Published by admin on September 24,2008
A number of major corporations have gone under over the last 60 days, unemployment levels are elevated, inflation is a concern, and access to funds is tighter than ever.
I was in the real estate market all through 2003-2006 and saw first hand the loans that were being granted to borrowers who had no business qualifying. It's the classic economic problem of unlimited desires and limited resources. Borrowers yearning for the American dream of home ownership and (greedy) loan officers hungry for the biggest rebate.
Corporations probably didn't fully disclose (or even fully understand) the implications of the complicated derivative instruments they were investing in.
So what now?
Big picture - The United States still has the most vibrant economy in the world. Yes China and India are making rapid advances. The Euro as a currency is charging along and the dollar has declined.
However, remember the words of President Bill Clinton - Anyone who has bet against the United States over the last 200 years has been wrong.
In my words - We are the hub for technology and innovation throughout the world. We got through the Great Depression, two World Wars, a number of stock market fumbles and some errors in judgment.
We will get through this too and emerge stronger than ever.