Market Continues Pullback

Market Summary (continued)

The good before the bad, the market before the politics. That is how the report goes tonight. The Friday action was not that bad and it was, despite the losses, kind of quiet for a quadruple expiration Friday. Commodities were leading higher again in the pre-market and as the session got underway. Financials were struggling again after their surge, likewise the techs and the semiconductors. All was manageable, at least when you put it in the perspective of the past several months. The market rallied for a couple of weeks with SP500 producing a 20% move off the low; a couple of days of pullback is rather normal.

Then the news hit just after lunch in New York. The CBO finished its evaluation of the Obama/Fed stimulus, budget, and bailout facilities and said the cost would be $2.3T more than budgeted because of the additional spending and an economic recovery not as rosy as the White House believes. CBO revised the 2009 deficit up to $1.8T. It further said that the deficit would remain at 4% of GDP (or actually as the CBO put it, NOT LESS THAN 4% of GDP) for the foreseeable future. Less than 2% is typical for our economy and many get antsy when it moves over 2% for even a short period of time. This is absurdly high and not expected to be just temporary, the usually cited exception for running a larger deficit in times of trouble. As a nice bit of icing, another report came out and noted 542 mass layoffs in February. A mass layoff is 50 or more at a time from the same company. Looks as if a million jobs were lost in the last two months. Not good.

The indices were idling sideways and we thought we might get a bounce in to the close that would be good to short heading into the weekend. When the news hit they jerked lower into new selling for the afternoon and taking the selling from basically flat or modestly lower to down 2% and more. Volume ramped up as stocks sold off hard. You can say it was distribution, but it was expiration Friday and a lot of positions had to be adjusted or rolled after the Fed's action Wednesday. It was clear, however, that the market reacted negatively to the latest indication that at least two branches of the government in Washington are insanely out of control with their spending and constitutional trampling.

GLW (Corning, Inc.)
Company Profile
This week we look at two different plays from different sectors that came in line 1-2-3, giving us good entry points and then great initial profit points. This was repeated many times over the past couple of weeks as quality leadership stocks stepped up and took the lead in the market rally, giving us a lot of great gains.

GLW is a stock everyone knows from the tech boom. It has again turned its business from a bottle maker to a fiber maker and now to a flat screen maker. You like a company that sees market trends and adjusts accordingly. We saw GLW trading in a narrow consolidation rang after rallying up through early February. As the market sold off hard, GLW sold, but it did not break down. So we put it on the report and waited for it to show the consolidation had ended and we would move in. It didn't take long. The following Tuesday GLW rocketed higher on a shot of above average volume. It held its gain into the last hour so we bought stock at $11.11 and some May $10 strike call options at $2.

GLW then started a classic move higher, i.e. stair-stepping up the 10 day EMA. It added gains the next two sessions, moving to $11.85 as well as hitting near the February peak. It tested for two sessions to the 10 day EMA on lower volume (showing no heavy selling and thus a normal pullback after testing resistance), then shot higher on 3-17 on another day of strong, above average volume, clearing and closing over the February peak, an important move. GLW added a bit more the next session then gapped higher Thursday to $13.25. That hit our initial target and it was also the high for the session. When GLW started to peel back we banked some gain, selling some stock for $12.88 (a 15.9% gain) and some of the options for $3, a 50% gain. GLW faded Friday on rising volume, but we are again looking for a test, this time at the February high, and if it holds and bounces we will add to the winning position from this market leader.

ICE (IntercontinentalExchange, Inc.) is one of the stocks of an exchange, this one trading energy products, and after its initial move off the January low it set up a compact but very solid 5 week double bottom with handle pattern, a bullish pattern often formed by stocks as the bottom. We put it on the report on 3-22-09, and the next session ICE broke higher out of the pattern. That was our entry signal and we moved in with some stock at $64.79 and some April $60 strike call options at $8.80. We went with the closer expiration because this stock tends to race when it moves, but we also picked up some June $65 strike calls at $10.10 as well for a longer play.

ICE did what we thought it would, i.e. show a stellar breakout move. It closed at $66.74 the first day, putting us solidly in the money. It added $1.69 the next session, was flat the next, then added $3.50 and $5.56 after that short pause. Five up sessions in a row on the breakout. Did we take some gain? You know that answer. We sold half the stock for $75.47; didn't hit the top on the day, but it surged early and stalled so we banked the 16.4% gain. We also sold a chunk of our shorter term options for $16.30, banking 85%. As for the longer term, well we sold some of them as well for $16.20, a 60.4% gain. After that run ICE gapped a bit higher Thursday but hit the 200 day SMA and rolled over. It sold lower Friday as well, but both sessions on lower volume. Looking for a test of the 10 day EMA and to set up another buy from this quality stock.

CTRP (Ctrip.com International--$26.57; -0.49; optionable): Chinese travel
Company Profile
After Hours: $26.69
EARNINGS: 02/09/2009
STATUS: Test breakout. Low, low volume as CTRP continues moving laterally after the surge a couple of Fridays back. Being patient and letting it make this lateral test and when it breaks higher, that is what we want. To recap: CTRP was always a favorite for us, capable of strong long runs, and it could do it fast. It had hard times with most of the market but bottomed in November and then worked laterally in a 20 to 24ish trading range. It broke out last week and is moving laterally the past three sessions, forming a handle of sorts to the breakout. Strong money flow is running higher ahead of the stock, and when CTRP makes the break higher we are ready to move in.
Volume: 523.722K Avg Volume: 829.887K
BUY POINT: $27.76 Volume=1.2M Target=$32.88 Stop=$26.22
POSITION: QCT FE - June $25c (69 delta) &/or Stock

CELG (Celgene--$45.52; -0.18; optionable): Biotechnology
Company Profile
After Hours: $45.51
EARNINGS: 01/29/2009
STATUS: Continuing downtrend. Rising, above average volume Friday as CELG tested modestly lower, flirting still with a more serious breakdown. Expecting CELG to sell regardless of whether the market finds near support or not and thus if it breaks lower we are looking to get in. To recap: CELG rallied up to the 50 day EMA (48.98) and stalled there over the past week, fading back to try and hold support near 45. Has trended lower since August 2008 and it looks ready to trend lower again after it breaks lower here on some better trade. A move to the target lands a 50%ish gain.
Volume: 6.142M Avg Volume: 5.618M
BUY POINT: $45.34 Volume=6.4M Target=$42.26 Stop=$46.71
POSITION: LQH PI - Apr. $45p (-42 delta)

Disrupting The Hospital Business Model

Hospitals can heal--if they focus on one business model and stop trying to be all things to all patients.

The Innovator's Prescription (published by McGraw-Hill) argues that disruptive innovation is required to make health care affordable. In this excerpt, the authors look into the ways disruption can help hospitals, which in our current health care system are tasked with the impossible job of doing everything well and keeping costs down at the same time.

In order to understand how to "fix" hospitals, first it's important to understand the value proposition of hospitals. Hospitals have become the workshops within which physicians could be trained and practice their intuitive craft, clinical laboratories where complex medical cases could be solved and unanticipated emergencies and complications could be resolved with as much certainty as possible.

 

This value proposition has been a great fit for solving poorly understood problems of the past, such as tuberculosis in the early 1900s, poliomyelitis in the 1950s and AIDS in the 1980s. When these diseases were first encountered, they had to be addressed in hospitals. However, in terms of the complexity of diagnosing and treating disease, for a century hospitals have been on a relentless upmarket march on the trajectory of sustaining innovation.

An administrator in one of the major Boston-area teaching hospitals estimated for us that 70% of the patients in his hospital today would have been in the intensive care unit 30 years ago, and that 70% of the patients in his intensive care unit today would likely have been dead 30 years ago. His hospital has become extraordinarily capable of dealing with very complicated problems. But in the process of adding all of that capability and its attendant costs, the hospital has overshot what patients with straightforward disorders can utilize when they are admitted.

An important lesson from our studies of disruptive innovation is that the hospitals providing much of today's health care cannot, and therefore ought not, be relied upon to transform the cost and accessibility of health care. Instead, hospitals need to be disrupted. We need them to cede market share to disruptive business models, patient by patient, disease by disease starting at the simplest end of the spectrum of disorders that they now serve.

The Business Model of Hospitals
Why are hospitals so costly? The answer lies in an examination of their business model. Every viable business model starts with a value proposition--a product or service that helps customers do more effectively, affordably and conveniently a job that they've been trying to do.

"We will do everything for everybody" has never been a viable value proposition for any successful business model that we know of--and yet that's the value proposition managers and directors of general hospitals feel they are obligated to put forth.

A company might want to be all things to all people, but this isn't what customers need. There are few patients who are searching to "hire" a health care provider that can do everything for everyone else. Rather, customers of health care delivery generally find themselves needing one of two jobs done. The first might be summarized as, "I need to know what the problem is, what is causing it and what I can do to correct it." The second job would be, "Now that I know what needs to be done to fix my problem, I need it to be done effectively, affordably and conveniently."

