rapid real estate development - not the solution for growth!

The recent economic slow-down in us economy and its far reaching effects in other industries and nations, point to structural issues in banking and real estate industry.

Rapid real estate growth without long-term, intergrated, multi-sector growth strategy...will yield un-predictable market crashes.

The cumulative slump in real estate industry drag down banks that provided loans and used the papers in the wall street. This is a pattern of lending and real estate in many countries. But when market slump moves as under-current in the economy is not addressed reagionally and at sector level, it affect the whole economy. During the recession, even unrelated auto sector use the weekness as reason for government bail outs or bridge loan requests.

The commercial papers generated within a sector like 'real estate' shall be evaluated at a different rate and not be overly (beyond a ratio) used for investments in other sectors. Un controlled use the real estate commercial paper in wall street is a mistake. When the real estate sector slump occur, that drags down the other sectors that use those 'poorly performing' commercial paper from real estate.

yes. create housing banks, industrial banks, auto banks etc. etc. to deal each value chain, debt or credit issues seperately... instead of having over-grown, un-focused, growth hungry, overarching, multi-national banking firms... with all the bad apples in the single basket. These are the learning point, shared with new administration also.. Unlike in schools, we cannot mix good students and bad students in same classes and always expect good results...some gets stressed out wthout incentives, some good ones perform poor, some bad performers gain the same bailout benefit...