09/09/2008

Hello:

Sunday, U.S. Treasury Secretary Henry Paulson announced that the Federal Government would bring Fannie Mae and Freddie Mac into conservatorship. This was considered a compromise between doing nothing and forcing the mortgage giants into bankruptcy. What this may well do in inject capital into economy, but the source of the billions of dollars would be the Federal Budget (as funded by taxpayers!).

Curious as to why the Federal Government is getting involved with Fannie and Freddie? Please refer back to the Weekly e-Update dated 07/21/08 titled Bazooka Henry... or look for it on our website www.trisummit.com.

So this plan will give the US economy the appearance of greater stability to foreign investors, and will give new home buyers a better opportunity to borrow, now that there is more capital available. For the rest of us? It probably does not mean that lower taxes are on the way.

Have you updated us on your tax bracket? Keep us up to date on tax bracket changes and any other significant so that we may better advise you.

Terri G. Millson, CIMA, CIMC President

Ray Dicius, CSA, GEPC LPL Branch Manager