David Nygaard Fine Jewelers loses credit line, shuts 7 stores

I think you are right about some of the commentors on this board. I am sure that some of these folks are intelligent enough to realize that this is not the first time the country has been through a "downturn."

I believe that banking institutions are more dangerous to our liberties than standing armies. If the American people ever allow private banks to control the issue of their currency, first by inflation, then by deflation, the banks and corporations that will grow up around [the banks] will deprive the people of all property until their children wake-up homeless on the continent their fathers conquered. The issuing power should be taken from the banks and restored to the people, to whom it properly belongs.
Thomas Jefferson, Letter to the Secretary of the Treasury Albert Gallatin (1802)
3rd president of US (1743 - 1826)

If you really want the whole story, read the much longer version in the Daily Press. The reason he says he'll "try" to return deposits is Wachovia bank came in and liquidated all of the jewelry and took over all the money in the bank account! Exactly what is left to make good on these deposits? There is no merchandize (other than repair jobs -- those are owned by individual customers) and there is no money -- zero in the bank account. I hope he is able to make good on returning deposits, but I can certainly understand why he says "he'll try."

He has been on these boards for years predicting the great boom. While I am highly impressed w/ his music knowledge, the doom and gloom scenarios are not all of that. In fact, I would say that a large part of todays ills are from the perception provided by these types of comments. The bond and stock market, as well as housing are driven often by perception. Were there some idiotic and crooked machinations made by the mortgage and real estate industry: yes. However, these corrective cycles occur in every market. Ethan basically woke up early one morning and declared it would get dark as we all knew it eventually would. He declared it every hour until the sunset and then declared himself right. What puzzles me is the motivation to be the town cryer.

Sorry, but I have been posting about the oncoming issues with the economy. I know what it's like to have a small company, I sunk lots of my money into one and didn't see much return (but it was a learning experience, and tons of fun sometimes!). I'm more distraught that reporters didn't do their jobs, they just recited lines from trade groups like the NAR. Everyone ignored these issues and were totally punch drunk. Anyone that looked at what was going on with any sort of criticism could see it would end badly. DEBT ISNT WEALTH. Do I like it? NO! I ABSOLUTELY hate the direction my country is going in! Privatize profits, socialize risk. Short sightedness from our leaders in regards to our countries future has gotten us here. I had hoped my constant comments would encourage reporters to do more research. I trust blogs 10 times more than main stream media outlets. Landmark wonders why young people don

Blame the bank who wanted their payments on time, blame the economy, but don't take responsibility and blame yourself for rapidly opening numerous businesses without proper capital and expertise.

I get very tired of comments from readers like Ethan who can find any reason to expound on their "I told you so, the sky is falling, and the glasss is half empty" view of life. While its true Nygaard's business did little to advance social justice and the cause of humanity in general, he did provide jobs and a living of sorts for his employees, and tax revenue to help keep Tidewater a nicer place to live. It's always sad to see small business fail, and he will be missed by a number of us.

The good news is that, in our economy, changes --- both good and difficult --- always create opportunities for improvement. Don't like $4.00 gsasoline? Take a look at this link (http://www.time.com/time/specials/packages/article/0,28804,1819594_1819592,00.html) to see how even this offers oportunities to improve our lot.

The man's closing his business. When things get tough, banks discontinue credit to individual and sometimes whole categories of businesses. For many retail businesses whose business is cyclical, that's the kiss of death. There's nothing in this account to suggest that Mr. Nygaard (whom I don't know and have never met) did anything but close his business in the face of rapidly changing conditions. There's also nothing to suggest that his pledge to return repair items is made in anything less than good faith. One can only assume that Mr. Nygaard has his hands full at the moment.

Times are tough for many people. But there are still some people making a lot of money. Just maybe not enough of them to support jewelers on every corner.

The story states that he will "try" to return all items in for repair and "try" to return deposits. I would say if he doesn't we should try him in District Court for scamming people.It doesn't matter to me if he drove his company into the ground, I do think the Commonwealth Attorney should be concerned if innocent customers lose money or property because of the subject's bad business practices. They weren't investors, they were customers

I assume that many luxury items have been purchased over the past 5 years with lots of money "extracted" from home ownership. That is, HELOC loans. These loans are marketed as "extracting equity from your home" but really are just "going more into debt." Credit card companies like AMEX are cutting good customer's credit limits to reduce their exposure, HELOCs are being pulled back from consumers and becoming harder to get as comps decrease, and more people are concerned with cost of living. The roaring 20(00's) are slowing down. Remember, the housing loan issues and bank issues will be bigger in 2009 than 2008, so there is way more hurt in the pipeline.