Monday, March 31, 2008


This quarter, according to a new number from TrimTabs Investment Research, we're poorer than we were a year ago. What makes this number significant is that, unlike other statistics used to gauge the health of the economy, it measures people's ability to spend by including oft-overlooked sources of cash - like capital gains from stocks. And what makes it so useful is that it takes into account the cash people get from selling property or by extracting equity from their homes.

This stat may be the hammer that bangs the final nail into the recession coffin.

With consumers having less cash to spend, sales of things people don't really need will be affected the most. Splurging on jewelry, cameras and electronics, nice cars and clothes, and dinner at pricey restaurants will be done only by the very wealthy, reckless, or clueless. On the other hand, retailers of inexpensive cars, food, and clothes should be affected the least.

Saturday, March 29, 2008

Good Investment or Your Own Home

Larry Potter | KIM-LAR, INC. | 847-872-4047

1348 W 97th Place, Chicago, IL
Special Financing If You Buy My House

Will Even Make Your Down Payment

Good Investment Property With Zero Down Too!

Call Larry 206-350-5125
6 Bdrm Single Family House
offered at $184,000
Year Built Unspecified
Sq Footage Unspecified
Bedrooms 6
Bathrooms 2 full, 0 partial
Floors 2
Parking Unspecified
Lot Size Unspecified
HOA/Maint $0 per month


Will Even Make Your Down Payment

1348 W 97th Place, Chicago, IL 60643

6 bedrooms, 2 baths

And Only $184,000

Good Investment Property With Zero Down Too!

Call Larry 206-350-5125

see additional photos below

Special Financing If You Buy My House


Seller contact info:

Larry Potter
For sale by individual owner

powered by postlets Equal Opportunity Housing
Posted: Mar 29, 2008, 11:17am PDT

U.S Consumers Could Be....

...On the Brink of Financial Ruin

Over the last 20 years, consumption has become the biggest growth engine in the United States. Currently, consumption accounts for roughly 70% of U.S. gross domestic product.

Consumption currently contributes as much to GDP as it ever has. And up until this point, the U.S. consumer has relied on debt to fuel his spending. But this reliance is starting to bite.

You can't even go to a baseball game these days without being offered a credit card application. Credit card companies are dishing out cards as fast as they can because consumers are using them for even the smallest of purchases.

No longer are credit cards reserved to pay for a new transmission in your car or costly emergency visits to the vet. People are busting out the plastic for Big Macs, DVDs, even six-packs at the local gas station.

Friday, March 28, 2008


Up down, up down. What a mess. How in the world can you make a move in
a market like that? Naturally we preach stops to you, but there is
another ingredient that you need to examine. We call it "scaring yourself
out of a trade".

Basically what happens is that we get so wrapped up in analyzing a stock,
a price, a movement, that we forget to take a breath and back away from
the table a bit. Too many times you will analyze yourself right out of a
trade! We know, we have certainly done it many times. How many times have
you sat there, your finger on the button and then talked yourself out of
the trade, only to look a few hours later and found out "Oh no, I should
have made the trade, dang, I knew it was going to go!" Well hindsight is
20/20 right? It certainly is.

So how do we get past that overanalyzing situation? By sticking to the
rules instead of emotions. It's fear that talked you out of that winning
trade and it's fear that will lead you to make more bad trades. Let's
consider this for a minute. Look at GNSS back on 02/07/02. At one
point it was down almost 8 bucks and yes we were short the stock. So,
when it was bouncing we were sweating whether to cover the position,
we had to stop for a minute and say, "hey, our game plan is the market
will do its bounces and sector rotations, but it seems to be trending lower,
let's hang on to it". It worked. Yes we could have been stopped out earlier,
yes it would have made sense. But we overrode the fear factor, and went back
to the "plan".

If you are looking at a stock to buy long, and the day looks okay, and the
stock has just inched up over a resistance level, don't talk yourself out
of the trade because the market is whippy. Yes it may get tossed back in
your face, simply sell it, take the hit and move on. Without a doubt the
ones that do go for 2, 3 or 4 dollars will make you much prouder than the
60 cent hit you took on making the bad play.

The point is, that if you want to sit out a tough market, that is
perfectly okay. In fact more times than not we recommend it. But if you are
going to trade it, by all means, make the trades. Short when they fail
supports and go long on breakouts. Don't overstay your invitation, take
your profits and move on. But talking yourself out of trades that
eventually do go the way you thought they would is a terrible thing to
your self esteem. Believe it!

