Seven (7) reasons I believe a massive crash is coming and probably will begin this month;

1. Foreclosures continue unabated and 2010 will be worse.

2. Commercial Real Estate is STILL the 1200 lb Gorilla in the room!

3. Unemployment continues unabated. Worse still, most people losing their jobs cannot find new jobs. Unemployment benefits continue to run out increasing the number of people out of work and out of benefits! It will be a sad Christmas for most people on unemployment.

4. Credit card and loan defaults continue at a brisk pace.

5. Cities, municipalities and states face a diminishing tax base (see items 1, 2, and 3). How many cities and states are insolvent, but won’t admit it it?

6. Dubai is still a problem, but has been buried by the obedient media. Dubai is also the tip of a very big iceberg. Expect more such failures in 2010.

7. No country or empire has ever spent it’s way out of debt and yet, that is precisely what the U.S. government is trying to do. U.S. Debt approaches $12,100,000,000,000 (approx. $40,000 per citizen) and will continue to grow at an increasing rate.

I am not a doomer, I am a realist. Everything that I have listed is really happening and no reasonable solutions to any of them have been posited or put into place. If you continue to pump air into an inner tube eventually it bursts! The economy is the inner tube and the seven problems that I have listed are the air.

- cynicalguy

Related Posts:

• Tech stocks are still a bright spot. Why?
• The biggest problem affecting economies all over the world is that PRICES OF GOODS AND SERVICES ARE FAR TOO HIGH RELATIVE TO INCOMES.
• Forgive me for being a “doomer” but just exactly where do you see growth or recovery?
• COMPANIES BOOST PRODUCTIVITY AND PUT OFF HIRING
• 2010: “LESS BAD” again?

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