A big part of what we do through our Credit Crisis website is to find the best opportunities for our large national database of investors or readers of the national publications like Creative Real Estate Magazine where many of my articles have been published for almost the past decade. 

We are now working on many transactions in which we are assigning a partial interest or the entire principal amount of a new or an existing 1st Trust Deed (or Mortgage) to investors at substantial price discounts. In many cases, these 1st Trust Deeds are secured at low to values within a 50% - 70% range of the most conservative recent value estimates. In addition, these 1st mortgage loans are typically secured against prime residential property in many of the best regions of Southern California (or elsewhere).

Investment opportunities may begin as low as $25,000 to $10 million + for loan terms of one year (or more or less). In most cases, the investment options may be within the $25,000 to $500,000 range. These investments may be ideal for personal or pension money as well. The monthly payments may be automatically credited to your personal accounts by the trustor (the borrower) as well.

As the U.S. stock market continues to plummet and resemble a casino each and every week and as the U.S. bond market now offers rates which are effectively NEGATIVE NET RETURNS, we believe that there may be no better investment opportunity than these double digit, 1st Trust Deed loan opportunities. 

For more information, please email me at info@realloans.com. Please visit my other website at www.realloans.com for more financing options as well. Thank you.

Of all of the money currently in circulation in America, only 3% is actually physical money (i.e. cash). The rest of the "money" in the USA is computerized, digital money (please watch video #1 in the "Videos" section of this website for more details). 

The American banking system is actually a giant Ponzi scheme which dwarfs the recent $50 to $100 Billion dollar (per various articles) Madoff scandal in New York. While our banks, the "Federal" Reserve, and the U.S. Treasury may legally create money "out of thin air" in our fiat-based currency system (backed by nothing instead of gold, silver, or other hard assets), it may become a very dangerous and risky monetary policy when the capital markets begin to collapse as we are now experiencing with our current Credit Crisis worldwide.

As per Wikipedia, the root definition of Fractional Reserve Lending is as follows:

"Fractional-reserve banking is the banking practice in which banks keep only a fraction of their deposits in reserve (as cash and other liquid assets) with the choice of lending out the remainder, while maintaining the simultaneous obligation to redeem all deposits immediately upon demand. This practice is universal in modern banking. The nature of
fractional-reserve banking is that there only is a fraction of cash reserves available at the bank needed to repay all of the demand deposits and banknotes issued. When fractional-reserve banking works, it works because:

1.) Over any typical period of time, redemption demands are largely or wholly offset by new deposits or issues of notes. The bank thus needs only to satisfy the excess amount of redemptions.

2.) Only a minority of people will actually choose to withdraw their demand deposits or present their notes for payment at any given time.

3.) People usually keep their funds in the bank for a prolonged period of time. 

4.) There are usually enough cash reserves in the bank to handle net redemptions. 

If the net redemption demands are unusually large, the bank will run low on reserves and will be forced to raise new funds from additional borrowings, and/or sell assets, to avoid running out of reserves and defaulting on its obligations. If creditors are afraid that the bank is running out of cash, they have an incentive to redeem their deposits as soon as possible, triggering a bank run".

When I think of a "bank run", I think of the classic film It's a Wonderful Life which was based upon the era near The Great Depression. Once bank customers think their respective bank is running out of cash, then many of them will go to the bank in order to pull all of their money out of their accounts. Sadly, if too many bank customers withdraw their funds out of the bank accounts, then the bank may run out of cash. 

During the normal, boom, capitalistic time periods in American history, the Fractional Reserve Banking System worked quite well. During our on-going Credit Crisis, the Fractional Reserve system may not work very well as there may not be enough cash available to please every bank customer. 

As a result, more banks will be forced to liquidate their hard assets (i.e. real estate) for cents on the dollar. We will keep you updated on the best REO opportunities nationwide as they become available. For more ways to find money to purchase these REO foreclosure pools, please visit my other website at www.realloans.com for more information. 

Happy New Year to All.

The median price for a U.S. home fell 13% from a year earlier to a national median sales price of $181,300. This may have been "probably the largest price decline since the Great Depression", said Lawrence Yun (the National Association of Realtors Chief Economist).

Typically, the holiday months of November and December are some of the slowest home selling months nationwide. However, these bleak November sales numbers are very concerning to many of us. New home sales also fell 11.5% during the last 12 months as well.

In the 3rd quarter of 2008, the estimated net worth for American families may have fallen over $2.8 trillion as well. With lower net worths, falling home values, and a worsening employment environment, the future outlook for both real estate as well as the overall American economy continues to be worrisome. 