Delivering a value proposition to do the first job requires a solution-shop business model organized around intuitive diagnostic activities; the second job requires a value-adding process business model organized around the efficient delivery of specific procedures.

We know of no business that has successfully housed two fundamentally different business models within the same operating unit. Were it not for today's tangled web of subsidies, administered prices and regulations that constrain competition, today's general hospitals would not be economically or competitively viable.

Problems Created by Commingling Business Models
When the same hospital seeks to fulfill these two very different value propositions, the consequent mandate for two types of business models creates extraordinary internal incoherence. The resources and the essential nature of the processes inherent in the two business models are different.

Their profit formulas are different as well. Solution shops need to get paid on a fee-for-service basis. Their fees cannot be based on outcomes, because many factors beyond the accuracy of diagnosis affect the results. In contrast, value-adding process businesses can routinely sell their outputs for a fixed price, and they can guarantee their results.

Many market-oriented students of our health care systems bewail the fact that hospitals and physicians don't readily disclose the prices of what they do, or the outcomes they achieve. The value of the services being offered therefore isn't measured--and as a result, the normal market mechanisms that drive performance, efficiency and customer-centeredness don't exist in our health care systems. What these critics have not yet understood, however, is that the value actually cannot be measured, because the metrics of value in the two different business models are so different.

The value of products and services can only be calculated by comparing their prices and expected outcomes, relative to the job to be done, but the jobs for which the solution shops and value-adding process services of hospitals are "hired" to do are very different.

Meanwhile, reimbursement formulas typically price both types of hospital services on a fee-for-service basis, with overhead costs spread across them in highly distorted ways. The result is that the value of what general hospitals do simply cannot be measured--let alone compared.

Recommendations for Hospitals
Our first recommendation is that hospitals need to deconstruct their activities operationally into the two different business models: solution shops and value-adding process activities. This can be done by creating hospitals-within-a-hospital, or by building distinct facilities. In either case, the work done within each business model must be organized differently, and their cost accounting and pricing systems must be separated and structured in ways appropriate to each.

Our biggest and best medical centers will be able to bifurcate themselves. Smaller hospitals, however, will need to focus on becoming solution shops or value-adding process hospitals, or simply expect to be liquidated through disruption.

The reason why this division is such a crucial first step is because of the two different jobs-to-be done for general hospitals. Only when an organization's resources, processes and profit model are focused around a job-to-be-done can they be integrated in a correct and optimized way that does the job as perfectly as possible.

Dividing hospitals into solution shop hospitals and value-adding process hospitals ensures that each type of hospital can be integrated in a way that gets its particular job done most effectively.

Solution Shop Hospitals

The typical general hospital's solution shop is set up to tackle any disorder in any part or system within the body. To deliver on this promise, a good general hospital must have one of every type of diagnostic equipment and at least one physician from every subspecialty on staff. The capability to address such problems cannot reside in standardized processes. Rather, it is largely resident in the hospital's resources--the intuition, training and experience of the people who practice there and the equipment at their disposal. Indeed, these individual pieces of equipment and the individual specialist physicians must be kept separate, not tightly linked by processes, in order to have the flexibility to do anything for anybody.

A friend of ours has suffered from asthma for much of his life. Each specialist he saw seemed to have another possible remedy. It got to the point that he was taking multiple medications with multiple side effects, whose combined cost at one point exceeded $1,000 per month--yet he was still not well.

Then he visited the National Jewish Medical and Research Center in Denver. National Jewish is a solution shop focused on pulmonary disease, particularly asthma. National Jewish is integrated in an optimal way to diagnose the root cause and prescribe the best possible course of therapy, for disorders of the respiratory system.

When our friend arrived, they administered a unique battery of tests, then assembled an allergist, a pulmonologist and an otolaryngologist--also known as an ear, nose and throat, or ENT, specialist--to meet with him. They integrated their perspectives on his long medical history together with the test results, told him what was causing his symptoms and prescribed a straightforward course of therapy that finally solved his problem.

In the general hospital systems in which our friend previously sought solutions, each of these specialists existed. But they weren't integrated in the right way. He had seen each of them individually and was passed from one individual specialist to the next. Indeed, the individuals he saw were typically trying to participate in both the solution shop and value-adding process business models in their hospitals.

What these disjointed general hospital solution shops had been unable to do, a coherently integrated solution shop could readily do. Why? A key reason diseases remain in the realm of intuitive medicine is that they arise at the interdependent intersection of two or more systems of the body. Studying the disease from the perspective of only one of those systems, therefore, can't develop an integrated solution consonant with the integrated nature of the disease.

The Texas Heart Institute is a focused solution shop for cardiovascular disease. The Cleveland Clinic has created "institutes" within the clinic that are focused solution shops. One is a heart and vascular institute. Another is a neurological institute populated by neurosurgeons, neurologists, psychiatrists, and others whose work processes are integrated together in a way that optimizes diagnosis and therapeutic recommendations.

The Mayo Clinic is similarly organized. Patients there are processed through solution shops whose specialists, equipment, and procedures are knitted together across each of the potentially relevant organ system specialties, in order to provide the best possible diagnosis as fast and at as low a cost as possible.

Once the diagnosis and recommendations have been made, they tell their patients, in essence (and using our language), "Now this is what needs to be done. You can go over there to our value-adding process organization to have it done, where we'll charge you on a fee-for-outcome basis. Or you can return to your hometown and have it done there. Your choice."

Isn't it too expensive for the average patient to travel to these distant solution shops? No. It's cheap. Two thousand dollars for our friend to travel to Denver was a pittance to the system, compared to thousands of dollars spent on the wrong prescription drugs and devices that were the result of inaccurate, incomplete diagnoses by a stream of individually operating specialists. An accurate diagnosis ensures that you don't waste money and lives solving the wrong problem.

We believe that, ultimately, focused solution shops will be able to bill fee-for-service rates that cover not just the full cost of their services, but also begin to reflect the value of their work. Current reimbursement formulas constrain and distort this at present.

Are value-adding process clinics good or bad for health care? The "specialty vs. general" categorization scheme is a faulty distinction that leads to serious misunderstanding and mismeasurement. Some specialty hospitals such as National Jewish, noted earlier, are coherent solution shops. Their focus allows them to put processes into place that integrate the work of multiple specialists in a way that optimizes delivery of the value proposition.

Because the care is still the realm of intuitive medicine, and because feedback from treatment decisions is essential to the learning that takes place, diagnosis and therapy in these institutions must be one and the same. The organizational structure of coherent solution shops like National Jewish makes it possible for the patient to be in the care of a true team.

On the other hand, the organizational structure of the typical general hospital, with its separate departments of specialty care, typically leaves patients in the care of individuals--often several individuals passing the patient from one to another--since the current structure makes working together and coordinating care cumbersome.

Other specialty hospitals are value-adding process hospitals. These include surgery centers, both inpatient and ambulatory. Some of these do many types of surgery, while others specialize in a specific type.

For example, the Shouldice Hospital, north of Toronto, repairs only external abdominal wall hernias. The Aravind Hospitals in India do eye surgery, and the Coxa Hospital in Finland focuses on hip and knee replacement surgery. Meanwhile, the Cancer Treatment Centers of America offer treatment for dozens of cancer types, even integrating complementary and alternative treatments not typically offered at traditional hospitals but all in a value-adding process model aimed at following the diagnosis of cancer made elsewhere.

Just as solution shops focused on a job can integrate in ways that optimize their effectiveness, VAP hospitals, because they focus on a job, can integrate in optimal ways as well. Because they can optimally integrate the entire process--from preadmission preparation to the surgery process to rehabilitation to discharge--value-adding process hospitals can do their work at substantially reduced cost, with much higher levels of quality.

A hernia repair at the privately owned, for-profit Shouldice Hospital, for example, entails a four-day visit for preparation, surgery and rehabilitation in a truly country-club-like setting. In the typical U.S. general hospital, this procedure is done on an outpatient basis. Yet the entire cost at Shouldice is still 30% lower than CPT #49560, the standard reimbursement given for comparable hernia repair in the United States.

In the typical U.S. hospital, unanticipated complications that necessitate additional surgical intervention arise in 5% to 10% of cases. At Shouldice, complications arise only 0.5% of the time. The Coxa Hospital for Joint Replacement in Tampere, Finland, achieves similarly better costs than general hospitals. The 64 general hospitals in Finland that perform similar surgeries average unanticipated complication rates of 10% to 12%; the rate at Coxa is 0.1%.

These differences are not simply attributable to intrinsically better and worse doctors; it's in the nature of the integration enabled by a value proposition that focuses on a specific job to be done. Doctors at Shouldice, Coxa, and other focused value-adding process hospitals may get better at doing certain procedures by doing them over and over, but everything within these institutions is optimized for a focused job.

