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ALL STOCK MARKET GAINS FOR THE YEAR NOW LOST: Confidence Crisis/Terror Time Bomb
On Wednesday, the U.S. credit markets were frozen in fear causing all stock market gains to be wiped out for the year. Meanwhile, counterterrorism sources announced a potential domestic terrorism attack before September 11, 2007!
Author/CEO Craig R. Smith is conducting Talk Show interviews, reminding Americans that the solution to market fear and panic is rock-solid faith, diversified assets and an emergency preparedness plan.
Why the credit meltdown on Wall Street?
U.S. stocks fell despite positive economic news after Countrywide plunged 13% on a brokerage downgrade and rumors it was having trouble raising money and may go bankrupt, S&P 500 2007 gains were wiped out.
http://biz.yahoo.com/rb/070815/markets_stocks.html?.v=16
Panic selling by hedge funds has emerged as the hidden cause of the credit contagion spreading through the global financial system. Larry Kudlow told CNBC viewers last night, "This is an emergency situation, a crisis. Fed liquidity injections of $68b so far are not working!"
"The recent credit crunch and drop in stocks is a direct result of the loss of confidence by the major market makers in the world. The root meaning of the word 'credit' is 'to believe', which illustrates that our entire modern economic system rests on a foundation of faith," said Smith.
http://www.craigrsmith.com/newsart.php
On Tuesday, the U.S. comptroller warned Americans of, "Striking similarities between America's current situation and the factors that brought down Rome, including declining moral values and political civility at home, an over-confident and over-extended military in foreign lands and fiscal irresponsibility by the central government".
http://www.ft.com/cms/s/80fa0a2c-49ef-11dc-9ffe-0000779fd2ac.html
Domestic Terrorism by 9/11/07?
ABC News reports, "U.S. law enforcement officials say they have identified more than two dozen clusters of young Muslim men in the northeast United States who are on a path that could lead to homegrown terror."
http://blogs.abcnews.com/theblotter/2007/08/exclusive-us-st.html
Stratfor Intelligence reports, "Assessment of the jihadist threat to the U.S. homeland is that al Qaeda and jihadists retain the ability to conduct tactical strikes against the United States. Emergency plans are vital not only for corporations and schools, but also for families and individuals."
http://www.stratfor.com/products/premium/read_article.php?id=294059
Then there is the coming showdown with Iran over nuclear weapons. The New York Times reports, "The Bush administration is preparing to declare that Iran's Revolutionary Guard Corps is a foreign terrorist organization, making this the first time that the U.S. has added the armed forces of any sovereign government to its list of terrorist organizations."
http://www.nytimes.com/2007/08/15/world/middleeast/15diplo.html?ei=5065
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WHAT IF?
During your interview Craig Smith also brings up the unspeakable question of, “What if?”
Craig makes it clear that the markets will have a tough enough time recovering from the credit/confidence crunch but that if the unthinkable happens, the markets could go into a free fall.
Specifically, Craig reminds your audience that the stock market was virtually nonexistent for about a week after 9/11 and that if another substantial act of terrorism or other calamity were to beset the United States DURING A TIME OF MARKET VULNERABILITY, the stock market could cut in half. The implications of that are worthy of 10 interviews, one on people losing their homes, another about people losing their jobs, another about the police shortage in cities during such a time of upheaval, etc.
Interview Craig Smith and you will likely have him as your “go to” expert on financial and geopolitical issues.
A comprehensive preparedness strategy
Very few Americans are able to fit these puzzle pieces together and come up with a strategy to deal with it, so most will do nothing... UNLESS ... they are informed and exhorted how to calmly take action now.
Craig R. Smith stands ready to help your audience grasp the present situation and offer some tangible steps for both a financial crisis and or any national emergency. He is quick to point out that below the surface of our financial crisis is a moral and spiritual crisis which, if addressed, will help restore peace of mind no matter what the future brings.