Thursday, March 27, 2008

The big surge in home foreclosures is yet to come.

There are 1.5 million loans, representing 40% of the outstanding subprime adjustable mortgages, scheduled to reset this year.

Already, more than one in every 20 home mortgages and one in every five subprime mortgages are delinquent, while foreclosures are at record highs.

Wednesday, March 26, 2008

Nothing Down Deal

Very Motivated - Will Make Your Down Payment
Main Photo
Easy to Buy

4714 South St Lawrence, Chicago, Illinois 60615

2 bedrooms 1.5 bathrooms
1000 sqaure feet
Fireplace gated entry brick
city water and sewer new paint job
new kitchen appliances new carpet freshly done hardwood floors
built in 1999
central electric heating electric hot water
Taxes 1260association dues are 196.00

South side of Chicago in the up and coming Bronzeville area

Only $240000 with me making your down payment

Quit renting - You can get a loan with my special lender

Nothing Down Now

Contact Larry 847-872-4047
Contact Information
Larry Potter
Bedrooms: 2
Bathrooms: 1.5
Type: Sale
Square Footage: 1000
Year Built: 1999
Metro Area: Chicago
Asking Price: 240000
Flexibility: Negotiable
Currency: USD
Homeowner Dues: 196
Photo Gallery

LISTING ID:: 11812

Tuesday, March 25, 2008


The drop in housing starts and permits is actually good news. It'll help the huge inventory of houses for sale go down. But the coming explosion of new condos hitting the market overshadows this bit of good news.

Condos started at the height of the housing boom will be hiking new supply this year. That's the last thing the condo market needs.

The U.S. finished 2007 with a supply of condos large enough to absorb 10 months of demand, the highest level since the National Association of Realtors began the tally in 1999.

Builders and condo owners will be taking a huge hit.

Monday, March 24, 2008

Housing Takes Center Stage This Week

Existing home sales will get released this morning at 10:00, and as has been the case for the past six months or so, the numbers are expected to decline. If we do see a decline again this month, it will set another 10-year low. January's report was the worst in 10 years, so anything below that will set another record.

The new home sales report will get released Wednesday morning, and it too is expected to show a decline. The January version of this report was at a 13-year low. Anything above expectations would likely lift not only home builders, but also the entire market.

Saturday, March 22, 2008


In South Florida, the market is still falling. This year, they'll see a huge spike in foreclosures. As banks try to offload those foreclosed properties, neighborhood prices should drop even further.

That means there'll be a lot of opportunities here if you're looking to buy a home in six months.
That also means housing won't stop dragging the market down for some time.

You can continue to expect a bear market in stocks, so stay away. Instead, consider the Ultra Short Dow Proshares ETF (DXD), which gives you a two percent return every time the Dow Jones drops one percent.

Friday, March 21, 2008

Did you know....

When talking to a note holder you should find out

1)why they are thinking of selling

2)how much they think they need and

3)how motivated they are!

Wednesday, March 19, 2008

Agriculture Bull Market

Agriculture is booming and shows no sign of slowing down. So anything agriculture-related should do well in your portfolio for the foreseeable future. But one company is perfectly positioned to capitalize on the agriculture frenzy.

Archer Daniels Midland (ADM) operates in three agricultural segments: oilseed processing, corn processing, and agriculture services.

Adding ADM to your portfolio can expose you to this bull market without limiting you to one commodity.

It could be a buy on a move above the $47 level. That would mark a new high, and eliminate any pre-existing resistance levels.

Monday, March 17, 2008

For only $2 a share?!?!?!?!??!

Bear Stearns and JPMorgan Chase & Co. (JPM) were close to an emergency buyout deal Sunday night aimed at averting further panic in the financial markets, media reports said.

The Wall Street Journal reported JPMorgan would buy Bear Stearns for a per share price that is likely to be "considerably less" than the $30 the stock closed at Friday. Turns out it was for $2 per share!

Among the Wall Street investment banks, Bear Stearns was the most closely exposed to the mortgage crisis. The collapse of two of its hedge funds last summer was seen by many as one of the triggers of the current credit crisis.

The Journal also reported that were a deal with JPMorgan to fall apart, Bear could conceivably file for bankruptcy late Sunday before Asian financial markets opened.

