Bankrupt investors leapt from buildings. Frantic communities caused bank runs. Many poor souls lost themselves at the bottom of an illegal bottle of booze… It was Oct. 29, 1929 — the day of the worst stock market crash in our nation’s history.

Mass confusion ensued, and a worldwide, decade-long Depression emerged. Most experts blame the start of credit spending in the 1920s for triggering the disaster. Today, we are feeling a little déjà vu… Spending on credit has become the way of life for billions over the past century.

We are not facing a global depression of the same magnitude. At least not yet… Instead, we face a recession stemming from the modern-day version of credit spending. You see, credit gives investors and homeowners alike the assurance that they are worth more than they really are.

Over the past few years, Americans have been spending as if they had money, saving as if they didn’t need money and slowly dealing with higher prices at the grocery store because they have to. This simply cannot go on much longer.

There is one solution.

But, before I get to this exciting opportunity, I want you to picture yourself in this situation…

Coming Home

You are a homeowner. But if it weren’t for that adjustable-rate mortgage (ARM), you wouldn’t have been able to afford your house. You are making a decent living, but problems come up.

Your daughter needs braces… You need car repairs… Your son just started his freshman year of college and needs books…and so on…

The list grows, yet you are still making ends meet, even though you have to cut back on steak dinners and nights at the movies to afford these necessities.

Then, one day, your mortgage bill comes in the mail. It’s quite a bit higher than ever before. You take a second glance and you see the rates have changed. You call the bank and finally get through to someone with half a mind. They tell you that the bank reset your ARM.

You realize that you don’t have any money saved to cover it. Yet you need the money now.

That is the story that over one million people around the country will be — if they have not been already — dealing with. By 2009, 1.8 million ARMs are due to reset. That means nearly two million households will struggle to keep up as they never had to before.

Any homeowner will tell you the most important payment every month is the mortgage bill. The nearly two million homeowners about to go through these troubled times will have to make some choices.

If they miss a few phone payments, they could lose their phone. If they miss a few student loan payments, they can defer for a few months. But if they miss their mortgage payments, they will lose their house. Without their houses, many won’t have anywhere to go.

Even as bleak as this situation seems, there is hope. There are companies out there willing to help. In fact, there is one penny stock that is set to really take off under these conditions. Unfortunately, it’s a bit too small to mention here.

Sincerely,

Jim Nelson
March 17, 2008

P.S.: Today is the day we’ve been waiting for. We are finally launching the highly anticipated Gold and Options Trader, headed by Ed Bugos. This gold expert has been our man in the mines for a few weeks. His new service should really interest you. It specializes in the two most lucrative types of investing.

Jim Nelson

Jim Nelson is the managing editor of Penny Sleuth. He has been playing the stock market since he was 14, always with a preference toward smaller companies. He has honed his stock picking skills at Agora Financial since 2004, effectively combining a growth and value approach. Like Greg Guenthner, Jim also contributes to Penny Stock Fortunes on top of bringing you the Penny Sleuth every weekday.

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