Given the credit market debacle and failures of Bear Stearns, Fannie, and Freddie, it's incredible how little concrete action or debate has taken place about how to correct the systemic problems that have led to these monumental taxpayer bailouts. The assumption is that new and more stringent regulation is coming. Are we talking about something as dramatic as the return of Glass-Steagall (separating investment banks from commercial banking) or what? The CMBS market clearly failed at regulating itself -- the rating agencies proved totally lame and the B-piece buyer cartel didn't live up to the hype about kicking out all the bad loans from offerings. It appears there may be a Congressional battle royal over what to do with the mortgage GSEs, including reconstituting them or doing away with them. And should it be government policy to encourage people to own homes when many people would be better off not owning them?
The Fed and Treasury Secretary are so wound up in averting one crisis after another, they don't have time to ponder long-term solutions. Politicians, meanwhile, don't want to confront any complex issues at election time. Let's not muddy the water on real reform and get people confused about why taxpayers may be on the hook for $100 billion or more in various bailouts when candidates can vamp about stopping the Bridge to Nowhere or defend why they took per diem expense reimbursements for living in their own home. And meanwhile, the federal deficit is projected at $407 billion, the largest ever.
So yes, let's cut everybody's taxes some more, including the ex-bosses of Freddie and Fannie, who leave with typical multi-million dollar severances.
In this through-the-looking glass world I wouldn't make any assumptions about more regulation or anything else for that matter.
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Jonathan D. Miller
A marketing communication strategist who turned to real estate analysis, Jonathan D. Miller is a foremost interpreter of 21st citistate futures – cities and suburbs alike – seen through the lens of lifestyles and market realities. For more than 20 years (1992-2013), Miller authored Emerging Trends in Real Estate, the leading commercial real estate industry outlook report, published annually by PricewaterhouseCoopers and the Urban Land Institute (ULI). He has lectures frequently on trends in real estate, including the future of America's major 24-hour urban centers and sprawling suburbs. He also has been author of ULI’s annual forecasts on infrastructure and its What’s Next? series of forecasts. On a weekly basis, he writes the Trendczar blog for GlobeStreet.com, the real estate news website. Outside his published forecasting work, Miller is a prominent communications/institutional investor-marketing strategist and partner in Miller Ryan LLC, helping corporate clients develop and execute branding and communications programs. He led the re-branding of GMAC Commercial Mortgage to Capmark Financial Group Inc. and he was part of the management team that helped build Equitable Real Estate Investment Management, Inc. (subsequently Lend Lease Real Estate Investments, Inc.) into the leading real estate advisor to pension funds and other real institutional investors. He joined the Equitable Life Assurance Society of the U.S. in 1981, moving to Equitable Real Estate in 1984 as head of Corporate/Marketing Communications. In the 1980's he managed relations for several of the country's most prominent real estate developments including New York's Trump Tower and the Equitable Center. Earlier in his career, Miller was a reporter for Gannett Newspapers. He is a member of the Citistates Group and a board member of NYC Outward Bound Schools and the Center for Employment Opportunities.
