"When credit dries up, cash goes into hiding," said Robert Kiyosaki at one of our meetings. He was talking about the current markets, and how he didn't think we were in a housing bubble so much as a credit bubble. He went on to talk about how they are paying down their own mortgages, and freeing up cash in order to take advantage of the opportunities this kind of market provides.
When cash goes into hiding, those who have it, get the deals.
That was a couple months ago and I am really starting to see it happen. I have a vehicle for sale right now, and wow is it a different market than it was back in November when I bought this one.
When people's house values are up, they feel good, "house-rich" and are more inclined to spend. When housing values go down, people feel much less inclined to spend money, especially when so many were highly leveraged and may not find themselves upside down in their homes.
Cash goes into hiding.
So, even the market for cars has changed. Those with readily available cash can find really good deals right now, not only on cars, but houses, etc. (Range Rover anyone?)