As the assimilation proceeds, the financial industry wants to know exactly how badly Bear Stearns bet on mortgage-backed investments. Unwinding the nation's fifth-biggest investment houses should provide some insight into what other financial institutions might have on their books.

JPMorgan's acquisition of Bear Stearns for the shockingly low price of $2 per share, or $236.2 million, occurred Sunday night, in a deal that was fast-tracked by the federal government to avoid a bankruptcy. A complete collapse of Bear Stearns might have completely crushed the already-dwindling confidence in the global financial system, which has frozen up after last year's collapse of the subprime mortgage market.

Saturday, March 15, 2008

It's not pretty!

Home prices were growing at nearly a 15% year-over-year clip back in 2001.

Today, they're falling at nearly a 10% pace.

Homebuilders Rally On Proposed Plan To Stem Rise In Foreclosures.

Shares of major homebuilders rose sharply Thursday after the government unveiled a new plan to stem the significant rise in mortgage foreclosures.

The iShares Dow Jones U.S. Home Construction ETF (ITB) rose... 4% to $17.75.

The S&P Homebuilders SPDR (XHB) traded up 4% to $19.97...

House Financial Services Committee Chairman Barney Frank announced a proposal for legislation Thursday to allow the Federal Housing Administration to insure and guarantee refinanced mortgages that have been significantly written down by mortgage holders and lenders.

The program would permit FHA to provide up to $300 billion in new guarantees that would help to refinance at-risk borrowers into viable mortgages.

Friday, March 14, 2008

All the King's Horses and All the King's Men...

.... Can't Seem to Put the Market Back Together Again

Despite all the government intervention ... and artificial monetary stimulus ... when you look around, not much has changed.

We're still awash in millions of excess homes ...
We're still witnessing the sharpest home price declines in decades ...
We're still seeing hedge fund implosions ... mortgage company meltdowns ... and multi-billion dollar write-downs almost every day.

Just this week, a mortgage bond fund run by the high-powered private equity firm Carlyle Capital essentially collapsed. The fund couldn't meet more than $400 million in margin calls from its lenders, forcing it to default on a whopping $16.6 billion in debt.

Bloomberg puts the total count of losses and write-downs related to the mortgage crisis at $188 billion ... and counting.

And that just underscores a fundamental point I've been making for a long time ...

The only way to prevent the pain of popping bubbles is to prevent bubbles from inflating in the first place!

Thursday, March 13, 2008

US Foreclosure Activity Rose in February

Nearly 60 percent more U.S. homes faced foreclosure in February than in the same month last year, with Nevada, California and Florida showing the highest foreclosure rates, a research firm said.

A total of 223,651 homes across the nation received at least one notice from lenders last month related to overdue payments, up 59.8 percent from 139,922 a year earlier, according to Irvine, Calif.-based RealtyTrac Inc.

Nearly half of the homes on the most recent list had slipped into default for the first time.

Nevada had the nation's highest foreclosure rate, with one in every 165 households receiving at least one foreclosure-related notice. It had 6,167 properties facing foreclosure, a 68 percent increase from a year earlier and up 1 percent from January,

Wednesday, March 12, 2008

Investing -- Fast!

Today's real estate market is full of great buying opportunities, but getting a loan from a bank can take longer than most sellers are willing to wait. That's why smart investors set up their own system to buy and sell houses without using cash.

Tap Here now to start working with us.

The U.S. Dollar - Uncharted Territory

Even cash isn't safe anymore. The U.S. dollar index, which compares the greenback to the world's major currencies, has fallen about 15% this year and is near its lowest levels ever. Recession fears are driving the dollar lower, as jobs disappear, home prices fall and consumer confidence plummets.

And the Federal Reserve isn't helping out. The market is betting the Fed will lower interest rates by 50 to 75 basis points at its meeting next week. That lowers the yield on the dollar versus other currencies, helping grease the skids to send it even lower.

In short, even if you put all your money in cash, and then put that cash under your mattress, you'll still lose money.

Tuesday, March 11, 2008

Falling Prices

Sales of single-family houses in Connecticut dropped 29% in January, from 2,302 in January 2007 to 1,644 in January 2008… The fifth [consecutive] month… in which sales have dropped by double-digit percentages in Connecticut.

The median sales price of single-family houses fell 5.3% in January from $282,000 in 2007 to $267,000 in 2008… In Hartford County, the median price fell 8%, from $238,750 to $220,000…

The second month in a row that the median sales price has dropped. With spring arriving soon, the drop in median prices is foreboding… Median sales prices held steady in 2007

Monday, March 10, 2008

I'm sure you've heard everywhere that...

