Recycled Cycle

Posted by maloneybonds on February 9, 2011 under Banking, Contractors, EGCA Published Articles, Economy, Trends | Be the First to Comment

Don’t roll the dice; protect your bonding while waiting for the economic downturn to run its course once again.

Come stroll with me down econometric memory lane, back to the late 1980s - early 1990s.  The economy then was in the tank.  Credit markets clammed up, and lending virtually ceased.  The savings and loan industry imploded, with many institutions having to be taken over by the federal government’s “Resolution Trust.”  Evil Wall Street scoundrels such as Ivan Boesky, Michael Milken, and Charles Keating appeared to financially rape us.  Black Monday in October of 1987 saw the Dow drop 22.6% — in one day — a steeper one-day decline than any single day in 1929.  Construction in the private sector came to a screeching halt, resulting in the public works arena becoming flooded, muddied, and bloodied.  Things looked bleak, and we all ran for cover since it seemed as though the sky was falling.

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