Wall Street is a disaster these days. Today the Dow crashed another 300 + points, leaving an unprecedented flood of Red ink,at the beginning of a new year. Sort of makes you wonder how the Market managed to maintain its equilibrium during December, right through New Years, then opened up the new year in such disarray.
The entire investing community woke January 2nd, went to their trading posts, and decided the economy went from cautiously optomistic to bottomless pit seemingly overnite.
As a small business owner(9-12 employees), I have noticed some very puzzling atypical patterns in the last few monts.
A year ago August(2006) I felt a definite slowing of enthusiasm for residential real estate construction , building, and cosmetic renovations aimed at a quick buy and flip. (I’m an importer on the supply side of the industry). The day to day frenzy was fading. Although longer range projects were moving forward, they did so on an ever shortening leash. Projects were being approved but money was being witheld by the lenders and released as late as possible. Thus placing an additional burden on the shoulders of the contractors and suppliers, who are put in the position of carrying part of the burden of financing of projects, or possibly loose the work.