Money just got tighter over night as money market rates doubled and unthinkable bank failures happened.
It kind of reminds us of last week’s high gas prices followed by shortages. Remember all those motorists on the six O-clock news scrambling round trying to find gas at the new inflated prices?
First comes the high prices followed by the shortages?
Now it’s the money.
What does all this mean for real estate investors?
Fear is dominating financial markets as the giants such as Lehman Brothers fall and others such as AIG may also die a painful death.
How about this story concerning some Lehman es-staffers selling off company items such as notepaper pads on Ebay? (Lehman Brothers: Angry staff sell off company memorabilia on Ebay)
Here’s a quote from one of them…
"I guess all you employed people could use this bag to carry important documents and do complex mortgage calculations on the notepad. The only importantish docs I have now are my Lehman stock certificates, which I plan on using to warm my apartment this winter when I can’t afford the heating bill."
There’s one of the main reasons why we invest in real estate. Why we put up with tenants. Why we work nights and weekends during the rental seasons. Why we continue to educate ourselves when everyone else is out golfing, etc.
So when we lose our jobs we’ve got our real estate to fall back on. And even if we don’t lose our jobs, we’ve got our fantastic retirements…
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