Yes, I am finally saying those words ("I told you so") to the rest of the world. For many years, I have been brave and informed enough to go out on a limb and make various statements about all sorts of topics. Some people may have disbelieved me as they didn't hear anyone else on T.V. make the same comments. Others hoped I was wrong, but they at least listened to my logical reasons why I had these opinions.
In regard to the Credit Crisis, I was telling anyone and everyone who would listen that the derivatives market was going to unwind and "implode" several years ago. As far back as the early '90s, I was writing about the risks involved with the derivatives market. For example, I kept making references to Orange County, California's bankruptcy due to their investments in interest rate options derivatives.
In addition, I wrote about the Long Term Capital Management (LTCM) hedge fund which imploded in 1998. At the time of the collapse of LTCM, they had about $3 billion in cash which tied up about $124 billion in derivative investments as well as an additional $1.25 TRILLION in off balance sheet investments. This one hedge fund almost took down the world's financial markets by itself. The "Fed" and other investment banks on Wall Street had to come to LTCM's rescue in order to prevent the meltdown of just about every major investment firm on Wall Street.
Back in August '08, I told many people that I believed the U.S. stock market's Dow Jones index would fall between 20% and 25% within a two week time period. I predicted that the collapse would begin the week of September 29th and would continue through the following week or two. Nobody believed me, and no other analyst made this same prediction on the mainstream media or anywhere else on the internet. It looks like I made another wise prediction based upon logical and rational thoughts!!!
As I have written for years in the nationally published Creative Real Estate Magazine
, I believed that every major bank and Wall Street investment bank was technically insolvent. I warned many people to sell their stocks or real estate. Many people did listen to my dire warnings, and many continue to thank me to this day for encouraging them to liquidate their assets.
Several years ago, I said that both Fannie Mae and Freddie Mac were "glorified hedge funds" which were about to implode. I also said that WAMU, Lehman Brothers, Merrill Lynch, Bear Stearns, Downey Savings, Indy Mac, Wachovia, Morgan Stanley, the FDIC, and many others may "implode", or be taken over by the government or other entities.
I also told anyone who would listen that AAA rated Wells Fargo Bank was on the verge of collapse partly due to their exposure to $80 billion in open HELOCs (2nds) primarily in "bubble" states like California, Nevada, Arizona, and Florida. The latest bank bailout plan ($250B) is giving Wells $25 Billion as a government "investment". The spin on this "investment" by the U.S. government is that it is "to help Wells make more loans to consumers". This is simply not true. It is to help them not go out of business. I also warned many stock investors to unload their stock investments in these same firms as I realized that many of the stock holdings would eventually be worthless.
About 5% to 10% of the people who I warned about the severity of the Credit Crisis did not listen to me as they (or their advisors) thought that I was "mistaken". I wonder what the value of their current investments are today after the melting down of the world's financial system?
My birthday is October 29th. This is a major historical month and date as it is when the Great Depression officially began back in 1929. I have been an avid follower of the Great Depression since high school, and I believe the current meltdown will make the Great Depression seem like the "good old days".
As the privately owned "Federal" Reserve and the U.S. government continue to "bail out" and nationalize most of our banks, insurance companies, automobile companies, airlines, and other multi-national conglomerants, we will all soon realize that our once capitalistic way of life has changed to a more socialistic way of life.
I will continue to speak my mind. If you don't like my opinions or viewpoints, then please do your own research and prove me wrong. I don't know all of the answers, but I am willing to stand my ground, speak my mind, and try to protect my family and friends unlike the vast majority of "Sheeple" who continue to drink the proverbial fluoridated "Kool-Aid" offered by the mainstream media's "real" news.
We are now far off the 14,198 Dow Jones index peak within just the past twelve (12) months. Will we soon see Dow Jones index levels close to 50% of the 52 week peak numbers?
For more information in regard to how to prosper from the worsening, downward descending Credit Crisis, please buy my book on this same website!!! Also, my latest article (entitled "Armageddon? What To Do About It") was just released today in the national publication Creative Real Estate Magazine.