Asia went ape, the Russian ruble turns to rubble, and the markets gave a physics lesson what goes up, does come down. The Fed cut rates, everything settled down, and for the most part it was business as usual on Main Street. But for the first time we got an up close and personal look at how interconnected this global economy has become. Now it's the year 2000. Y2K turned out to be a non-event, though it took the blame for a general slowdown in activity in fourth quarter 1999.
Gas prices are at record levels, yet spending remains strong.
One fact remains constant for the real estate industry. Our health and well-being has always been tied to the availability and the cost of debt capital. That is to say that as long as we as investors have access to reasonably priced financing for our properties, we can survive in any market. I learned in 1991 that it wasn't enough to have equity, property has to cash flow as well. I also learned that when I can present my company as a stable enterprise, insulated from the uncertainty of highly speculative investments, lenders will roll out the red carpet for my deals.