In other words, while we have a system based on credit, there is a greater risk is that credit may not be repaid. As opposed to other countries (many third world) in which you have to save for everything you buy.

Yet liquidity in the credit markets allows for more sales, more sales means more profit for small businesses, which leads to them becoming bigger businesses and more jobs.
However what do we do when the credit market seize up?

Is not some ’seizing’ good though? Was it not the credit markets being too loose that created this problem in the first place? Well there is enough blame to go around, as for now small business and housing needs to be front and center.

People loosing there homes further drives down valuations and dries up a primary source of capital for small businesses, which is equity in their homes.

In the mean time – lets all ‘watch our mouth’. Consumer confidence is a big reason our economy is dragging and the consumer listens to the media. The average person does not know what all this economic stuff means, but if you tell enough people the sky is red for long enough, whether its true or not, they will believe it.

For us we need people infusing capital back in the system which means people have to have hope in the future. If not it becomes a self fulfilling prophesy. For example, how many people bought homes because they thought values would always go up? They did it because they believed the hype, had hope in the future and our economy did great.

OK – I’ll get off my soap box. When your used to hosting a radio show – its easy to keep going. Ilyce – keep enlightening us and as you would say, what a great time to be an investor! Some people are going to come out of this well positioned to be very wealthy – will your listeners be! If they listen to you they will be. I’ll be listening as well!