So where do we go from here????

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.


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.


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!!!

as usual fdjake…you’re spot on.


Something to consider in these down times. When people lose their jobs, what are they going to do to get jobs again? Answer: they are going to go to school to get more and/or new skills. This is a lot like what happened after the tech crash; colleges were hiring like nuts to try and get the staff to cover all the new students enrolling. I got a really nice job right around then for that very reason. However, things are slightly different this time around. This time, the housing crash is factored into it all. Where does alot of funding come from for schools? From property taxes. So, things will be tricky this time.


People need to stay somewhere … apartments? shelters? 1-4 unit SFR’s?

Will prices fall across the board to compensate for higher unemployment?

Will foreign money gush inward?

Maybe a blessing - will manufacturing return?


What’s your take on GM and Chrysler talking merger? Do you think this would help them survive? How could 2 of the BIG 3 merge? I can’t even imagine GM and Chrysler together as I seriously dislike Chrysler, but have been a long time GM man as my dad worked for them.

Ford and GM were also talking. Read in a differant article that Ford decided that staying on their own would be best for them.

I saw the same about GM & Ford. Looks like that discussion was a few years ago. I agree it’s hard to imagine these companies combining, but look at the things we’ve seen take place in just the past few weeks.