we’d probably get arrested for fraud. How is it possible this isn’t ILLEGAL? Wells Fargo came out with its most recent earnings report, and announced a $1.75 Billion drop in earnings – which prompted investors to start thinking maybe the worst was over — like having almost $2 Billion dollars disappear from earnings is a good thing. The analysts had expected even worse results, so they “beat estimates” and everyone rewarded the company by bidding its share value up. In any case, if you look beneath the surface, their TRUE problems become much more clear. On April 1st, Wells Fargo changed the terms of what they consider bad debt. Previously, if a loan was unpaid for 120 days, it become “bad debt” that they reported, which affected their earnings. So, how to prop up earnings so that it sounds better to the public? Change your criteria, so that less loans are called “bad”! After April 1st, Wells Fargo now waits 180 days — 50% MORE time — before calling a loan “bad”. The result (and the purpose) is that far less of their loans get reported as bad, even though they’re the SAME BAD LOANS they had when they were using 120 days as the cut-off. If you factor this into their recent earnings report, they lost BILLIONS of dollars. The fact is, they’re still going to lose them .. they’re just delaying the inevitable, and trying to push the problem forward. In other words .. financial companies continue to play accounting games to try and stop the bloodletting in their share values. But a pig is a pig is a pig. The financial industry is not only NOT in recovery, it has more skeletons in the closet that haven’t even been discovered yet! Watch for a major financial company (like Lehman Brothers) to follow Bear Sterns into the abyss. Does this mean you should stick your head in the sand? Absolutely not! NOW IS THE TIME to equip yourself with knowledge .. model successful people and what they’re doing .. and put yourself in a position to take advantage of the MASSIVE wealth re-distribution that’s coming!]]>