The Coming Crash
When is the next stock market crash? The person who knows this answer can become very wealthy, indeed. Let’s review some facts that show that we are in for a long term bear market.
We are in a Credit Bubble
As housing prices have soared to nosebleed heights, homeowners have flocked to home equity credit lines. Basically, this allows you to use your house as an ATM machine. Consumers have been maxing out on credit and spending it on things like large SUV’s, vacations and big screen TVs. Living above your means has never been easier, or as widespread! Of course this money is borrowed, and must be paid back.
To make matters worse, consumers aren’t the only ones in debt up to their eyeballs. The Federal debt is valued at $7.2 trillion and growing by $1.71 billion per day! Much of this is fueled by deficit spending, which is in vogue in Washington.
The total national debt (combined government, business and household borrowing) has grown by $13 trillion, from 1990 to 2001, to $32 trillion! This type of massive debt growth is extremely risky and most government officials have no idea how to pay it off.
