We live in a world that is transaction based. If the transactions dwindle to practically nothing, the economy suffers. For example, when a new home is sold it creates hundreds of financial transactions. The builder gets his money and then builds another home and employs more people. The real estate agent makes a commission and spends it on dinners, vacations, and general bills. And escrow company makes money and employees dozens of people who also go to restaurants, vacations, and Fry's electronics to buy the latest toy.
In the past two months, the number of business opportunity transaction in California has dropped by more than half compared to just December. That's 10's of millions of dollars of lost transactional income. Imagine the affect on the economy; on every small and large business.
An economy is driven by transactions and if the consumer confidence is low, than the number of transaction will be low and the trickle effect starts to roll down through the economy.
We as a nation need to open out pockets and have the confidence that we'll be able to pull through these tough time. We've done it every time. So let's get positive and let's invest in creating a healthy economic environment by go out to dinner and lunch; by going to the mall; by going to Fry's to buy your favorite toy; by going to the car dealer and buy a new car; by taking your vacations in the U.S.; by investing in the stock market.
By God, we'll get through this mess, but we all need to chip in and do our part and not get caught in the mantra of the season..."it's going to get worse before it gets better..."
And go buy a restaurant or retail business at sellingrestaurants or sellingstores