The Market Toolbox : You are receiving this e-mail as a part of your free subscription. If you would like to change your e-mail settings please follow the instructions at the bottom of this e-mail.
Instructions to "White List Us".

• What happened to savings in this country?
• "Best Of The Web" Our Favorite Technician...
• Check Out A Couple Of Our Newest Favorite Sites

Hello,

This week we wanted to address an issue that you do not hear about often. It is the plunging savings rate in America. It seem many people are just a few paychecks from homeless with the savings rate having now fallen to zero.

How on earth could the savings rate fall to zero? Is this even possible? What will become of people that do not have even the basics of a few extra months bills in the bank.

We were discussing some time ago about how we would see the re-emergence of interest only mortgages as the last resort for the financial companies to keep the consumers spending beyond their means.

Now here they are... they are being sold as "smart choice" loans or other attractive labels and in fact an interest only loan is a great thing for some people.

The purpose of the interest only loan is not to buy a house that you cannot afford. It is about paying less for a house that you can afford.

Prior to the depression most people bought property with interest only loans and that was a big problem for the banks. The property owners were not "on the hook" with a bunch of equity that they could not walk away from, so many did. They left the banks holding the bag and it hurt the banks big time.

That is when they came up with a 30 year fixed loan to keep consumers "on the hook" as well as the bank. This was a great deal... for the bank.

Use and interest only loan... if you must... to lower your cost of living so that you may save for your own retirement.

No body is going to do it for you. The savings rate falling to zero is a shocking fact that may indeed come back to haunt us in our economy if suddenly many more people were to fall into poverty.

I do not recommend interest only loans for everyone, but... if you are not able to save money. You need to lower your cost of living and stow away some cash for the rainiest of days.

Also, help the younger members of your family to learn the many benefits of compound interest. It can for them, or it can work against them.

I hope you can impress upon them the need to be on the right side of compounding.

And Now...

"Best Of The Web" our favorite technician...

This week we want to show you the weekly market report from Jeffrey Brewer. He writes this report each Monday and you can get directly in out Desktop Portal.
Here is the link.

We really think that Jeffrey is one of the best traders we know and he has spent the last five years building his own trading system into an easy-to use software system. Take a look at it, We think you'll like it.

Thanks for reading this Tuesday's Market Toolbox, and please... make sure the young ones in your family understand the importance of saving and living within their means.

Until Next Time...

Best wishes and Good Investing,
Bill McKinley & Doug Newberry
The Investing Systems Network