Meet Adam Lass in Las Vegas at our annual conference in September, and he’ll show you how to get around the latest Keynesian plot to destroy your family’s security.

We need to talk.
Seriously, things are really odd out there. I’ve got some specific ideas about how to capitalize on the starting to get market’s latest twists. And I think we need to sit down together in the same room, and work this out.

How odd is it?
So strange, so wildly volatile, even those perennial “smartest guys in the room” at Goldman Sachs, with their incestuous insider connections on corporate boards and in the halls of power, couldn’t make but so much money last quarter.

 

 Turns out Goldman Sachs got slammed from both sides, with their “friends” in Washington punishing them with the largest SEC fine on record and the market they used to dominate them biting them as their trading bets on lowered volatility all went south.

Not that I am shedding any tears for Goldman Sachs, mind you. I really have no sympathy whatsoever for folks who bragged about taking the rubes for bad. I am just trying to point out that even the best connivers out there are being brought low right now (and how you can bend their magnificent failure to your own ends).

Don’t Get Fooled: Bad Is Never Good

So what the heck IS going on?

 

Just the other afternoon, the financial markets were running flat as could be, as investors tried to digest the implications of the previous week’s drubbing. Heck, we’d even seen a fresh low for the week. Didn’t seem like any good news could move the market off its duff.

 

But what about bad news?

 

Suddenly, word began to circulate that the Federal Reserve was really getting worried about the recovery in general and housing in particular, and might find a way to jigger mortgage rates even lower than they are now.

 

No real proof of this, mind, you. No real thought or analysis as to whether this might actually happen or would even be a good thing if it did.

 

Just some hints, an offhand comment or two and some wishful thinking.

 

Next thing you know the bulls are running with the story setting a fresh new weekly high at the close, and then running for their homes in Scarsdale and Greenwich before anyone can ask them what the hell they are doing.

 

Prudent Planning

 

It didn’t hold, mind you. Once investors stopped to think about it, they quickly realized that low mortgage rates have nothing whatsoever to do with the problems we are facing right now.

 

Rates are already at a historic low, and the housing market is still flopping about like a dying fish. Not that I mind the low rates – in fact, I’ve already used this gift from the Magi to refinance Seven Oaks Farm’s relatively modest mortgage. I even tapped a bit of equity to pay off some niggling little debts that were irritating me like sand in the wrong part of one’s bathing suit.

 

Folks like you and me, we can do that whenever we please because we have coddled and protected our equity for decades – because we DO think in terms of decades at a time, and even about the generations to come.

 

And that’s exactly why none of us are planning on refinancing again anytime soon. To quote President Bush the Elder (who is, quite frankly, looking more and more patrician and “presidential” with each passing year): “It’s just not prudent.”

 

Why Lowering Rates Won’t Work

 

Speaking of old adages, ever heard the phrase “pushing on a string”? They can lower rates till the cows come home, and it won’t help a bit. Prudent folks simply aren’t looking to buy cars or houses right now, because the risk is just too high.

 

I have demonstrated the economic theories driving this reticence a hundred ways over the past weeks. Today, I will simply draw on personal experience.

 

According to our Labor Department, “unemployment” is supposedly down in some 39 states. Unfortunately, this is only because a vast number of folks have been written off the rolls. In point of fact, 27 states, including some of the most populous like New York and California, have seen their aggregate payrolls fall during the same reporting period.

 

Even Us “Smart Guys” Are Still in Washington’s Crosshairs

 

I would like to think that my job is relatively secure, and I know for a fact that my debts are modest compared to my cash flow and assets. So what? I am still sitting in the crosshairs, just like all the rest of us.

 

Technically, my eldest daughter is not “unemployed.” She has a degree in assistive technology from a fancy New England college and co-owns a design and machining company. For the better part of the past six months, she has been trying to find a job in Boston as a secretary, just to keep up with the bills.

 

She’d love to buy a house. However, lowering mortgage rates isn’t going to do her a bit of good, as no bank in their right mind would lend to her right now. And so long as I stand a good chance of getting hung with the rent for her shop space, I sure as heck am not about to go on any sort of spending spree.

 

A Decade of Decline IS the Good News

 

Keynesians think in terms of pushing cash down pipelines in the hope of creating a self-sustaining current. All I see is string – a big old knotted ball of string.

 

No shock then, that a day after those rumors of more Federal Reserve money started, the financial markets are already retreating from their Fed-induced euphoria.

 

The problems we are facing have been building up for decades. It would take years of good decision-making to fix them, and frankly I don’t see anyone on Wall Street or in Washington making good decisions right now.

 

And that’s why we need to talk, and sooner rather than later.

 

Time to Take the Reins

 

Just because Washington and Wall Street have dropped the ball is no reason to sit down and quit. In fact, just the opposite is true: You simply must secure your family’s future on your own.

 

And so, for a few brief days this September, I will trade the soft beauty of autumn in rural Maryland for the stark desert sun of Las Vegas. I am not particularly pleased about this. Folks who know me, know that I am NOT a big traveler anymore. (My fellow editor Justice Litle will also be in Vegas with me. Don’t forget to sign up for Taipan Daily to get our investment commentary delivered to your inbox each morning.)

 

But the times are just too damn volatile for me to stay home.

 

Three Ways to Capitalize the Axis’ Massive Failure

 

I spoke earlier of specific ideas I wanted to relate to you, ideas – well, three assets, really – that actually utilize Washington’s willful ignorance of economic principles and Wall Street’s lack of moral principles (if you work in either of those places, forgive me, I obviously mean the guys sitting next to you).

 

One of them is an option contract that has already offered my readers more than 160% gains. But the underlying stock – a “successful” retailer – has yet to set a bottom! In fact, the market’s “viral infection” could plague this stock for the rest of the year, giving option traders the chance to double the gains already in pocket by Christmas.

 

Another “viral” asset you must own now is keyed to the Keynesian’s plan to pump an endless flow of new dollars into the system in a vain attempt to jump-start the economy before the November election. As word of this plan spreads around the globe, this asset will more than double in value.

 

Finally, I will show you a universal cure to the disease that is plaguing the market, a 10-digit “position code” that takes specific advantage of this virus’ “DNA” to undo its damage.

 

As tempting as it might be, now is NOT the time to throw your hands up in the air in disgust.

 

Please, meet with me in Las Vegas in September for our Global Opportunities Summit, and we will figure out how to get past this.

 

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