“Americans like the new,” but they don’t like to give new products a chance to work through growing pains, warned economist Hugh Kelly during yesterday’s Distressed Debt & Assets Symposium, produced by Deloitte in partnership with New York University’s Schack Institute of Real Estate. For that reason, when the economy tanked and banks’ incautious lending practices caught up with them during the last recession, their response was to reject CMBS as simply too risky—“an immature reaction to an immature product,” said Kelly, who is an associate professor with Schack.
The keynote speaker at the conference, which took place in the New York Athletic Club in Midtown Manhattan, Kelly said he believes it’s possible to improve the picture, “but it’s going to require a commitment to change.” In fact, it will require massive change and massive capital. “If we keep doing what we’ve been doing, things are not going to be pretty.”
Read more...Distress Symposium Report: Opportunities Knock, but Change Must Come via CPExecutive.com