E-Profit Today

You should know that more millionaires were made during The Great Depression than in any other era in U.S. history. Want to know how that happened so you can cash in on the economic crisis looming on the horizon?

I did a lot of research work to find the real data, not just the historical information dished out by the media about how hard the depression was on the masses and how hard the President worked to turn the U.S. economy around. It takes digging through piles of research documents including the patent and copyright office files in addition to the Library of Congress to find a lot of the information. However, there is a lot of information available on the internet if you dig deep enough.

There is a pure gold nugget contained in this history lesson that can enable you to make a lot of money when our country is in a recession (like right now) because a recession is a depression of shorter duration and less economic damage. So bear with me while I give you a short history lesson that contains the golden nugget.

You should know that the Great Depression actually started a few years before the 1929 stock market crash and lasted until World War II brought the country out of the Depression.

During the years before 1929, as greater and greater amounts of credit was extended to businesses and individuals the economy was sliding over the edge from available cash to way too much credit debt. As the amount of credit debt reached a critical level, and companies failed to pay the credit bills, the biusinesses crashed (the 1929 stock market crash.) Because employees lost their jobs they could not pay their credit debts and the housing market and banking industries crashed.

All of the business enterprises that were bought and sold during the depression by people with cash savings are too numerous to mention, but due to the war effort, those with cash savings who purchased homes, land, companies, and purchased the stocks of the companies that made products demanded by our government for the war effort made millions. The industries included such products as:

1. Steel, iron, copper, and aluminum 2. Communications: radios and parts 3. Transportation: Aircraft, Tanks, boats and vehicles (and their parts) 4. Ammunition and weapons 5 - Tents, cots, blankets, backpacks, boots, clothing, helmets, belts (and the materials to make these) 6 - Containers 7 - Shipping, truck and railway transportation 8 - Petroleum products and fuels and the stocks in iol wells (the Texas oil boom was a biggie!)

Some of the well known companies that were bought during that time were: Douglas Aircraft, Reynolds Metals, John Deere, Ericsson, and even the Goudy Gum Company ( gum company to give away baseball cards with gum.)

Some of the oppressive laws that our government passed during the 1930s to take money from the large number of people who had cash savings and were using it to buy companies (or stocks in companies) as well as property. The government wanted to take it away from the people who had been wise enough to stash away liquid cash and not get into credit debt, and re-distribute it to destitute families or use it to fund the war effort.

Later, these laws were ruled to be unconstitutional, but the point is that those with liquid cash were investing it in ways that made them millions, particularly those industries necessary to the war effort. Yes, the stock market crashed, but the stocks could still be purchased at undervalued prices and people with cash invested at the bottom of the market.

There is a simple lesson to learn from this era. My clients learn how to use it while learning to manage their money correctly. In case you missed it, here is THE GOLDEN NUGGET: When it comes to money, the only thing you have to fear is having no liquid cash to get you through an economic crisis.

There are many people who have lots of their money tied up in non-liquid investments (like real estate investment rental properties) who are worth a ton of money on paper, but can't pay their bills. Then there are some who have too much of their money invested in semi-liquid investments and the stock market, and yet have no liquid cash that they could get their hands on within 30 minutes if an emergency presented itself.

The frightening shape our current economy is in today has the same indicators that heralded the depression of the 1930's. Too much credit debt, not enough cash savings, bank failures and bail-outs (WAMU was the first at a $5 billion bail out in April) and the real estate crash / mortgage crisis.

My clients are paying off their credit debt and stashing cash savings with a vengeance. They sleep better at night and will survive whatever comes. What are you doing to prepare for the economic crisis that is now underway?