Without a fully functioning credit market, distribution will break down, real estate markets will cease to exist except for cash purchases or barters. Companies will cease to exist because their access to money to run their companies will be nonexistent.
Amongst many other “effects”, cash or currencies themselves will also be affected. All currencies everywhere on the planet are a function of, backed or supported by, and actually exist solely as a result of functioning credit markets. The saying goes, “money makes the world go ’round”, this is not true today. Today, “credit makes the world go ’round”!
With the above as an understanding, what happened last Wednesday night/Thursday morning in the wee hours was terrifying. Globally the credit markets began to melt down! This was a global event and almost all credits were being sold.
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