The current "sub-prime", "credit problems" that is SAID to be the cause of the current market turmoil is based totally on pure GREED.  Real estate developers were making very good money, but in the effort to make MORE money FASTER they sold houses to people that were totally unable to pay for them.  This time around the American public wins and the greedy bankers of Wall Street get what they so richly deserve—stuck with bad paper they cannot sell and have to eat the losses.  Normally, they are able to pawn this off on the unsuspecting public.  It seems to me that the public in general is much, much more informed about finance then at any time in history. This is very good.  When you can move into a new home for the same $$ you were paying rent for—Why not???  Then when they raise the monthly payment simply move out as you had NO money in this house at all.  Look for apartment rents to rise as this begins to happen.

One must not lose sight of the fact that the house still has intrinsic value and thus, after a reshuffling period of about 18 months, expect the economy to really get a very large growth spurt as these houses are currently being incorrectly valued by the market place at $0.

Please be assured that this too will pass.  We have had and continue to experience market unrest that was REALLY, REALLY NEEDED.  Currently there is a changing of the guard, so to speak.  Investment objectives are changing from the very speculative to the more real value investing (this is my world) where patient/dependable growth is exchanged for the rapid get-rich-quick investment.  This will reduce the risk in the market by a considerable amount—this I LIKE.

What really shocks and amazes me is how the wonderful American public is almost always focused on the Ben Franklin quote "penny wise and pound foolish".  It seems the thing to do is drive 20 miles to WalMart to save $2.81 when you have used a little over 1 gallon of gasoline at $3.00 per gallon.  The examples are endless and seem to never end—WHY.  I do not know.  No more than I know why people will sell wonderful stock because some "talking head" on TV said the market was going down.  I AM CONVINCED THAT MANY PEOPLE HAVE A SEVERE FEAR OF SUCCESS. Sounds stupid doesn’t it??  Yes, but what other reason is there for this illogical behavior.

Remember, knowledge allays all Fear.

There were many areas of the market that got over priced and greed was the great leader over fear.  Things are just now beginning to return to normal. 

We have been positioned for this event for some time and now as the smoke clears, we will begin to take advantage of the mistakes of other investors.

It is truly a grand day in Montana and the market is going to offer the same.

Thank you for reading,