What happens next? We can look back to the 1970’s for a hint at the answer. The Feds, in an attempt to stave-off inflation, raised the interest rates to 20+%.

What happened to those buyers who wanted to purchase a home? We had to be creative. Sellers, together with banks, provided the financing for buyers. Everyone had “skin” in the game. These were often referred to as “wraps” or seller-financed “seconds” to create the original 80/10/10 loans.

It seems the more the government becomes involved and interrupts the free-market system, the more nervous investors/buyers/sellers/”flippers” and upper management of private companies become. Regulating and controlling our incomes, our ability to earn high incomes, the ability to obtain financing, etc. can easily be perceived as over-reaching by the government. The intrusion into our lives by goverment, the more people question “what’s next?” and dig in their heels. We have only history to look back upon to prove this out.

If the free market is allowed to make the market corrections, the more the entrepreneurs and risk takers are likely to bring us out of the economic slump we find ourselves….