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Originally Posted by lauriejim
...youve always given me good advice on how the construction market was going and i didnt take it to heart, NOW IM LISTENING!!!!!.
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On the micro side I good preach about the housing market forever but the macro side is more unpredictable, mix the credit crunch (where if you knew how to breath you could borrow money that will go full circle to those who are your best credit risks and seek to borrow for example $ 1oooooo to build a few homes at a 50% LTV, that same banker NOW even on a solid deal with proper much tougher underwriting will look at you like you just asked to borrow one billion dollars not one million dollars) with inflation which for some reason the government claims barely exists (hello, the drop in the dollar, 700% or so increases in commodities like oil,silver,copper,etc. all which trickle down) with deflation in housing which has always generally been Americans primary appreciating asset..... Not sure without research if all 3 of these have occured at the same time. I know we had "the misery index" of 1981 and 1982 of 21% including inflation and unemployment. Hope we do not have "the jump off the building index" in our future but we came real close this past Monday if the Fed did not make the unprecredented move of opening it's discount window to not just banks as always but now Wall Street....Maybe the Fed could open it to failing online casinos
