A while back an article appeared in various newspapers across the
country that stated:

“The central banks, which include the Bank of England and the US
Federal Reserve, will pump more than $200 billion into the
banking system in an attempt to stimulate lending.”

Moreover, “Banks can put up risky debt as collateral.”

When the announcement was made, the Dow jumped 416 points!??
Now, banks, corporations and governments really don’t operate on
different financial rules from the rest of us. Yes, they break the
rules all the time and get away with way more things than we as
individuals, but sooner or later, all their foolishness is going to
come back on them.

Imagine, for example, that a guy by the name of Mr. Banks buys a
home for $500,000.00 using one of those sub prime mortgage things.
He borrows money from his friend, Mr. Fed, to do this.

He’s sure the thing will go up to a million in a year, so he
borrows $500,000.00 against its value and then turns around and
buys another $500,000.00 house. He’s positive that one will double
in price as well. After all, this is the way things have worked in
the past.

He goes to sell both houses, but now they’re only worth $100,000.00
each. All right he’s got a problem because he has to pay back Mr.
Fed. He needs another loan!

He goes to his friend, Mr. Fed, and explains his situation. Mr.
Fed tells him “Hey, you’re one of my best buds. I don’t want to
see you going under. I’ll loan you (pump) some money into your
account. What kind of collateral do you have?”

Mr. Banks says, “My houses, which I bought for $500,000.00 each.
So that must be what they’re worth. On that basis, give me a loan
for $1,000,000.00!”

And, Mr. Fed says, “Yeah, OK, sounds like a good deal to me. If
you go under I’ll have your $500,000.00 houses. (Of course, those
$500,000.00 houses are now worth ??? since Mr. Banks couldn’t even
dump them at $100,000.00!!)

Mr. Banks goes out and squanders the million dollar loan. He goes
back to Mr. Fed and tells him, “Gee I can’t pay back your loan.”
Mr. Fed says, “Okay, maybe this time I better lend you $200
billion.”

That is exactly what the FED and the Central Banks are allowing the
banks and investment houses to do. Through their new Term
Securities Lending Facility they are going to provide 28-day loans
of treasury securities in exchange for risky investments as
collateral.

When the banks eventually default on those loans (which they most
assuredly will) the FED will be left holding all those worthless
sub prime mortgages contracts (that no one wants!!).

Now the Fed is not stupid (they’re not Federal either, but that’s a
whole ‘nother story). They know this debt is worthless. Why would
they be willing to accept it as collateral?

Well, continuing our story above, Mr. Fed knows this person by the
name of Mr. Taxpayer. Mr. Taxpayer is loaded with all kinds of
money (at least right now) and he’s also loaned Mr. Banks some of
his money. He’s also kind of naive. He’s been led to believe
that Mr. Fed is a good guy, someone who is looking out for his best
interests.

So when Mr. Fed comes to him and says, “Look, if we don’t bail out
Mr. Banks, all your money you loaned him is going to be lost. Why
don’t you just cough up a little more to help bail out Mr. Banks.”
And, Mr. Taxpayer thinks, “Well, better to give a little more than
to lose it all.” So he complies with the request.

Actually, even if he doesn’t “voluntarily comply” with the request,
Mr. Fed knows this guy with the initials I.R.S. who will come and
break Mr. Taxpayers legs if he doesn’t cough up the funds.
While all these shenanigans are taking place, the stock market goes
up! Amazing!

However, what goes up, must come down. Furthermore, what goes up
abnormally will come down abruptly. When all the forced fixes no
longer work, and the interest rates can no longer be lowered, and
everyone realizes that the gig is up, the whole financial deck of
cards will come crashing down.

Okay, so why are we discussing these issues in a home business
newsletter? Simply because now would be a very good time to get
out of the stock market (and even banks) and look for alternative
ways to make money.

In other words, you need to take control of your own financial
situation instead of putting it in the hands of big business and
big government, both of whom seem to have been infected with
monetary madness.

One of the ways to take control of your money is by starting your
own business and a home-based business is really at the top of the
list for most people right now. There are several reasons for this.
First, because of soaring gas prices people really do not have to
earn that much at home to offset their incomes from other jobs.

That is, once all the expenses of just getting to a job are figured
in, home business operators are coming out significantly ahead of
the “commute to work” crowd.

In addition, rising taxes are killing people with “normal” jobs.
That’s because in a typical job situation, people earn, pay taxes
on what they earn, then they spend after tax money on things they
need and want.

With a home-based business you can earn, spend money on things you
need and want (new computer, vacation, car expenses, housing
expenses, entertainment expenses), make these things business
expenses, and deduct them from your taxes.

In other words, with a job, the scenario is: earn, pay taxes, spend
what is left; whereas with a home business, the scenario is: earn
money, spend (pre-tax) money, and pay taxes on what is left!

If you do that, you will increase the benefits of your own labor
for yourself and your family rather than giving it to the guys that
are running the global plantation. (Unless, of course, you don’t
mind paying for your own enslavement.)

Another reason why there is a home business boom going on right now
is that many people are being laid off. With the economy in such
awful shape, people have been forced to look for alternatives to
the typical 9-5 corporate job. One of the things they are seeking
is a semblance of stability in a world gone amok with layoffs,
pay/benefit cuts, job outsourcing etc.

Home businesses have provided many individuals with that kind of
stability. With a business of your own you at least have some
control over your life instead of having things dictated to you by
some boss from corporate America.

Finally, even if people have a job at this time, with the rising
food and gasoline prices, people just need extra income. They are
looking to home based businesses to provide them with that extra
boost to meet some of their daily living expenses.

The final result of all this is that there has never been a better
time to enter the home business field. Fact of the matter is, as
the economy and the stock market tank, more and more people are
going to view a business of their own–work from home–as a primary
solution to the sagging economy.

Our final conclusion is that if you have the right program, one
that will fill the needs of the masses coming into this business
(we can’t think of anything people need more than a great marketing
system!), you can position yourself to make a lot of money during
the current home business explosion.

All you need to do is get a little aggressive and grab your share.