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<p><span style="font-size: x-small;"><span style="text-decoration: underline;"><span style="font-size: small;"><strong><span style="font-size: large;">Fiduciary<em>ALERT</em>™ 2011</span></strong></span></span></span></p>
<p class="MsoNormal"><strong><span style="font-size: small;"><span style="text-decoration: underline;">BEFORE 2008 a real, Real Estate market did not exist!</span></span></strong></p>
<p class="MsoNormal"><strong><span style="text-decoration: underline;">Americans are not dumb</span></strong>, but due to misleading information about the real estate market they made predictably bad mortgage decisions. Wall St had a special roulette wheel, around 2003 they cut down the numbers from 36 so that every one became a winner (trade-ups, cash out refi's). In 2004 banks began to increase the numbers going far past 36 to well over 900. However, the swarms of players (massive new mortgage borrowers - no doc, low doc, Alt A and or subprime) they let in were NOT let in to the secret that only Wall St would make money; and even when they didn't they got $14T bailout from the Fed; mortgage borrowers got burned.</p>
<p class="MsoNormal"><strong><span style="text-decoration: underline;">Banks and only banks, control leverage</span></strong> in two ways. One way applied to mortgage borrowers, is done by requiring a down payment or no down payment; 20% down and zero down loans allowed, 5x to 100x leverage on the price of a home, respectively The second way was on and or hidden OFF their own balance sheet. In the roulette wheel example above, starting in 2004, banks could and did use their own computer models to value their mortgage investments. I estimated 2,000X leverage or more (upon the collateral, i.e. home prices) was common at certain banks <span style="text-decoration: underline;">before</span> the financial crisis. Certain banks hid their mortgage bets in SIVs (Structured Investment Vehicles), from 2003 to 2008 over $12T of MBS were issued. Who held and invested in them?</p>
<p class="MsoNormal">In one example, a major bank did NOT know how much they invested, later they reported it; only to be told it was nearly 2X that. <span style="text-decoration: underline;"><strong>If certain banks did not know how much they invested in their own MBS and SIV's how could indvidual Americans, who largely in good faith borrowed, believing the real estate market was real; be held to the terms of their contracts? When it looks abundantly clear Wall St and certain banks knew otherwise...that banks' MASSIVE hidden investments allowed in thousands of new, unknowing borrowers which artificially inflated and kept the real estate market propped up.</strong></span></p>
<p class="MsoNormal">Fiduciary expert Chris McConnell, AIFA® issued his annual Fiduciary<em>ALERT™</em> for 2011 in June. Fiduciary<em>ALERT™</em> 2011 distills events in the years leading up to 2008; which main stream media and most financial journalists failed to notice, connect the dots and or raise the appropriate level of alarm; it was not a one or two alarm fire; it was a fully engulfed 5 ALARM blaze and few told you about it!</p>
<p class="MsoNormal"><em><span style="text-decoration: underline;">AS IF E-V-E-R-Y THING WERE NORMAL…</span></em></p>
<p class="MsoNormal" align="center"><em>Any mortgage borrower: in foreclosure, eviction,</em><em> or default, FINRA securities arbitration and or securities fraud litigation attorney may find FiduciaryALERT 2011 very useful. As of now, this information has not been reported in the main stream media in this fashion.</em></p>
<p class="MsoNormal" align="center"><em>Before 2008 violations of two levels of suitability and or breach of fiduciary duty appear. Also potential RICO-like acts may link insurance companies, securities lenders, asset managers, hedge funds, certain counterparties with, and have enabled certain banks, broker dealers, mortgage issuers, MBS trust sponsors and or their agents to trot out more and more mortgages to unsuspecting borrowers and investors… <span style="text-decoration: underline;">as if everything were normal!</span></em></p>
<p class="MsoNormal" align="center"><strong><span style="text-decoration: underline;"><span style="font-size: small;">Previous years' FiduciaryALERTs have proved useful</span></span></strong></p>
