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<DIV>All,</DIV>
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<DIV>This is a financial news letter I receive daily from Weiss Research. Since there is a proposal on the table for a "condominum" complex at Dumms Corner, I thought the following would be interesting reading. I fear this "condominum" complex will either be just another vacant property in our Town Center or an apartment building, most likely the later. I don't consider this economic development, but you can make your own decisions.</DIV>
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<DIV>Bruce</DIV>
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<P><FONT style="FONT-SIZE: 11px; LINE-HEIGHT: 100%" face="Courier New, Courier, mono" color=#000000 size=2>To make sure you don't miss our urgent updates, add Weiss Research to your address book. <A href="http://link.weissinc.com/h/4XNW/CSBK/A5/STPTI">Just follow these simple steps.</A></FONT><FONT face="Georgia, Times New Roman, Times, serif" size=2><BR></FONT></P></TD></TR></TBODY></TABLE>
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<TD align=left><FONT face="Verdana, Arial, Helvetica, sans-serif" size=2><STRONG>Money and Markets </STRONG></FONT></TD>
<TD align=right><FONT face="Courier New, Courier, mono" size=2><ZZZ!-- -- Date><STRONG><FONT face="Verdana, Arial, Helvetica, sans-serif">Tuesday</FONT></STRONG><FONT face="Verdana, Arial, Helvetica, sans-serif"><STRONG>, March 14, 2006</STRONG></FONT></FONT> </TD></TR></TBODY></TABLE>
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<P><FONT face="Verdana, Arial, Helvetica, sans-serif" size=2>• <A href="#1">U.S. Housing Bust</A> by Michael Larson<BR>• <A href="#2">Asian Tech Boom</A> by Tony Sagami</FONT></P>
<P><FONT face="Verdana, Arial, Helvetica, sans-serif" size=2>Dear Stanley Bruce,</FONT></P>
<P><FONT face="Verdana, Arial, Helvetica, sans-serif" size=2><IMG height=167 hspace=7 src="http://www.moneyandmarkets.com/MAM/226/larson.jpg" width=120 align=left vspace=2>Tony Sagami’s so worried about what’s happening to U.S. tech stocks, he’s hopped on a plane and flown off to Asia. He’ll give you a sneak preview of his research tour in just a moment.</FONT></P>
<P><FONT face="Verdana, Arial, Helvetica, sans-serif" size=2>But first, Martin has asked me to give you an urgent update on what’s happening in the U.S. housing market.</FONT></P>
<P><FONT face="Verdana, Arial, Helvetica, sans-serif" size=2>If you’re like most of my friends and family, your home is your biggest and best investment. It’s worth more than any single stock or mutual fund in your portfolio — perhaps more than all your other investments combined. <EM>But right now ...</EM></FONT></P>
<P><FONT face="Verdana, Arial, Helvetica, sans-serif" size=2><STRONG><A name=1></A>Home Prices<BR>Are Falling!</STRONG></FONT></P>
<P><FONT face="Verdana, Arial, Helvetica, sans-serif" size=2>In Bethesda, Maryland, prices have tumbled 16% from December to January.</FONT></P>
<P><FONT face="Verdana, Arial, Helvetica, sans-serif" size=2>In a key area of Fresno, California, the median sale price for homes was $439,000. But in just the last 60 days, those homes have plummeted $51,000, to $388,000.</FONT></P>
<P><FONT face="Verdana, Arial, Helvetica, sans-serif" size=2>In San Diego, new home prices have just suffered the sharpest month-to-month dive ever recorded.</FONT></P>
<P><FONT face="Verdana, Arial, Helvetica, sans-serif" size=2><IMG src="http://www.moneyandmarkets.com/MAM/226/img1.jpg" align=left vspace=5>In Palm Beach County, Florida, where we live, we see the same thing. Every day, when we drive to work, we see “house for sale” signs sprouting like unwanted weeds along the road. And every night, as we drive home, our eyes turn to a skyline sculpted by dozens of new high-rise condominiums, nearly all in darkness, nearly all unoccupied.</FONT></P>
<P><FONT face="Verdana, Arial, Helvetica, sans-serif" size=2>And this is just a small sampling. I can give you a dozen more examples — from Sarasota ... Chicago ... Phoenix ... Washington D.C. and more that show this “adjustment” in prices could be sharp, severe and widespread.</FONT></P>