However, there will continue to be some excellent REO foreclosure investment opportunities for those individuals who have the cash or access to the cash. For more information, please continue to view this website as well as my other website at www.realloans.com

Thank you, and Merry Christmas to all.

Listed below are 3rd Quarter 2008 results for the U.S. economy. Was this the worst financial quarter in the history of America? In terms of financial losses, the answer has to be "yes" as the total combined dollar losses are staggering. Some of the "scary" economic data for the 3rd Quarter include the following:

* U.S. households lost $647 billion in real estate values.
* Stock values dropped $922 billion.
* Mutual Funds lost $523 billion.
* Life Insurance values & pension fund reserves lost $653 billion.
* Private businesses lost $128 billion.

The total estimated combined value of losses in the 3rd Quarter of 2008 for U.S. household wealth were estimated to be at least $2.8 trillion. This is the worst quarterly loss ever recorded in U.S. history. This number is sadly four times larger than the government's entire $700 billion bailout package (TARP).

I expect the 4th Quarter results to be even worse. This is truly "scary" for all of us.

For financial solutions to help offset the billions and trillions in losses, please visit my other website at www.realloans.com

Almost 12 million Americans are now "upside down" in their homes as their current mortgage debt exceeds the existing value of their respective homes. Per Reuters, total U.S. home values may have dropped over $2 Trillion in 2008 alone through just the 1st three quarters of the year. These numbers do not include our current 4ht quarter '08 projections. 

Personally, I think the total combined value drops are much higher than these "conservative" numbers. As lending continues to tighten up, near term sales price numbers should drop even further at any accelerated pace. 

The Stockton and Merced, California regions experienced the number #1 and #2 price drops nationally by falling 32.3% and 31.2% respectively. As I continue to say "I told you so" to some of my doubters who question my ability to reason and analyze, I expect the values to plummet even further in spite of the "Fed" taking short term rates to ZERO in the very near term.

For more information in regard to how to find money while there are any banks left to lend, please visit my other website at www.realloans.com. 

Merry Christmas To All.

Within the past few days, Treasury Bills have risen which has pushed their respective yields to below ZERO for these three-month Treasury Bills. The U.S. Treasury recently sold $27 billion of three month bills at a discount rate of .005%. This is the lowest rate and yield since the Great Depression era of 1929.

The 10 year Treasury Note's yield also has hovered in the 2.6 to 2.75 rate range in recent weeks. 30 year fixed mortgage rates are typically tied to the 10 year Treasury Yield. As a result, long term fixed mortgage rates have declined significantly. Some 30 year fixed mortgage rates are now below 5% for the first time in about 50 years.

The U.S. Treasury Department also is currently discussing offering 30 year fixed mortgage rates through banks and mortgage brokers at rates of 4.5% for a short period of time. The U.S. Treasury would buy these special fixed rate mortgage pools direct from both Fannie Mae and Freddie Mac in order to stimulate the housing market again nationally. 

Homeowners and buyers may potentially see "once in a lifetime" mortgage opportunities for these 4.5% to 5% fixed rates. If that should happen in the very near term, then consumers should start to fill out their respective loan applications NOW before these special rates disappear in the near future.

The Tribune Company, owner of the Los Angeles Times and the Chicago Tribune newspapers, filed for Chapter 11 bankruptcy protection on Monday due to mounting debts and reduced readership and advertising revenues.

In addition, The New York Times Company may be forced to borrow up to $225 million against the collateral of their primary office building in New York City. The New York Times Company also recently reported that their annual sales were down over 50%.

Sadly, the USA Today newspaper now costs $1 dollar per copy as I learned the other day at my local newspaper vending machine. USA Today copies used to be a seemingly pricey 75 cents, but now they are a full dollar each. They must be struggling to cover their mounting debts as well. 

Since 6 conglomerants control upwards of 95% of all forms of media here in the U.S. (print, television, cable, and internet), these same mainstream media outlets continue to report the same blantantly false or incomplete information. Most savvy people find their news on the internet from both domestic and international sources. 

As I continue to think of the internet as my access to every library on the planet via Google and thousands of other sources, then I continue to research and find my information and news about the world through the internet. In addition, you can't beat the cost of information on the internet - FREE.

For more information on ways to find money during the on-going financial meltdown of planet Earth, please visit my other website at www.realloans.com.

Almost 1 billion people (in 60 countires) on our planet may not be getting enough food to eat as the world's financial markets continue to meltdown. As many as 25,000 men, women, and children are dying each day, according to a report from the World Bank. This means that potentially one in six people on Earth are not getting enough food to eat.

Children's fragile health systems are being ravaged by stunted growth and rampant diseases due to the loss of good nutrition. Almost 2.3 billion people on our planet may now only get by with about $2 per day in income. Food riots are beginning to break out in many countries like Mexico and Thailand as well.

