Finance Articles

Dr. Martin Weiss Discusses Housing Bust and Mortgage Meltdown in Latest Issue of Money and Markets

Jupiter, Fla. (PRWEB) August 11, 2007 -- Martin Weiss, Ph.D. examines the real estate bust in the U.S. and discusses the major reasons behind it. Dr. Weiss takes a closer look at the relationship between the housing market and rising foreign currencies.

The housing bust is causing a mortgage meltdown, which is creating an acute, nationwide credit crunch that is so bad it's beginning to impact the economy.

In contrast, Brazil is in the first phase of an economic renaissance: Real estate prices are rising steadily and once huge foreign debts have been paid off.

Brazil is also leading the worldwide ethanol revolution. Many people in North America don't understand, or don't believe in, the ethanol revolution.

America's ethanol, made from corn, takes too much energy to produce. It drives up the price of food and feed and requires never-ending government subsidies.

Brazil's ethanol, made from sugar cane, is another matter entirely. It's clean. It's cheap. And it has reduced Brazil's dependence on imported oil to zero.

At the same time Japan is now enjoying its most enduring growth since World War II. And Japan's trade and investments with China are booming. Japan's real estate values are moving higher, with land prices surging 8.6% last year alone, five times more than in 2005. And, its economic expansion, now in its 66th month, is the country's longest in sixty years. Unlike the late 1980s, when Japan's economic boom created one of the greatest bubbles

of all time, this time around the growth is steady, healthy, and building a solid base.

Most important, especially for Japanese youth, is the fact that their many hard years

dedication to education are finally paying off: Japan's jobless rate just fell to its lowest level in more than nine years, and major companies are snatching up young recruits well before they finish college.

Japan's coming out of 11 years of start-and-stop recession and Brazil is emerging from decades of doldrums. Both have built a solid platform for expansion precisely the opposite of what is being seen in the United States, where individuals are just beginning to suffer the consequences of one of the greatest speculative bubbles of all time.

One of the main reasons why this is happening is foreign currencies, like the Brazilian Real and the Japanese Yen have been rising but the U.S. dollar has been plunging.

So far this year, the Brazilian real has been the strongest among the 16 widely traded currencies tracked by Bloomberg.

The Australian dollar has also been moving sharply higher, easily surpassing the euro, despite the euro's all-time highs reached last month.

The Japanese yen started the year with a decline, but its slide was mostly contrived. The Japanese government was anxious to keep its exports cheap and did everything in its power to keep the yen down. But now, with more confirmation of Japan's robust economy, the Bank of Japan has little choice but to let the Japanese yen rise. And very soon, it may have to raise its short-term interest rates, giving the yen an even bigger boost. When that happens, it could be like ripping the lid off a pressure cooker, unleashing an explosion in the yen.

The yen has been forcefully depressed for so long, it will have to surge by leaps and bounds just to catch up with the rising euro, not to mention catching up with other major currencies like the Australian dollar or the Brazilian real, both which have been going up even faster.

This is no trivial matter. Nor is it a sideshow to the drama unfolding in the U.S. credit markets. Quite to the contrary, it's of vital importance, and it must not be underestimated.

The day of reckoning is here, the housing bubble nurtured by foreign money has burst. The cheap and easy credit, largely financed by foreign money, is disappearing and the foreign money is not coming any more or it's actually leaving.

Now, the Fed's major trade-weighted index of the dollar has plunged to its lowest level in its history and foreign currencies are surging to their highest levels in decades. Corporate bond prices are tumbling, even on higher quality issues. And the S&P 500 Index has begun to break down, sinking through a key trendline in its chart with the August 3rd 39-point plunge.

"It's too soon to say what the final outcome will be. But it's safe to say flatly that the consequences of complacency could be catastrophic. Look for every opportunity to move money from investments that are most vulnerable to the mortgage meltdown to those that are most likely to benefit from continuing global growth," advises Dr. Weiss.

For more information and to read the full article, visit this link:

http://www.moneyandmarkets.com/press.asp?rls_id=883&cat_id=6&

About MARTIN WEISS & MONEY AND MARKETS

Money and Markets (www.moneyandmarkets.com) is a free daily investment newsletter from Dr. Martin Weiss and Weiss Research analysts offering the latest investing news and financial insights for the stock market, including tips and advice on investing in gold, energy and oil. Weiss Research, Inc. is located in Jupiter, Florida. For more information about our editors, or to set up an interview, please contact Jennifer Moran at 561-627-3300 or visit www.moneyandmarkets.com.

