Strategic Investment with Dan Denning Dan Denning, Strategic Investment: The Hidden Drop in Home Prices Will Shock Owners While the sticker price goes up, up, up in most cities, home prices are going down in reality. It's only the beginning. Here's how you can protect yourself from the biggest one-year loss of wealth in world history… Dear Reader,I just heard a realtor's ad on the radio. She urged buyers to come on in. "I can get you twice as much house for about the same monthly payment you're making now."
What is this, Sam's Club? Since when do you get twice as much house for the same dollars - and still claim the house is worth more than it was a couple of years ago? But it's happening. The house that was worth $100,000 a few years ago now sells for $200,000 - but the monthly payment is the same! The seller's happy. He doubled his money. The buyer's happy. The realtor's happy, everybody's happy. Dan Denning, Strategic Investment: When you pay less and get more in real life, it's called discounting And it's going on all over the country. For the time being, these deep discounts are hidden by creative financing and shady lenders. But they won't stay hidden much longer. Please understand, the "sticker price" on a house these days doesn't mean any more than the sticker price on a car. Nobody actually pays it. The figure on the contract is a fiction. I mean, the number the realtor and the lender say is the selling price. In the next few pages, you'll find exactly what I mean, and how bad things really are. The sad truth is… Dan Denning, Strategic Investment: Your house is worth less than you think In fact, your house is probably losing value and you don't even know it. The truth is being hidden from you. In a few months, it will be official and everyone will have to face it. We're near the top of the housing bubble. It's a rerun of the stock market bubble of the late 1990s. But this time the hangover is going to be much, much worse. In early 2000, the Nasdaq was over 5,100. It went on to lose 80% of its value. Companies like Enron and WorldCom became worthless. The Nasdaq is still 60% below its all-time high. It never came back. My readers had the chance to make money when the dot-com bubble imploded, and we plan to give you another opportunity to make money when this bubble pops, too And if you think it can't happen to real estate, think again. Things have changed. Dan Denning, Strategic Investment: Real estate can now go Few people know it yet, but they're about to find out. The same financial manipulations that enable people to buy "twice the house for the same payment" will go into reverse. In the next few pages, you're going to discover changes in the housing market most people know nothing about. If you know what's going on, you can protect yourself. If you don't, you're in terrible danger.
But readers who listened to us not only saw a lot of fast gains, but also avoided a lot of grief. I've prepared a FREE Special Report for you that details five investments set to go up when housing values go down. In a moment, I'll tell you more about the specific steps you need to take. And let me say right now, I don't urge you to sell your house and cash out. You can stay put, and even make a 700%, gain with my recommendations. But you need to protect yourself, and you need to do it NOW. When home prices crash… In this country like a punch in the gut. It's going to hit every homeowner America's reckless lending institutions have exposed each and every one of us to a loss of $50,000 to $400,000, depending on how much equity you have in your home. The boom is already stalling out. Nationwide, the median price of a new home is actually lower than a year ago. In fact, we're seeing the largest year-over-year decline in median selling prices since 1991! You need to act quickly, because the whole scam is starting to come unglued. In California, it takes twice as long to sell a house than it did a year ago. Dan Denning, Strategic Investment: Shocked homeowners learn Folks who refinanced a year or two ago are finding out their homes are worth less than the appraised value! All over the country, appraisals have been inflated by lenders eager to make loans and real estate agents eager to close the deal whatever it takes. Here's a prediction for you: The appraisal scandal will explode soon in the mainstream media. When this mess falls apart, you're going to discover how lenders and real estate agents have pressured appraisers to overvalue homes. The lawyers will be busy! Already, some homeowners are learning the terrible truth. Their homes are worth less than they thought! But they still owe every penny they borrowed. In some of the hottest real estate markets, there are five