We are now in June 1930, according to trader/author Ron Coby, a friend and neighbor of one of our favorite underground investors Dan Ferris. (Ferris is a member of the Stansberry & Associates Investment Research team and editor of Extreme Value. ) Ron believes stocks are going to plunge – just as they did from June 1930 to July 1932 when the crash that began on October 24 1929 finally bottomed.

Pickens’ Wind Farm Delayed; Apple Tarnished by SEC Scrutiny; UBS May Settle Tax Dispute; Higher Gas Prices Help Reduce Traffic; Discount Retailer Thrives in Recession; Pepsi Bottling Profits Rise

Consumer credit could be the next “aftershock” of this financial crisis, says Jason Simpkins. Banks have suffered big losses on mortgages, and are now looking to reduce their exposure to credit card debt. This could be the death knell for the American consumer, and deepen the US recession in 2009.

For those holding out hope that the American economy can miraculously avoid a long and deep recession, consumer credit is often viewed as the wonder drug that can cure all manner of economic ills.