hmm. those who play by the rules arent affected.
Bingo.
While we like to think it will only be the truly foolish or risky who’ll suffer, the fact is everybody will be aversely effected by the credit crisis.
In order:
1) Anybody who’s bought a home in the last 5 years will be faced with negative equity. (Walking away will be considered a good business decision).
2) Property Tax Rates will need to go up, because housing values will go down.
3) Fire and Police costs and Crime will increase because abandoned houses draw unsavory elements to neighborhoods (especially out in the Exurbs and Suburbs).
4) Big Businesses will find it harder to raise money, slowing down any expansion.
5) Banks will be even more risk adverse, making it harder for small businesses to expand.