<p class="MsoNormal" align="center"><span style="text-decoration: underline;"><span style="text-decoration: underline;">May 2006</span></span>, “What do Elvis and Johnny and Fiduciary Duty have in common? A light-hearted but timely reminder; both Elvis' and Johnny Carson's estates decided to sell some of their real estate holdings.</p>
<p class="MsoNormal">What would you have paid in 2006 to be cautioned to look at your real estate holdings; in light of their run-ups in value along with your fiduciary duty to do so and document the decisions? Savings $___thousands; Headaches avoided ___ (fill in the blanks, priceless correct?)</p>
<p class="MsoNormal"><span style="text-decoration: underline;">July 2008</span>, was "Denial of Twin-flation™ or inaction is not a prudent investment strategy.” Twin-flation™ described the opposite pressures on the food and energy markets and the labor, real estate and financial services / banking industry and the US dollar. Along with a cogent list of steps to evaluate your investment process in detail. The Dow Jones Industrial average was over 11,000; in a few months it plummeted by almost 5,000 points.</p>
<p class="MsoNormal"> Why? Since <span style="text-decoration: underline;">before</span> 2008 the financial markets began and continue to diverge from the “real world economy.” Investors sold risk (stocks) and took refuge en masse in non-risk (like US Treasuries), yet in the real world aggregate demand fell off dramatically. Why is aggregate demand so important? It accounts for over 2/3 of US GDP; in the 4 years before it was pumped up by mortgage equity cash–out refinancings; those days ended for certain in 2008. So estimate the loss or headaches you may have avoided $____ thousands; if you had been prompted to take a prudent look at your assets in Summer 2008. Or in fall 2007 when the stock market hit its all-time high?</p>
<p class="MsoNormal"><strong><span style="text-decoration: underline;">Fiduciary<em>ALERT</em>™ 2011 pdf at 3 pages is a potential landmark issue, </span></strong><strong><span style="text-decoration: underline;">with even more </span></strong><strong><span style="text-decoration: underline;"><strong><span style="text-decoration: underline;">specific </span></strong></span></strong><strong><strong><span style="text-decoration: underline;">Action-Steps for Prudent Trustees and co-fiduciaries</span></strong> </strong></p>
<p class="MsoNormal">How much will it be worth to you? I don’t know the answer only you do. If the two largest assets in your life are important to protect or as a cost benefit analysis in terms of the time, money and aggravation that your heirs may bring on each other and your spouse after you’re gone in a legal action. What’s only one hour of attorney time cost now $400 or more let alone the stress? You set up a trust for a number of reasons; now is not the time to waiver from its purpose.</p>
<p class="MsoNormal">That’s only a few reasons this year’s alert is priced at $39.95.</p>
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<h3><em>Read FiduciaryALERT</em>™<em> 2011 instantly</em></h3>
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<p class="MsoNormal">You will learn new things from McFid, BFD expert since 2003<strong>™</strong>; 2,000x (times) leverage<strong>™</strong> is an important observation, not yet reported in the media. And you will be among the first to know it.</p>
<p class="MsoNormal">By the way, BFD stands for breach of fiduciary duty; something you want to avoid.</p>
<p class="MsoNormal">If you would like assistance on steps you can and should take to carry out your fiduciary duty concerning your mortgage and or investment fees, costs and expenses email <a href="mailto:info@fiduciaryexpert.com">info@fiduciaryexpert.com</a></p>
<p class="MsoNormal"><strong><em>The purpose of each FiduciaryALERT™ is to draw trustee's attention to pressing issues and to review their asset allocation decisions; importantly each ALERT is not a recommendation to buy, sell or hold particular investments; rather to deliberate and document their process; in sum, demonstrate prudence in action.</em></strong></p>
<p class="MsoNormal">Fiduciary<em>ALERT</em>™, 2,000x (times) Leverage™ and<em> </em>McFid, BFD expert since 2003™ are pending registered trademarks of Chris McConnell & Associates</p>
<p class="MsoNormal" align="center"><em>© Chris McConnell & Associates 2011 All rights reserved worldwide</em></p>
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