A Question of Focus
One of the things Toyota ( TM - news - people ) taught the world is that, if we do a task differently every time, it's very hard to improve the result. It's when we standardize that we're able to continuously improve and respond to unanticipated problems in predictably effective ways. This is why focused VAP clinics get so good.

Two "Yeah, but" objections are frequently leveled against arguments for focus. The first is that the kinds of focused solution shop and value-adding process hospitals described here can't handle emergencies and complications of their work--and that to be truly effective, they should be backed up with an emergency department and the full arsenal of a general hospital.

It's interesting that the medical establishment long ago became comfortable with the idea that it's OK for many community hospitals not to offer the full extent of services and expertise as some of their larger brethren. But this is rarely used as an argument against the existence of community hospitals. We accept that these hospitals may not offer the full arsenal because patients who need more sophisticated care can be rushed to a tertiary care hospital. There's little reason why similar transfers and referrals couldn't be made from focused hospitals as well.

The second objection is that specialty hospitals and other value-adding process businesses are accused of "cherry picking" or "cream skimming" the youngest, healthiest and most profitable patients, while the sickest patients typically go to the general hospitals.

To this we say, "Of course." Patients whose multiple, interdependent illnesses ensconce them solidly in the realm of intuitive medicine need the broad and unstructured arsenal of capability that only the best tertiary care hospitals can offer. We will always need such hospitals. But because much of what is done within them today can be done elsewhere much more effectively and at much lower cost, we just don't need as many of them.

The finger pointing we have seen from general hospital executives is rooted in a faulty cost accounting and reimbursement system that maintains the commingling of business models through cross-subsidization. General hospitals ought to get paid much more than they're paid today for the complex, intuitive work that only they can do. If the business model of general hospitals today can be separated into its component value propositions with distinct business models of care delivery, and the payment system properly rewards each for their work, what seems to be cherry picking today will in reality be recognized as the efficient distribution of resources.

Clayton M. Christensen is co-founder of Innosight, a consulting firm co-founded by Clayton Christensen and Mark Johnson specializing in innovation and disruptive strategy. Jason Hwang, M.D., M.B.A., is an internal medicine physician, senior strategist for the Healthcare Practice at Innosight and co-founder and executive director of Healthcare at Innosight Institute. The late Jerome H. Grossman, M.D., senior fellow and director of the Harvard Kennedy School Health Care Delivery Policy Program, was a nationally recognized health care policy expert, widely known as an advocate for market-driven solutions for the reform of the medical care industry.

The Issue of Safety

 Last weekend I wrote a little about what I consider to be the importance of establishing streams of income. I included the statement: "I believe that creation of diverse streams of income can be a critical element in assuring financial comfort." One anonymous blogger apparently mentally added the word "safe" to my statement when he (or she?) wrote: "Safe income streams that should be part of every ones portfolio has now become a myth exactly like the buy and hold strategy. That strategy has really been a myth for as long as I can remember. Not even the safest of all investments, Money Market funds, are immune to loss."

No one, least of all I, suggested that any specific income stream was completely safe. In fact, as far as I can tell, nothing in this world is safe. Breathing can be dangerous depending upon what is in the air we breathe; looking both ways when we cross the street doesn't absolutely insure that we won't get run over; putting helmets on our kids when they are engaging in activities may reduce the likelihood, but it doesn't prevent head injuries. Risk is everywhere and it is certainly present in trading and investing. I wrote "Trade Your Way to Wealth," in part, at least to show readers where the risk is and ways to reduce or manage risk in their investments.

In my new book, "Smart Investors Money Machine," I demonstrate a wide variety of ways we can create streams of income, but I also try to discuss risks associated with each strategy. In my view, one of the important ingredients in successful investing is knowledge of and management of risk. If the anonymous blogger was under the impression that I think simple diversification makes for safety, I failed to make myself clear. Diverse streams of income, like the helmet on a child, may reduce risk, but they do not remove it. Nothing removes all risk.

Recently a neighbor asked for some coaching as he was re-entering the investment world. He told me he wanted something safe with a very high income flow. I said I thought that is probably what everyone wants, but the combination is very difficult, if not impossible, to find. As a generality, the higher the potential reward the higher the potential risk and vice versa. Only by gaining knowledge can we make decisions and implement plans that help us manage the risk no matter what we are doing.

DRYS (DryShips, Inc.)
Company Profile
Sometimes cheaper stocks also offer option plays with seemingly high potential. DRYS, as an example, as been trending upward since early March but still remains quite depressed compared to highs seen as recently as January. Currently, the stock is pushing against a resistance around $6 and if it could break through, I am considering selling some Apr 6 naked puts currently trading around 85 cents a share. Even if the stock fell back a bit, I might not mind owning it for $6 less the premium the market is willing to pay for those puts. If I sold the puts and the stock was above $6 at expiration I would likely not be assigned the shares and would be able to keep the whole premium.

We really enjoy trading stocks that are $10 and under. Often they provide the chance to enjoy high percentage gains. With that opportunity comes additional risk so we try to watch trendlines and support levels in an attempt to minimize any losses.

Chart by StockCharts.com

RSH (RadioShack Corp.)
Company Profile
This past week $10 Trader closed two winning trades. One of them, RSH showed a 10.8% gain before commissions in just 12 days. The stock has now retraced a bit but still looks like it could offer a good move to close the still large gap on an upturn.

COF (Capital One Financial Corp.)
Company Profile
COF, after coming off a double bottom trended up to resistance near the $15 level. If the market is, indeed, gaining strength and financials are coming back, a break above $15 could signal perhaps as much as a $10 a share move to a next target level.

GIS (General Mills, Inc.)
Company Profile
Our Success Trading Group members scored 2 more winning trades this week with winning trades on General Mills, Inc. (Ticker: GIS) and Wal-Mart (Ticker: WMT). With the current volatility we are watching our "regular favorites" for new opportunities for additional short-term trades.

 

Move Your Money Out of the Country…and Soon

We are patriots. We have proudly served in our country's military, have extended a helping hand to its public sector, and have plowed our entrepreneurial enterprise into its once fertile soil. We love America, but these days, America does not love us back. It takes without giving and squelches free enterprise. These days, America is no longer the land of the free, especially when it comes to the market.

Just look at the headlines, seemingly ripped from the pages of Atlas Shrugged: Unconscionably large bank bailouts. Punishing regulations and tax requirements. An arctic business climate. Government money bombs. Riots and protests. Slowing trade. Protectionist rhetoric. Demonized corporate executives. Even pirates hijacking cargo ships. One can guess what will happen next.

We predict the next several years will usher in larger, more obtrusive governments, resulting in a decline of personal liberty and financial privacy. The world will become increasingly polarized between two groups: those who consider government intervention a great idea, and the rest of us who happen to be sane.

As such, you can bet your last falling dollar on some absolute certainties: bank nationalization is a given, at least de facto if not de jure; taxes are going up on those of us with any money left; the Fed's money blitzkriegs will spark a blaze of inflation; and financial privacy will be a thing of the past in the United States.

The obvious and necessary solution is to position one's finances outside of the United States, and to do so now, while the narrow and finite window of opportunity is still open.

To be clear, evading (or even avoiding) taxes at this point is not a wise move, given the size and scope of the ever-growing IRS. But there are significant advantages to expatriating your capital now:

For starters, you will actually have control of your own money. Yes, in certain instances you'll be obliged to tell the IRS exactly where it is and what you're doing with it, but no government agency will have the authority to reach into your overseas pocket and freeze or expropriate (read: steal) on a whim just so Team Obama can give it away to pay for someone else's McMansion.  Plus, when exchange controls are implemented and Americans are forbidden from wiring money overseas, your capital will already be secured in another jurisdiction, where you will be free to do what you want with it.

Secondly, you will no longer have to assume the risk of insolvent banks or go through the hassle of petitioning the government to get your FDIC insurance bailout. Many overseas banks are far better capitalized than those in the United States, and some of them are in jurisdictions with constitutionally protected banking privacy.

Lastly, and probably most importantly, moving money overseas gives you a last chance at diversifying out of the dollar, which, in a very short period of time, will barely be worth the paper on which it's printed.

Bank and Brokerage Accounts

Opening a foreign bank or brokerage account is easier said than done; the United States government severely restricts where and under what terms you can open a bank account, invest in a fund, or engage in other economic activities that facilitate the protection of and access to your assets. As the signatory on an overseas account, you are required by law to inform the federal government on Treasury form TDF 90.22 by the end of June each year. Ostensibly, this has been done in the name of fighting money laundering, but it has the effect of severely restricting your freedom of financial movement.

Many foreign banks simply won't work with you…don't worry, it's nothing personal. Uncle Sam has been beating them down since the Reagan years, and between Qualified Intermediary rules, tax treaties, and the USA PATRIOT Act, Sammy gives himself a lot of regulation to bury the opposition with.

