While many fund managers are celebrating the Dow Jones Industrial Average topping the 12,000 mark, David Tice, manager of the $682 million Prudent Bear Fund is sounding alarms, Forbes.com reports.

Tice points to the nation’s $70 billion deficit and falling real estate values. “I believe the credit expansion will end in tears,” Tice says, noting that many homeowners now have inflated mortgages. And those with adjustable-rate mortgages who are now being hit with rising interest rates face the potential for foreclosures.

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