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Strategies & Market Trends : The Residential Real Estate Crash Index -- Ignore unavailable to you. Want to Upgrade?

To: Smiling Bob who wrote (150273)	9/25/2008 1:56:13 PM
From: XoFruitCake	Read Replies (1) \| Respond to of 306849

"You're talking about the BS business of creating value out of thin air. I'm talking about nuts and bolts and tangible assets with real value. I can't borrow on margin against options. WS not only can, they can get 50:1." But right now the problem is moving from WS to main street.. Your original post arguing the point that any business which has established credit then it will not be affect by this credit problem.. And I think I am arguing the other side of the story. i.e. right now every business has a random chance of going bk because the banks/finance companies that offer them credit are on the brink and we don't know which one is having trouble (may be they all are). And in my view, this is a risk that we,as a country, cannot take.. For all I care all these banks and finance companies should all go BK and pay the price for their own mistake. But should all the business that rely on them for credit to run their day to day affair also deserve to go bk because they don't have any credit to pay their bill? And what about those workers that work in these affected business? Should they deserve to get layoff so that those bankers will learn their lesson??? I think that is the kind of systematic risk that they are talking about.. I don't think anyone know for sure what happen if things play out without any Fed involvement, but no one really want to find out (me included)...