By Brian Summerfield, Online Editor, REALTOR® Magazine
QUICK SKIM
Following the subprime mortgage meltdown in 2007 and subsequent housing crisis, the line from most commentators was that no one saw it coming. The near-collapse of finance and credit in this country was like a bolt from the blue. Who could have possibly predicted it?
Another bit of post-meltdown conventional wisdom was that all the parties involved — Fannie and Freddie, government regulators and policy makers, Wall Street’s biggest banks, investment ratings agencies, mortgage brokers, borrowers, and even real estate practitioners — played some part in the collapse. The overall system was more or less healthy, but the selfish and shortsighted decisions of some “bad actors” from all of these groups led to market failure.
Michael Lewis, acclaimed author of Liar’s Poker, Moneyball, and The Blind Side, offers a contrarian perspective on both of these phenomena in his most recent book, The Big Short: Inside the Doomsday Machine (W.W. Norton & Co. Inc., 2010). Regarding the first point, there were at least a few people who figured out what was going on in the financial markets. For them, it was never a matter of whether there would be a day of reckoning or not — it was just a question of when. They invested accordingly, and their bets paid off big as the economic edifice came crashing down.
That part of the book is interesting, but the more important issue for readers is the second one. Lewis, who once worked on Wall Street, says the origins of the collapse were not in the rapacious greed of a few scoundrels from various groups, but rather in systemic problems — some of which have been in place for several decades — that create reckless investments and obfuscate risk. To that end, Lewis discusses the following details to make a very compelling case.
FROM THE BOOK: 5 LESSONS FOR THE REAL ESTATE INDUSTRY Continue reading »
By Erica Christoffer, Multimedia Web Producer, REALTOR® Magazine
How did the founders of Curves, Spanx, Geek Squad and Kinko’s turn a small dream into big success? With a little ingenuity and a big leap of faith. Authors, and husband and wife team, Renee and Don Martin highlight the people behind some of the nation’s most well-known multi-million dollar businesses and share how they overcame personal odds and industry challenges in their book The Risk Takers (Vanguard Press, 2010; $25.95). If you’re looking for a little entrepreneurial inspiration for your real estate business, this book is for you.
Renee Martin, community activist and former broker, chatted with REALTOR® Magazine for the Weekly Book Scan about her and her husband’s motivation for writing the book and how it can inspire real estate professionals to achieve their dreams.
You started out in real estate. How did your career path lead to writing?
MARTIN: I started out with Coldwell Banker as a broker in the San Fernando Valley where I worked for 12 years. I then started my own company, Country Manor Realty, where I specialized in high-end residential developments. But by the late 1980s, I had reached a point where I needed a new challenge. So I left my business and started attending UCLA where I received a professional designation in public relations. I then worked as a public relations spokesperson for various non-profits and community organizations. My work led me to become a court appointed special advocate (CASA). I found myself becoming an activist for women and children. Continue reading »
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