July 10, 2008

We can blame it all on oil if we want to, but passing the buck just doesn't cut it in today's global recession.  Wall Street seems dumbfounded, almost caught off guard, and the investing public is probably going to be left holding the bag.  Retirement plans almost force you to stay invested, and that's a shame.

For the past two years I have tried diligently to inform the investing public of the major economic meltdown that lies ahead.  In a report that I sell through Reuters for $300 each, I have outlined the next 15 years in the economy and the stock market.  The Investment Rate (TM), a proprietary report that is available exclusively for Reuters to their Institutional Clients (for free through our website) has enlightened thousands of retail and institutional clients on this subject for years.  The Investment Rate (TM) helped them protect their wealth before this meltdown began. 

The Investment Rate (TM) is the most accurate leading longer-term stock market and economic indicator ever developed.

The current problems facing Fannie Mae (FNM) and Freddie Mac (FRE) should come as no surprise, but their downfall should be blamed on the Government.  Bank of America (BAC) has placed themselves in one of the worst situations imaginable because of poor executive decisions as well.  How could anyone assume the risk of buying the largest mortgage and subprime lender in the nation in front of this meltdown; or was that designed to protect a very poor investment decision anyway?  And MBIA (MBI) seems like a dinosaur waiting to turn into oil; can you believe that the MBI slogan is 'wisdom in action?'

Corporate America is driven by greed and that could not be more evident than in 2008.  For the past 26 years The Investment Rate (TM) showed us that the market and economy were in an upward trend and buying every single dip would be intelligent until such time as the up trend came to an end.  Corporate America has grown accustomed to doing this.  In fact, with our government leading the way, corporate America has willingly done this at the expense of consumer debt levels.

This turns out to be a double edged sword.  Corporate America encourages you, with a variety of different financial incentives, to incur excessive amounts of debt and to live beyond your means.  This is the way of our government, and this will almost surely be the root problem of the Greater Depression (TM) that lies ahead.

The deterioration in shares of Fannie Mae (FNM) and Freddie Mac (FRE), the drubbing taken by Bank of America (BAC), and the near bankrupt state of MBIA (MBI) are not surprising given these circumstances.  Most of corporate America isn't paying attention.

The driving force behind these companies is corporate earnings.  Every executive has the responsibility of increasing revenues and increasing earnings for their company, otherwise they get fired.  In the face of deteriorating earnings and lower revenue projections these executives are willing to do anything it takes, including assuming risks that they would never otherwise accept.  They should read the Investment Rate (TM) as well, because maybe some of them will decide that protecting assets is more important than risking them too.

Yes, in the face of dire economic circumstances the landscape can get worse.  The Investment Rate (TM) describes just how bad it can get.  Review it right now.

Review The Investment Rate (TM):

http://www.stocktradersdaily.com/Main/services/investment%20rate.html

Good Trading.

Thomas H. Kee Jr.

Thomas H. Kee Jr.

President and CEO

Stock Traders Daily

1.866.213.2067

http://www.stocktradersdaily.com