Mr. Smith is offering to your audience, at no charge, his new 24-page special report, “Confidence Crisis/Terror Time Bomb,” addressing the major risks and potential economic consequences facing Americans today as well how to shift from fear and panic... to hope and faith.
Also included at no charge is Craig’s classis 2004 documentary, "A Citizen's Guide to Counterterrorism," narrated by entertainer Pat Boone on DVD.
ABOUT CRAIG SMITH…
Craig R. Smith is the president and CEO of Swiss America Trading Corporation, one of the largest and most respected investment-grade U.S. gold and silver coin firms in the nation since 1982. He’s been featured frequently on Fox News Channel, CNBC, MSNBC and CNN.
(more for longer interviews)
WHEN GREED TURNS TO FEAR
And the Ensuing Economic Roller Coaster Ride
It’s now commonplace for the Dow to plunge or rise hundreds of points in a day, leaving the average investor at a significant risk.
After reaching an all time high of 14,000, the Dow plunged 300 points, followed by other successive losses.
During your Talk Show interview with Swiss America CEO Craig Smith, he gives insight as to why there will likely continue to be volatility in the Stock Market. He discusses the weak dollar (how it is nearly on parity with the Canadian dollar for the first time), a perplexingly flat real estate market, record high oil prices ($75 a barrel and likely rising soon) and an increasingly unstable geopolitical landscape.
Craig says American investors are facing a problematic economic cocktail consisting of slowing growth, rising inflation, record high debt, a credit crunch, a declining dollar and a looming Mid-East war with Iran.
“Wall Street money masters may be able to whistle past the graveyard, focusing instead on mergers and buyouts, but millions on Main Street sense their financial future is laden with bombshells that will shred portfolios,” said Smith.
Craig is also predicting a 1/2 point DROP by the Federal Reserve shortly and how that will impact your listening audience.
At the end of your interview, Craig offers makes available to your listeners a free 24-page Special Economic Report with valuable information from several respected economic analysts.
WHEN GREED TURNS TO FEAR
The Will Rogers antidote for market worries
By Craig R. Smith, Aug 9, 2007
The subprime mortgage mess has now spread to Europe. BNP Paribas froze the accounts of certain equities as a result of not being able to determine value of the underlying assets. This prohibited investors from getting to their money, the worst thing you can do during a time of uncertainty.
The European Central Bank (ECB) immediately injected 95 billion euros ($130b U.S.) of liquidity to avoid a panic. The Federal Reserve followed with an additional $24b as well. What next?
FED RATE CUT AHEAD
The talk on the street is the Fed will now cut rates in Sept. by a quarter to a half percent. The euro dropped like a lead weight taking gold with it down $12. Any downside risk in gold is a HUGE buying opportunity given the dollar's downward trajectory.
When the FED cuts rates to save the housing and equities markets it will fuel future drops in the dollar. Fed Chairman Ben Bernanke was hoping to raise rates further to strengthen the dollar, but now he cannot do it without creating more damage to the credit, housing and equity markets.
WORRIED MARKETS
Equity and paper market function entirely on confidence. Confidence is in doubt at the moment as no one can really figure out the true exposure to the sub prime mess. Until a bottom can be seen, investors should expect huge volatility and wild market swings.
The big concern is the "contagion" factor. Will it be like the Asian currency crisis or the LCTM debacle? Will it limit availability of banks and credit markets to make lending available to keep the economy growing? These questions need answers before this mini-crisis passes.
WILL ROGERS FORMULA
Right now I would encourage investors to follow the "Will Rogers formula". The famous American humorist said, "I am not so concerned about the return ON my money as I am the return OF my money."
Asset safety should trump asset return under these market conditions, unless you are a cowboy speculator willing to risk huge losses for possible huge profits. There will be no middle ground in the short-term.
INTERVIEW TALKING POINTS:
1) Why is confidence so important to the economy?
2) What impact would another 9/11 type attack have on our economy?
