Feds Lending Going Berserk

The Fed's lending to distressed institutions is going berserk.

For most of the decade, banks largely avoided borrowing from the Fed. There was plenty of cheap money available elsewhere. They had little reason to submit to the extra scrutiny that it required. And there was little stress in the banking system.

Now, all that has changed. Now, borrowing at the Fed's discount window has surged — from a weekly average of a meager $1 million per day at its low point last year to a weekly average of $18,469 million per day last week.

What would be the growth rate of an explosion of that magnitude? "Only" 1.7 MILLION percent — not exactly a sign of stability in our financial system.

The fact is the Fed's lending is going berserk, a blatant indicator of severe stress and more big troubles ahead for banks.

How to Turn This Crisis into A Major Profit Opportunity

I could go on and on, but I think you get the point: The crisis that began in subprime home mortgages has widened and deepened, touching everything from commercial real estate to leveraged finance to consumer credit.

So expect more multi-billion dollar losses at the nation's largest financial institutions, more multi-billion write-downs and more shocking declines in their share prices, leading to more declines in the broader stock market.


WHAT TO DO TO PROTECT YOUR WEALTH

Step #1: Get the heck away from these dangers. If you haven't done so already based on my earlier warnings,

- Avoid shares in "US" banks, brokers, insurers or any financial company like the plague.

- Reduce to practically zero your exposure in nearly every other stock market sector.

- Don't trust the bond ratings from Moody's, Fitch and Standard and Poor's. I consistently find that their ratings are subject to serious conflicts of interests and that needed downgrades are often delayed until after it's too late for most investors.

- Avoid long-term bonds regardless of rating. Naturally, the low-rated bonds are bound to take the biggest hits. But supposedly "high-rated" bonds are not as safe as they appear. Moreover, as interest rates rise, the market price of all bonds, including U.S. Treasury bonds, are bound to fall.

- Avoid all commercial paper, plus money market funds that invest in commercial paper. Asset-backed commercial paper is already in the tank. Next, other forms of commercial paper could also get hit hard.


Step #2: To achieve true safety for your money, don’t wait one more day to take the steps I set forth for you in my recent “Bank and Brokers” List when you become a G&G Investment Society (GGIS)Newsletter subscriber. Move your money from those failing banking institutions.


Step #3: Once you’ve got most of your money — even as much as 90% — in safe, conservative investments, you have the opportunity to USE this crisis to multiply your money many times over by "Buying Gold & Silver NOW!"

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.

Visit the following site www.publicgold.com/gngpreciousmetals in order to purchase Gold & Silver Eagles at a 25-35% discount instantly propelling your investment into a double digit gains instantly. While others are watching their portfolios lose at double digit numbers.

To listen to the playback of the conference call on "Gold & Silver", please call the number below:

Playback Number: (641) 715-3487
Access Code: 974124#


Step #4. Protect yourself from losses, or better yet, go for major profits.

If you have stocks, bonds, real estate or business assets you're unable or unwilling — to sell, seriously consider buying hedges that can help offset any further losses you may incur.

I'm talking about special exchange-traded funds (ETFs) that are designed to rise when a particular stock index falls...inverse ETFs.

For the balance of my recommendations, including updates on my complete GGIS portfolio subscibe to my GGIS paid newsletter service.

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If you are not yet a member of the GGIS paid newsletter service...Become an exclusive member of the G&G Investment Society subscription for USD ($99). But wait, if you listen to last weeks conference call before the end of the week you'll get instructions on how to get a 20% discount off the regular susbcription price. So....Sign up today!!!

To become a member of the G&G Investment Society newsletter subscription, please send an e-mail to GGIS@gngassoc.com for sign up instructions. DON'T WAIT ANOTHER DAY...SEE QUOTE BELOW!

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Thanks

Gary Gray
Tax & Financial Consultant, RFC
G&G Associates
877-817-6031 toll-free
866-361-3872 toll free fax
www.gngassociates.net

"A Prudent man foresees the difficulties ahead and prepares for them; the simpleton goes on blindly and suffers the consequences."
Proverbs 22:3 -- Living Proverbs



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.