Why the stock market represents a huge investment risk

Did you know that 47% of the money in the stock market is borrowed money? People re-mortgage their homes at 125% to 135% market value and put the money in the market, thinking they can borrow their way to prosperity. People run their credit cards to the limit and put the money in the market. Each year for the past four years, personal bankruptcy in this country has set new records.

The word now is speculation. Wall Street keeps telling us that the Dow is going to 15,000 and then on to 20,000 – eternal prosperity if you stay in the market. Americans are no longer saving for that ‘rainy day’ as they used to. And as far as the purchasing power of our dollar is concerned, based on the 1940-dollar, today’s dollar purchases only five pennies on that 1940-dollar.