Q: Why is Henry Paulson covering his hands over his face?

A. He knows the #$%@ is about to hit the fan!!

And the media is hiding the story. This morning if you go to www.cnn.com it is buried and even The New York Times does not have the story on the cover of its business section! What the heck is going on here?

This is the third largest bank in U.S. History to fail. It is up there with the failure of Republic Bank in Texas in the 1980s as well as Continental Bank of Illinois. This loss is wiping out $4 to $8 billion of the FDIC's $53 billion deposit-insurance fund. Get set for a slew of failures!

Dear Subscribers,

THE LARGE BANKS ARE STARTING TO FAIL!

The Federal Reserve and the U.S. Treasury have been hinting about the danger of one or more major banks failing for a few weeks now in hopes that making that the warning ahead of time might help overt an all out banking panic.

The Pasadena, California thrift IndyMac Bank, spun out of Countrywide Credit who was a prolific mortgage specialist that helped fuel the housing boom, was seized by federal regulators late yesterday, in the third-largest bank failure in U.S. history.

What caused the failure? Simple. Bad loans. The run on the bank occurred when Senator Charles Schumer of NewYork made a bad situation worse when he released a letter he wrote to the Office of Thrift Supervision expressing concern that IndyMac was not a going concern. He then released this letter to grandstand his views. As these views became known over $1 billion was taken from the bank, effectively a bank run.

The Wall Street Journal is saying this collapse won’t likely be the last. The Journal goes on to report that Banking regulators are bracing “for a slew of failures”.

To give you an idea on how immense this failure is it is expected to cost the Federal Deposit Insurance Corp. between $4 billion and $8 billion, potentially wiping out more than 10% of the FDIC's $53 billion deposit-insurance fund.

I believe this his failure is going to shock and frighten most people in that over 10,000 people are going to loose half the money they had in the bank over the FDIC insured $100,000.

If you have more than $100,000 in any one bank, I am begging you to take steps immediately to make sure you don’t have more than $100,000 in any one bank and that every bank you are doing business with had FDIC insurance to cover the amount you have on deposit. Please, NO BANK IS TOO BIG TO FAIL.

Also, you need to review where your assets are held in brokerage accounts. Just like the banks who are insured by the FDIC your brokerage accounts are insured by SPIC.  This stands for Securities Investor Protection Corporation. SPIC has even less in its insurance fund, only $1 billion. That’s right while the FDIC has $53 billion SPIC has $1 billion.

SIPC coverage is limited to $500,000 per customer but here is the catch ONLY $100,000 in cash. How could they cover a failure of Merrill Lynch whose assets are in the trillions? The answer is they cannot.

Yesterday, even before the market opened fears that Fannie Mae and Freddie Mac (which have issued insurance on $5 Trillion in mortgages and have just $80 billion in reserves) were going about to collapse sent shares in both nose diving over 40%. Should the mortgage failure rate continue to rise even a few percentage points at this point, we could see the worst financial meltdown since 1929. Even though the Federal Reserve has said it would come to the rescue of Fannie Mae and Freddie Mac.

Where are they going to get the money from? You got it, they’ll just print it!

Wall Street’s Reaction

To be clear I am not saying Wall Street will collapse because of this one bank failure but I am issuing this urgent call so you can to take steps to make sure you don’t wind up standing in line outside any bank you do business to collect what’s left of your deposits.

I think it’s also imperative that you do two more things beyond making sure your money in your bank(s) is safe...

First on Monday morning call Finest Known, Inc. my rare coin and precious metals office 1-866-697- 4653 or 1-561-750-2030.

Please ... if you don’t own physical gold or just own a small amount it’s now a matter of financial survival that you put at least 15% of your savings in U.S. and World Gold and Platinum bullion and rare coins. I prefer rare coins certified and graded by NGC or PCGS. You can actually buy physical gold, platinum and silver for your IRA and my staff of gold experts can help you do this.

When I envisioned gold shooting to $2,500 and platinum soaring to $5,000 I always knew the first sign of a dollar panic would come in the form of a “slew of bank failures.” I consider the the largest banking failure in almost twenty years as a clear shot over the bow and the warnings of more to come to be enough a clear signal that we may be only months, weeks or even days from a catastrophic banking panic.

Secondly, subscribe to my Gold & Energy Options Trader by calling 1-800-819-8693 or 1-561-750-2030.

Yesterday, I hinted at a much bigger crisis. Guess what this isn’t it. What’s brewing behind the scenes is MUCH worse. Literally, one of the one of the key back bones of the financial markets is on the verge of rupture.

Two days ago after racking into big profits in my Gold and Energy Options Trader...

• A 25% win in The Mosaic Company (MOS-NYSE).
• A 24% win in First Solar (FSLR-NASDAQ) in less than 24 hours.

I made the gutsy promise of another big win and actually named the stock I would make the big win with, Anadarko Petroleum (APC – NYSE) and like clockwork, BAM! As the market opened this morning my subscribers grabbed a 64% windfall!

Bigger Profits Lay Ahead – As Wall Street Swings  Up and Down and the Dollar Gets Smashed!

We’ll be jumping back in with options on APC very quickly. The U.S. Dollar is on the verge of taking a bigger and deeper nose dive.

I believe, I can’t of course guarantee, we’re about to see a string of unprecedented profits in my Gold and Energy Options Trader and that’s the sole reason I am urging you to sign up NOW!

This failure will hit the U.S. Dollar like a tone of bricks. If not immediately, then in the weeks, and months ahead and that will mean another huge move up in the price of oil. If it happens and we see a huge spike in oil...to the $200 level – it must be shorted. Why?

Simply Fannie Mae and Freddie Mac are Government Sponsored Entities (GSEs) that will have to be backed by the full faith and credit of the United States government.  The FDIC and SPIC will also have to be backed by the full faith and credit of the United States Government. Clearly, the budget deficit could explode as the Treasury has to make investors whole. If this happens, then the dollar will be

Profits are going to be very healthy on both the run up to $200 and then back down. In a market environment like this the swings up and down in a crisis like this could be fast and dramatic. This bank failure seals my decision to expand the service to include some potentially profitable stock and stock index options, both puts and calls, that I believe will soon go BERSERK.

Cumulative profits of 221% in the past 11 months (while the Dow Jones was down about 15%)

I’ve priced the Gold and Energy Options Trader so inexpensively (just $99 a month or $995 a year ) that the cost of service should be made up by just a few small trades or even one or two trades using 6 to 10 options. Heck, we already have cumulative profits of 221% in the past 11 months (while the Dow Jones was down about 15%)!

This amazing little service has its biggest pay days ahead – BOTH – on the long and short side, but the sooner you jump on board, the more likely your chances to scoop up the profits.

Subscribe immediately and give my Gold and Energy Options Trader a try. The profit I believe I’m going to pile on for subscribers is just too good to miss.

Subscribe immediately because new trade recommendations will start pouring out over the next 14 to 20 days. Look for my report on this NEXT crisis, and in the meantime, start preparing yourself by loading up on physical gold and platinum. My $2,500 and $5,000 targets have a good chance of being touched by the time all the shoes stop dropping. Sign up on line right now by clicking here Gold and Energy Options Trader.  Don’t let this opportunity to profit escape you.

Best Wishes,

James Di Georgia

Editor