Liquidity!

Time for my monthly blog post! Eeek. I have been rather productive in the last while. Here is a quick recap on the lifestyle before I segue into the topic of the day.

The RHIB (Rigid Hull Inflatable Boat) is almost completely rigged; sea trials were a smashing success with top speed on flat water a sustained 42.3 nautical miles per hour! Ya Baby. First voyage to the west coast is set for this weekend, Port Renfrew to Carmanah Point. Take a look at http://www.westcoastsurftours.com/ for a little teaser.

The SLED (Summit 800 HO) is getting final tuning and modifications and will head up to Whistler with me on Tuesday God willing for the season of powder shredding to commence. Follow updates there at http://www.whistlermountainchalet.com/.

So in order to understand how this has all been possible, lets look at the concept of liquidity! Roughly translated to spendable cash on hand, to understand the importance of liquidity right now we need to look at the credit market instability. As the ARMageddon continues, similar effects are becoming visible in the consumer credit markets. People refinanced their homes, and used the equity to spend on toys or to back lines of credit with which they bought toys. The higher mortgage payments induced from refinancing reduced real income so consumer spending then had to be financed with credit. Now citizens are carrying higher mortgages as well as more credit card debt so.... sooner or later something has to give.

So if you are smart and disciplined and have not stretched yourself too far, like the poor victims mentioned above, you are now in a wonderful position. First now would be a good time to ask your credit card company to reduce your interest rate. If your payment history is in good standing the CC company will have incentive to keep it that way. Secondly ask for an extension on your limit. Again, as bad loans go down the toilet, CC's need to cover for those losses and increase their revenue through their solid customers. Once you increase your available credit, and don't use it, your beacon score will go down, making you look even better.

Now, you have liquidity. Tumultuous times make for good deals! As the markets shuffle and settle there will be good buys to be had. Real estate foreclosures are certainly a market worth watching. Cautiously. Watch for stock dumps in areas where speculation has been hot, or where mergers are falling apart. To bring these circumstances into a more personal level if, say, your neighbor happens to be a little bit stretched, of course s/he does not want to default on their mortgage or credit card, so now might be a good time for you to help each other. Perhaps they have some toys they don’t use that much, and maybe need a bit of cash to get caught up?
It's a buyers market, buy low, be high! See you on the water or mountain soon.

Dugan Selkirk
President
Fife Group BDS
www.DestinationBillion.com