Tax & Financial Consulting Services
Bank losses so far: One-half TRILLION
Bloomberg dropped a bombshell this week: Banks have now lost over $500 billion in this great credit crisis!
Citigroup has lost $55.1 billion...Merrill Lynch, $51.8 billion...UBS, $44.2 billion...HSBC, $27.4 billion...Wachovia, $22.5 billion...Bank of America, $21.2 billion...the list goes on and on.
And that doesn't even begin to include the massive losses at Fannie Mae and Freddie Mac. Nor does it include the NEXT $500 billion that the International Monetary Fund estimates will be lost before this crisis is over.
Can you see why I have been telling you that the biggest bank losses, the biggest bank stock declines and the greatest profit potentials are far from gone.
Last week, I gave my G&G Investment Society subscribers a list of several real-world examples of lenders who were tredding water and those refusing to take the Federal Reserve's "bait." To get that list to see if your bank is in jeopardy of failure, become a G&G Investment Society member today!
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A quick recap: The Fed has been driving the cost of money down in an effort to spur more lending. But many banks have instead reduced their exposure to various business lines — and eliminated some loan products altogether.
Everything you've seen so far was only a dress rehearsal: BANK STOCK BUST
* Foreclosures explode 55% higher in July!
* Moody's warns: Up to 2.8 MILLION MORE mortgage defaults now in the pipeline!
What Does Tighter Credit Standards Mean to You
You practically need the Jaws of Life to pry open a banker's wallet these days.
We have record-high percentages of lenders tightening standards on residential mortgages, commercial mortgages, credit cards, and consumer loans. Businesses are also finding it tougher and costlier to borrow.
So what does it mean to you? The tighter banks get with credit, the longer the economic slump will persist.
If companies can't borrow to expand factories...if developers can't get loans to build office towers and shopping centers...if consumers can't find financing to purchase cars or homes...we're all going to feel it. Corporate America will get hit particularly hard with sales and earnings slumping. That's bearish for the stock market.
As for the financial industry, it's yet another sign that the worst is NOT over.
Banks are the stingiest ever because of their greed they went overboard during the housing bubble, leaving them vulnerable to large losses on previously issued home mortgages. Unfolding downturns in other sectors, like autos and commercial real estate, are starting to drive up delinquencies in other parts of their loan portfolios, too.
Buy bank stocks? Buy REITs? Not in this environment. In fact, I'd sell the heck out of them if you still have them in your portfolio!
Because I see no sign whatsoever that the credit crunch is ending I still stand by the philosophy of stocking up on Gold & Silver the true inflation hedge currency.
Can you see why savvy investors here in the US and overseas are buying gold like crazy? Can you see why it's not far-fetched to expect gold to continue higher, ultimately reaching its "inflation-adjusted" price of $2,200 an ounce?
Here Are the Two Steps You Should Consider Right Now
Step #1. If you don't already own gold or silver, I strongly suggest you buy some now. Buy gold & silver for the long-term and protect your paper dollars pronto. As I have suggested in my past newsletters, and on previous conference calls, I would seriously consider allocating 20-30% of your net worth to gold and silver investments. You might want to put 2/3 in pure gold and silver investments, and the other half in mining shares.
Step #3 If you have not seen this yet, please take time to watch it also.....very, very important video from Robert Kiyosaki confirming the information on my conference call stating that you should stock up on Silver & Gold if you can!
Visit G&G Associates website, click on the "Precious metals" tab to learn how to purchase Gold & Silver Eagles at a 25-35% discount instantly propelling your investment into a double digit gains instantly.
Again, to review my favorite gold & silver investment vehicles. Become an exclusive member of the G&G Investment Society subscription for USD ($99) today!
Tax & Financial Consultant, RFC
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“The remedy for fear and suffering is the truth.”
LEGAL NOTICE: This work is based on SEC filings, current events, interviews, corporate press releases and what I've learned as a financial consultant. It may contain errors and you shouldn't make any investment decision based solely on what you read here. It's your money and your responsibility. G&G Associates gets paid a commission from a membership purchase at www.publicgold.com/gngpreciousmetals.