NJ Commercial Lending

New Jerseys source for commercial financing since 1995.

Archive for December, 2006

The Boom & the Bust

Posted by rayw On December - 13 - 2006

yin-yangEverything in our lives operates according to the natural cycle of life. Some call it Yin & Yang but to everything there is a season (turn, turn, turn). Babies are born, they grow up, they mature, they grow old and then they die. All things in life must follow these simple rules of nature, there are no exceptions.

Our economy follows these same natural laws. There are the “Boom” times where we experience growth and expansion (the good times). Businesses are expanding making capital investments, increasing advertising budgets, wages are rising, people are buying cars, taking vacations. “God is in His Heaven and all is right with the world.” This is inevitably followed by the “Bust Cycle.” As I have said previously, trees don’t grow to the sky and the good times don’t last forever. After a period of strong and sustained growth nature resets the scales as a way of balancing things. Alas, into each life a little rain must fall.