As I tell my readers, friends, family, clients, and others, "I didn't want to be right" in regard to my accurate forecasts (as far back as 2004) in regard to the collapsing derivatives and financial markets worldwide. No, real estate, stocks, and bond values do NOT always go up in value as many of my disbelievers have told me in recent years.

In 2008, the value of assets worldwide dropped approximately $50 trillion dollars in value. 2009 will be significantly worse for all asset classes (i.e. real estate, stocks, bonds, commoditites, etc.). Currently, the existing value of ALL stock markets around the world may be near $50 trillion. 

To put those numbers into perspective, the combined worldwide stock market values lost the equivalent of all of the world's stock market values in just one year ('08) (VANISHED INTO THIN AIR). I still expect the U.S. Dow Jones index to hit 5,000 or below within a few weeks to a few months. Yesterday's 200 plus increase was nothing but a "sucker's rally".

I expect a major U.S. bank to be "nationalized", or formally taken over the the U.S. government as early as this Friday (Friday the 13th after 5 pm PST). Typically, banks are taken over on late Fridays so they have the entire weekend to work on "bailout".

People, please understand the financial markets are only worsening both here in the U.S. and worldwide. Asset values are headed downward in almost every category (except maybe gold and silver), and hyperinflation is just around the corner (currency values drop due to the increase in printing of U.S. Dollars in order to bail everyone out).

If you are "upside down" in your home, please contact me so we may help you cram down your debt or lower your payments. If you are an active investor, we have access to REO deals for "cents on the dollar". If you need a loan, please get one NOW as it will be much more difficult and much more expensive in the near term as long term mortgage rates continue to rise.

Sorry for the bad news today!!! I try to be an optimist in life, but I have been researching this financial and economic information for too many years.