times as many unsold homes as there were a year ago. Beneath the real estate market To keep the party going the last few years, banks have loaned money to millions of people who have no business buying a house. These unqualified borrowers have been the secret props beneath the housing boom. And it's easy to spot who they are: They finance their purchases with an interest-only mortgage or an adjustable-rate mortgage (ARM). The interest rate and the monthly payment are lower than those on a standard fixed-rate mortgage. Otherwise, these people wouldn't qualify for the big loans. That's how you buy twice the house for the same monthly payment. As recently as 2001, almost no one used this kind of questionable financing. The idea of an interest-only mortgage would have gotten a laugh. Now up to half of all buyers use them. It gets worse. In many cases, lenders assume the buyers can devote 30% or even 40% of their income to house payments. That's with current low interest rates. When rates go up, the monthly payment can go up as much as 40%! Plus, they have to start paying principal back at some point. The loan doesn't stay "interest-only" forever! With my 5-step program My readers already show gains of 50%, 71%, 60%, and 46% on investments I told them to make BEFORE the crisis unfolds. Think of how much you can make when the full disaster hits - when millions of homeowners wake up to how much money they've lost! I plan to give you the chance to MAKE MONEY by the ton while most people are losing it. That's the whole point of my FREE SPECIAL REPORT, The U.S. Housing Market Collapse of 2005-2006: 5 Ways You Can Survive the Greatest Market Collapse of Your Lifetime. My No. 1 Pick is the asset everyone will rush to buy when housing prices crash. We've already seen gains of 60%, but we're hanging on for more! And we owe our gains to the mistakes of America's credit industry. The bad-credit-risk market has exploded. These deadbeats-in-the-making are now the driving force behind the whole real estate boom. Dan Denning, Strategic Investment: Anyone who can breathe can get
The bubble people even form real estate investment clubs. On CNBC, a club member gushed, "I am using negative amortization loans, and yes, it adds $10,000 to my loan, but the properties are appreciating $100,000-150,000." It's just like the stock market bubble, only worse
What's happening is that home buyers and sellers are trading pieces of paper that say some house is worth, let's say, $450,000. But nobody's bank account or paycheck is taking a hit to pay those prices. No one is working longer hours to repay the vast new debts. It's a fool's paradise - until interest rates go up, principal payments come due, and prices start to tumble. Defaults will rock the lenders We're talking about borrowers who spend every dime and live from paycheck to paycheck. They never save a penny. Worse yet, they've loaded up on credit card debt as well as mortgage debt.Their adjustable house payment will go up like crazy at the very same time their house goes down in value. Do you think they're going to tough it out and continue to make those payments? Don't count on it. Most of them couldn't do it if they tried. In fact, millions will lose their jobs as the economy turns down. Forty percent of the new jobs in this country in the last few years have been housing related. Those jobs will go "poof!" Look for a huge, huge wave of defaults. Desperate homeowners will load up the furniture, hand the keys to the lender and drive away. What's more, they'll do it by the millions, bringing down the world's biggest financial institutions and crashing the stock market while they're at it. Dan Denning, Strategic Investment: I'm talking about a nationwide catastrophe Even if you have no debt and you've lived in your house for 30 years, the end of the housing bubble can devastate you if you don't take the right steps.
Fannie Mae and Freddie Mac are the giant mortgage lenders behind $4 trillion of housing loans. These institutions are guilty of manipulations that make the folks at Enron look like a bunch of Boy Scouts. They've cooked their books, concealed huge losses, paid off politicians, and lied to investors every which way from Sunday. These giant lenders are in no position to weather even a small downturn. But the downturn has already started, and it's NOT going to be small. When these big companies fail, it will rock financial markets. Interest rates will soar. Dan Denning, Strategic Investment: Enron times 1,000 The main difference between these scandals and Enron is SIZE. The wealth that will go down the tubes this time is thousands of times greater. Every single investor, homeowner, and government in the world will feel the shock.
