Rantings and tirades of a frustrated economist.
Cappy Cap in a newspaper! Congrats!You are courageous to speak openly and publicly about this. I'm not quite sure whether this lowers or increases your chances of getting a new job. Anyway, you got some nuts.
"He said his firm's analysis of commercial loans is done by a "talented team" of commercial lenders with more than 20 years' experience."Wait, if they are talented and/or experienced should be based on how profitable their portfolio of loans is. So how is that portfolio of loans you recommended doing Brad? And if they are so smart and talented, why doesn't your service put any of it's own money in that portfolio? It's because you have no risk involved and only make money on the transaction. You're a leech. PWNED!
Alright, so you can prove that they are guilty. But what will other bankers think about you. You know, they don't like courageous people. You could have given the newspaper an anonymous report ;-)
Anon,He's referring to his CURRENT management team in commercial lending.He mentions nothing of the idiots that I worked under 2 years ago who managed not only losses, but 50% default and deliquency rates. 1 in FREAKING 2 loans went into delinquency or default.And to Mr. Trum,Balls? Ha, if at any time they want to sue me or call me out of this, that would trigger a "discovery" portion of a law suit, which would dig up my old reports which would prove me right. THere's no risk to me, all the risk is on them. And if they piss me off enough, I will spill all the beans and write a tell all.Besides which, what would they sue me for? They flooded the market with so much housing that the majority of my "assets" are underwater so there's nothing to sue.
Ah Mr. Trum,Two things will ensure I never work in banking again;1. I quit my previous position. Bankers like you to be conforming over being smart and profitable. No matter how moral or justified I was quitting, that is the cardinal sin in the finance world. You bend over and take it, and that is a "good" employee.2. The book has enough of a reputation in banking circles in Minnesota that nobody will touch me. Half tempted to open up a commercial lending company and take all the good business away from the industry.
Captain, could you explain why banks have had the incentive to lend money too freely? I can believe that a few banks would mishandle risk, but I find it hard to believe that an entire industry would without some artificial market distortion.Was it because they believed they would be bailed out? Did they think they could just always count on the Fed if things went badly? Why wasn't this market working efficiently?
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