There are some jurisdictions that are still excellent banking centers; Switzerland may have rolled over, but Panama, Uruguay, Singapore, and the United Arab Emirates have thus far ignored the call for "greater transparency" (read: government access to private finance).  

Some individual banks, like Credicorp and Global Bank in Panama, or Banco Itau in Uruguay will not work with U.S. citizens anymore, but there is still opportunity with the hundreds of remaining banks in these jurisdictions. 

Similarly, opening a foreign brokerage account is a shrewd move, not only to move your money overseas but also to have greater access to financial markets. Remember when world markets tanked on Martin Luther King Day 2008? If you were a U.S.-based investor and wanted to sell, sell, sell, you had to wait a full 24 hours until the markets opened after the holiday on Tuesday morning. If you had been invested with global depository shares through a foreign brokerage, you could have saved yourself several points and gotten out in time.

We would suggest looking at Verdmont Capital and PanaAmerican Capital in Panama, and Saxo Bank in Denmark.

Bullion Storage

If you have gold, it would be highly beneficial to get it out of the U.S. ― stat. If you do keep it in the U.S., your only truly reliable and private option is to store it yourself in a safe that you bury in your backyard.  Otherwise, move it out of the U.S. now before Team Obama pulls an FDR and takes your gold from you.  

At the moment, gold is not considered a monetary instrument by the U.S. Customs and Border Patrol, so there is no legal requirement to declare your bullion upon leaving the United States. Some countries, like Taiwan and Uruguay, require you to declare gold in excess of a certain value to customs officials upon entry.

We recommend Panama, Austria, Switzerland, and the United Arab Emirates as locations to store bullion; one particular favorite is a location called Das Safe (www.dassafe.com) in Vienna where anonymous safes start at 400 euro/year.

Real Estate

It might sound counterintuitive after the subprime debacle, but real estate is a sound option for moving money outside of the United States; there are zero reporting requirements. It's your business where you own property, and (so far) no one else's. You can purchase property in a private way by setting up a corporate structure to hold the assets so that they're not in your name (Panama is an excellent jurisdiction to set this up), and although there are many places with depressed real estate markets, there are also many with good growth potential: in Latin America, we would recommend Panama, Colombia, Uruguay, and Chile. In Europe: Slovakia, Albania, and Poland. In the rest of the world: Lebanon, Hainan Island (China), the Philippines, Cambodia, and New Zealand.

Time is of the essence ― start looking for your safe haven now.

In response to the article by Samantha Buker a couple days ago, a Shooter writes:

Pardon me if I am incorrect, but didn't FASB install the current version of mark-to-market only a couple of years ago? I believe we did quite well without it for, let's say, about 80 years from the Great Depression. Why should we let some mortgage deadbeats bring down the entire banking system? More to the point, if the installation of mark-to-market was recent, doesn't it suggest the possibility that the entire financial crisis has been a contrived event? Instead of more rants about quantitative models, I'd like to hear some serious analysis on that. Steve Forbes is claiming that mark-to-market and the removal of the uptick rule are together responsible for the recession turning into a crisis.

Hmmm… Good point. I asked Sam and here's what she said:

The market also did quite well without the trading of derivatives.

And Yes, I'm ranting because, based on what Congress did to Herz, we see that the "mortgage deadbeats" are still holding the reins.

Mark to market, if you read Herz's testimony, was a relatively recent event...and it did allow for more forced transparency of what the banks were holding asset-wise.

The savvy investor, like Dan Amoss, reads between the SEC lines and finds these flaws BECAUSE of mark to market.

Hence, when the weak were caught in their dirty undies...the market hung them out to dry.

And another Shooter writes in with words of encouragement: "If people think things are bad now; all I can say is: CHEER UP ― IT'LL GET WORSE!"

Gold Stocks to Soar On Obama Budget

This one comes straight from USA Today:

"This is change, whether you believe in it or not. And not just pocket change.

Following through on many of his campaign promises, President Obama wants to spend about $3.6 trillion next year to pull the nation out of recession and begin major new initiatives in health care, energy and education."

Of course, the "altered" budget has dwindled down quite a bit since the first proposal hit the presses...

... It's only about $3.5 TRILLION now!!!

Well pop the champagne corks and take another mallet swing into the heart of the dollar - which is already on its death march.

My friends, we're staring right down the throat of hyperinflation.

And if it has you a little more than ticked off, you're not alone.

But don't let any of that anger get the best of you.

The truth is, since these wreckless, multi-billion dollar bailouts/TARP/stimulus bills started destroying our dollar, another investment's been on an absolute rampage... gold.

In fact, many world-class analysts agree that its rally is just warming up. Some are predicting that it could easily break $2,000 an ounce before long.

And if you're thinking of taking advantage of it before it surges any higher, get this...

Our international gold guru, Greg McCoach, recently uncovered a powerful investment loophole... one that allows everyday investors to collect double the gains made by physical gold prices.

Read that again. Double the gains!

Best part is, you don't need a loaded bank account, knowledge of the gold market, or even hours a day, researching companies to get started. Twenty five bucks and five minutes is all it takes!

And in your report below, he outlines every profitable detail. He even shows you exactly how you could start taking advantage of this surge today - while it's still early!

What I'm about to share with you is no coincidence.

It's not a temporary trend, either.

Instead, it's a money-making phenomenon so powerful that our team of researchers spent eight months investigating its validity.

First, let me say that these charts are NOT duplicates.

The one on the left represents the closing price of physical gold over the past six months. The one on the right is the investment we're following extremely close. Now, at first, they appear virtually identical. And they should... one is directly based on the other.

But that's where the similarities end. How so? Just check out the two charts again... only this time, with gains attached:

From September 10 of 2008 until September 22nd, physical gold prices soared 19.65%... but the diamond in the rough we uncovered soared an astonishing 45.46% - more than doubling the gains gold attained!

I know. It looks crazy. And I don't blame you.

In fact, when we first heard about this opportunity, we couldn't believe it either.

Scratch that - we thought our source had been drinking a little too much Makers Mark.

After all, how could an investment exist, directly related to gold prices, that pays you DOUBLE the gains gold makes?

... a 25% gain pays you 50%... a 50% gain doubles your money... and so on!

It seems completely illogical.

And that's why we kept this discovery under wraps since March.

You see, before we could show you an opportunity this powerful, we needed to know exactly what we had. We also needed to know how and when would be the best time for hungry investors like you to start taking advantage of it.

I'll give you the full details of how it works below. First, let me show you...

How Capitol Hill could make you filthy rich

Imagine for a moment, that you knew about certain factors - already in place - that would cause the price of gold by... say... as soon as next month to start skyrocketing.

Even better, you knew you were facing a "bottom" in gold prices... and that this imminent surge could last a couple of years.

Taking advantage of this one-of-a-kind investment at the right time, you'd be able to ride the coming wave and easily collect a fortune - safely pulling in twice the gains gold makes.

Best part is, unlike other investors who are buying expensive futures contracts or even physical gold, you don't need a lot of money to get started. In fact, you can begin collecting "The Doubling Effects" with just $25.

All you need to know is when...

Well, thanks to the boys on "the Hill," we don't have to look for any crazy trends around the corner, pore through complicated computer models, or rely on so-called overpaid experts to tell you when gold prices are going to surge.

Truth is, all you have to do is thank the combined +$700 billion bailout from Uncle Sam.

In fact, it's because of the banking industry's last ditch efforts to stay afloat that we're now staring straight at the largest inflationary period in years.

And it'll blow wide open...

You see, broke USA doesn't really have the cash on hand for this unprecedented funding... and if you think for a second that every single employed American is going to be taxed an additional $5,000 this year to pay for it - in an already stretched thin economy... think again.

In reality, the only option that the Fed has is to print more (and I hate to call it this) Monopoly Money.

That much cash is already set to send an inflationary shockwave across the entire nation.

As I'm sure you know, when there's inflation - even the rumor of inflation, the gold price does something beautiful... it skyrockets.

And the proof that gold's already revving its engine is all around us...

The private sector's recently gobbled up in excess of $30 billion worth of T-Bills - enough to guarantee a negative return - over fears of the coming economic crash.

On top of T-Bills, investors seeking safer investments are buying so much physical gold that bullion dealers as well as producers can't keep up.

In just the past month, gold prices have steadily soared almost 14% - with another 50% surge expected in the near term.

And that's just for the short term. I haven't even mentioned the juiciest part.

History To Repeat: Why Gold Prices Could Super Spike To $5,000...Making you a massive fortune along the way!

Right now, gold sells for around $1,000 an ounce.

But what if you knew about the factors at play, happening this very moment, that could soon make the $1,000 mark look like pocket change?

Heck, with the investment tool we uncovered, with gold at $1,000, you'd be turning every $5,000 into $7,500.

Now, just to get an idea of what to expect in the future, after 2009's inflation already has you sitting on a mountain of cash, let's take a quick look at our last massive gold super spike...

