Mortgage Updates

In the commentary I would like to bring attention to the opening remarks of MBA Chairman–Elect David Kittle, CMB at the General Session of the MBA's 2008 National Secondary Conefrence. 

The lead in is very interesting.

“'Two kinds of forces assist in recovery: natural and artificial. There are those who believe that natural forces primarily govern and that recovery is more in spite of, than because of, artificial forces. 

If people insist on demanding a remedy for the evils we are suffering today, the only sure response is 'Time.'

That Wisdom... from the opening address delivered by Chairman W. Walter Williams at MBA's Annual Convention in….

…1934.

The address was called “Looking Forward” and in the 18 months immediately preceding, the following artificial forces had been set in motion:
The FDIC,
the Emergency Banking Bill,
and the Farm Credit Administration. 

Just like today, lots of measures were being debated and passed.

Chairman Williams went on to say, and I quote:'the whole Nation went speculatively mad !!

We all contributed to the breakdown. Let us be men enough to stand up and admit it.

Such an experience emphasizes the extreme importance of stressing once again the homely, timeworn virtues that go to build sound individual character.

While it may be true  that natural forces operating with time work steadily towards recovery, there is much that the individual can do to help or hinder those natural forces,' end quote.

In those words, do we not hear an echo of John Robbins' call for integrity, and Kieran Quinn's admonition for a return to sound fundamentals?

What Mr. Williams couldn't have known in October of 1934 was that much of the recovery was already underway. In just a few months the country would see unemployment decline -it was still a ghastly 21%!, but it was finally going the right direction. 

The GNP headed up for the first time in years, also, by 7.7%. 

So why am I talking about 75 years ago when there's so much going on right now? To point out that it is very hard indeed to see exactly where you are when in the middle of such turmoil.And that as difficult as times may be, we have gotten better at responding quickly and responding in the right way."

For the whole article please click on the link General Session opening comments