Sub-Prime Madness or Self-Healing Capitalism?

Posted by Dr. James Canton on August 23, 2007 under Uncategorized | Read the First Comment

The curse of being a futurist is that you actually have to take your own medicine, or risk being a hypocrite. So the reality that the sub-prime real estate market has led to another, post-Internet like bubble is not news. Our forecasts showed this risk and it wasn’t rocket science. How much funny money deals could the market endure? Plenty it seems.

This was an example of short sighted credit risk management and everyone was in on the take. Now only the credit-worthy will survive the shakeout. This experiment in value trade offs for taking on greater risk is not new. This Risk Leverage Trend led to the re-insurance industry to protect risk exposure to companies.