RED ALERT: Dow implosion IMMINENT! - by Mike Larson

This is no time for mincing words or pulling punches.
In this special red alert, I show you why the great global debt disaster is about to trigger a U.S. stock market implosion.
I show you three debt crisis warnings I’ve just received, telling me that global debt crisis is ALREADY beginning to impact our markets ...
I explain how Bank of America, Citibank, SunTrust and other major U.S. banks could be among the most vulnerable ...
And I show you how you could turn this impending disaster into a veritable profit bonanza.
I want stress from the outset, however, that this is more than a mere forecast. It’s a solemn warning:

The U.S. stock market is showing the kind of extreme volatility and severe strains that typically precede major implosions.
There is very little time left to get your money to safety. The collapse could come at literally any moment now.
If you ignore this warning, you do so at your own peril. The price for allowing temporary rallies to lull you into a false sense of security could be sudden and could result in massive losses.

The red flashing lights are everywhere. Just three short weeks ago, an initial bout of panic selling reached such a feverish pitch, it set off some of the market’s automatic “circuit breakers” that shut down trading in key stocks.
But instead of breaking the market’s decline, the crash merely accelerated, driving the Dow down 1,000 points in a matter of minutes.
That fateful day is now called the “Flash Crash.” But make no mistake: It is NOT a flash in the pan. Indeed ...

The crisis that triggered the Flash Crash
— the European debt disaster —
is just beginning.

Why? The reason is obvious: The European debt crisis has investors more nervous than a long-tailed cat in a roomful of rocking chairs. And it is now spreading ...
* Spain is on the brink right now: If you thought the debt crisis in Greece was bad, wait till you see what’s coming next! The New York Times reports that “the focus of Europe’s problem is rapidly shifting from Greece to Spain, one of the world’s largest economies.”
In fact, Spanish authorities have just seized a major bank there and forced the merger of four others in trouble. Even more Spanish bank failures are on the way as a result of Spain’s own real estate meltdown.
How much could this hurt our markets? Consider the facts:
Until now, yes, Greece was the great nemesis that caused nearly all of the panic. But Greece has only $236 billion in external debts. Spain has $1.1 trillion, or FIVE times more.
Greece owes money almost entirely to European banks, impacting U.S. banks only INDIRECTLY. Spain owes a big chunk of its debts to U.S. banks, impacting them DIRECTLY.
* European “Blacklist” growing rapidly: Portugal, Italy, and Ireland are so close on the heels of Greece and Spain, they are already on the Blacklist of virtually every lender and investor in the world.
These countries can’t borrow money for their huge spending programs. They can’t even roll over their old debts coming due without paying exorbitant interest rates. They have little choice but to slash their government spending — all in a last-ditch attempt to reassure their lenders. Italy proposes to lop off $31 billion in spending. Spain is contemplating the deepest budget cuts in three decades.
But that will not be nearly enough to reassure lenders ... and yet it will gut their economies even more. Result: Rising unemployment, slumping corporate profits and still GREATER danger of debt defaults.
* Like several Lehmans all failing at the same time: When Lehman Brothers went under 20 months ago, it instantly froze up global markets, shut down short-term lending, sent the economy into a nosedive, and helped drive the Dow down nearly 5,000 points.
But by any measure, a default by a country like Spain would be far bigger than that of any single corporation, with the potential to wreck even greater havoc in financial markets.
And right now, we already have three debt crisis warning signs, each flashing red ...

Debt crisis warning #1
The single most important interest rate
in the entire world is now on the rise!

I’m talking about the London Interbank Offered Rate — LIBOR. This is the rate that’s behind virtually every short-term loan in the United States.
When LIBOR goes up, it promptly drives up the rates in the multi-trillion-dollar market for adjustable-rate mortgages, the $7.2 trillion market for corporate loans — and more all right here in the U.S. And right now, that’s precisely what LIBOR is doing — GOING UP!
That alone can be a shock to the global economy. But what is especially shocking is the fact that there’s virtually nothing the Federal Reserve or even the European Central Bank (ECB) can do about it.
LIBOR is an interest rate that’s determined by the supply and demand for money in the global market. The Fed and the ECB have never been able to control it — and probably never will. And yet, as I said, LIBOR impacts the rates on trillions of dollars of mortgages and other loans right here in the United States.
This has earth-shattering implications. It not only means the global debt crisis is heating up. It also means that the Fed and central banks around the world are losing their power to STOP the global debt crisis from getting a lot worse!

