With the events of last week, you are probably feeling
at least some of the same panic that is prevalent all
over the world, and that’s understandable.

A monumental shift of wealth is taking place and that
can be a scary thing.  The rules of the game are being
changed and it is going to have far-reaching effects.

Our government leaders are acting hastily and laws are
being passed without proper due diligence (IMHO) and
the RTC II is going to profoundly change the investing
landscape, but for a reason that hasn’t yet made the
headlines:

The talk has mostly been about the conversion of some
of the large investment firms to banks and all the
“bad paper” that is at the root of the problem.

I find it interesting that such significant events
would all happen in such a short period of time, just
when the U.S. is also freaking out about gas prices
and availability.

It just seems very opportune for Bank of America and
Morgan Chase to be buying up all these huge firms for
pennies on the dollar – and ‘saving’ them by acquiring
all these bad sub-prime loans.

What seems to be missing from the headlines is that
each of these loans also has a mortgage attached to it,
meaning that the companies are acquiring rights to an
incredible amount of real estate as the loans default.

It seems to be escaping everyone’s attention that
tens of thousands of properties are being acquired for
peanuts.

Now the other effect this will have is the flood of
devalued properties being dumped on the market, thus
furthering the downward spiral that most are now
calling the ‘real estate bubble’.

Unless our leaders slow down and think through their
legislative actions, the game is going to continue to
get changed at a dangerously fast pace – and the middle
class Americans are going to be affected the most, along
with the rest of the world.

This message is meant to alarm you a little bit, only
to keep your eyes open to what is going on but not yet
making the headlines.

In any changing environment such as this, there is great
potential for loss but also for opportunity for those
that prepare and act knowingly and with a calculated risk.

The storm is far from over and with the markets being as
wildly volatile as they can be in such circumstances,
systems that work under “normal conditions” may not be
reliable now.

A word of advice for you:  protect yourself!

If you can NOT trade confidently in this tumultuous
environment, strongly consider staying on the sidelines
until the dust settles.

Do NOT simply chase profits right now.

I’m just trying to look out for you.

Cheers

Brian