I am just a 15 year veteran of the real estate industry who has thrived in real estate development and investment, and doing my part to clean up the complexion of our industry. This is the most make-sense comment so far as far as monetary policy. Mr. Hoenig is brilliant in his approach and willingness to take a stand for what is right for our economy, and this is a reflection of his economists, staff, and supporting colleagues. To watch our banking system operate as it has with the support of our U.S. Government is alarming. By using the word ‘support', I understate the true meaning. The fact is the existence of any of the ‘big' banks would be unlikely at best if it were not for ‘government interference' or better known as bailouts, so I laugh at the politicians, bloggers, and media who scoff at the idea of breaking apart the largest banks because of ‘government interference'. To further my own opinion, I would like to see Mr. Hoenig bring up the notion in support for the smaller community banks who suffered the most through this crisis. They are the backbone of what has brought out the best of real estate and business development in middle America and outlying communities of the big cities. Why should they have been victims of the financial collapse mostly perpetuated by the big banks illusion of "affordability" with zero down interest only loans and the disorientated confusion of credit worthiness with stated income/subprime loans and further propelled by a greed laden mortgage industry, but not let's not forget the big banks close cousin, Wall Street. Again why did the small banks have to pay the price when they had little to do with the aforementioned financial meltdown components. Small banks might have been on the cutting edge of risk assessment, as least they were making such an assessment in the first place. Isn't the idea of bringing back the community bank the other half of the equation "largest banks must be broken apart"?
With that said, if there is anything I can do to support Mr. Hoenig in his last years as a Fed President, let me know instead of sitting on my hands frustrated with the path we as a country are taking. I hope this email finds its way to Mr. Hoenig in complement of his position towards economic reform.
Sincerely,
James Minkley, managing broker
RE/MAX Eastside Brokers, Inc
11555 SE 8th Street, | Bellevue, WA 98004
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