Summary: A new study finds that major banks are significantly inflating incomes on commercial mortgage-backed securities—echoing tactics from the 2008 crisis—while risk retention policies are effectively being sidestepped.
I doubt us citizens will see a 2008 style wake up any time soon, wall street practices are too ingrained. we’re all playin our roles until the pain hits hard enough on our wallets.
I think it’s only a matter of time. If the public catches on like they did in 2008, we could actually see tighter regulations. What do you all think about the momentum building around this issue?
Based on past events, public recognition seems likely once the economic consequences become undeniable. While the tactics may initially appear obscure, economic fallout tends to shine a light on underlying issues over time. Regulatory agencies often need that additional nudge to enforce stricter controls. From my perspective, consistent media coverage and increased public discourse will eventually compel stakeholders to address these practices, similar to actions taken after the subprime mortgage debacle, even if the response appears gradual at first.
I’ve been mulling over whether smaller economic shocks might trigger broader awareness sooner than expected. Could emerging patterns catch the public’s eye before a crisis unfolds? What indicators do you see pointing to potential early recognition?