I think many of you are better versed than I am about this inpending doom we are about to befall.

I still don't by it and believe that within a year this will have hit bottom and bounced back to at least where we are now.

That will be seen as an improvement.

A Broker (not my broker, ?I've been riding out the oils train for the last three years) sent this out to a bunch of us. He warns of who is next by what he has heard. I figure you guys can help me determine if he's right? Not sure if he wrote the part after his name or if he lifted it from some else...

Dear Friend,

"May you live in interesting times" is said to be an English
translation of an ancient Chinese proverb and curse. When an
85-year-old investment firm disintegrates in less than a day,
you'd have to agree with me that these are very interesting
times.

While many traders are looking in the rearview mirror trading to
figure out what happened, I'm pouring over my charts trying to
figure out what will happen next. I don't see the collapse of
Bear Stearns as an isolated event and my research tells me that
there are more to come.

At the end of this email you'll find three stocks that should do
well regardless of which investment bank is the next to fall.
These companies deal in real products, are trading at good prices
and are poised to head higher. Keep reading, it's worth it.

Warmest Regards,

Dennis Slothower, Editor
StealthStocksOnline.com

Hellish selling spilled over from last week after JP Morgan
announced on Sunday night that they would buy Bear Stearns (Bear)
for $2 a share. On Friday, the stock closed at $30 and last
summer it was trading at $150! Ouch.

Bear said earlier last week that while they were affected by the
sub prime mortgage woes, they definitely didn't have a liquidity
problem and could easily meet client cash demands. One day later,
they were fighting for their life, running hat in hand to JP
Morgan and the Fed. What a difference a day makes! The problems
that Bear faced leading up to its demise were not due to
write-downs on their balance sheet. Instead they faced a crisis
of confidence as their clients deserted them and other
institutions didn't want to trade with them.

It became necessary for Bear to seek the assistance of JP Morgan
to be able to take advantage of the Fed's discount window in
order to raise enough cash to keep their doors open on Friday.
However by the weekend they were faced with a choice: take the $2
per share deal from JP Morgan, or go bankrupt. 

Some time ago I mentioned that estimates of write-downs were in
the $400-600 billion dollar area.  So far less than half that
amount has been declared-there is still more pain to come. The
fallout from this sub prime virus has spread like an infection
throughout the entire financial system threatening to destroy it.

I believe we are going to see more 1930's style runs on banks as
Bear was just the tip of the iceberg. I am hearing rumblings that
a number of smaller banks will likely fail as the collateral
damage of sloppy risk controls over the past few years comes back
to bite them in their bottom.

Like wolves circling their prey, traders have targeted Lehman
Brothers to be the next victim to fall.  Lehman's market cap has
been cut in half in less than 5 trading days! If the Fed decides
to bail them out too, they will have to continue to cut interest
rates and pump up the money supply.

If this keeps up, the U.S. dollar is destined for waterfall
declines creating a massive inflation problem for the rest of us.
In effect, the Fed is merely taking the money from the consumer
and handing it over to the large financial gurus that created
this mess in the first place! I recommend you stay out of this
market until it settles down a bit.