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The Quiet Coup

Discussion in 'General Real Estate and Real Estate Finance' started by exapp, Apr 26, 2009.

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  1. exapp

    exapp New Member

    0
    Nov 9, 2005
    Professional Status:
    Retired Appraiser
    State:
    Maryland
    The Quiet Coup
    http://www.theatlantic.com/doc/200905/imf-advice
    Simon Johnson, a professor at MIT’s Sloan School of Management, was the chief economist at the International Monetary Fund during 2007 and 2008.

    Another sobering essay on the economic crisis. The author's thesis is consistent with the proliferation of regulation that always seems to allow the lending industry to avoid accountability for collateral valuation while making it look as if they are accountable, and of course profiting from the difference between perception and reality.
     
  2. Pamela Crowley (Florida)

    Pamela Crowley (Florida) Elite Member

    3
    Jan 13, 2002
    Professional Status:
    Retired Appraiser
    State:
    Florida
    At least some understand it. Thank you for posting this.
     
  3. Riick

    Riick Elite Member

    26
    Aug 14, 2007
    Professional Status:
    Certified Residential Appraiser
    State:
    Delaware
  4. Restrain

    Restrain Elite Member

    7
    Jan 22, 2002
    Professional Status:
    Certified General Appraiser
    State:
    Florida
    Actually, it's the reverse. Government got control of the industry through the Fed and its regulators. Through this, lending standards that a prudent bank/lender would use were wiped out as government indirectly said, go ahead and make the loans. We'll backstop the losses. After all, how could government keep a lend-and-spend economy running without extremely lax lending standards? We stopped producing anything of substance 20 years ago. As one economist said, how can we base an economy on selling insurance policies to each other? We did that, and now we see what can and did happen. There was nothing behind these insurance policies.

    When we based an economy on production, measured economic wealth on what businesses and industry generated rather than what government generated, we were wealthy. Now, the number of foreclosed homes is in the millions. Tent cities have sprung up. Detroit and other major NE cities are shells of themselves.

    All because government and business focused on the quarterly results and propping up their plans, not for long term consideration.
     
  5. Workbox

    Workbox Elite Member

    1
    Mar 2, 2005
    Professional Status:
    Certified Residential Appraiser
    State:
    Colorado
    Hey Restrain, how things going? and you are correct about our production here and the tent cities, but they sure do not expose that in the media.
     
  6. Terrel L. Shields

    Terrel L. Shields Elite Member
    Gold Supporting Member

    157
    May 2, 2002
    Professional Status:
    Certified General Appraiser
    State:
    Arkansas
    Gov't pushed, prodded and backed the banks to lend in the extreme. The results is long runs in "up" markets punctuated by extreme crashes. The recessions we have had in the 20th and 21st Century have either been "extreme" or nearly invisible...There is no middle ground and that is largely a function of government failing to keep the reins tight enough on the horse they are spurring...
     
  7. chad hampton

    chad hampton Senior Member

    10
    Nov 10, 2006
    Professional Status:
    Certified Residential Appraiser
    State:
    North Carolina
    Banks have owned this country since 1913. There hasn't been a politician since then that doesn't get bank approval before voting on any bill that would impact the big banks.
     
  8. Workbox

    Workbox Elite Member

    1
    Mar 2, 2005
    Professional Status:
    Certified Residential Appraiser
    State:
    Colorado
    <p>That is correct and I get a kick out of those that try to make it a political issue. I wish more folks didn't sleep thru history and the other classes that would help them connect the dots.</p>
     
  9. Terrel L. Shields

    Terrel L. Shields Elite Member
    Gold Supporting Member

    157
    May 2, 2002
    Professional Status:
    Certified General Appraiser
    State:
    Arkansas
    Actually, the bankers themselves, J. Pierpoint Morgan in particular, stopped the Crash of 1907 internally by putting up their money and lobbying foriegn bankers as well as our own banks to be the lender of last resort.
     
  10. KEN SMITH

    KEN SMITH Sophomore Member

    0
    Jan 6, 2004
    Professional Status:
    Certified Residential Appraiser
    State:
    Indiana
    In 1992 the US signed the NORTH AMERICAN FREE TRADE AGREEMENT.Since then we signed several more trade agreements.The queston is,are we better off in 2009 than we were in 1992.
     
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