Home buying will dry up because borrowers can't get financing. And anyway, who wants to buy a house that's losing value? Wait six months and you can get it cheaper, people will figure. The downward spiral can't stop once people stop believing that real estate always goes up. Government report conveniently disappears The giant mortgage lenders and their cronies in the government are scrambling like crazy to cover up the mess. A federal official was forced to resign for telling his superiors what I'm telling you now. True story! I call his revelations "the missing report," because it vanished the very next day from its Internet site, and the author went looking for a new job. The mainstream press overlooked "the missing report." But my readers heard all about it. The CEOs of America's most powerful lending institutions blasted his report as a "doomsday scenario…so speculative, it's just incredible to us." Last December, that bureaucrat was proven right, and some of those big shots were forced to resign in disgrace. The news media found out what my readers knew long before: The multi-trillion-dollar mortgage lenders - Fannie Mae and Freddie Mac - are a house of cards. Accounting tricks and outright lies were hiding a cancer. Fat paychecks and bonuses flowed to executives who hit their goals by manipulating earnings. It really is Enron times a thousand. Dan Denning, Strategic Investment: Incredibly, the coverup goes on! After the head of Fannie Mae resigned, the bad publicity prompted a lot of talk about cleaning up the mess. It never happened. We're told it will be the last half of 2006 before Fannie Mae clears up its accounting problems and tells investors how much it really earned these last few years. It's an H-bomb waiting to go off. These frauds and charlatans extended their tentacles into three out of every five American homes. Like drug dealers hanging around a schoolyard, they not only pushed easy credit on consumers, but got hooked on their own junk. Where do you think they got the money they loaned to homebuyers? They borrowed it! Everywhere from China to Europe. That's right. Foreigners loaned billions to Fannie Mae and Freddie Mac. Then Fannie and Freddie handed the money out to shaky buyers of overvalued homes. Financial manipulation Thanks to financial manipulations, Americans have less equity and the banks own a higher percentage of the nation's houses than ever before in history. Urged on by the credit junkies, they refinanced and borrowed all the equity out of their homes or bought new homes way beyond their means.
Americans owe $7 trillion on their homes - twice as much as 10 years ago. But our incomes - our ability to pay - have gone up by a fraction of that amount. It's painfully clear a lot of that $7 trillion will never be paid back. And the biggest lenders on the planet are going down. The credit industry has exposed each and every one of us to a loss of $50,000-400,000, depending on how much equity you have in your home. Imagine what it's going to be like when the shock hits every resident of every town in the United States. How could this happen? Government regulators were like the three monkeys - see no evil, hear no evil, speak no evil - because Bush and Greenspan were dealing with the aftermath of the stock market bubble. They were staring at a potential Great Depression, so they kept the money pump going. They decided to create another bubble and worry about the consequences later. Guess what?: "Later" just arrived. You must act now - time is running out A lot has happened since we sounded the first warning. The events we predicted more than two years ago are unfolding in each day's headlines. We're a lot closer to the pending disaster. It could be a matter of weeks, because one surprise after another is hitting the financial markets. The oil crisis has put even more pressure on overextended consumer budgets. There could be a sudden crash. It's urgent for you to send for my FREE Special Report and get started on the five specific ways to protect yourself. Everyone who fails to take the steps in my new report will soon be blindsided by forces they probably don't understand. Dan Denning, Strategic Investment: You're probably 10 years out of date - The rules for owning a home have changed Everybody, including me, looks at a home as an investment. There's nothing wrong with that. Home values have gone up for decades, and most of us have made good money. From time to time, local bubbles have deflated in go-go markets like Southern California, but most of the time, we've all done just fine. This time it's different. There's been a basic long-term change in the housing market. Very few people know about it. Now most of them will find out the hard way. | |
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Thirty years ago, if you wanted to buy a house, you borrowed the money from a local bank or savings and loan. The lending officer probably had a home of his own in your community. The money he loaned you was probably the savings of people in your hometown. No more. The mortgage business is now like the stock market. Your bank's home office is probably on the other side of the country. The money you borrow probably came from China, Japan, or Europe - because Americans don't save much anymore. They borrow and buy, buy, buy. Your mortgage is bundled up with hundreds of other mortgages into a bond, and it trades like one. It may change hands several times a year. Whom do you owe the money to this week? Good question.
In other words, a house now resembles a hot, tradable security whose value can go up and down like Intel or Google stocks. Or like General Motors bonds, which have sunk to junk status. You're right to think of your house as an investment. But you may not know it can go up or down overnight. We're soon going to see that home values are amazingly sensitive to small changes in interest rates. You are at the mercy of investors' moods in faraway places. As long as houses continue to go up, everything still seems normal. In fact, it seems better than ever. Don't be fooled. Get prepared for the worst. Your FREE Special Report, The U.S. Housing Market Collapse of 2005-2006, reveals five specific, low-risk ways to protect yourself…and profit! Five ways you'll know the crisis has hit
Realizing the party is over, every investor in the world will try to get out at once. Houses will lead the way down. Stocks will follow really fast. How can we be so sure?