During the great gold bull market of the 1970s, the average monthly gold price increased from under $35 to over $675 an ounce... representing a 1,833% gain.

If today's gold bull market makes similar moves forward, gold prices could skyrocket well past $5,000 an ounce. Just take a look:

Now gold prices at $5,000 may seem like a stretch, especially considering the metal hasn't had much strength over $1,000. Nevertheless, $5,000 gold is absolutely possible. Here's why:

How a Gold Bull Market Works

Every major gold bull market in modern history has consisted of three main stages:

1. Currency Devaluation Stage

2. Investment Demand Stage

3. Mania Stage

During these three stages, gold prices typically rise in a parabolic upswing, which ultimately results in a sharp, skyrocketing price spike. (Take a look at the 1970s gold bull market chart above, as an example of this phenomenon.)

So far in today's gold bull market, we've seen evidence of the first two stages:

During the first stage of a gold bull market, prices increase because of currency devaluation.

So far in this bull market, a dramatic drop in the value of the US dollar against other world currencies has lifted gold prices over the past 7 years - breaking the $1,000 per ounce mark. In fact, this devaluation is evident in the 42% drop of the U.S. Dollar Index between the summer of 2001 and spring 2008.

And now, thanks to the massive banking bailout that we can't REALLY pay for, we're about to add some TNT to an already highly-explosive situation.

In the second stage, gold prices continue to grow due to increased investment demand. Attracted by the modest gains of the first stage of the gold bull market, investors begin to buy gold as an investment, which further snowballs the price of gold higher.

And with today's screaming demand for physical gold, the introduction of gold ETFs - and similar products - investment demand has had incredible strength since the beginning of this gold bull market, growing in terms of both tonnage and dollar demand.

Again, the first and second stages of a gold bull market generally return considerable gains. In fact, gold prices in this bull market have increased as much as 306%.

Of course, with the investment tool that I'm about to show you, that modest 306% return could have stuffed your pockets with more than 600% gains!

Don't worry if you missed it. Truth be told, it's the third and final stage of a gold bull market that can turn everyday investors into instant millionaires.

How the mania stage of a gold bull market could hand you several thousand percent gains in very... very short order

Everyone knows there's no rush like a gold rush. And a speculative mania can kindle an inferno of popular greed that rivals that of the Conquistador's legendary lust for gold.

During the third stage of a bull market, mania buying finally turns gold's parabolic upswing into a blistering price spike.

Make no mistake, mania stage already started. And this time, it's happening across the entire globe...

Earlier this year, the U.S. mint suspended sales for its American Eagle 1 ounce gold coin.

The South African Rand Refinery, makers of the infamous Krugerrands, admitted that they were temporarily bone-dry.

Australia's Perth Mint announced they were no longer selling gold to citizens.

Germany's Bundesbank refuses to sell their gold to the public, claiming it as a strategic asset required for the confidence and stability of the euro.

The World Gold Council recently reported an all-time quarterly record ($32 billion) for gold as investors seek refuge from global financial meltdown. That's an astounding 45% increase from the previous record - ever.

And this rapidly spreading shortage is only the beginning of what is bound to launch gold prices to levels of mass hysteria... making those on top of the wave filthy, filthy rich.

Now let me tell you how you can...

Double your gold profits with this unique investment tool

Earlier this year, one of the world's leading international investment managers launched a new, one-of-a-kind investment vehicle designed to double the monthly return of gold prices.

Mind you, this investment has been all but ignored by media since its launch. Gold, after all, has never been understood or appreciated by the mainstream, despite its historic economic significance.

Still, for every 1% increase in the price of gold, this new gold investment vehicle delivers a positive 2% return!

There's no investment club to join. You won't have to open a special account to get in on the action. It trades on the NYSE. Plus, it's completely liquid... and easy to add to best stock account you own right now.

To top it off, as you already know, now is the time you want to be in gold!

Yes, gold prices have pulled back since mid-July, as the U.S. dollar found strength as a result of foreign buying.

And it's likely that the U.S. dollar will continue to remain strong in the short-term, subsequently holding back the price of gold.

But it simply won't last long.

Sooner or later the U.S. dollar will collapse. It's imminent.

In fact, we're already uncovering tons of evidence to prove that it's already started.

And it's launching the mania buying stage to previously unthinkable levels...

... Making this new gold investment vehicle a true "no-brainer."

Now, very briefly, before I get into the details of how you could start collecting DOUBLE gold's profits, let me introduce myself...

Secrets of a Mining Speculator

Hi. I'm Greg McCoach.

For the past eight years, while other investors played stale blue chips (some of which straight up collapsed), I've been showing home-run investments to people just like you, year after year.

You see, in January of 2000, I set out to create the most profitable mining investment advisory service the world's ever seen - the Mining Speculator.

We didn't want to waste time with top stocks that dawdle on their way up the ladder. We're investing for one reason - to become filthy rich.

Since we started, we've found some of the most undervalued stocks on the planet. We've grabbed our piece just before the biggest gains occur. And this goldmine of a gold investment is no different.

We scour the earth for these opportunities as protection against the financial uncertainties that have engulfed the U.S. and world markets. As the saying goes:

"Periods of great crisis also offer great opportunity."

Right now - without question - the best opportunities for investors to protect themselves against the coming financial reckoning are with precious metals and in particular, with this gold investment that promises double the returns.

In addition to our picks in the metals sector, we dish out the most accurate and truthful - sometimes painful - economic commentary that we can find to help investors just like you sift through the massive amount of disinformation put out by the mainstream media.

And just so you can form a better picture for what I'm talking about, below I've added a few excerpts from past investment alerts that have helped us uncover some of the most explosive plays in the market - well before anyone else catches wind...

December, 2005, the dollar vs the strength of gold:

"First we have gold over $500 an ounce and oil is back over the $60 a barrel level. Both appear like they will continue to go higher... These things are significant because in the happy picture of America's finances and the world economy, they shouldn't be [that high]. If everything were so rosy then these things certainly would not be happening."

January, 2006, a housing and foreclosures warning... long before the bubble burst:

"We will see more personal bankruptcies than we have seen in recent years as an alarming number of consumers that opted for interest only and adjustable rate mortgages are faced with an ugly reality, and no chapter 7 bankruptcy protection."

February, 2006, as the Dow first broke 11,000:

"We are [soon entering] a period where investments in precious metals will severly out-perform those in the general market. More importantly, investments that typically have been good performers in the past few decades, (i.e. money in the bank, T-Bills, bonds, and blue chip top stocks), now have great risk associated with them. Most investors of course don't see it this way, but I believe they will soon learn for themselves the hard way."

November, 2006, when other "experts" were calling gold's ceiling at $720:

"I expect that in the year 2007, we will start to see a major run for the exits away from the dollar. How bad this gets is anybody's guess, but the bottom line is that this will be incredibly bullish for gold and should take the yellow metal to new all-time highs. Most likely over $1,000 an ounce."

I could go on all day. But the point is, as you can see, some of what we had to say was shocking and, frankly, hard to swallow at the time. However, as you can see, all of these events have happened or are happening now. And many investors like you are now sitting on massive fortunes.

Bottom line, some people just don't have the stomach for the index-busting gains from the opportunities we set ourselves up for so early. If you think this isn't for you, don't worry. It's not for everyone.

But if you think you can handle it, and want to not only protect your wealth from this economic insanity but also profit like you never imagined, I want to give you a fresh copy of my latest report.

It's called, "How to Double Your Gold Profits: The World's Only Investment Vehicle Yielding Double the Monthly Return of Gold Prices." And I want you to have it for FREE.

How to get started doubling your gold profits

All you have to do is take a risk-free $25 trial of my Mining Speculator advisory.

Mining Speculator isn't your normal investment advisory. It is, however, the definitive resource for investors seeking profits-and protection - in a gold and precious metals bull market with no end in sight.

It's where investors burned by the financial crisis are now turning... as a safe-haven alternative to the agenda-guided mainstream financial media. Truth is, in our Mining Speculator portfolio, we disqualify 99.9% of the gold, mining and precious metals plays out there.

But when we're fully 100% behind a company, like this rare gold opportunity, you'll get the trade recommendation in a moment's notice. We tell you what to buy, when to sell, and when to hold... so you can enjoy the greatest gains possible.

Plus, you'll also receive - every month - profit producing research, including my special Mining Speculator reports and urgent updates, as well as unrestricted access to the Mining Speculator site... all for just twenty five bucks every three months... or $79 a year - that's less than $0.22 a day!

In other words, for less than a pack of Bazooka Joe, you can begin receiving my Mining Speculator advisory, in addition to getting a free copy of my new special report, "How To Double Your Gold Profits: The World's Only Investment Vehicle Yielding Double the Monthly Return of Gold Prices."

The companies you'll learn about and that I want to share with you today have the potential for payoffs, so large, you may never go back to your broker for advice again. Let me help you make those returns.

