss Global Investor Service

P.S. Remember: You get all 4 of my exclusive Survival Guides absolutely free. So please don’t wait another moment. Pick up your phone right now and call 1-800-236-0407. Or fill out the special membership certificate below.

P.P.S. CALL-IN BONUS: 1 MORE FREE GIFT!

Call TOLL-FREE 1-800-236-0407 to join me now … and we’ll give you our one favorite inverse ETF for maximum bear market protection — and profits.

Call now, and you could begin profiting today!

P.P.P.S. With my personal promise that you must be 100% satisfied or you get your money back … I’m taking all the risk! You’ve got nothing to lose!

Special Money-Saving
Membership Certificate

Martin, thank you for telling me about the deep trouble America’s economy is in right now and how that could destroy my wealth!

YES, Please accept my membership in Safe Money Report as indicated below. Plus, as always, to save me time and trouble — and to make sure I never miss a single trading signal — you’ll automatically renew my membership until I tell you to stop.

Best Value: Two full years of Safe Money for just $189. I Save $189. Plus I get the following four just-released blockbuster Survival Guides, worth $316, absolutely free:

#1. Poison in Your Portfolio.
Value: $79.

#2. How to Sell Your Real Estate Efficiently.
Value: $79.

#3. The Safe Money Banking Survival Guide.
Value: $79.

#4. How to Protect Your Stock Portfolio From the Spreading Credit Crunch.
Value: $79.

Great Value: One year of Safe Money for only $99. I Save $90. Plus I receive two Survival Guides, worth $158, absolutely free:

#1. How to Sell Your Real Estate Efficiently.
Value: $79.

#2. The Safe Money Banking Survival Guide.
Value: $79.

Click here for our terms & conditions.

Safe Money Report
15430 Endeavour Drive
Jupiter, FL 33478
Tel: 800-236-0407
Fax: 561-625-6685