Debt crisis warning #2
The debt crisis IS already striking our shores!

How do we know? Because one of the world’s most important measure of the debt crisis is already surging! (It’s the two-year swap spread — essentially reflecting what banks charge for managing the risk on two-year loans over and above equivalent Treasury yields.)
Last year, when Washington spent trillions of dollars to rescue nearly every major U.S. bank in trouble, this crisis indicator fell sharply, signaling — at least temporarily — that the worst of the crisis had passed.

At its low, the two-year swap spread fell to a meager 9.6 points just this past March. Now it has EXPLODED to as much as 64 basis points — almost a seven-fold increase.

But now, it’s surging again, up SEVEN-FOLD from its lows. The clear message: A new, potentially BIGGER debt crisis is in the offing.

Debt crisis warning #3
The cost of insuring against big corporate defaults
has nearly DOUBLED in just the past few weeks!

That means investors believe the risk that corporate bonds will default has also nearly doubled!
And I am NOT talking about just junk companies that everyone knew were risky to begin with. Heck no! I’m talking about INVESTMENT-grade companies, the ones meriting some of the highest ratings handed out by S&P, Moody’s, or Fitch.
The big question: If even supposedly “safe” corporate BONDS are growing riskier almost by the day ...
Imagine the massive risk investors are taking with STOCKS issued by those same corporations!

These debt crisis warnings
tipped us off to the Dow’s
7000-point-plus collapse
of 2007-2009 ...

Now, they’re warning
of an equally massive
bloodletting directly ahead!

Yes, that’s right: These are exactly the same indicators that told us that a Great Debt Crisis would soon crush the U.S. stock market beginning back in late 2007.
They are the tools we used to warn our Safe Money subscribers of the last big market bust well ahead of time.
Now, they are telling us that we are living on borrowed time, with an equally — or more — painful stock market implosion just ahead.
Here’s why this could be ...

Another Big Blow to Bank of America ...
Citibank ... SunTrust ... and
Hundreds More U.S. Banks

This is NOT rocket science.
We know that virtually ALL of the recovery in the stock market since March of 2009 was based largely on the assumption that “the CREDIT crisis was over.” But the explosion of this new debt crisis in Europe is a stark reminder that the most severe economic catastrophe since the Great Depression is NOT over. It has merely taken on a different form.
The big dilemma: Despite the recent recovery, many of the nation’s banks are STILL vulnerable. That’s according to the latest ratings just released by Weiss Ratings, the only ratings that consistently warned investors, well ahead of time, of nearly every major banking failure in recent years.
* Bank of America merits a Weiss Financial Strength Rating of D (weak). It still has huge amounts of bad loans on its books, with close to one third of its capital tied up bad loans alone. It’s taking massive risks with derivatives. It’s definitely not yet out of the woods.
* Citibank gets a D- for similar reasons.
* SunTrust Bank also gets a D-. Its bad loans make up an even bigger share of its capital than BofA’s.
* Overall, there are 2,259 banks and thrifts in the U.S. meriting a weak Weiss Rating, with only 962 getting a strong rating. The bigger problem: The strong banks control only 3.7% of the banking industry’s assets. The weak banks control 43.8%.
And this is BEFORE they feel the inevitable impacts of the European debt crisis on global markets or our economy!
Here’s the key:

It was mostly the recovery in our nation’s largest banks — bought and paid for by Washington — that created the illusion that a real, sustainable economic recovery was beginning.
That illusion triggered a recovery in the Dow.
But now, with thousands of U.S. banks barely able to fog a mirror ... and with European borrowers in danger of defaulting, these banks are now facing a new peril that they did not anticipate.

In any debt crisis, banks and other financial companies are inevitably the first to take the biggest hits. And if they’re still loaded with bad loans — like the big banks I just told you about — they’re bound to suffer massive losses.
My forecast:

Do NOT be surprised to see major financial stocks plunge back toward their lows of March 2009, taking most of the rest of the entire stock market with them!