But I can't promise the deep discounted price I'm offering will remain that low for long. My publisher's already talking of hiking the price several hundred dollars more per year.

Not that I can blame him. I've seen other services boasting a fraction of the returns I've delivered to investors like you over the years (charging as much as $5,000.)

However, locking in a one-year membership guarantees that you receive the Mining Speculator at that low rate even after other people could be paying more.

And, if you're not completely satisfied with the quality of service and commentary we offer, simply cancel before 30 days and I'll refund every penny!

That's it! Not a single question asked!

How many other services have you seen that offer you a refund this good?

Plus, if you decide to cancel, you can keep my newest research report, "How to Double Your Gold Profits: The World's Only Investment Vehicle Yielding Double the Monthly Return of Gold Prices." It's yours FREE.

But like I said, gold's already started surging. And it's not turning back any time soon.

Basic Stock Market Introduction

Many times, the number one hurdle that you face is not being able to picture succeeding.

If you can't see it, how can it happen?

After reading this email you will know what it takes to make it in the stock market.

Let's create that picture now...

It all starts by clicking on a link - you have now taken an action - proof that you want to succeed.

You answer questions that allow us to figure out what you are looking for and how the stock market can fit into your life.

You get a call and you gain an understanding of how you can customize the stock market to fit your lifestyle.

You start working one on one with a stock market coach - someone who actively trades, is passionate about the market and loves to teach it to others.

Your coach teaches you:

A system for buying top stocks based on easy to learn technical indicators.

A system for selling that strictly adheres to the concept of risk vs. reward - this is how you learn to let go of the losers and hold on to the winners.

How to build, grow and maintain your best stock list so that you have top stocks to choose from and are organized to the point that you can capitalize on opportunities rather than squandering them.

*If necessary, we will also walk you through the process of opening a trading account and extend "professional" courtesies to you such as: free trades, preferred pricing and state of the art technology.

You will begin to understand that technology today is more advanced and user friendly than it has ever been. You can customize orders based on parameters you learn with your coach and make trades while you are at work!

You will start small, the initial goal is to gain "proof of concept."

This allows you to see that the system works and by trading in small lots you are more focused on "the right and wrong" than the money.

You will start to develop your list and make trades.

You will have weekly calls with someone who has had a passion for the stock market for more than a decade - me.

These calls will make sure you stick with it and get results.

You will become part of an exclusive stock community that has learned to trade the same way that you have so that the ideas shared are always relevant and valuable.

You will succeed in the stock market.

Mobs, Messiahs and Markets

At this very moment, the public markets are teetering on the brink of a major change of direction…$500 trillion in derivatives could be ready to explode…$15 trillion in worldwide stock market capitalization could disappear…the average American house could lose 20 - 40% of its value…as 5 million families are forced into bankruptcy.

Couldn't happen? Do you believe Ben Bernanke won't let it happen? Or that Wall Street will find a way to avoid it?

If so…you are thinking just like you're supposed to think. That is, you're not thinking at all. Crowds don't think. And they don't protect themselves until it is too late.

Crowds aren't as unpredictable as people suspect. They follow a hidden logic -- which is encoded in all our genes. Once you understand the secret, you'll avoid being a victim of government, fads and fashions, and mass market sentiments…

Have you ever wondered why certain people always seem to come out on top -- no matter what life throws at them?

They make money when others lose it. When social upheavals…or market disasters strike, they somehow manage to avoid being in the wrong place at the wrong time.

'You can't beat the market,' say the scholars. But some people do…more or less consistently. Some people see the early signs of market booms and busts…and some people are able to resist the lure of temporary fads and destructive manias. In fact, they even seem able to turn these mass movements into exceptional private opportunities!

It is as if they were programmed differently from the rest of us…as if they understood -- naturally -- how things worked….

You can't change your own personal programming…
But you can learn to recognize the patterns…
And profit from them…

In the end, the margin between success and failure, profits and losses, defeat and victory is VERY NARROW. And the little margin of success can often be traced to a single insight.

This insight is what you will find described in this remarkable new book.

It shows you why the winners have always been those who can stand outside the mass delusions of their time and see things for what they really are.

An Epic Disaster in the Making

Look what happened during World War II. In Eastern Germany in 1945, old men, women and children went about their business as if nothing was wrong. Soviet Army tanks were already cutting into their homeland. Millions of Soviet troops were advancing rapidly. Yet the civilians didn't try to get away until the very last minute -- when it was too late. They had been told by their leaders that the German army would stop the Russians at the border. Tragically, they believed them!

Yet…SOME people saw the situation much more clearly. They understood how crowds are easily manipulated and misled. They understood how the Nazis had manipulated public opinion from the very beginning…and how irrational crowd sentiments always lead to disaster. These people got out of the way long before the real catastrophe came. The same is true in markets…

The crowd always wants to believe that everything will work out. Most of the time, it is right. Major debacles do not come along every day.

But they do come along from time to time. And that is when you need to start thinking. That is when failing to see how mass sentiments motivate, inspire and direct people and turn fatal.

The Most Important and Entertaining Book You'll Read This Year…

Mobs, Messiahs and Markets is a new book by William Bonner and Lila Rajiva. Read it and you'll have the inside story on markets, politics, fads, fashions, trends and wars. And most importantly, you'll  be much better able to make sure you're not their next victim.

You'll also be better able to invest your time and money better…free from the claptrap of what Bonner and Rajiva refer to as 'dangerous, destructive public thinking.'  It is also a joy to read.
What makes this book so fascinating is that it looks at history and current events in a new, rollicking way.

For example, why do people buy expensive, gas-guzzling Hummers? Why do men take Viagra…why is there a $700 billion trade deficit? And how do these things connect to the investment markets? You'll see that a lot of what we see in life is actually founded on lies…fraud…and exaggerations. It all seems incredibly complicated and confusing until you understand the key element -- the sociobiological reason behind the everyday swindles we take for granted.

You'll read how this relates to the debt bubble, the real estate bubble, the trade deficit, sex, lies and the follies of the American empire! All of this is explored and depicted in this thought-provoking work.
After reading Mobs, Messiahs and Markets you'll be able to understand the spectacles of modern life, from five-year plans to financial manias, to wars to end all wars…

But let us return to the immediate threat you face. Today, the threat of real war seems far away. But the threat of financial disaster is close at hand. No one knows how close, but it is there.

Two million homes are expected to be foreclosed this year. Hedge funds, mortgage companies and individual investors are all taking a beating

Builders are going out of business. Mortgage lenders are declaring bankruptcy. New financial innovations -- hedge funds and derivatives -- may be sitting on trillions of potential losses. Two Bear Stearns hedge funds already went broke. Then, investors were shocked when Bear refused to allow them to take their money out of a third troubled fund.

The biggest U.S. mortgage lender, Countrywide Financial Corp., was forced to borrow BILLIONS because of ongoing credit trouble. And between July 13 - Aug. 6 of this year, more than $1.2 trillion of market value was erased in the U.S. alone.

Meanwhile, Americans count their wealth in dollars. What exactly is the greenback worth? No one knows. The dollar just fell more than 3% against the yen -- its lowest since July 2006 -- on signs that the U.S. economy is suffering from the subprime meltdown. It is at an all-time low against the euro. And against the British pound, it is at a 27-year low. Not only that, but the dollar index dropped below the 80 mark for the first time in 15 years -- a key psychological benchmark.

But here's the important point: Since it has been cut loose from gold in 1971, the value of the dollar is no longer controlled by the bankers, or the printing presses or even by economic fundamentals; instead, it has become controlled by CROWD DYNAMICS. In other words, the fundamental building block of American wealth is itself a feature of the same mass sentiments at work in the rest of the markets.

But history has shown us that crowd dynamics alone do not hold up a paper currency for very long. Instead, currencies rise and fall alongside the empires that create them, and the U.S. dollar will not be spared.

Delusion Turns Into Catastrophe…

Empires, paper currencies, credit bubbles, economic booms, wars and witch hunts all go through the same predictable stages…because they are all driven by the same crowd sentiments. They all begin in hopeful fervor. And then they mature…decay…and collapse. Until now, no one really understood why or how…People merely referred to these events as the 'madness of crowds' or the 'overreaching' of empires. Groups of people 'go a little crazy' from time to time, they said.

Instead, the progress of mass folly is foreseeable -- not in detail, but in broad outline.
One thing leads to another…delusion to catastrophe…triumph to defeat: Mass man is set up to fail. Whether he is participating in politics, war or public markets.

This new book by best-selling author Bill Bonner and political journalist Lila Rajiva picks up where Charles Mackay'sExtraordinary Popular Delusions and the Madness of Crowds leaves off. For the first time, it reveals how groups of people -- such as the groups that determine market prices -- believe things that couldn't possibly be true…and do things that are not really in their best interests.