As we all know, food and water is more important to us than just about anything else in our world. Why can't we live on a planet where their is abundant food and water for all of us? With today's advanced technology, our families should all have enough food and water to survive on each day. 

This is just another tremendously sad side effect of the world's on-going Credit Crisis!!!

All of these recent bailout plans passed in the past few months are supposedly going to help solve the financial problems of the American economy. Between the $700 Billion (or is it more like $5 to $10 Trillion) Banker Bailout Plan, the $250 Billion Bank "Investment" Plan to 9 major U.S. banks (including Wells Fargo  & Bank of America), and the TRILLIONS of dollars "lent" by the privately held "Federal" Reserve through some of these major ANONYMOUS lending facilities:

* The Primary Dealer Credit Facility (PDCF).
* The Asset-Backed Commercial Paper Money Market Fund Liquidity Facility (AMLF).
* The Term Securities Lending Facility (TSLF).
* The Term Auction Facilities (TAF).
* The Commercial Paper Funding Facility (CPFF).
* The Money Market Investor Funding Facility (MMIFF).
* The temporary reciprocal currency arrangements (swap lines) with 14 other Central Banks around the world.

Here are a few other recent bailouts that most Americans are not aware of which have happened primarily within just the past six months:

* $800 billion to support mortgage consumer debt, * $100 billion to take over Fannie Mae, * $100 billion to take over Freddie Mac, * $150 billion for the Stimulus Package (Jan. '08), * $8 billion for Indy Mac Bank, * $29 Billion for Bear Stearns, * $143 + Billion for AIG (the largest insurance company in America), * 138 Billion for Lehman Brothers (via JP Morgan), * $25 + billion for the Big 3 automakers, and $620 billion for general currency swaps from the Feds.

These supposedly "short term" emergency lending and bailout facilities continue to be extended into the near future as the Credit Crisis continues to worsen in spite of all of these bailout actions taken to date. Essentially, we continue to place our investment banks and banks into more "debt" with the "Federal" Reserve. The "Fed", in turn, will begin to acquire more ownership interest in these once independently owned or publicly owned financial conglomerants. 

Now, the U.S. government via the U.S. Treasury is prepared to lend more than $7.4 TRILLION on behalf of the American taxpayers, or half of everything produced in the USA just last year, to bailout the financial markets which have effectively "collapsed" since the Credit Crisis officially began 15 months ago.

During the Alan Greenspan "boom" years, the average increase in credit issued by the "Fed" was ONLY $10 billion per month. Greenspan was seemingly the "easy money" Fed Chairman. His easy money supply help fuel the boom and subsequent bust in the high tech, telecommunications, stock, and real estate investment arenas. 

Sadly, Bloomberg is now reporting that the "Fed" is now lending 1,900 times the weekly average for the three years prior to the Credit Crisis. In addition, the total debt to GDP (Gross Domestic Product) is now over 350% to 450%. These debt to GDP ratios dwarf any economic time period in the history of America. 

Remember the following economic formula as you continue to read my Daily Blog:

Hyperinflation + Asset Deflation = Great Depression II.

For financial assistance while there are any banks left to lend, please visit my other website at www.realloans.com.

The financial solvency of the few remaining major banks and investment banks in America who have not been bailed out by the U.S. government or provided with anonymous loans via the Term Auction Facilities or the Term Securities Lending Facility continues to be a major problem. 

Regardless of the massive liquidity injections from the government or the "Federal" Reserve as well as the significant drops in both short and long term interest rates, most financial institutions, insurance companies, automobile companies, airline companies, and other major industries are in worse financial shape than they have ever been in to date.

Since the "Fed" stopped releasing their M3 data (the broadest measure of all money released in America) back in March of 2006, we do not know how much new money is being created each month. Many economists believe that the "Fed" was creating so much new money between 2006 and 2008, that the true annual rate of inflation was running at close to 18% per year (as compared with the government's numbers of 4%+).

If too much new money is added to our economy, then the future value of our currency typically gets weaker. As a result, the Dollar then may purchase less goods and services. This is the basic definition of "hyperinflation".

Parallel to the on-going hyperinflation, we are in the midst of an asset deflation and economic depression. The U.S.A., as I have have written recently, has never experienced both hyperinflation and asset deflation (i.e. stocks, real estate, etc.) at the same time. 

If things don't improve for our economy in the near future, then hyperinflation + asset deflation = depression. 

REO investment pools then become one of your best investment options as banks scramble to unload their assets at any price possible. For more financial information, please visit my other website at www.realloans.com