<P><FONT face="Verdana, Arial, Helvetica, sans-serif" size=2><STRONG>This Housing Bubble is Busting.<BR>And the Bust Could Spread from <BR>Coast to Coast Like a Giant Storm.</STRONG></FONT></P>
<P><FONT face="Verdana, Arial, Helvetica, sans-serif" size=2>It may have reached your area already. Or it may be on its way. In either case, my question for you today is: Are you planning to just ride it out? Or are you going to do something about it?</FONT></P>
<P><FONT face="Verdana, Arial, Helvetica, sans-serif" size=2>Suppose your home falls 30% in value. What about 40% or 50%? Given how fast and far home values have surged, that would not be unusual.</FONT></P>
<P><FONT face="Verdana, Arial, Helvetica, sans-serif" size=2>Heck, even if the price of your home falls by a “mild” 10%, that could be a huge hit to your net worth.</FONT></P>
<P><FONT face="Verdana, Arial, Helvetica, sans-serif" size=2>Let’s say, for example, your home is worth $500,000, and you’ve got a $450,000 mortgage. Guess what: Just a 10% decline wipes out 100% of your equity. Even if you’ve got another $50,000 in the bank, that still means that half of your net worth has gone up in smoke.</FONT></P>
<P><FONT face="Verdana, Arial, Helvetica, sans-serif" size=2>I’m writing you now because you don’t <EM>have</EM> to ride it out. You don’t have to sit there passively while a housing bust wipes out much or most of your net worth. Indeed, there’s a lot you <EM>can </EM>do to protect yourself — even to go after unusually large profits.</FONT></P>
<P><FONT face="Verdana, Arial, Helvetica, sans-serif" size=2>And it does <EM>not</EM> require selling your home.</FONT></P>
<P><FONT face="Verdana, Arial, Helvetica, sans-serif" size=2><STRONG>The Biggest Glut of<BR>Unsold Homes of All Time</STRONG></FONT></P>
<P><FONT face="Verdana, Arial, Helvetica, sans-serif" size=2>All across the USA, brand new, single-family homes are begging for buyers.</FONT></P>
<P><FONT face="Verdana, Arial, Helvetica, sans-serif" size=2>And empty condos are about as popular as lepers at a kissing contest.</FONT></P>
<P><FONT face="Verdana, Arial, Helvetica, sans-serif" size=2>Here’s why ...</FONT></P>
<P><FONT face="Verdana, Arial, Helvetica, sans-serif" color=#ff0000 size=2><STRONG><EM>1. Home sales are dropping.</EM></STRONG></FONT></P>
<P><FONT face="Verdana, Arial, Helvetica, sans-serif" size=2>The sales of existing homes are at their lowest level in nearly two years ... and sinking fast. That means if you want to try selling your home right now, it’s probably going to take a heck of a lot longer to move it. And more and more people are putting their homes up for sale.</FONT></P>
<P><FONT face="Verdana, Arial, Helvetica, sans-serif" size=2>The same is happening in the new home market, where sales just plunged to a one-year low. But builders are committed to past contracts. So they’re still building record numbers of shiny new homes. </FONT></P>
<P><FONT face="Verdana, Arial, Helvetica, sans-serif" size=2>As a result ...</FONT></P>
<P><FONT face="Verdana, Arial, Helvetica, sans-serif" color=#ff0000 size=2><STRONG><EM><IMG height=336 hspace=5 src="http://www.moneyandmarkets.com/MAM/226/img2.jpg" width=300 align=right vspace=5>2. The supply of homes on the market is ballooning out of control!</EM></STRONG></FONT></P>
<P><FONT face="Verdana, Arial, Helvetica, sans-serif" size=2>The number of new homes for sale just hit 528,000 in January. That <EM>was the worst at any time in U.S. history.</EM></FONT></P>
<P><FONT face="Verdana, Arial, Helvetica, sans-serif" size=2>At the same time, in the used home market, a whopping 2.9 million units have flooded the market. That’s just shy of an 18-year high.</FONT></P>
<P><FONT face="Verdana, Arial, Helvetica, sans-serif" color=#ff0000 size=2><EM><STRONG><BR>3. Condos are getting hit the hardest of all.</STRONG></EM></FONT></P>
