Last year around this time I told you large M & A deals were dead. Banks pulled the plug faster than a speeding locomotive and almost ran out of money. A Bear Sterns collapse almost caused a run on the banks. The mortgage meltdown sank real estate and with it the housing ATM machine.
As the market feels the impact of a falling dollar, high oil, and food prices that are off the charts one has to remember one thing; the next 24 months will bring tremendous opportunity for people with cash. Yes, that's right folks people have finally realized that CASH IS KING. I told you this a year ago. Americans have actually started paying for items with cash. Why? Nobody is lending any money. If you have a line a credit and you intend to use it in the next 2-6 month then you had better withdraw the money now. Banks are started to close down all credit lines. Banks are so nervous that even if you have excellent credit and have never missed a payment they are lowing you available credit or even closing it down.
This brings us back to the topic. Now is the time to start to raise cash. If you already have large deposits then be sure your bank is solid. Remember the FDIC only insures up to 100k. As a cash Investor you should be looking at bargain deals at deep discounts. Most Investors are hurting badly and need to get liquid fast. You won't have to wait for bank approvals or a nasty underwriter to sign off on your deal. Use this as selling point. And remember your holding all the cards. If your deal isn't what you were asking for then move on. There are plenty of other fish in the sea.
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