FT: systemic failure in US RE valuations and lack of information root of crisis
Started by aboutready
about 17 years ago
Posts: 16354
Member since: Oct 2007
Discussion about
http://blogs.ft.com/maverecon/2009/07/the-real-estate-roots-of-the-crisis-in-the-us/ Argues that basically the root of the problem is that there is no systemic means of determining value of the housing assets on which huge investments were made, and the lack of transparency contributed hugely to the overpricing, or mispricing, of the investments. Interesting angle, many here have been requesting... [more]
http://blogs.ft.com/maverecon/2009/07/the-real-estate-roots-of-the-crisis-in-the-us/
Argues that basically the root of the problem is that there is no systemic means of determining value of the housing assets on which huge investments were made, and the lack of transparency contributed hugely to the overpricing, or mispricing, of the investments.
Interesting angle, many here have been requesting additional information from the perspective of an individual investor, this argues that the institutional investors (although not necessarily all originators of the investments, obviously) need it as well. But would they have taken the time to analyze it, as it could have been clear to many who looked at the underlying loans of many MBS's that they were rotten just based on basic underwriting LTV standards and that didn't slow many down.
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Response by 30yrs_RE_20_in_REO
about 17 years ago
Posts: 9913
Member since: Mar 2009
Breaking news: Birds fly AGAIN!!!!!!!!
US officials have noted the birds have flown once again. It was thought that the last time this was noted in 19897, many believed that birds would never fly again. Radical anarchists have claimed that birds have been flying all along. The US officials reacted by placing their heads back into the sand to wait for further instructions.
Ignored comment.
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Response by aboutready
about 17 years ago
Posts: 16354
Member since: Oct 2007
smart ass. but yes, you are right, it is extremely obvious. which is why i put it up because the issue gets so little press. there is little to no effort to determine or even attention paid to the issue of how land and finished property is ascribed its value for any purpose. it just seems, particularly in the past decade, to happen magically. and it's not delicious.
Breaking news: Birds fly AGAIN!!!!!!!!
US officials have noted the birds have flown once again. It was thought that the last time this was noted in 19897, many believed that birds would never fly again. Radical anarchists have claimed that birds have been flying all along. The US officials reacted by placing their heads back into the sand to wait for further instructions.
smart ass. but yes, you are right, it is extremely obvious. which is why i put it up because the issue gets so little press. there is little to no effort to determine or even attention paid to the issue of how land and finished property is ascribed its value for any purpose. it just seems, particularly in the past decade, to happen magically. and it's not delicious.
Already posted twice!
where?