One other thing I might add is that during the last few years a lot of retail businesses seem to have opened using either very optimistic cash flow projections/wishful thinking or very naive owners (or both). My wife and I go into some of these new stores and restuarants and leave saying “it was nice but how are they going to stay in business?” Well, it turns out a lot of them are not staying in business. I think it’s another syptom of easy credit and low interest rates. I don’t know how some of these businesses can even cover the rent. I suspect a lot of them stay open until their borrowed money runs out then it’s lights out!
