How to Profit From the 10 Biggest Wall Street Lies of 2009

#6 The Credit Crunch is Easing

The headline consensus on Wall Street is that the banks are stable and no markets are melting down. (See why you shouldn’t write off another
financial crisis somewhere around the globe). In short, things are returning to normal.

But we’ve seen a $1.5 trillion reduction in consumer credit during the past 18 months, and another $1 trillion (at least) is likely to be pulled
back in the coming year, according to uber-analyst Meredith Whitney — someone I wouldn’t bet against. And almost no one is getting a home equity
line. The credit crunch will continue in 2010, as lending standards remain high and banks horde their cash to keep themselves afloat.

Lesson for investors in 2010: Less available credit means reduced spending in 2010 and beyond. Invest accordingly.

Next: #7 Consumer Spending is Returning to Normal