Should we get into the market?What can we do to protect ourselves if and when this happens?Steve The only way to protect yourself from this sort of thing is to reduce your leverage.That’s all. If this happens and you’re levered, then you’re wiped out. If it happens and you’resold out of the market or you’re not levered, then if you still have properties, the fall doesn’t bankrupt you and you still have cash flow.
But if you’re levered and it goes down, then the cactus. So the only individual thing can do is to get out of debt.Ryan Okay. So, basically, you’re saying if you get out of debt or if you own your properties outright, if they go down in value, well, you still own your properties.
the rears by % of what the house used to be what happens after house valuations worth.Steve Yeah, yeah.Ryan Which could potentially lead to the banks calling your loan and making you bankrupt, is that what you’re saying?Steve That’s right. People think it’s only going to happen if unemployment rises, you know. And they, therefore, say, well, as long as the employee’s okay, there won’t be any problem. But the whole dynamics of credit, drive, everything in.
the economy, including employment and this, is what people don’t have their heads around. I’m about to share my screen again when I get the graph up to show the American data.Ryan While you do that, can I ask you one question? In America, when their house crashed- or across the world, when.