The ONLY Stocks Worth Considering Now

Companies that produce gold, silver, platinum and other crisis hedges typically see their earnings soar in times like these. Investors are increasingly suspicious of paper money — eager for the security and peace of mind that these precious metals have historically provided in dangerous times.
As a result, they are bound to be among the shares have the shallowest corrections in a broad market decline and enjoy the sharpest recovery soon thereafter.
Also: Last time around, stocks that pay you to own them — select dividend-paying stocks — helped protect investors who owned them. Today, for example, with the S&P still down by over 20% from its 2007 peak, many dividend paying stocks are up significantly.
But for the rest of the stocks in your portfolio, my recommendation is clear:

Sell some of your stocks now. Then, if the Dow rallies a few hundred points, sell some more! Use any opportunity you can to get OUT of the way of this impending stock market meltdown!

How to Turn This Disaster Into
Your Personal Profit Bonanza

Exactly three days from now, I will be releasing my next gala issue of Weiss Research’s Safe Money Report — which I am dedicating especially to investors who need help right now, BEFORE this crisis gets any worse.
In it, I begin by leading you through some basic steps:

The Media Praises Safe Money Publisher’s Foresight The New York Times: “... the first to see the dangers and say so unambiguously.” Barron’s: “… the leader in identifying vulnerable companies.” Fortune: “The most comprehensive source of information.” Newsmax: “... Prediction of the current economic crisis is uncanny.” Worth: “… record … is so good compared with that of his competitors, nervous buyers need look no further.”

Your first step is what I call the “extreme portfolio makeover” — making sure you own exclusively investments that will NOT be hurt by the stock market decline, or better yet, will actually make you money.
Most people think that, if you want to exit the stock market, all you have to do is pick up the phone or click on your mouse with one, simple four-letter instruction: “sell.”
But it’s not that easy. If your timing is bad, you could wind up losing still more. In the Safe Money Report I’m releasing next week, I’ll show you how to get out with the maximum retention of your profits and the smoothest transition to investments that can make you a fortune during the crash.
Step #2 is to find a truly safe place for your cash. This is a no-brainer — I give you the names and phone numbers. But a lot of investors will wind up jumping from the frying pan into the fire. Don’t be among them.
Step #3 is to buy two exchange-traded funds (ETFs) that I’ve picked out which are designed to surge when stocks fall. You never have to go short. And you never have to borrow money. The goal is simply to buy these ETFs low and sell them high — just like any other standard investment.
One of these ETFs gives you an opportunity to profit from a decline in the market as a whole. The other targets profits from declines in precisely the sector that I think will be hit the hardest — big financial companies like the ones I told you about a moment ago.
Just in the last few weeks, while the Dow has tanked these ETFs have surged. While nearly everyone else in the market was losing money, anyone holding just these two investments could have made out like a bandit. But everything tells me this trend is just BEGINNING!
My next issue of Safe Money will include all the details — including instructions on exactly what to buy, when and how.
I will release the issue THIS Friday, June 4, exactly two days from now, and if you’re on my list of subscribers, you will get it instantly via email. But you don’t have to wait even that long to get started.
Just as soon as you join me, you can download — immediately — my four special reports on how to profit from this crisis.

PROFIT GUIDE #1:
What to Sell (Or Sell) FirstA $79 value — yours FREE!

There’s no doubt in my mind: This debt crisis — and the stock market plunge it will cause — are now the single greatest threats to your wealth, your standard of living and your family’s future in decades. Bigger than the tech boom and bust. Even bigger than the housing bust!
In this critical and time-sensitive report, I reveal:

• The ONE investment that you MUST sell now — without delay — if you have any hope of avoiding catastrophic losses ...
  
• When and how to LOCK IN some of the highest interest rates of all time, with unmatched safety!
  
• The SINGLE best way to position yourself for substantial profits as the stock market falls. This simple, easy-to-buy investment is designed to rise 20% for every 10% decline in the underlying investment — so you can go for similar profit potential with a smaller investment!
  
• A high-yielding alternative to Treasury bonds that lets you profit regardless of whether the markets are rising or falling!