When a nation is on the upswing, the average person can swing along with it…and enjoy a reasonably decent life. But inevitably, all public spectacles must have their victims…their lemmings…their cannon fodder…their market losers. And when things go bad, the average man is the one who suffers. He is the man who patrols Baghdad's streets…and pays Wall Street's salaries. He is the man who sends his money to the House of Representatives so it can be spent on boondoggles while his own house is lost to foreclosure. He is the victim of mass sentiments…

The insight you will gain from this astonishing book is CRUCIAL to your understanding of politics…history…investments…and more!

As far as we know, no other book…no other thinkers…no other writers have ever really gotten to the bottom of it.

The Secret Life of Crowds….

It seems so obvious: In the stock market, for example, the crowd runs stocks up to outrageously high levels and then it suddenly becomes fearful and drives them down to where they are outrageously cheap.

All you have to do -- once you understand the pattern…is to keep your eyes open. You CAN buy low and sell high. Plenty of people do already.

But there's more to it. There is the fact that YOU ARE PART OF THE CROWD…and unless you are careful, you will see things the way the crowd sees them.

This is the real secret. The way we think is a result of millions of years of evolutionary selection. Man himself has lived in groups, under the influence of others for at least 50,000 years.

Before that, pre-man also lived in groups, hunted in groups…survived in groups…for thousands and thousands of generations. He is the product of a group…and can barely exist out of it. What's more…groups have powerful taboos and incentives to hold the group together…and make it VERY DIFFICULT to go against them.

But today, there's one difference that it is vital for you to understand:

Groups today are much, much bigger than the tribes in which man's instincts evolved. And that changes everything. Because you can no longer know

people firsthand…and you can no longer see the dangers and opportunities with your own eyes…

Studies show that your brain is hard-wired to work best in groups of a certain size…and no more. Look at a primitive tribe…or even the organization of the army. You will always find groups of about that same 'magic number.'

When you have a group of that small size, people can cooperate based on mutual trust, simple rules of behavior and easily understood hierarchies. The idea of 'human scale' has been touched on in a number of popular books -- but authors have consistently missed the point: As the size of a group approaches or exceeds the magic number, it begins to go haywire.

And the secret to understanding politics, markets, wars and fashions today is this:

Today's groups are huge. But they are still made up of individuals -- each of whom is programmed to operate on SMALL-GROUP principles.

As groups get bigger, group interaction becomes inappropriate…counterproductive and, often, disastrous.

You'll see how the authors demonstrate this in their descriptions of historical events…from the madness of the beautiful Mitford sisters…to the monstrous programs of Mao…to the comically inept performances of Benito Mussolini and Che Guevara. (Did you know that Che was once a central banker? Guess what happened to Cuba's economy when Che was running things?)

Even the most illustrious public leaders are often mind-bogglingly stupid. Alexander the Great…arguably the greatest general of all time…marched his troops through the desert where tens of thousands of them perished from thirst and hunger. Didn't he bother to stop and ask for directions.

Napoleon attacked Russia, and later Hitler attacked Russia -- neither bothered to properly outfit their troops!

You'll see how large lies hold large groups together…giving them a sense of purpose and a direction. That is what Hillary Clinton meant by her 'politics of meaning' quip. And it is also the best way to understand popular slogans, such as Hitler's need for 'Lebensraum' (living room) for the German people…or the Japanese desire to dominate a 'co-prosperity sphere' before World War II…
 
Of course, we have our lies now…bigger than ever: stocks for the long run. Every vote counts. No child left behind. The war against terror. Ethanol now. Most people are so deeply immersed in public thinking that they never question them.

Bigger Groups. Bigger Lies. Bigger Opportunities.

The secret to making a lot of money in the financial markets, says George Soros, is to 'find the trend whose premise is false and bet against it.'

The group that decides stock market prices includes millions of people. There are 300 million people in the United States of America. And there are billions of people who make up the modern, globalized economy.

How can all of our small-group breeding help us understand how to operate in such large groups? And what does all this mean to the price of beans in Thailand? Or the price of Microsoft stock? As it turns out…quite a lot.

And it means a lot to you too. Because our small-group instincts inevitably lead to big group trends…whose premises are usually false. And with this new understanding of crowd psychology -- that is, the psychology that works on markets -- you can anticipate these trends and how crowds will react to them. In short, you'll be ready to make money in the public markets. And protect yourself.

That is why it is absolutely imperative that you read this book now…at this very crucial moment for the global markets as well as for the U.S. empire.

Mobs, Messiahs and Markets shows you that what is happening now in the markets and in politics is not new. It's all part of the pattern of group dynamics. Same winners. Same losers. You can be a contrarian, say the authors. Or you can be a victim. Taking you through a brief, outrageously offbeat history of the modern world, it shows you why the winners have always been those who can get away…or stand on the sidelines.

For example, Mobs, Messiahs and Markets tells a short history of the Great Crusades -- from the Arabs' point of view. You'll see that the Crusades were supposed to be an expression of religious fervor or political power, but they were really an outlet for the same kind of mass man delusions that run up stock prices!

Or take the European witch hunts of the 17th century. As many as 40,000 - 100,000 people were accused of witchcraft and killed. What was really going on? Did people just go a little crazy? Or was there a combination of thought and action that we can learn from? (You'll find the answer rather surprising…)

If one lesson in history is clear -- crowds act in unintelligent, often suicidal ways -- World War I was one of the greatest public spectacles of all time. Generations of historians have tried to explain why Europeans did such a self-destructive thing. Militarism, nationalism, interlocking alliances, and imperialism -- many are the 'explanations' they have come up with. None are very satisfying. But after reading Mobs, Messiahs and Markets you'll see World War I in a new light too -- as a showdown between vast, modern societies run by premodern men. They had no real reason to go to war…so they went to war without reasons!

These were huge groups…operating as though they were small tribes.

Authors Bonner and Rajiva spend a lot of time looking at history. 'Without history, what else is there?' they ask. 'Reading history,' they say, 'you can see the lies groups told themselves in the past. Then you begin to wonder about the lies we tell ourselves now.'

Why Leaders Lead in the Wrong Direction

How do YOU survive wrongheaded public thinking? You'll get your answer by ordering you copy of Mobs, Messiahs and Markets today…

After just a few pages of Mobs, Messiahs and Markets, you gain an entirely new perspective that could change…and maybe save your life.

Have you ever wondered why, for example, not just one…but BOTH candidates for president seem to be losers? There's an explanation…and you'll find it in this groundbreaking book.

And have you wondered why it is so hard to have a reasonable discussion of politics with friends and neighbors? It is as if people spoke different languages.

Why is it, too, that people who are able to do their work, and conduct their PRIVATE lives, with reasonable success…will often have PUBLIC ideas -- about politics, culture and economics that are completely absurd?

If they drove a car with the same recklessness, they'd soon be dead!

Surviving and Prospering in a Groupthink World

Mobs, Messiahs and Markets ends by giving concrete advice on how readers can avoid what the authors call the 'public spectacle' of modern finance and become, instead, 'private' investors -- knowing their own mind and following their own intuitions.

In the book, you'll discover:

Why the 'little guys' will NEVER get a fair shake in investment markets and how to make sure you're not the pros' next victim

The surest investment for the final stage of a great public spectacle…

Why you should never buy what you want to buy…nor what others want you to buy

Get your name in the paper? Not if you can help it…you'll see why

How to understand mass moods with the clarity and precision you need to profit from them

And that's just the beginning. Mobs, Messiahs and Markets lays out the foundation to overall financial success…

It shows you why the winners have always been contrarians, dissenters and original thinkers.

You'll also learn that there is always more to the story than what you can get in 30 minutes on the TV news channels -- and explains how that to REALLY understand the story, you have to understand how the news is selected by the media…and how the mobs are manipulated by certain special interests…and, finally, how mass sentiments have a life of their own.

Here's the Bottom Line

Over the next few years, many people are going to be ruined; fortunes will be wiped out. New groups of people will acquire wealth and power…while some of today's most powerful and richest people will be destroyed.

Every public spectacle must run its course, say authors Bonner and Rajiva. There is no stopping history.

But individuals cannot only avoid being victims of history, they can be its success stories. They can be among the few whose investments go up when the great mass of people lose money. They can also master the trends and fads that dominate modern life.

Get Your Copy of Mobs, Messiahs and Markets Today

There's one last detail you should know…

This is the first time Bonner and Rajiva's newly released book has been made available to the public.

If you act right now, you can grab your copy of Mobs, Messiahs and Markets for a phenomenal deal.

Bonner and Rajiva's book is AVAILABLE NOW for only $18.45 -- at least 40% off the cover price.

But here's the most important reason why you should act quickly…

We're faced with the biggest financial threat of our time. This is perhaps the one time that you cannot afford to NOT read this book.

In Mobs, Messiahs and Markets, you'll gain profound insight on how to steer clear of the mob sentiments…and you'll discover how you can use the information detailed in this fascinating book to improve you own financial future.