... foreclosure rates in the U.S. are at an all time high. Some are worried that we're entering a recession in our economy.

"Home foreclosures at highest since 1985" - MSNBC
"Number of foreclosures in county skyrockets!" - Atlanta Journal Constitution
"Contrywide sees record foreclosures" - Business Week

Despite all this, there are thousands of investors who are making fortunes right now. And there has never been a better time to take control of your financial destiny through real estate investing.and escape the shackles of your job.

I want you to have financial freedom and the life of your dreams-well into your retirement. I want you to be able to work only when you want to and have the free time to devote to the things that are important in your life.

That's what flipping properties can do for you.

The strategies I'll show you are easy to understand and can make a huge change in your life.

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The power to make loads of money from failing equities is within your very reach.

Playing penny options can be one of the best ways to capitalize on downside moves in distressed stocks.

Here's a simple example: What if you were alerted through a simple e-mail in October 2007 that Citigroup Inc. (C:NYSE) was about to get whacked?

The simple course of action would be to buy a put option on Citigroup stock. For example, you could have bought the Citigroup June 2008 42.5 Puts (C RV) in October for $4.75 per contract.
After a massive 52% fall on Citigroup stock, those penny put options contracts are trading for $21.15 per contract -- a gain on your end of 345

These kinds of opportunities are flooding the market these days.

What better strategy can you employ in a time when all major American benchmark indexes are continuing to fall in value?

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Sunday, March 9, 2008

This Can Be Dangerous To Your Trading Account!

We once wrote a little piece about keeping your losses to a minimum since letting a losing trade get wildly out of hand will cost you dearly. So we got a question we'd like to share with you:
"I agree with your concept of bailing out of a trade quickly before it snowballs into something ugly. I think that is why we use stops. But I have a question about that. What do you do if you buy a stock on Monday and it ends the day right about where you bought it. But then Tuesday it opens down 50 cents and falls from there, hitting your stop. Do we let the stop take over?"
What a good question and the answer is going to need some explanation. We don't usually like to get too involved with the first half hour of trading. It's that first opening 40 minutes of trading where the overnight market orders are getting processed, where the morning's economic data is getting "knee jerked around" and overall it's usually a good time to avoid.

So, what does one do when a stock opens the next day and it's at your stop? In general terms the best thing to do is ignore your stop. Why? Again, the market is at it's most volatile during that open, and more times than not the first few moves are not indicative of what's going to happen for the course of the day. Even if it is, we usually see a decent bounce once the initial move takes place.

In other words, let's use an example. You buy XYZ on Friday. You pay 20 for it. But Friday night it closes at just 20.02. You had set a tight stop at 19.70 . So, Monday morning we see themarket's in a bit of a funk, the futures are a bit red, and sure enough XYZ opens at 19.70 and starts inching lower. In 5 minutes it's 19.60. If you honored your stop, you just lost 30 cents.
Now let's say it's going to be a bad day. After trading down to 19.60 XYZ bounces and gets to 19.90 but then starts fading. The market is soggy. It's now 10:10 am and XYZ is sliding back down. If it hits 19.70 we'd take it off the table and bail. Yes, you took a loss, but it's just 30 cents and at the end of the day GLXX is at 19.50. You did well.

Now let's say that instead it's the kind of day where the morning's funk wears off. Again, you bought at 20 its opening at 19.70 it trades down to 19.65 and then "levels out". By 10:10 the market is perking up. The DOW just went green. The NASDAQ is perking up. XYZ is now 19.85 and inching higher. You hold it and find that when the final bell rings, XYZ is at 20.15. You won.
The key was to not get stopped out at the open in either case. When a market opens sour and we're already underwater at the opening bell, we take the mechanical stops off. We want to see if it's really going to be a bad day, or if it's just morning funk, and you cannnot know that until some time passes. Certainly you don't want this to get out of hand! We mean if it opens at your stop and then ten minutes later it's down to say 19.40, we'd probably sell the first meaningful bounce and wonder what the heck went wrong! But you understand what we are saying. We rarely if ever will sell out at the open. You can usually "do better" by waiting for a bounce, and there's always a bounce.

If the bounce holds and the market is warming, chances are you'll end up back in the green or at least, down just pennies. It's not easy to watch, but getting taken out on a gap down will usually find yourself kicking yourself.

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