I think this speaks volumes about us all, “I’ve got one of their credit cards in my pocket.” I don’t have a Citi Bank but I am guilty of carrying one not issued by a local bank.

I feel the economic down turn we are facing has a lot to do with how we have spread ourselves and our money out beyond our local boundaries. And, by local boundaries, I also mean those bounds that our paychecks create too.

Here is a fun game. Look around where you live at homes for sale. Divide the house prices by 3, and then think about how many people you know earn that much money.

Historically, banks were wary of lending more than 3 times income for a house. The market recently re-learned that this is probably about as much risk as is healthy. So houses won’t move until people drop prices to 1/3 of buyer incomes, or buyers start to make a whole lot more money. Which of these two things is more likely in a recession?