There is great similarity between capitalism and nature. In both instances it is to try to make the most with the least.

In nature a laying chicken’s job is to gestate an egg and deliver it into the nest. With proper care and nutrition the chicken will fabricate the egg and create the shell that will permit the yoke to be protected. The delivery which can be a daily affair requires a lot of stretching on the part of the chicken, to put it mildly. The egg attains the maximum size for the minimum space. The shell has to be firm enough to sustain the tremendous pressure of delivery but thin enough so if the chick would like to come out eventually it will not be so thick as to be unbreakable.

So much for nature. Now let’s get on with capitalism and real estate. If you are on the lookout to purchase a home in these trying times, great opportunities exists but you have to make sure that you will be able to invest enough equity in your house so you will protect yourself and give yourself breathing room in case something bad happens. Look back at the last 6 months and feel the pain for those who were not prudent and did not possess a strong enough shell.

Those past fabulous offers for buying a property with NO CASH DOWN are seen today as the height of irresponsibility. Only somebody that can prove that he is financially solid can afford to buy something with no down payment. If not, at the first whiff of financial uncertainty, the lending institutions will suddenly, and often without much notice, pounce on the unfortunate lender and demand their pound of flesh. Your home will be left unprotected and your financial shell that should also be your shield will not be solid enough to protect you.