Understandably, many investors are elated to see the stock market rally and increase the value of their investments. But if we take a look at the underlying indicators, those indicative of a robust and growing economy, the optimism is not supported by the reality of our financial foundations.

Unemployment is near percent. But, if we add those who have stopped looking for work, people who work part time, and people who, through necessity, have taken lower-paying jobs, the rate is probably closer to 20 percent. It is unreasonable to expect that jobs lost will be jobs regained, when and if the economy recovers.

We have a terrible housing market. The value of the dollar is plummeting and consumer demand remains restrained. We have a $1.4 trillion dollar deficit, looming hyperinflation, a massive national debt, huge proposed entitlement programs and the tax increases that will be required to fund these programs.

Because the federal lending rate is near zero, returns from money market accounts and certificates of deposit are negligible. The stock market is one of the few avenues available for people seeking a significant return on their investments. Current market gains, given the state of our economy, cannot be maintained and I fear we are in for a second crash that may rival or exceed the first.

Ray Cziczo

Antioch