If you listened to us, you didn't get caught when the dot-com bubble popped…you didn't rent space in the World Trade Center…you made money when Japan went down the toilet…you bought gold a couple of years ago and made 60% on the straight play, and far more if you played futures or options…you bought Asian funds last year and made a killing on the dollar bear market. Now, I'm inviting you to… Let our picks make you rich In 2003 and 2004, we saw gains of 65% on Dow DIAMONDS puts…an 89% gain in ASA Ltd….87% on Ducommun Inc…AND MORE! In fact our recommendations made an average gain of 56.99% in 2004 and - get this - 89.96% in 2003. That's how much a reader made if he or she put an equal amount of money in each of our picks. 2003 and 2004 were great years. Lots of investment advisories did well. But how did Strategic Investment perform the last few months, when things were tough? See for yourself… These are the just the gains on my latest recommendations as of Oct. 10
Many are still long-term buys! You can see my latest updated portfolio on our Web site as soon as you join. Strategic Investment has a long and profitable history of identifying the trends that dominate investment markets. More important to YOU, we turn the big trends into specific, winning recommendations. For two decades, we've helped readers avoid dangerous situations. Our readers actually add to their wealth and personal security while most investors are losing theirs. But the trend I'm warning you about today - the inevitable collapse of home values - is going to dwarf all of those we've seen during the 20 years we've been publishing. Dan Denning, Strategic Investment: FREE BONUS REPORT No. 1
The U.S. Housing Market Collapse of 2005-2006 is a powerful report that every investor and homeowner in the United States should read. The outlook is so dangerous it cost one senior government official his job. The report he spent two years preparing suddenly vanished without a trace. You'll find out why, and you'll discover that much of his forecast has already come true. But there's more to this risk-free offer… RECEIVE UP TO 4 MORE FREE BONUS REPORTS To make absolutely certain you do everything you can to build and protect your wealth over the coming months, I am prepared to send you TWO ADDITIONAL FREE REPORTS with your one-year subscription… Dan Denning, Strategic Investment: FREE SPECIAL REPORT No. 2
As the dollar vaporizes, stocks and bonds collapse, and real estate tumbles, THERE IS an asset class that's going to go up like crazy. Investors are going to want tangible things, not paper assets. And commodities like gold, oil, and grains are the things they're going to want. These hard assets will hold their value as currencies and securities tumble. My readers have already made huge profits on this Big Trend, but the fun has just begun. Let me give you an idea of what's in store. Chinese oil consumption went up over 30% last year, and it's going to go up 30% again this year. All you have to do is buy oil, sit back, and count your profits. That's what we're doing! The three energy picks in our Strategic Investment Portfolio are up 46%, 37%, and 38% as this goes to press. This is a model of the kind of big-trend investing we do so well, if I say so myself. Just look at the facts. Each South Korean consumed 16 barrels of oil in 1990, up from ONE BARREL in 1965. The Japanese went from one barrel to 17 barrels a person. China is at 1.7 barrels today. Where do you think that's going? This is not hard to see. Get on board and profit! We've profited from the energy shortage for nearly three years, while a lot of people thought the problem was just temporary. They look at the short-term market blips, instead of the long-term fundamentals. Here's something even more exciting: The same thing is going to happen in metals, grains - in almost EVERY commodity. Take coffee. The richer a developing country becomes, the more coffee its people drink. It's a well-known fact. The Japanese drink over 10 times as much coffee per person as the Chinese do. But it's a sure bet that Chinese consumption is going to rise as that country becomes wealthier. And with 1.2 billion Chinese people, they won't have to drink much to send the price skyrocketing. Do you see? You don't have to sit there and be a victim of the ominous trends in the United States. You don't have to worry whether Greenspan is going to raise interest rates 2% and knock 20% off the value of your house. A lot of money is going to be made, and you can be in on it! Discover my best recommendations in your FREE report, Make 10 Times Your Money in the Inevitable Resource Explosion of 2005-2006. Dan Denning, Strategic Investment: FREE SPECIAL REPORT No. 3