# # #

Other Article Sites

findabook.com  moneycd.info  a-mortgage.info   about-lemon-laws.info  aboutstudentloans.info
all-about-publishing.info  auctions-articles.info  bestcollege-university.com  bestispconnection.com
biblefolder.com  blogger-website.com  books-used.info  brokers-guide.info  buywindows.info  cable-dsl.info
career-miner.com  carpel-tunnel.info  cashinaflash.info  cashloanreviews.info  casinobell.com  chat-house.info
clearmycredit.info  collegeloantips.info  crones.info  depression-articles.info   dirnic.net  dishguides.info
divers-below.com  expodog.info   financewizz.com  fire-insurance.info  getgood.info  handleit.net   it-idea.info
health-supplies.info  hosting-right.com  insidealert.com  insurance-facts.info  jobs-employment.info
justgood.info  lookgold.net   lowcost-travel.info  money-source.info  myhostzone.info  numisblog.com
peoplesearchfinder.info  pr-articles.info  realeas.com   refinancing-guides.info  spyware-remove.info
telelot.info  the-law.info   toppaid.info  travel-deals.info  travelcorrect.com  wedding-guide-site.com
your-blog.info  your-credit.info

Mortgage Advice For Frequently Asked Mortgage Questions
As you start your search for a mortgage, there are a few questions you need to ask yourself in order to narrow your search and know what you're looking for Unfortunately, the answers to those questions aren't always easy

Plenty Of Mortgage Lenders To Choose From
If you are looking for a mortgage for your home you may find that there are dozens of mortgage lenders to choose from that currently offer products on the UK mortgage market The days of being forced to apply for a home loan from one of only a small selection of high-street banks has been firmly relegated to the history books

Using A Mortgage Loan Refinance For Debt Consolidation
Many people are finding themselves burdened with high interest debt. They are financially drowning, due to the payments, and are looking for some way to lower their payments. One way that you can lower your payments, and the amount of money you pay in interest, is to get a debt consolidation loan. And if you have a mortgage, you can get your debt consolidation by way of a mortgage loan refinance.

A Finance Broker Can Help Save You Money When Considering A Commercial Loan
When it comes to taking out commercial finance then a finance broker has many advantages over going it alone. When considering a loan then a lot of thought has to be given to it and you have to understand the technical jargon that comes with the finance. Not only can a broker get you the best deal but they are also able to give you information and advice on the different aspects of the loan.

Reverse Mortgage Offers Fresh Approach To Income From Real Estate
If you owe 40 percent or less of your original mortgage, there is a great program that is available to you that will generate extra monthly income. It's called a reverse mortgage.

Secured Finance Should Be Shopped For Online
Secured finance interest rates vary considerably and while you could take a loan from the high street lender usually the rates are not as good as those you are able to find online By going with a specialist broker, you can save not only money, but also a great deal of time and effort

Bad Investment Advice and Fraud Served Up to Senior Investors at "Free Lunch" Seminars According to SEC Report
Official SEC report confirms that investment seminars targeting senior investors are fraught with fraud, misreprentations and bad investment advice.

Car Finance Options Can Be Found Online
When thinking of buying a new or used car then you are going to have to give serious thought to car finance options. While you do have plenty of choices and if you are to find the best deal for your circumstances then you need to know all you can about the particular loan you are considering. By going online with a specialist they will give you the information needed and then help you to find the cheapest finance deal.

Island Fractional Homes Announces that TransPacific Mortgage Group Has Arranged Financing for Its Latest Hawaii Fractional Development
Fractional real estate financing is a specialty area of mortgage banking that provides funding for fractional developers and financing for fractional vacation home buyers.

Mortgage Insurance is Now Tax Deductible: Savings for Many Would-Be Homebuyers
Katz Mortgage Team, www.KatzMortgageTeam.net, of Amtrust Mortgage Corporation, has announced that Congress has just passed long-awaited legislation that will make mortgage insurance payments tax deductible on new mortgage originations beginning January 1, 2007.

Jackson & Coker Releases 2007 ?Return on Investment Survey? Associated with Physician Staffing
Hospitals and medical groups can directly calculate the economic impact of services provided by their staff physicians, according to the most recent survey conducted by Jackson & Coker (www.jacksoncoker.com), a premier nationwide physician staffing company based in Alpharetta, Georgia.

Return on Investment: Financing Your American MBA
The eagerly-awaited Forbes report that ranks business schools in terms of return on investment appeared on September 3, 2007. On September 25, Business Coach Krissy Jackson will interview Dr. Marlena Corcoran, Director of Athena Mentor: International University Admissions Counseling, in an enlightening teleconference: "Return on Investment: Financing Your American MBA." Attendees will learn surprising facts and figures on how people finance the most demanding MBA programs--and why "it pays" for MBA applicants to aim high!

Face Lift and Eye Lid Surgery: A Career Investment?
Recently an article crossed my desk describing how a 45-50 year old male attorney began hearing remarks from his colleagues that he looked tired. Even though his suit was meticulous, starched collar and silk tie ? he felt great but his facial appearance had begun to wane.

Terms and Limitations of a Second Home Mortgage
Getting into a second home mortgage is a big financial undertaking. You need to take the whole process seriously. Understand that there is a chance that you can lose your home if you default on your second mortgage. Many people wrongfully believe that there is no way they can lose their home if they default on a second home mortgage. This is not true and can be very damaging if you believe this myth.