American Public Faces More Debt Problems, According To Noted Financial Advisor

Online, May 7, 2010 (Newswire.com) - Although news articles are appearing claiming that signs of economic recovery are on the horizon, long-time financial advisor Dennis Tubbergen feels that it's too soon to be optimistic.

Tubbergen weighs in on the country's prospects for economic recovery in his popular financial blog, www.dennistubbergen.com.

A significant part of the problem, according to Tubbergen, is that banks still aren't lending - and for good reason. According to a recent Wall street Journal article, 16 percent of all U.S. credit card loans are in default, 12 percent of all U.S. real estate loans are in default, and 10 percent of all U.S. loans are in default.

Since banks aren't lending money, the government continues to borrow against future production by spending far more than it is taking in.

This is a repeat of the last economic collapse, according to Tubbergen. Consumers spent too much of their future production; When spending stopped, the economy ground to a halt.

This time, only the government is spending future production. When the government stops spending, Tubbergen believes, a further economic downturn could occur.

Dennis Tubbergen has been working in the financial industry for almost 25 years. He is CEO of USA Advanced Planners, Inc. a registered broker-dealer; CEO of USA Wealth Management, Inc. a federally registered investment advisory company; and CEO of USA Advanced Planning a tax planning and wealth transfer company. Mr. Tubbergen often serves as a keynote speaker at financial industry events and also publishes a practice management newsletter for financial professionals distributed to over 4,000 financial professionals.

For more blog posts containing Tubbergen's insight, visit Tubbergen's blog at www.dennistubbergen.com.

The opinions expressed herein are those of the writer and not necessarily those of the above noted companies. This update may contain forward-looking statements, including, but not limited to, statements as to future events that involve various risks and uncertainties. Forward-looking statements involve known and unknown risks, uncertainties and other factors which may cause actual events or results to differ materially from those that were forecasted. Information obtained from third party resources is believed to be reliable but the accuracy cannot be guaranteed.