Four bear market warning signs to watch out for

The US housing market is increasingly fragile. The rebound in the UK seems to be over. Stock markets are in turmoil. Is this a passing correction - or will things get worse? There are four key warning signs that may point the way forward...

The global economy continues to rely upon American consumers borrowing to buy goods they don't need that are mostly manufactured in China. It is now well understood that their willingness to do this and live beyond their means has only been possible because of rising house prices. So again we update that story.

Federal Reserve chief Ben Bernanke urges banks to take more care on home loans. At the same time he expresses confidence that the US housing market is cooling in an orderly and moderate fashion (he hopes).

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