The world's finest investors, writers and thinkers agree, Mobs, Messiahs and Markets is the most important and entertaining book you'll read this year…

Learn how to protect yourself…your friends and family members today!

Make one of the most important decisions of your financial life.

I urge you to get your copy today and secure this limited-time discount. Order now and you'll get a minimum of 40% off the regular price!

I know you'll be glad you did.

Why NXTH is a Sweet Deal

Today's featured company is easy to call a sweet deal because quite frankly, the company is built around the literal interpretation of that phrase. But a deeper look beyond the superficial appeal of a bold new sweetener that not only displaces the bad stuff but adds the good stuff, reveals a business plan with an enormous market opportunity. NXT Nutritionals Holdings, Inc's (OTCBB: NXTH) innovative sweetener "SustaNectar" can be used in a virtually infinite array of commercial applications including the company's proprietary line of beverages and food products..As this market rallies toward recovery, one must wonder if all that investment capital sitting on the proverbial bench awaiting opportunity will look toward 'better mousetrap' ideas in lucrative markets. Time will tell.

Most importantly perhaps is that NXT isn't a company mired in focus groups, hoping that its products might someday sell. As you'll see below, the company is already in OVER THREE THOUSAND stores and sales are ranking well.

For certain, it is not often that an investment arrives with a business plan that has the potential to benevolently alter how a plethora of foods and drinks are flavored. As you go through your routine today, ingesting, digesting, etc. contemplate how many times you've consumed or encountered an artifcially sweetened item. Have a coffee, a cola, a protein bar. Imagine if those items were sweetened by a product that not only reduced calories but ADDED healthy ingredients.

That perhaps, begins to describe NXT Nutritionals Holdings, Inc's (OTCBB: NXTH), a sweet new story that may well be on its way.

The Sweetener of the Future... has arrived.

The foundation of NXT Nutritionals Holdings, Inc's (OTCBB: NXTH) is inarguably, SustaNectar, which can dramatically change the playing field for commercial sweeteners. In fact, SustaNectar's unique composition introduces a new, extraordinary category of functional foods called SweetaCeuticalsT

SustaNectar's secret is a multiple nutraceutical delivery system that offers practical and versatile sweetness to all kinds of food and beverage applications and provides safe, low glycemic, low calorie, healthy, nutritious energy. Like fruits and vegetables, SustaNectar is rich in nutrients, fiber, and plant based antioxidants as represented by proprietary botanical blended bioactive compounds of cinnamon, golgi berry, grapeseed and bittermelon extracts. 

SustaNectar is a delicious contributor to health building benefits even after it sweetens and the sweetener is an ideal composition of active ingredients for all dietary conditions and ages, including diabetes and obesity. 

This is a sweetener that gives back health benefits beyond the typical sweetening experience using the help of millions and millions of time released probiotic bacteria to enhance immune and digestive system functions with every serving,.

SustaNectar is heart, dental, blood sugar, immune and digestive system friendly and  SustaNectar can be used in hot and cold foods, beverages, as well as in baking or other recipes.

Better yet, NXT's Healthy Diary® smoothies are now in 3,000+ stores in 14 states, ranking 6th in category sales nationwide with only regional distribution. The Drinkable Yogurt Market is a 6% share ($221 Million) of the massive $3.5 Billion Yogurt Market that is growing annually by 5% in the US and 10% globally, providing much room for sustainable growth. No other smoothie products in the marketplace today have Healthy Dairy's® combination of appealing packaging, the health benefits of SUSTA TM alternative sweetener, and the company's compelling taste profile. 

The Addition of Critical Management

In evaluating small companies, regardless of their apparent market promise and potential, a critical element is always the depth and acumen of management. In theory, when a company lands a superior talent within its industry amid a chorus of competitive choices it should say something about the quality of the company which the expert has joined and lent his name. Obviously, there is also the benefit of the new executive's core skill set, relationships, knowledge base etc. This is perhaps exemplified by NXT Nutritionals Holdings, Inc's (OTCBB: NXTH) recent announcement that it has added a former Burger King senior exec and accomplished business veteran to its Board of Directors.

NXT Nutritionals Holdings, Inc. Announces Mark Giresi, Former Senior Executive at Burger King and The Limited Brands Joins Board of Directors

HOLYOKE, Mass.----NXT Nutritionals Holdings, Inc. ("NXT") (OTCBB: NXTH) a developer and marketer of proprietary, patent-pending healthy natural sweeteners, food and beverage products, announced today the addition of Mark A. Giresi to its Board of Directors. Mark Giresi is a seasoned executive with almost 25 years of experience in various senior executive positions in the food and retail industries in the U.S. and internationally.

Mr. Giresi was Senior Vice President of U.S. Franchise Operations and Development for Burger King Corporation (NYSE: BKC), responsible for the restaurant operations and support to almost 8,000 franchise-owned and operated stores together with all real estate investments in the U.S. business. >From 1993 through 1998 he held the position of Senior Vice President, Worldwide General Counsel and Secretary for Burger King. During that time, he was also a member of the Board of Directors of Restaurant Services, Inc., the independent purchasing cooperative for the U.S. Burger King System. He began his career with Burger King as a real estate attorney in 1985 and has published numerous articles and spoken on various franchise and intellectual property law topics. Mr. Giresi was a member of the first United States - South Africa Commercial Law Delegation established by the United States Department of Commerce and the government of South Africa.

After his tenure at Burger King, Mr. Giresi joined Limited Brands, Inc., (NYSE: LTD) a $9 billion specialty retail business trading under the Victoria's Secret, Bath & Body Works, White Barn Candle Co., and Henri Bendel brands. Mr. Giresi joined Limited Brands in February, 2000 as Vice President of Store Operations and in August, 2001 was promoted to Senior Vice President, Chief Stores Officer for the Company's almost 4,000 retail stores. Most recently, he served as Executive Vice President, International, leading the development of the Company's International growth strategy and the day-to-day management of the growth of Victoria's Secret and Bath & Body Works outside of the United States. In May 2005, he was appointed EVP, Retail Operations, responsible for the Company's Real Estate, Store Design and Construction, Visual Merchandising, Store Operations, and Loss Prevention and Brand Protection functions. He was on the Executive Committee of the Company, responsible for its strategy and the overall business performance of its branded specialty retail businesses.

Mr. Giresi has served on several philanthropic and business association boards, including the Board of Directors of the Beacon Council, the business development agency for Miami-Dade County, Florida, the Miami Philharmonic and the International Franchise Association. He currently serves on the Board of Directors of UFood Grille (OTCBB: UFFC) a franchised restaurant business, Fiduciary Trust International of the South, an investment management firm, and the Boys and Girls Clubs of Columbus, Ohio, where he served as the Treasurer and a member of the Executive and Human Resource committees.

Mr. Giresi is a past recipient of the Italian-American businessman of the year by the National Italian American Foundation in South Florida. In 2004, he received the Champions Award from Safe Horizons, a leading domestic violence prevention organization in New York City. He is an attorney at law of the State of New Jersey. He earned a law degree in 1983 from Seton Hall University and a Bachelor of Science degree in accounting in 1980 from Villanova University.

"I welcome Mark to NXT's Board of Directors. We have great confidence that his knowledge and experience will be a great asset to the Company," said Michael McCarthy, President and CEO of NXT Nutritionals Holdings, Inc. "His proven track record with these globally branded companies will be exceptionally valuable as we launch our SUSTAT brand in the coming months."

About NXT Nutritionals Holdings, Inc.

Headquartered in Holyoke, MA, NXT Nutritionals Holdings, Inc., through its wholly owned subsidiary NXT Nutritionals, Inc., is a developer and marketer of proprietary, patent-pending healthy natural sweeteners, food and beverage products. The common ingredient for all of the Company's products is its all-natural sweetening system SUSTAT, a minimal calorie, all-natural, nutritional sweetening system. SUSTAT currently serves as an ingredient and sweetener for the Company's nonfat all-natural Healthy DairyT yogurt smoothies and is marketed as a standalone product as well. More information about the Company may be found at Top Stocks Market

Forward-Looking Statements

Under The Private Securities Litigation Reform Act of 1995: The statements in the press release that relate to the Company's expectations with regard to the future impact on the Company's results from new products in development are forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. These statements are subject to risks and uncertainties. Words such as "expects", "intends", "plans", "may", "could", "should", "anticipates", "likely", "believes" and words of similar import also identify forward-looking statements. Forward-looking statements are based on current facts and analyses and other information that are based on forecasts of future results, estimates of amounts not yet determined and assumptions of management. Readers are urged not to place undue reliance on the forward-looking statements, which speak only as of the date of this release. We assume no obligation to update any forward-looking statements in order to reflect any event or circumstance that may arise after the date of this release. Additional information on risks and other factors that may affect the business and financial results of NXT Nutritionals Holdings, Inc. can be found in the filings of NXT Nutritionals Holdings, Inc. with the U.S. Securities and Exchange Commission.