May 17: The Potential for a New Stock Market Crash
There are many signs pointing to an impending long term bear market (a period of decline in the value of stocks). The first and most important indicator is the outrageous use of credit that has created a crisis in the United States. As housing prices skyrocket all over the country, homeowners have used home equity credit lines to take advantage of these inflated values. Consumers have been maxing credit cards and credit lines in order to buy seemingly frivolous items, such as large electronics and luxury vehicles. Living above your means seems to be a national epidemic. What many consumers aren t facing is the reality that this unnecessary spending is using borrowed money which must eventually be paid back.