Commercial Real Estate Finance

Posts Tagged ‘subprime mortgages’

We all bore witness to the financial meltdown.  We all know it was caused by sub-prime mortgages and greedy financial engineering and that it was exacerbated by a flailing auto industry, a deregulated, price-gauging credit card industry, and a general population who had to learn not to live beyond their means the hard way.  We have all suffered as a result.  Yet, the one endearing doctrine of value throughout the history of this country has been education.  The value of a good education, our parents told us, was the foundation for a successful professional life.  Well, call me a pessimist, but the more I think about it, education is what is going to cause this country’s next big economic disaster.  How so?  Let’s take a look…. Read the rest of this entry »

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Why Ratings Agencies Who’ve Failed, Get A Pass

There was a recent article in the NY Times that asked a question most people haven’t had the time to think about, but is a great question nonetheless.  With the entire banking industry, AIG, the government, the auto industry, and the credit card industry all taking a serious blow both financially and in image, one question remains. How have the ratings agencies, who misrepresented the creditworthiness of massive pools of residential and commercial subprime mortgages, which  got our economy into the mess its currently in, escaped similar ridicule, regulation, and oversight? Read the rest of this entry »

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