PROFIT GUIDE #2:
Inverse ETF RichesA $79 value — yours FREE!

Years ago, if stocks were about to plunge your only choice was simply to get out!
Today, fortunately, thanks to the advent of inverse ETFs, you can now turn these declines into big profit opportunities!
Inside this special profit guide, you’ll discover all you need to know about this revolutionary investment strategy ...

• The quickest, most convenient and lowest-risk way to profit from falling markets — with special ETFs designed to go up when a stock index or sector goes down ...
  
• A whole new series of inverse ETFs that provide protection against a decline in many major sectors — real estate, financials, consumer goods, technology, emerging markets, even China!
  
• How to easily use double-leveraged ETFs to turn a 10% DECLINE in the market into a 20% PROFIT ...
  
• TWO simple steps you can take now to immediately hedge your portfolio and protect it from loss — with ZERO additional capital required ...
  
• How to turn a $10,000 loss in your portfolio into a $10,000 gain instead!
  
• Our comprehensive list of inverse ETFs that you can invest in now — so you can act swiftly and prudently to hedge your portfolio before you suffer any significant damage to your portfolio ...
  
• PLUS, many more secrets to siphoning greater profits from falling markets!

PROFIT GUIDE #3:
International Winners and SinnersA $79 value — yours FREE!

While the U.S. economy is likely to get crushed by a new debt crisis, some select foreign markets are likely to continue to enjoy explosive growth. In those countries, any fall in share values is an OPPORTUNITY, giving you THE CHANCE buy great values at a lower price.
But some foreign countries are drowning under the same ocean of debt and deficits as we are! So how do you invest in the “winners” and avoid the “sinners” — with strictly limited risk?
With the only investment vehicles that give you the simplicity and flexibility you need to maximize your profits in any market: International ETFs!
In this brand-new profit guide, I expose the dirt on the worst — and reveal the potential in the best-performing international ETFs, including ...

• EIGHT REASONS to invest in international ETFs: Advantages you won’t get investing in stocks — and how to use them for maximum profits ...
  
• How to consistently select the international ETFs that greatly outperform the U.S. market ...
  
• How to AVOID the outrageously high minimums, loads and fees that mutual funds demand — and get started now for as little as $200 ...
  
• The largest ETF providers — plus the pros and cons of each — so you can easily mix and match them for maximum profitability ...
  
• How to bypass the hassle and expense of dealing with foreign exchanges ...
  
• Four “winning” ETFs on track for massive growth in 2010 — and four “sinning” ETFs you MUST avoid at all costs!
  
• The TWO top-rated countries that are still offering investors the greatest profit potential: Investing just $10,000 in ONE of them in 2009 could have transformed your investment into $24,269!
  
• PLUS, my complete list of major global and domestic ETFs that you can invest in quickly and easily — RIGHT NOW!

PROFIT GUIDE #4:
Currency RichesA $79 value — yours FREE!

If you’re looking for the potential for steady returns even as the stock market falls, look no further than simple ETFs devoted to the most widely-traded currencies.
Currencies move up and down regardless of what happens in the stock market. And currency ETFs can help you profit from those moves — in either direction.
Inside this groundbreaking report, I give you everything you need to invest in foreign currencies — including ...

• Two revolutionary vehicles that make investing in currencies as easy as buying or selling shares of Intel or Google ...
  
• The SINGLE most powerful way to help protect yourself — and profit — as the U.S. dollar gets clobbered in international markets ...
  
• How to profit from currency appreciation AND earn a solid dividend — along with two ETFs that provide significantly HIGHER yields right NOW ...
  
• The quickest, easiest way to invest in the NINE major world currencies — plus how to buy several emerging market currencies in one basket ...
  
• The TWO currency ETFs you must buy RIGHT NOW that are ripe for potential profits in the coming year ...
  
• PLUS, much more!

As you can see, all four reports are designed to give you the protection you need during these critical times. Plus, they also show you precisely how to begin profiting from the opportunities available to you today — right now. All without high-risk investments such as futures or futures options. All without using one penny of borrowed money!
Of course, I don’t want to give you some recommendations and then leave you wondering what to do next. I want you be able to alert you regarding WHEN it’s time to lock in some of the best yields in history. And I want to make darn sure that you get my urgent alerts on which of these investments to buy or sell throughout this unfolding interest rate explosion. So, I want to also offer you CONTINUING guidance ...

