Comments on: Greenspan Admits “Mistake” calls the Credit Crisis a 100 Year “Tsunami” http://realonomics.net/2008/10/greenspan-admits-mistake-calls-the-credit-crisis-a-100-year-tsunami/ real estate business models in the consumer-centric era Sat, 12 Dec 2009 13:52:53 -0700 http://wordpress.org/?v=2.8.6 hourly 1 By: REALonomics http://realonomics.net/2008/10/greenspan-admits-mistake-calls-the-credit-crisis-a-100-year-tsunami/comment-page-1/#comment-105007 REALonomics Thu, 30 Oct 2008 23:07:20 +0000 http://realonomics.net/?p=601#comment-105007 David, your comment "greed and indifference drove the vehicle" is a highly significant component of the mortgage and housing crisis. It speaks to the view we have maintained in the real estate industry that the end justifies the means. If we ever hope to recover consumer confidence in our industry we need to implement standards-based brokerage, i.e, there are contracts we will not write and mortgages we will not fund. Nice comment with true historical support. -REALonomics David, your comment “greed and indifference drove the vehicle” is a highly significant component of the mortgage and housing crisis. It speaks to the view we have maintained in the real estate industry that the end justifies the means. If we ever hope to recover consumer confidence in our industry we need to implement standards-based brokerage, i.e, there are contracts we will not write and mortgages we will not fund. Nice comment with true historical support. -REALonomics

]]> By: David L. Montgomery, MSF http://realonomics.net/2008/10/greenspan-admits-mistake-calls-the-credit-crisis-a-100-year-tsunami/comment-page-1/#comment-105002 David L. Montgomery, MSF Thu, 30 Oct 2008 22:31:03 +0000 http://realonomics.net/?p=601#comment-105002 If Mr. Greenspan had subtracted 10 years from his milestone dates, he would have had a better picture of realtime activity in the real estate industry. CMOs were being compromised as early as 1990 and peaked around the time the FED woas compiling their impact data. Investment banks and others realizing the velocity of this segement of the market were implimenting the "greater fool" concept of securitizing mortgage debt. The signs were there, greed and indifference drove the vehicle. If Mr. Greenspan had subtracted 10 years from his milestone dates, he would have had a better picture of realtime activity in the real estate industry.

CMOs were being compromised as early as 1990 and peaked around the time the FED woas compiling their impact data. Investment banks and others realizing the velocity of this segement of the market were implimenting the “greater fool” concept of securitizing mortgage debt.

The signs were there, greed and indifference drove the vehicle.

]]> By: Jack Stitman http://realonomics.net/2008/10/greenspan-admits-mistake-calls-the-credit-crisis-a-100-year-tsunami/comment-page-1/#comment-101192 Jack Stitman Fri, 24 Oct 2008 12:32:09 +0000 http://realonomics.net/?p=601#comment-101192 Greenspan jumped out of his position just in time. Makes me wonder if he had an idea things were going to go south. I'm tired of hearing him, and others, talk about the downturn...SHUT UP! Greenspan jumped out of his position just in time. Makes me wonder if he had an idea things were going to go south. I’m tired of hearing him, and others, talk about the downturn…SHUT UP!

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