Tuesday, July 15, 2008

Where Are the MBA's of Yesteryear?

At the College of Lake County, in Grayslake, Illinois, I took Introduction to Business, and Dumbell Accounting (accounting for IT and secretaries). That's my entire formal business training. The informal training came with 25 years of Information Technology, and two eyes, two ears, a judicious reading of magazines and newspapers. That's it.

So how did I know the real estate bubble would burst? I mean, didn't everyone? I have to stifle my gag-reflex with all the hand-wringing, bailing out, expressions of surprise, business snafu's, and the whole nine-yards of stupidity. What kind of nincompoops are the colleges and business schools turning out?

Why did S.O. and I bust our collective asses six years ago to sell our house before everything went south? I took a year off writing and we put in huge amounts of sweat equity to get the house on the market in the spring of 03. Sweating and puffing and panting and wringing of hands to sell before the bottom fell out. We felt a real sense of urgency. We knew the high prices wouldn't last.

We didn't quite hit the top, but we did all right. Paid of the mortgage and bought our snug little condo. The upcoming tanking of the housing market was obvious to us, and apparently no one else.

I mean, really. What sort of dolts run the banks and brokerages houses? Do they have an average age of 32? 22? 15? Thought so. No bubble lasts forever.

Do I feel sorry for the banks and brokers and the folks with judgment in the toilet? Hell no.
Do I feel sorry for the folks who bought the lie and got in over their heads? Yup.
Do I feel sorry for the folks who thought this was a license to get rich quick and "turned" houses and condos with no investment, who never planned to live there, who played the game and lost? Nope.

We've gone thru these down cycles before. We sold our house in Chicago in the middle of one. It wasn't pretty. The current real estate bust is bad because the boom cycle went so high, up to the clouds and then down, down, down into the sewers in a plunge toware Hades. Didn't anyone remember? Doesn't anyone know economic history? Obviously not those in high financial places. Where are the MBA's of yesteryear? I want to know.

That is the scariest thing of all. That we are led by nitwits and dolts and those who know nothing, understand nothing. Except greed of course.

Oh dear, she said, wringing her hands. Oh dear.


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