Act now and get all FOUR urgent profit guides —
a $316 value — absolutely FREE ...

PLUS, regular updates and alerts with my
Safe Money Report!

My Safe Money Report is unlike any investment service you’ve ever seen ...
FIRST, each monthly issue of Safe Money via e-mail (AND via first class mail) serves as:

• Your complete self-defense system — designed to help you protect every dollar you’ve scrimped to save and risked to grow.
  
• Your income compass — pointing you towards the investments with the potential to double or even triple your yields reliably, year after year.

Safe Money and Mike Larson: “The Only Ones Who Warned Ahead of Time ...” Safe Money began warning readers of the impending real estate bust and credit crisis in 2004 and 2005 — several months before it began — and also warned of specific company failures well in advance: Company failure: We warned readers ... Bear Stearns 102 days in advance Lehman Brothers 182 days in advance Fannie Mae Four years in advance Citigroup 110 days in advance General Motors Five months in advance Washington Mutual 51 days in advance Wachovia 54 days in advance PLUS, in early 2005, Safe Money warned that investors should not touch Beazer Homes ... Golden West ... KB Home ... Novastar Financial ... and 20 other companies with a ten-foot pole. By year end 2008, 11 of the 25 were bankrupt and virtually all had suffered severe stock declines, with average losses of 81.3 percent. To get these kinds of warnings of FUTURE disasters long before they happen — along with up to 9 valuable profit guides you can download immediately — click here.

• Your own, personal B.S. detector — fearlessly exposing the wealth-destroying lies Washington and Wall Street love to tell you, while delivering the unvarnished truth nobody else will.
  
• Your financial weather vane — constantly scanning the markets to identify which investments you should avoid, which ones are turning around, and which ones are most likely to grow your nest egg by leaps and bounds.

Each and every issue of Safe Money is packed with nitty-gritty, practical, “buy-this-sell-that” recommendations designed to protect your wealth ... grow your nest egg ... and increase your income so you can live well no matter how ugly things might get.
Plus, you get guidance on not just one, but TWO nest-eggs to protect and build your wealth.
Your first nest egg virtually ensures a minimum income to cover your necessities.
Your second nest egg, which is just a tad bit more adventurous, is designed to take advantage of turbulent markets and throw off extra chunks of cash that let you live life with more ease and comfort.
That’s why each issue gives you specific “Buy,” “Sell” and “Hold” recommendations for every investment in not one, but TWO now-legendary portfolios: My safety-obsessed “Mr. Conservative” portfolio for your first nest egg, and my “Mr. Speculator” portfolio for your second nest egg.
In fact, the open positions in each portfolio have ALREADY given subscribers the opportunity to reap healthy gains. And it’s not too late for you to join in. Far from it actually.
With the European debt crisis driving us inexorably towards a big bear market, I believe our current gains are just a small taste of the life-changing profits.

Subscribers Applaud Safe Money! We started about eight years ago with the Safe Money Report. The newsletter was a real eye-opener. Our money is growing and we sleep a lot easier knowing our investments are safer. — Gerald & Janet C., Savannah My portfolio has continued to increase in both safety and in value. I can’t thank you enough. — Steve M., Louisville, KY I am retired and Safe Money has given my portfolio a very healthy boost! Thank you. — Joanne H., Longboat Key, FL We have enjoyed Safe Money for the last 12 years. It seems the advice has always been sound and very clear. — Jacqueline C., Bonney Lake, WA My father doesn’t do anything without consulting his Safe Money Report, which he is always reaching for. I have benefitted from his success which was made with Safe Money’s help and advice. Thanks. — Courtney K., St. Augustine, FL Integrity and dedication to his subscribers is outstanding and his accuracy in forecasting economic events and to build your wealth is superior. He calls it right, and early. — Tom A., Petersburg, VA

All of these powerful money-making, money-saving resources are yours FREE as a member of my Safe Money investor service ...