a believer

Credit Crisis Watch: Are the Markets Thawing?

Fact of life: companies whose business models depend on credit wil go hungry; those whose business model depends on leveraged debt will perish.

The reason is simple: The opaqueness of their transactions is quickly destroying the confidence that the benfactors (those with cash) have. The destruction of confidence was aided by credit ratings agencies that either could not keep up with the pace of credit deterioration, or outright lied about them.

So there is no thawing, nor will it occur for quite some time. Confidence takes decades to re-build, if ever. In the mean-time, all of the thieves and liars are still out there, trying to find someone else to deceive!

The survivors will be those companies and persons with cash flow and cash balance, that work hard to provide valuable goods and services to others. Like it used to be, and should be.