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The Great Money Panic!

Long-Term Bonds Are Destined to Crash

Massive losses in tax revenues due to the stock market crash huge new spending programs and President Bush's $1.7 TRILLION tax cut add up to more than just a return to deficits:

You're looking at skyrocketing deficits ... crashing government bond prices ... a falling dollar ... and rising interest rates - as far as the eye can see!

To make up for massive losses from the slowing economy and the stock market crash, the US Treasury will be forced to dump tons of notes, bills, and bonds onto the market in 2002 and beyond - just to keep the government running.

Without fail, every time this has happened throughout history, bond prices have been hammered into the ground. The dollar has collapsed. And interest rates have skyrocketed - no matter what the Fed Chief did to avert the disaster.

You've seen it before - under Jimmy Carter, when the economy tanked, inflation hit 18% and the Prime Rate jumped to 21%. And, it will happen again.

The Coming REAL ESTATE
COLLAPSE of 2001!

In every bubble in history, from the Tulip Mania to Wall Street before the Crash of '29, real estate prices ran up enormously just before they fell.

The more expensive the real estate, the bigger the bubble. And now the bubble is starting to rapidly deflate ... As usual, the first market to feel the impact is high-end rentals, because that's where consumers have the most discretion.

Manhattan's high-flying rents are already falling back toward earth. For the first time in seven years, landlords are slashing rents and some are even offering to pay broker fees.

In San Francisco, which is close to "dot-com ground-zero," prices have been falling for six months - with high-end apartments suddenly getting cheaper by hundreds of dollars a month.

Next to feel the pain will be the market price of high-end single-family homes. Just listen to what some industry insiders are saying: A custom builder of luxury homes in the state of Washington reports that a wealthy stockbroker just put off construction of a multimillion-dollar home. He directly blamed the nation's unsettled economy.

  • Brokers around the country are saying that buyers who would have purchased homes worth $1.5 million to $2 million last year are scaling back in a big way "until a sustained improvement in the Nasdaq." They may have a long wait.

  • Everywhere, professionals who deal daily with real estate investors are sensing a dramatic mood change in the wake of the tech stock crash. And the Great Depression has barely begun! As the economy contracts, we're looking at a sinkhole in real estate prices of historic proportions.


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