FALLOUT FROM THE MORTGAGE/ REAL ESTATE CRISIS

The fallout from the real estate bust is getting worse by the day.
With hundreds of mortgage lenders hanging by a thread, battered daily by skyrocketing loan defaults and soaring inventories of repossessed homes they can’t sell ...
The National Association of Realtors just said its Pending Home Sales Index has fallen a staggering 22% in six months to the lowest reading since they began keeping records.
Plus, this week’s manufacturing report was worse than expected: Ford announced its sales crashed 21% in September ... and retailers are warning that this will be the worst holiday season in recent memory.
And that means ...
The Fed will have no choice but to cut rates again ...Devalue the dollar even more ...And send these foreign currencies through the roof!

There’s absolutely no way the Fed can sit on the sidelines as the real estate market continues to collapse and as the mortgage market goes from bad to worse.
And now, with this crisis beginning to spread like wildfire through the automotive sector and the rest of the economy, the Fed must ...
Cut interest rates — again ...
Flood the world with unbacked paper dollars — again ...
Drive the U.S. dollar to new lows — again ...
And light a rocket under foreign currencies — again ...
... just to keep the economy from slipping into recession!
The simple fact is, every new dollar the Fed creates — whether through interest rate cuts or by directly increasing the money supply — inevitably decreases the value and the buying power of every other dollar in circulation.
The euro, the British pound, the Canadian and Australian dollars, the Swiss franc and the Japanese yen will continue to soar.
Plus, with the dollar sinking and other currencies soaring — and with so many other stock markets leaving ours in the dust — the world’s investors have every reason to dump dollars for stronger currencies and invest in stronger stock markets.
While the Dow rose slightly less than 1.4% on Monday, ours is still one of the worst performing stock markets in the world. Many foreign markets are routinely jumping 2% ... 3% ... 4% or even more in a single day ...

Hong Kong’s Hang Seng Index jumped 3.98% ...
India ’s BSE Index jumped 4.15% ...
Brazil ’s Bovespa Index jumped 4.28% and ...
The UK ’s FTSE Index jumped 4.48%.
Bottom line: No foreign investor in his right mind would invest in our lackluster stock market with dollars that are declining in value when he could invest in one of these red-hot world stock markets in a currency that’s also soaring!
That means even lower demand and lower values for the U.S. dollar ahead — and by definition, that means the world’s major currencies are now set to take off like a rocket!