As many readers may remember, I accurately forecast the global stock meltdown (began the week of September 29th, 2008) last July 2008. I warned readers, friends, family, clients, and co-workers that I was absolutely certain the world's stock and financial markets would either freeze, collapse, or that the U.S. Dow Jones index would drop at least 20% in value during a two (2) week time period beginning the week of September 29th, 2008.

Several readers and friends took my advice to heart, and sold many of their financial stocks (especially Washington Mutual which collapsed during that same time period). I was also concerned about the implosion of various Wall Street firms like Lehman Brothers, Bear Stearns, and Merrill Lynch. I also suggested that both Fannie Mae and Freddie Mac would collapse or be taken over by the government several years ago as well.

Why did I pick the week of September 29th last year as the official start of the stock and banking meltdown (or really the acceleration of the Credit Crisis meltdown which officially began in August 2007)? I knew that the next scheduled derivatives exchange date was on September 30th, 2008 at the Bank of International Settlements (BIS - in Basil, Switzerland).

Since the Credit Crisis is primarily due to the melting down of derivatives like Credit Default Swaps, Collaterized Debt Obligations (CDOs - effectively pools of mortgage securities), and other complex financial derivatives which may be leveraged 30 to 50 times their true face amounts, I didn't think there would be any big buyers for these non-performing assets last September 30th.

I also knew that September and October tend to be the two worst months for stocks. If you remember Great Depression I, it began on October 29th, 1929. "Black Monday" was in October as well back in 1987. I am VERY CONCERNED about another major stock meltdown during this upcoming month of October (begins tomorrow).

What happened to the $750 billion in bailout money which was supposed to save the financial markets and help the end consumer? Why haven't the trillions of dollars in "emergency & anonymous loans" provided by the various lending facilities like the "Term Auction Facilities" helped banks lend more money to the borrowers who really need it?

The millions of properties currently in foreclosure nationwide continue to provide potential investment opportunities for those individuals who have the funds (direct or via 3rd party) to buy these properties. We continue to provide the most up to date foreclosure information in Southern California so if you would like some more information, please send me an email or call me today.