There's a Fuse Box Buried Deep Within the U.S. Economy... and its about to blow... When it does, the lights on the dimming U.S. economy will go black...

Major banks (once thought "too big too fail") will be shaken to the ground. Corporate bankruptcies will soar. Bonds will crash. the Dow will dive towards 4000. And the dollar will continue its slide into the dustbin of monetary history...

The Derivatives Time Bomb

Deep in the shadows of the real economy lies an underground economy where the world's largest financial players conduct secret transactions worth trillions of dollars.

These transactions are made far away from the headlines of the evening news. You'll seldom read about them in the Wall Street Journal... and you'll rarely hear about them on CNN - yet they effect every investment you make: Your stocks, your bonds, your mutual funds -- even your real estate.

Financially they act like a giant underground fuse box... whose financial currents (though invisible) are channeled through to the real world of day-to-day investments. In the same way unseen electrical currents power our physical world, so too do these unseen financial currents secretly power our economy.

Occasionally though, something happens. A country blows up... or a bank... or an investment fund... that reveals the catastrophic power these financial currents carry. We witnessed their effects when world stock markets collapsed in 1987... when Asian markets plummeted in 1997... when the LTCM hedge fund collapsed in 1998. But even these devastating events could pale in comparison to what lies ahead.

A series of events are about to unfold that will short-circuit the system and cause this giant underground fuse box to blow. When it does, we may bear witness to the largest financial upheaval since 1929... and the lights on our dimming economy will indeed go black.

The giant bubble forming in the global derivatives market (led by America's big banks) bears frightening resemblance to the S&L crisis. In the 1980's a lack of regulation and oversight allowed America's banks to trade dishonestly, hide losses and embezzle client and government funds. The same scenario is unfolding right now amongst the world's global derivatives traders. America's big banks, big corporations and mutual funds have turned into giant casinos... using unregulated over-the-counter and massively leveraged derivative bets as a new source of income... and as a way to disguise losses and dupe investors. The difference though to the S&L crisis is that when the derivatives bubble finally blows, the fall-out will be 100 times worse. The S&L crisis cost American taxpayers hundreds of billions of dollars and depressed the real estate market for years. But no pot will be big enough to bail out America this time.

Derivatives were designed to help banks, corporations and countries hedge against risk. But banks found they could make a killing by concocting more exotic derivatives that effectively bet on the future direction of interest rates, foreign exchange, commodities and stock indexes. And since banks aren't making money from traditional lending any more, derivatives are a fantastic new way to net huge gains. And why not take some big risks when the Fed will "supposedly" back you - and the transactions can stay off the books - far away from the prying eyes of investors and analysts. As we see it, America's banks have turned into giant casinos. And now this Giant Casino Economy has begun to splinter. Are you banking with one of them?

Bank failures occur every year in America. There were more than 1,000 bank failures between the years 1986 - 1990 during the S&L debacle, which cost American taxpayers hundreds of billions of dollars and depressed the real estate market for years. And now considering the self-serving and dangerous practices Wall Street's banks are engaging in - where would you prefer to bank? In America or in age-old financial havens who've shown little systemic risk and who haven't experienced a bank failure in their 200-year-old financial history?

Don't let these thieves drag you down with them...