Even after two years, a melancholy and dark mood still permeates the future of the mortgage industry. Saddled with the continual unwinding of financial market instruments, leaders have gone underground – burrowing in for safety and reflection. Meanwhile, the firestorm of excess continues to ravage the a excessively debt burdened consumer base resulting in escalating delinquencies, foreclosures, and repossessions that are no longer confined to just past housing related speculation.
However in spite of the macabre events and sociological reflections, from the ashes, opportunity is conceived. Yes, it is true that more pain will be forthcoming – we have not reached the bottom of the abyss. Look for auditors with recently minted audited financial statements and a continual deterioration of the financial markets to force even more write downs and economic shock – perhaps conservatively adding $200 to $250 billion of additional mark-to-market valuation “reappraisals” in 2008.
Yet to continually wallow in the ghosts of the past is not the most productive use of our time – the politicians and the lawyers will occupy themselves with the historical record for years to come. Stating the obvious, we cannot change historical actions – only mitigate their lingering risks created within today’s operating environment.
So, why focus on the future when the past is still haunting our actions? How can new models be born when we have not learned the lessons from prior actions? Who will be the leaders taking us forward and restoring confidence and integrity? Thus if we are to get beyond the “blame game” where can we look and what should be anticipated?
Mark Dangelo
m_dangelo@innovative-relevance.com
Comments
Post new comment