1. In 1993 total debt as a percent of Gross Domestic Product was 299.8%

2. In 2010 total debt as a percent of GDP was 372.1%

3. When governments reach the limits of their ability to borrow and investors believe the governments are not serious about controlling costs then interest rates will rise.

4. More debt takes up large chunks of the national income

5. Consumers and business men are cutting back on debt and pay down their debt

6. Keynesian economics states gross domestic product equals consumption + investment + government spending + net exports (Exports - Imports). Keynesians argue increased government spending is need when the economy slows down. Spending fueled by debt accumulation.

7. Countries have let this fiscal deficits rise weakening their growth. Serious cuts to government spending will be required. Higher taxes will be imposed to support existing spending and help reduce fiscal deficits.

8. Credit induced recession take six to eight years to recover

9. Small businesses create new jobs. Increased regulation inhibit growth by costing business money. Banks liquidity is drying up for small businesses. Small businesses survive when the cost of labor decreases.

10. Gold is $1900 an ounce. Gold is expensive because inflation is going up. Inflation will have to go up because money supply is over $3 trillion. Interest rates will have to go up as inflation goes up. Money is being devalued.

11. Insolvant banks are kept afloat by cheap money from the fed loaded with low interest mortgages and low yield treasuries.

12. The interest rates will have to go up. When it does the banks will collapse and Bond prices will drop, decreasing the valuations of the bank. The bond prices will collapse as interests go caused by tighter money lending. Since 2000, the stock market has been moving sideways. The stock market could crash downward like the great depression should investors begin selling off the bond market. Once bonds go then stocks follow fearing rising interest rates.

13. All long term markets of the last century as bull or sideways. Cyclical cycles last five years.

14. Stock prices are driven on stock valuations and earnings

15. Stock prices do not always go up with earning growth because dividends may be flat or small.

16. When the stock market move sideways price earnings drop from 30 to 19 while earnings grew 2.4%. It seems that companies use the earnings to recover from years of excess spending.

17. During the Great depression Price/Earning declined from 19 to 9 and stock prices decline nearly 90%.

18. Is it logical in a bull market to expect 12 percent returns indefinately?

19. Buying and holding great companies at reason valuations worked, in the past. Smart investor buy when great companies demonstrate they are cash rich and capability of selling products in strong demand. The stock market is over valued having passed the 10,000 mark and will move sideways for the next decade, in a stagnate market.

20. Buy stocks are are unreasonable cheap but during a depression cycle. Will the stock market return to 8000 or the Price to earning ratio of 15 less 3 = 12?