Fellow Investor,
The next housing crisis is about to start.
Subprime foreclosures have peaked. But there are even bigger problems in the mortgage market still to come.
This story is finally making its way through the popular press — although I’ve been warning my subscribers of the consequences for quite some time now.
You see, two other types of mortgages — non-traditional loans, using low “teaser” rates and other gimmicks — are just starting to reset at higher rates. These so-called “Alt-A” and “options ARMs” could inflict another $1.5 trillion wound to our economy — experts say up to 70% of these loans will fail!
In many ways, the problems caused by these loans are even worse than subprime.
Lenders lured victims in with the promise of easy money — putting people in homes they could never afford. The more loans they wrote, the more they made in fees. Then they repackaged these toxic loans and sold them into the financial markets to become “someone else’s problem.”
Well now, that someone else is you — along with every other American taxpayer and investor.
The pie-eyed optimists have been promising a recovery later this year, but they’re WRONG! Things are going to get WORSE, not better. We’ll be lucky to see any kind of turnaround by then end of 2010 at best.
That means we’re headed for a new shattering crackup for the U.S. economy — and another stock market crash all the way down to Dow 6,000, too.
Most investors will get killed. Keep reading, and you can make a killing, instead.
