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After the tsunami

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Steve Jakubowski, writing here on March 16, 2006, may have been the first to connect the two words "subprime" and "tsunami" when he wrote: "History has shown that 'hockey stick' growth patterns in the subprime industry are more likely caused by looser adherence to underwriting standards than by increased demand for subprime products among qualified borrowers. If, in fact, looser credit standards have driven the current exponential growth since 2000 in subprime lending, then waves of defaults will be "tsunami-like" in proportion." As we now know the waves of subprime defaults that Mr. Jakubowski presciently cited grew massively into system-scraping, spare-no-institution monster waves now rolling through world economies. The great Real Estate Investment Tsunami (REIT?) of 2008 will reshape the banking, housing and real estate landscapes -- indeed, the global economic landscape -- for years to come. It is understandable that most of us ...