Quote:
Originally Posted by onewhippedpuppy
It's easy to blast the banks for not assessing a property's "true" value, but you would have needed a psychic for that. Remember that we all have the benefit of hindsight, I don't think most saw the bottom dropping out of the market this quickly or to this degree.
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Need a psychic, or too bad they simply didn't read the More Bad RE News thread through 2006 and 2007.
Many of us saw this coming, it was no surprise at all, and banks lending out billions of dollars should have seen it, too. It wasn't hard at all to see. There were so many things that made it easy. Just a few: (1) It happened before. (2) You can't have an asset like real estate, which pokes along at a relatively stable, slow appreciation rate, suddenly double or triple in value in a few years, and expect that to hold. As was said in the More Bad RE News thread, over and over again in real time through 2006 and 2007, only a total idiot/clueless/naive person could think that.