Special Report No. 3 goes right to the heart of our investment strategy. This FREE report reveals the easiest way to be a brilliant investor AND avoid the biggest mistake most investors make. My team and I are top-down investors. We figure out the big trends that are staring us right in the face - like today's real estate bubble, or the stock bubble in 1999, or the Japanese bubble in 1989. THEN we make our individual picks. It works like a charm because the big trend lifts all boats. Take cell phones or personal computers. When those inventions came along, who knew which companies would be the big winners? Almost everyone got it wrong. But it was easy to see that billions of consumers wanted these products, never mind which company made them. You made big money if you bet on the trend. Identifying the individual winners just isn't that important. MOST OF THE BIG GAINS COME FROM GETTING THE BIG TREND RIGHT. AND MOST BIG LOSSES COME FROM GETTING THE BIG TREND WRONG. That's always been our philosophy. But this Special Report reveals a new twist that makes Big Trend investing safer, easier, and more precise. It's a financial innovation that most investors still don't know about, but you'll be an expert in 10 minutes with your FREE Special Report, How to Pile Up 500% Gains Using "Precision-Guided Investments." Just get the big trend right - whether it's oil or real estate - and this type of investment totally eliminates the problem of "picking winners." Instead, you can target the megatrends in the world economy PRECISELY at low cost and low risk. Your monthly issues of my newsletter - plus e-mail updates - will let you know exactly when to buy and sell. TWO MORE FREE SPECIAL REPORTS With Your 2-Year Subscription Dan Denning, Strategic Investment: FREE SPECIAL REPORT No. 4
China is on track to become the world's most powerful economy in just a few decades. Not exactly news, although it was news years ago when we first predicted it. But here's a surprise: CHINESE COMPANIES WILL NOT BE THE BEST WAY TO PROFIT. In fact, China is headed for an economic disaster short term, although it will recover and resume its march to the top. I checked things out during a three-month investment research mission in Asia. What I found there is totally different from the China story you see in the mainstream press - and deeply shocking. No joke and no guesswork here - the signs are very clear. You just don't see them unless you go there yourself and talk to high-level intelligence sources like I did. It's going to roil investment markets like you won't believe. I've prepared a FREE Special Report called Total Protection from the Coming China Crisis. Included is a "China-proof" investment that could soar as much as 350-400% as the economic and military crises unfold. Your special report sets you up to profit from a particular action I expect Chinese leaders to take. As soon as you see it, that's the signal! Follow my lead and reap 3 or 4 times your money very quickly. Dan Denning, Strategic Investment: FREE SPECIAL REPORT No. 5
I've been hammering away at readers to make this Trade of the Decade for the past five years. They thank me because they've doubled their money already if they just played it as a long-term hold. And they've made hundreds of percent if they traded the short-term moves along with me. It's absolutely a low-risk no-brainer that capitalizes on TWO INEVITABLE TRENDS anyone should understand. Yet millions of investors still don't see what's right in front of their noses! Sign up for two years and get all the details FREE in The Trade of the Decade. You get all this when you join me…
And to top it all off, my publisher is giving you a BIG introductory discount. He's willing to do that because he's confident you'll renew at the full price after you read and profit from Strategic Investment. You risk nothing with this offer
Read Strategic Investment for two months. If you decide FOR ANY REASON it's not for you, just call our toll-free customer service number and cancel. You will receive a prompt refund of EVERY PENNY YOU PAID - no questions asked. What's more, all the FREE SPECIAL REPORTS and issues you've received are yours to keep. That's up to five reports if you subscribe for two years and three reports with your one-year subscription - all yours to keep even if you cancel and get a FULL REFUND. I believe so strongly in the value of my service and the quality of my recommendations that I don't want to keep your money if you're dissatisfied in any way. Frankly, that's not the problem I'm worried about. The problem I'm worried about is that the housing crisis will begin to unfold BEFORE you act on the five immediate recommendations in the 16-page U.S. Housing Market Collapse of 2005-2006. It's that urgent. So I beg of you to click here and start to protect yourself NOW.
P.S. My FIVE recommendations are positioned to go up if home prices go down. Better yet, they are sound investments in any case. Get your FREE Special Reports now and see for yourself. Other Useful links: Copyright 2005, Agora Financial, LLC and The Daily Reckoning, |