<P><FONT face="Verdana, Arial, Helvetica, sans-serif" size=2>Nationwide, condo and co-op sales have plunged 7.8% over the last 12 months. And supplies surged by 49.5%! If you own a condo, good luck selling! And even if you don’t own one, the drop in condo prices will naturally put pressure on your properties as home buyers choose the cheaper alternatives.</FONT></P>
<P><FONT face="Verdana, Arial, Helvetica, sans-serif" size=2>These warning signs would be troubling for any market. Yet the real estate lobby keeps whistling past the graveyard. </FONT></P>
<P><FONT face="Verdana, Arial, Helvetica, sans-serif" size=2>Just yesterday, the National Association of Realtors published its 2006 sales outlook, forecasting sales declines of almost 6% for existing homes and 8% for new homes, the biggest drops since the 1990s. </FONT></P>
<P><FONT face="Verdana, Arial, Helvetica, sans-serif" size=2>But their headline is pure spin: “Housing Market Readjusting to Normal Balance.” Ha! That’s the kind of doublespeak that would make George Orwell proud. </FONT></P>
<P><FONT face="Verdana, Arial, Helvetica, sans-serif" size=2>Look. We’ve just seen the most massive real estate run-up in recent memory. We’ve got a market that’s grossly overbuilt and overpriced. We have millions of unsold homes all over the country. </FONT></P>
<P><FONT face="Verdana, Arial, Helvetica, sans-serif" size=2>Result: We’re on the brink of a free fall. And it could take the price of your home along with it.</FONT></P>
<P><FONT face="Verdana, Arial, Helvetica, sans-serif" size=2><STRONG>From Dream Home<BR>to Financial Nightmare</STRONG></FONT></P>
<P><FONT face="Verdana, Arial, Helvetica, sans-serif" size=2>What’s next?</FONT></P>
<P><FONT face="Verdana, Arial, Helvetica, sans-serif" size=2>Millions of American families, already stretched beyond their means to afford their dream homes, will snap beneath the burden of rising monthly payments. </FONT></P>
<P><FONT face="Verdana, Arial, Helvetica, sans-serif" size=2>And we’re no longer the only ones warning you about this. Just this past Saturday, the lead article in the <EM>Wall Street Journal</EM> issued a very similar warning: </FONT></P>
<P><FONT face="Verdana, Arial, Helvetica, sans-serif" size=2><EM>Over $2 trillion in adjustable-rate mortgages (ARMs) are going to reset to higher rates this year and next.</EM></FONT></P>
<P><FONT face="Verdana, Arial, Helvetica, sans-serif" size=2>Already, a growing number of homebuyers are having a hard time making their monthly mortgage payments. And now, they’ll suddenly see their payments jump 30%, 40% even 50%. Past-due notices will start pouring into the nation’s mail stream — from hundreds of mortgage lenders and banks to hundreds of thousands of households.</FONT></P>
<P><FONT face="Verdana, Arial, Helvetica, sans-serif" size=2>Suddenly, nearly everyone will be in a rush to put up their “for sale” sign before their neighbors do the same.</FONT></P>
<P><FONT face="Verdana, Arial, Helvetica, sans-serif" size=2>A man’s home is his castle, but when it’s unsellable, it becomes a prison. </FONT></P>
<P><FONT face="Verdana, Arial, Helvetica, sans-serif" size=2>Home foreclosures are already rising ominously. According to RealtyTrac, an online marketplace for foreclosure properties, about 103,540 properties nationwide entered some stage of foreclosure in January. That’s up 27% in a month ... 45% in a year, the biggest surge I’ve ever seen.</FONT></P>
<P><FONT face="Verdana, Arial, Helvetica, sans-serif" size=2>Result: Still more pressure on the value of your property.</FONT></P>
<P><FONT face="Verdana, Arial, Helvetica, sans-serif" size=2><STRONG>Steps You Should<BR>Take Right Away</STRONG></FONT></P>
<P><FONT face="Verdana, Arial, Helvetica, sans-serif" size=2>I’ve just written a special report, “The Great Real Estate Bust of 2006-2008,” with detailed steps on what to do immediately. Here are seven to help get you started ...</FONT></P>
<P><FONT face="Verdana, Arial, Helvetica, sans-serif" size=2><STRONG>Step 1.</STRONG> Sell your investment real estate. Don’t wait. Don’t worry about replacing the income right now. Just move quickly to protect your capital. (More details on why, how and where in my report).</FONT></P>