3) In the news we seem to hear more about the Dow than the actual stock market. What exactly is the Dow and how trustworthy is it for a bench mark of how the actual stock market is doing? (The Dow jettisons stocks that don’t perform well, artificially boosting its performance record. In a sense, it’s like moving the goalposts during a football game.)
4) The U.S. DOLLAR is "languishing" near ALL-TIME LOWS against the euro and the pound. If the dollar index falls below 80, what might happen?
5) How can the dollar be so weak and the stock market so strong?
6) If the dollar is as weak as it is, then why is the Real Estate market also so soft?
7) You claim that the Dow only hit a new NOMINAL HIGH when it reached 14,000 but that after adjusting for inflation and the falling dollar, that it actually is still 200 points below its March 2000 peak. How do you figure that? (Answer: The recent Dow high is 17% above its March 2000 peak of 11,722. After adjusting for inflation and the falling dollar, the Dow must rise another 4% to 14,200 to reach the same level it was SEVEN years ago.)
8) The United States faces A SEVERE CREDIT CRUNCH as mounting losses on risky forms of debt catch up with the banks and force them to curb lending and call in existing loans. In your special financial report I understand you gave an eerie quote from Albert Edwards of Dresdner Kleinwort. Dare I ask what that quote was? ("This is the big one: all investment portfolios will be shredded to ribbons.” --Albert Edwards of Dresdner Kleinwort.
9) One in 200 mortgage loans are now in default. And the worst of the US property crisis may be yet to hit. Your special report claims there are $2,000,000,000,000 (trillion) in mortgages with adjustable rates which have yet to be reset. What on earth will happen if even a small percentage of these default?
10) How serious of a threat does Iran pose to global economic security? (Unless the free world unites to stop Iran from achieving its nuclear goals, Israel will likely take matters into its own hands. A new Mid-East war with Iran could unleash an economic shock wave sending both oil and gold prices sky high.) And if this were to occur, just how high might oil and gold peak?
11) Besides the weak dollar, what other conditions could make the U.S. ripe for the adoption of the new proposed North American currency?
12) Your report says that the key to keeping investments safe is to be able to discern the changing seasons in life and in the economy before it's too late. It goes on to say that history teaches us that ASSET DEFLATION usually follows asset inflation in the historical boom-bust credit cycle, especially when governments turn over their money supply to private banks. Your conclusion was, in so many words, said that the bigger the boom, the bigger the bust. Could you please explain this in layman’s terms?
13) How can our listeners get a copy of your 24-page Special Financial Report and is there any cost for it? (No charge and they may get it by calling: 800-289-2646.)
14) Is there anything I left out that you feel our listeners need to hear?
HISTORICAL NUGGET: "If the American people ever allow private banks to control the issue of their money, first by inflation and then by deflation, the banks and corporations that will grow up around them, will deprive the people of their property until their children will wake up homeless on the continent their fathers conquered." -THOMAS JEFFERSON
The following are some highlights and section headings from a prior free 24-PAGE SPECIAL FINANCIAL REPORT (still available) from Swiss America. (Available at no charge by calling: 800-289-2646.)
SWISS AMERICA SPECIAL REPORT
2007 OUTLOOK ~ July 2007
DOW 14K: MIRACLE OR MIRAGE?
Analysts Outline Major Financial Risks Ahead
INTRODUCTION
By David Bradshaw, Editor, Real Money Perspectives
PART I: GREAT DEPRESSION CREDIT SPREE DANGERS
By Ambrose Evans-Pritchard, International Business Editor, London Telegraph
Can Wall Street be trusted to value risky derivatives in the wake of the Bear-Sterns debacle?
PART II. THE ECONOMIC SHOCK OF ATOMIC IRAN
By Craig R. Smith, Author/CEO, Swiss America
Will the U.S. or Israel will be forced to declare war on Iran before they go nuclear by early 2008?
PART III. CAN THE DOLLAR SURVIVE A NORTH AMERICAN MERGER?
By Dr. Jerome Corsi, Bestselling Author
Should Americans be concerned about the new North American Union merger with Mexico and Canada?
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