Wall Street Has Not Learned

As a follow up to this blog post, Wall Street Has Not Learned The Lessons That Created FIRREA And The Debacle of the Seventies In Real Estate Lending and Investing!, three interesting articles seem to clearly indicate the trends will continue.

Caveat Emptor, Continued…………………
Signs of Risky Lending Emerge
Bond Sale? Don’t Quote Us, Request Credit Firms.

It is interesting that we teach our children to take responsibility for their actions, but corporate Wall Street and their advisors do not!  They pass the debt off to unsuspecting investors who can not possibly do the proper due diligence and make a buck in the process, even if the loans go bad, and they know they will, along with the lenders who make them!  They set a very bad example, along with their CEOs who lead those firms in investment banking and lending.

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About Jim MacCrate

Real estate appraiser and valuation consultant for more than 30 years specializing in reviewing real estate appraisals, risk management and quality control.
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3 Responses to Wall Street Has Not Learned

  1. Edd Gillespie says:

    Jim,
    I read Caveat Emptor. Maybe the rule expresses what will happen to the realtionship between the free market and the pulic trust. Nothing significant will change. But that leaves us with real estate appraisers who are supposed to refute the rule. Where do we fit?

  2. jmaccrate says:

    Leave links to any other good articles on this subject for others to read.

    Thank you.

  3. Edd Gillespie says:

    Thanks for reminding us that it is de javu all over again Jim. But, have you located a sustainable market for appraisals that raise the alarm of risky behavior as far as collateral goes? Isn’t lending a lot about shifting the risk rather than minimizing it and what lender wants to pay an appraiser to tell them they should focus on safe loans rather than selling them to the unwitting?

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