Unfortunately what we are now experiencing is following a very well established path.
I found it amazing that people DID NOT see this coming. We had a Real Estate BOOM in this country that made the run up after WWll look like a ripple in a pond. Consumers are BURIED to their eyeballs, and
now the banks have literally RIPPED the credit DRUG right out of the junkies arm. The “withdrawal symptoms” will be the next phase of this event…
I fully expect to see MASSIVE jobs losses.
THINK ABOUT THIS…
You are witnessing a business cycle that is JUST BEGINNING. The FROZEN credit markets will start to REALLY impact small businesses within weeks. When a business that has BIG TIME capital requirements but CAN NOT get access to short term credit there is only ONE OUTCOME…
Those businesses will let employees go. They will CUT, CUT, CUT.
Those cuts will spread to other businesses. Big businesses count on SMALL businesses to provide parts, supplies, equipment, even labor. This eventually reaches a point were even fully capitalized businesses become affected as BUSINESS in general dries up. It’s a dog chasing it’s tail.
Let’s look at the job loses we’ve already had by sector. Then you tell me how this doesn’t end up in the classic death spiral.
Construction…HUGE loses here, obviously.
Real Estate…Realtors, Mortgage Brokers, Even ATTORNEYS are getting KILLED here.
Car sales…NO BOTTOM IN SITE…The businesses are like an Octopus. Their tenticles reach out very far. From manufactoring, to repair, to sales, even UNIFORM SUPPLIERS are hurting as dealerships cut ANY COST possible. I personally know a COFFEE DISTRIBUTOR who has laid off HALF his employees because restaurants and car dealers are hurting.
Banking…Do I have to even explain this one.
Retailers…DONE…NO CREDIT = NO SHOPPERS
The brightside???
ANYONE…and I mean ANYONE sitting on COLD HARD CASH will be able to buy ANYTHING for a FRACTION of it’s value!!!