<P><FONT face="Verdana, Arial, Helvetica, sans-serif" size=2><STRONG>Step 2.</STRONG> Think about your own home. If it means a lot more to you than just an investment, stick with it. If not, run the numbers on owning vs. renting. You’ll probably find that renting is cheaper even <EM>after</EM> you factor in the tax advantages of owning. By selling, you not only protect your nest-egg ... you also cut your monthly expenses.</FONT></P>
<P><FONT face="Verdana, Arial, Helvetica, sans-serif" size=2><STRONG>Step 3.</STRONG> If you absolutely must buy now for reasons that have nothing to do with the ups and downs in home prices, I understand. But don’t spend more than 25% of your gross income on principal, interest, taxes and insurance. And don’t miss the section in my report “10 Ways to Be a Smarter Home Buyer.”</FONT></P>
<P><FONT face="Verdana, Arial, Helvetica, sans-serif" size=2><STRONG>Step 4.</STRONG> If you’re holding mortgage bonds — from Fannie Mae, from Freddie Mac, or based on the high-risk “subprime” mortgages — sell now. The market value of these bonds is likely to fall as home prices decline and mortgage delinquencies rise. </FONT></P>
<P><FONT face="Verdana, Arial, Helvetica, sans-serif" size=2><STRONG>Step 5.</STRONG> From your stock portfolio, dump construction companies, subprime lenders and mortgage REITS. In my report, I discuss seven vulnerable sectors, and I name up to six stocks in each.</FONT></P>
<P><FONT face="Verdana, Arial, Helvetica, sans-serif" size=2><STRONG>Step 6. </STRONG>A housing bust can do more financial damage to more properties than any hurricane. You have insurance to protect your home against storm damage. So why don’t you buy some protection against a housing bust? In my report, I explain how. </FONT></P>
<P><FONT face="Verdana, Arial, Helvetica, sans-serif" size=2><STRONG>Step 7.</STRONG> Go for a profit bonanza! There are investments you can buy right now that are designed to double and triple in value as the real estate market crumbles. </FONT></P>
<P><FONT face="Verdana, Arial, Helvetica, sans-serif" size=2>For example, you can buy long-term options, called LEAPS, on the two home builders named in my report. The more the stocks fall, the more money you stand to make.</FONT></P>
<P><FONT face="Verdana, Arial, Helvetica, sans-serif" size=2>If you <A href="http://link.weissinc.com/h/UCDI/CSBK/A5/STPTI">download my report</A> now, you’ll be entitled to four follow-up reports. The entire package — my special report and the four follow-ups — is normally priced at $495. But right now, the complete package is $129.</FONT></P>
<P><FONT face="Verdana, Arial, Helvetica, sans-serif" size=2>Your overarching goals: Avoid the avalanche of properties that’s starting to hit the market. Get out of debt. Grow your wealth. Build your cash. And stash it away in a safe place.</FONT></P>
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<P><STRONG>For more information and archived issues, visit <A href="http://link.weissinc.com/h/T0KZ/CSBK/A5/STPTI">http://www.moneyandmarkets.com</A>.</STRONG> </P>
<P><STRONG>About MONEY AND MARKETS</STRONG></P>
<P>MONEY AND MARKETS (MAM) is published by Weiss Research, Inc. and written by Martin D. Weiss along with Larry Edelson, Tony Sagami and other contributors. To avoid conflicts of interest, Weiss Research and its staff do not hold positions in companies recommended in MAM. Nor do we accept any compensation for such recommendations. The comments, graphs, forecasts, and indices published in MAM are based upon data whose accuracy is deemed reliable but not guaranteed. Performance returns cited are derived from our best estimates but must be considered hypothetical inasmuch as we do not track the actual prices investors pay or receive. Contributors include Jennifer Moran, John Burke, Beth Cain, Amber Dakar, Michael Larson, Monica Lewman-Garcia, Julie Trudeau and others.</P></FONT>
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