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If you could sue anyone for this mess

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Kali the Boston Terrier

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Jul 7, 2003
Professional Status
Certified General Appraiser
State
Michigan
So I am sure everyone will keep there tempers down for this one...if you could sue somebody for the mess we are in, who would it be and why?

It's an open ended question, we all spend hours ranting away here...let's really start assigning blame.
 

Terrel L. Shields

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Certified General Appraiser
State
Arkansas
The system is a creation of the world...really. If you watch this video

http://www.pbs.org/newshour/video/module.html?mod=0&pkg=21102008&seg=5

you have to understand the concept of the Black Swan... The banks by becoming so large and so leveraged, are a danger which WAS foreseeable but few people could really understand it.

David Brooks mentioned the Taleb interview (from a couple days before) on PBS tonight and pointed out that Greenspan was supplied info by "Quants" who failed to understand the fragility of the system. Commentator after commentator says that "nobody" foresee this coming. That is not true. MANY people; Bonner, Kindleberger, Shiller, Taleb, many others including not only a lot of appraisers on this forum but actual Fed board members, begged, pleaded and argued that we were in a bubble and the consequences of a burst was enormous. The "archaeic" regulations from the Depression would have prevented it but worldwide we would have been under enormous pressure to deregulate in the face of worldwide deregulation.

Our system is broken. I fear it will not be an easy fix. We are simply NOT going to hit a "bottom" then start back up for years and years to come. In Chaos theory, a butterfly's wings could stir a wind which starts a bigger wind, and so on. This nucleus could start what eventually becomes a Saharian windstorm, which, according to most meteorologists is the source of the tropical disturbances that later become hurricanes. Literally, a squall in West Africa may have been responsible for Katrina. The same domino effect is occurring in the markets with each event seemingly leading to even more catastrophy. The bank won't loan to a hedge fund which has to redeem shares, which shares falls which places yet another hedge in trouble and its bankers tighten leaving a wholesale grocer without money to make payroll which forces layoffs, bankruptcy and that in turn means an employee is foreclosed upon, making that same bank's position even more precarious. There is no stopping this until it has run its course.

A new bank system has to come out of this, something akin to the 1944 Bretton Woods agreement, and the interlocking nature of bank deals has to abolished. To blame a single person is to ignore the reality. This was a global problem caused by some very smart people who do not understand risk and it could not have been stopped because you cannot prove a negative.

That is, if someone had ordered all airplane cabins be lockable and all passengers searched the day before Nine Eleven, then 9-11 would never have happened and everyone would rage at the person who created the rule. They would never know that it prevented a tragedy. Same with our bank system.
 

Metamorphic

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Mar 15, 2008
Professional Status
Certified Residential Appraiser
State
California
I think the appropriate "remedy" is not a suit but an impeachment. Start with Dodd and Frank and see where that gets you.
 

Alison Swain

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Sep 13, 2005
Professional Status
Certified Residential Appraiser
State
Florida
I'd work right down here in the "grassroots" and sue every scumbag MB who ever acted like they knew my job better than I did, who fired me for not hitting a number or for reporting damages, or who I knew was screwing their borrowers by lulling them with false promises and lies.
 

TEL2002

Elite Member
Joined
Jan 16, 2002
Professional Status
Retired Appraiser
State
Louisiana
I would sue............

1. Greed
2. Pi** Poor Planning
3. Lousy management & leadership
4. Lemming followers

There is not just one person or group.
 

jay trotta

Elite Member
Joined
Feb 8, 2004
Professional Status
Certified Residential Appraiser
State
Connecticut
Terrel.....agreed, there is no one person, the false hood was the pre-existing 89-90's fiasco which worked itself out because it was the calm before the storm. Those that were playing the Monopoly Game, just didn't realize they went overboard when they went to Wall Street to play with the sharks.
Sharks are always greedy, thats why they are contained in one area; seems to me that the incentive to brake the bank (so to speak) on 9/11, just took a little longer and required a little more work......does anyone think there are some outsiders involved in this debacle ??
 

Dan/Fla

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Jan 15, 2002
Professional Status
Certified Residential Appraiser
State
Florida
I agree with Chris Dodd for stopping controls, but also Bill Clinton who pushed originally for Every deserves a home no matter if they can pay for said home. Banks must find a way to make it happen if they want to sale Goverment Loans. Barney Frank how can he regulate from the Congress when his from what I understand is his boy friend and very high up in Fannie?
 

nauthead

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Nov 26, 2004
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Florida
Every politician who opposed tighter controls over Fan and Fred.
 

Greg Bell

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Jul 7, 2006
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Gvmt Agency, FNMA, HUD, VA etc.
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Louisiana
FDR...The premier Socialist..

The New Deal was the name that United States President Franklin D. Roosevelt gave to a sequence of programs he initiated between 1933 and 1936 with the goal of giving work (relief) to the unemployed, reform of business and financial practices, and recovery of the economy during The Great Depression.

The "First New Deal" of 1933 was aimed at short-term recovery programs for all groups. The Roosevelt administration promoted or implemented banking reform laws, emergency relief programs, work relief programs, agricultural programs, and industrial reform (the NRA), a federal welfare state, as well as the end of the gold standard and prohibition.

A "Second New Deal" (1935–36) included labor union support, the WPA relief program, the Social Security Act, and programs to aid farmers, including tenant farmers and migrant workers. The Supreme Court ruled several programs unconstitutional; however, most were soon replaced, with the exception of the NRA.

Most of the relief programs were shut down during World War II by the Conservative Coalition (i.e. the opponents of the New Deal in Congress). Many regulations were ended during the wave of deregulation in the late 1970s and early 1980s. Several New Deal programs remain active, with some still operating under the original names, including the Federal Deposit Insurance Corporation (FDIC), the Federal Housing Administration (FHA), and the Tennessee Valley Authority (TVA). The largest programs still in existence today are the Social Security System, Securities and Exchange Commission (SEC), and Fannie Mae.
 

Dee Dee

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Jan 16, 2002
Professional Status
Certified Residential Appraiser
State
Colorado
Every butthead in the real estate business who ever muttered the words, "New Paradigm".
 
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