The truth is that the financial system was never "fixed" after the crash of 2008. If anything, it is more vulnerable today than it was back then. Even as you read this, major imbalances are building up in the global financial system, and at some point a "tipping point" will be reached.
Once that tipping point is reached, it will not be too long before the U.S. economy experiences the next wave of economic problems. Perhaps we will be fortunate and it will not be as bad as the 2008 crash. Perhaps this next wave will be even worse than 2008 was. Only time will tell.
But all of the warning signs are there. The following are 15 indications that bad times are about to hit the U.S. economy....
#1 The price of gasoline is about to cross the psychologically-important $4 a gallon threshold in some areas of the United States. For example, the average price of gasoline is now $3.977 in San Diego County and it is $3.955 in Riverside and San Bernardino counties.
#2 The price of oil moved up close to the $105 mark by the end of the day today, and that means that more gasoline price increases are likely on the horizon for American consumers.
#3 In February, food prices in the United States rose at the fastest rate in 36 years.
#4 According to the U.S. Labor Department, the cost of living in the United States hit a brand new all-time record high in the month of February.
#5 According to the National Association of Realtors, sales of previously existing homes in the United States dropped a stunning 9.6 percent in February. The National Association of Realtors also has announced that the median home price is the lowest it has been in 9 years.
#6 The U.S. is already in the midst of a real estate crash that never seems to end, but many are warning that it is about to get even worse. For example, prominent housing analyst Gary Shilling is warning that U.S. housing prices are likely to drop another 20 percent.
#7 According to the Mortgage Bankers Association, at least 8 million Americans are at least one month behind on their mortgage payments at this point.
#8 According to the U.S. Census Bureau, the number of new building permits declined 20.5 percent in February on a year over year basis. According to John Carney of CNBC, a huge decline in building permits is usually an indication that a recession is coming....
#14 The damage from the tsunami in Japan continues to affect more American Workers. GM has just announced that they are going to temporarily lay off workers at a Buffalo engine plant due to a shortage of parts from Japan. When supply chains are going to get fully back to normal is anyone's guess. GM has also temporarily shut down a facility in Shreveport, Louisiana due to supply problems.
#15 There continue to be indications that the amount of radiation being released by the damaged Fukushima Daiichi nuclear power plants is much higher than we have been led to believe. The following is an excerpt from a recent report by NHK World....
400 times the normal level amount of radiation 40 kilometers from the plant?
That is something that should be taken very seriously.
So what should Americans be doing? How can middle class families weather the storm that is coming?