Freedom Investment Club

Freedom Investment Club

September 19, 2007 06:30 ET

Federal Reserve Lowers Interest Rates, Freedom Investment Club Looks Ahead to Growth

VANCOUVER, BRITISH COLUMBIA--(Marketwire - Sept. 19, 2007) - On top of the shaky economic climate and the oscillating credit markets, the US housing market foreclosure forecasted for 2007 is expected to be more than double the amount in 2006.

The US housing foreclosure epidemic is not isolated just to the USA, but threatens the health of the global economy, as sub-prime mortgages were lumped together in packages and sold as asset backed securities worldwide.

Investors in Canada are directly impacted by the sub-prime mortgage fiasco, as financial institutions own $35 billion in asset backed securities and it is estimated that these assets are only worth 50 cents on the dollar.

So far this year nearly $200 billion in mortgages have been refinanced or reset mostly at higher rates. The dramatic increase in monthly mortgage payments will make it difficult for many borrowers to qualify for financing.

From January to June 2008, another $521 billion in mortgages is coming up for reset - double the amount of mortgages reset last year. It is nearly certain that foreclosures are going to sharply increase in the months ahead, continuing the real estate crisis. In July alone, over 40,000 homes nationwide were foreclosed upon.

Evidence the crisis is spreading into the overall economy was confirmed in the lower earnings reported by Walmart and Home Depot. Due to the housing slump, consumers are spending less money and there is a growing concern that we may be heading into a recession.

"In this time of growing concern and under these volatile market conditions, investors must continue to be alert," cautions Mr. Mike Lathigee, Chairman and Chief Executive Officer of Freedom Investment Club (FIC). "If the sub-prime mortgage crisis is eased with lower interest rates, then global growth will probably come out as the winner and over time the markets will rebound, avoiding a recession."

Amidst these growing concerns of a catastrophic recession, the Federal Reserve intervened by lowering its discount rate at which it loans money to banks by 1/2 percent. The dramatic move marked the first interest rate drop in six years.

The negative side effect of the Federal Reserve efforts to maintain low interest rates, increase the money supply and maintain a stable GDP growth in the long term will be inflation.

Mr. Lathigee has spent over five years, since the inception of FIC in 2002, analyzing the global economy and forecasting market trends for the benefit of FIC members. After first alluding to the current sub-prime mortgage fiasco three years ago, alerting FIC club members to the pending crisis at Club meetings and FIC's Monthly Economy Call, Mr. Lathigee focused the club's investments in hard assets such as precious metals and commodities.

The news of the Federal Reserves move to lower interest rates comes as good news for Freedom Investment Club and its members. With Freedom Investment Club's move into the commodity market at an early stage, members who took action stand to benefit. Mr. Lathigee expects the upward trend for the commodity Bull Market to continue at least for another 15 years.

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About Mike Lathigee:

Since September 2002, Mike Lathigee has been the Chairman and Chief Executive Officer of the Freedom Investment Club Group of Companies, which currently has 5,000 members and $110 million in assets.

Mr. Lathigee is a dynamic speaker and educator. He has spoken to hundreds of thousands of people at public events across Canada and the USA. Each month thousands of members listen to the FIC Economy Call. At these Teleconference Calls, Michael discusses geo-political events, analyzes developing market trends and based on his key findings investors can maximize gains based on these trends. In addition, on a regular basis Michael meets with the FIC Club members in various cities across Canada and the USA. To guest attend a Club meeting please visit:

About the Freedom Investment Club:

The Freedom Investment Club (FIC) is a unique investment concept. Managing specific investment pools (referred to as the Club's various "funds"). The Freedom Investment Club (FIC) operates in both Canada and the United States, with funds tailored to the unique investing and regulatory environments in each country.

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