The future of finance
Inman Community brief
By Inman News, Wednesday, September 17, 2008.Editor's note: The following is a member comment posted in the Inman Community group topic, "Another September to Remember - Not 911 but 908":
"One has to start thinking along the lines if so many financial institutions are being acquired by one or more larger financial institutions can these large financial institutions absorb the losses from this point forward?
Large corporations are supposed to have the resources to be efficient and create productivity; however, as we see from the real estate market (especially with potential short sales) are there any efficiencies or productivity enhancements? Some of the larger financial institutions are doing a miserable job in dealing with the current situation regarding a potential sale.
I suspect we are going to see more unstability with the financial institutions -- BofA does call for a watchful eye.
What drives the housing market is partially consumer confidence -- what is today's consumer confidence? The investments of consumers are at risk and they will look for a safe haven; watch federal securities and savings accounts (FDIC-insured) increase." -- Glenn Ginsburg
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Submitted by Bruno Skopinich on September 17, 2008 - 2:16pm.
All free markets go through cycles. This real estate market had a big up-cycle (much not due to real supply and demand) ... therefore it will have a down cycle (correction).
We got 15-20% appreciation a year from a market that should have had only 4-6% appreciation. Based on true demand, not emotional speculation.
If the government interferes TOO MUCH with this correction... will only create a bigger problem.