On January 21 of this year and again on March 17, I warned you that the economy was about to get extremely tough and urged you to prepare.
I pointed out that trillions of dollars in subprime mortgages granted to unqualified low-income people — and then securitized and sold to major institutions and investors by Fannie Mae, Freddie Mac and others — had lit the fuse on a keg of dynamite that would blow the economy to smithereens.
Since then, the Dow Jones Industrial Average has plunged about 30% and we’ve seen two of the three largest point declines and the worst week in Dow history. The S&P 500 and NYSE indices have plunged about 32% and 35% respectively.
This morning, CNBC reported that the Wilshire 5000 has lost $8 trillion of its value this year.
I’ve been studying and writing about this crisis since 2006 — long before anybody in Washington or Wall Street was saying a word about it. Nine months ago — when it became clear that this crisis would have a major impact on your career and/or business, I began writing about it in this marketing blog, too.
In the nine, short months since then, many of our oldest and most venerable financial institutions have failed, been seized by Washington or swallowed whole by competitors:
Major Wall Street brokers Bear Sterns and Lehman Brothers … banks and thrifts like IndyMac, Wachovia and Washington Mutual … our largest insurance company, AIG … and of course our two largest mortgage companies, Fannie and Freddie. All gone.
Today, despite more than $2 trillion in congressional, Fed and Treasury Department intervention, the crisis is now spreading beyond Wall Street … beyond Main Street … to YOUR street.
And even worse, it’s spreading beyond our shores and burning through Asia and Europe. In overnight trading, India’s stock market fell 6.86% … Hong Kong stocks dropped 7.2% … Singapore plunged 7.3% … Australia cratered 8.2% … and Japan’s Nikkei 225 index crashed 9.62%.
The bloodbath was repeated throughout Europe. Belgium: down 6.23%. The Netherlands: Down 7.9%. Spain: Down 7.91%. The UK: Down 7.62%. France: Down 8.7%. All in a single trading session.
There was not a single major stock exchange in Asia or in Europe that rose in value.
This subprime crisis that devastated the U.S. financial sector and that is now slamming every other sector has now infected the entire world.
The next shoes to drop, in my opinion:
1. A Tidal Wave of Business Failures: With raw materials prices still high and with terrified consumers slamming their wallets shut, many companies are now living on borrowed time.
They’re frantically cutting costs, firing workers and still burning through what little cash they have. Now, with little or no credit available to them, the writing’s on the wall:
Expect to see huge numbers of U.S. firms go bust in the weeks ahead.
2. Exploding Unemployment: Since January, three-quarters of a million Americans have lost their jobs. That number could easily double before the end of the year.
This week, many began to believe that General Motors, once the world’s largest auto manufacturer, now could be a heartbeat away from bankruptcy. Ford and Chrysler also seem to be hanging by a thread.
Between them, more than 600,000 jobs are on the line. And thousands of other companies are now contemplating new layoffs in a desperate attempt to survive.
Expect to see unemployment surge from today’s 6.1% to well over 8%; perhaps higher.
3. The End of Retirement: Americans in retirement and those approaching retirement are getting creamed. The massive stock market losses of the last year have devastated their 401k and IRA retirement accounts. Many — if not most — pension plans are smoking ruins.
Expect to see news stories about an epidemic of retirees searching for work and even homeless seniors in the weeks ahead.
4. Local Governments On the Skids: States, counties and cities from coast to coast are starving for cash. With the economy slowing and tax revenues dwindling — and with their budgets at or near all-time highs — many are now staring down the barrel at bankruptcy.
Expect to see several U.S. states, counties and cities go bust and, failing a federal bail-out, default on their bonds well into 2009.
So please — if you haven’t already, be sure to take the defensive steps I outlined in my September 26 issue. Since I wrote “Expect stocks to plunge” in that article just ten trading days ago, the average NYSE stock has cratered nearly 27%.
That said, while it’s wise to acknowledge the dangers out there and to take reasonable steps to protect your money, yourself and your family, this is not the end of the world.
The Glass: Half Full
Even in the depths of The Great Depression, 75% of all American workers had a job and some money to spend. And businesses that offered products they needed did just fine.
More good news for you: Small businesses have a huge advantage in times like these. We tend to be far less encumbered by debt, far less dependent on financing and far more nimble — able to quickly shift our product lines in ways that keep our companies growing.
If you’re a business owner or marketing pro in a small business, nothing you do now could possibly be more crucial than to find ways to become indispensible to your prospects as the economy weakens.
If you’re a marketing consultant or copywriter, nothing is more important than finding those kinds of companies and partnering with them.
And in either case, nothing could be more valuable to you now than to find new tools capable of actually increasing your response, revenues and profits in this environment.
Despite everything that’s going on in the economy and investment markets now, I’ve just created an e-mail campaign that persuaded nearly 40,000 investors to register for an online crisis briefing that took place at noon today.
And I created a sales page offering them a service designed to leverage this crisis with investments that soar when stocks plunge. I fully expect the response to be enormous for my client and my royalties to be well into six figures.
Knowing how to create those kinds of online campaigns at a time like this — how to write e-mails that get opened, read and responded to … to craft online events that your prospects can’t resist … and sales pages that convert huge numbers of prospects into high-paying customers — is like money in the bank.
And I’m going to show you how I do it — FREE
on Thursday, October 16th
At high noon Eastern time next Thursday, I’m going to show you the online campaigns I’m using right now to make millions for a client and hundreds of thousands dollars a month for myself.
I’m going to show you the marketing strategy I use …
The subject lines and e-mail copy that persuade an average of 33,000 prospects to view an online marketing event …
The sales page copy that pulls in as much as $2.5 million in revenue immediately after the event and millions more the days following …
The follow-up campaign that keeps bringing thousands more prospects to the recording of the event and to my sales pages for weeks …
In short, I’m going to give you the entire formula — completely FREE …
And I’m even going to answer any questions you may have …
All I ask is that you register so I know you’re coming and to make sure you receive instructions for attending before close of business next Wednesday.
Frankly, if you miss this event, you should have your head examined.
This will not be old, tired, re-chewed pre-digested pap some gurus pass off as “valuable knowledge.” There will be no fluff. No B.S.
These techniques and strategies are real. They’re what I use to get more in sales from each prospect and customer on a list than anyone does today. They’re proprietary tools so effective, my client gleefully pays me hundreds of thousands of dollars a month for them.
These are the crown jewels, my friend.
If you’re a business owner, entrepreneur or marketing pro, this is precisely the knowledge that can help keep your company growing and get you through this.
If you’re a marketing consultant or a copywriter, this is the skill you need to pile up huge fees and royalties no matter how bad things get.
This will be THE FIRST, LAST AND ONLY TIME I teach this and answer your questions live and in person. There’s a limit to how many attendees we can accommodate. The event is free — no strings attached — but you must register to receive attendance instructions.
So if you’re serious about discovering a way to make more money as the economy continues to worsen, claim your free registration now: Just click this link to register while space is still available.
Yours for Bigger Winners, More Often,
Publisher & Editor
THE TOTAL PACKAGE
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