{"id":2932,"date":"2008-10-06T10:14:50","date_gmt":"2008-10-06T17:14:50","guid":{"rendered":"http:\/\/seattlebubble.com\/blog\/?p=2932"},"modified":"2008-10-06T10:14:50","modified_gmt":"2008-10-06T17:14:50","slug":"wamu-exec-warned-board-of-pending-collapse-years-ago","status":"publish","type":"post","link":"https:\/\/seattlebubble.com\/blog\/2008\/10\/06\/wamu-exec-warned-board-of-pending-collapse-years-ago\/","title":{"rendered":"WaMu Exec Warned Board of Pending Collapse Years Ago"},"content":{"rendered":"<p>Interesting story from NPR: <a href=\"http:\/\/www.npr.org\/templates\/story\/story.php?storyId=95357008\" title=\"Washington Mutual Executive Predicted Collapse\">Washington Mutual Executive Predicted Collapse<\/a><\/p>\n<blockquote><p>For casual observers, bank collapses like this one <em>[WaMu]<\/em> may seem to have appeared out of the blue. But for executives like William Longbrake, who worked at Washington Mutual for 26 years before September&#8217;s tumult, the collapse looked more like a slow unraveling.<\/p>\n<p>Longbrake served as the savings and loan&#8217;s chief financial officer from 1982 until 2002 and as a senior executive until a few weeks ago. He says he&#8217;s free to talk now about the trouble he saw coming, because no one is left at the thrift to sue him for breaking nondisclosure agreements.<\/p>\n<p>&#8220;There was something that disturbed me deeply, and it actually was a long time ago. It was probably about 2003,&#8221; he says. &#8220;And that&#8217;s when home prices began to rise at a rate that was much faster than people&#8217;s incomes were rising. Housing prices felt good when they were going up. Everyone was giddy with all the wealth they were accumulating, and a lot of them spent it. The problem was that, all the time, as housing prices were getting higher and higher and higher, the affordability was declining. Eventually, the ability of a lot of people to buy homes just disappeared, and we had too many houses.&#8221;<\/p><\/blockquote>\n<p>Unfortunately, nobody wanted to hear that kind of sentiment during the boom.  Anyone that tried to warn people that home prices were rising too quickly and all the perceived wealth was an illusion was derided as a &#8220;doom and gloomer&#8221; or outright mocked as a lunatic.<\/p>\n<p>Sometimes it sucks to be right.<\/p>\n","protected":false},"excerpt":{"rendered":"<p>Interesting story from NPR: Washington Mutual Executive Predicted Collapse For casual observers, bank collapses like this one [WaMu] may seem to have appeared out of the blue. But for executives like William Longbrake, who worked at Washington Mutual for 26 years before September&#8217;s tumult, the collapse looked more like a slow unraveling. Longbrake served as&#8230;<\/p>\n","protected":false},"author":2,"featured_media":0,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"jetpack_post_was_ever_published":false,"_jetpack_newsletter_access":"","_jetpack_dont_email_post_to_subs":false,"_jetpack_newsletter_tier_id":0,"_jetpack_memberships_contains_paywalled_content":false,"_jetpack_memberships_contains_paid_content":false,"footnotes":"","jetpack_publicize_message":"","jetpack_publicize_feature_enabled":true,"jetpack_social_post_already_shared":false,"jetpack_social_options":{"image_generator_settings":{"template":"highway","default_image_id":0,"font":"","enabled":false},"version":2}},"categories":[198],"tags":[296,111],"coauthors":[],"class_list":["post-2932","post","type-post","status-publish","format-standard","hentry","category-news","tag-npr","tag-wamu"],"yoast_head":"<!-- This site is optimized with the Yoast SEO plugin v26.2 - https:\/\/yoast.com\/wordpress\/plugins\/seo\/ -->\n<title>WaMu Exec Warned Board of Pending Collapse Years Ago \u2022 Seattle Bubble<\/title>\n<meta name=\"robots\" content=\"index, follow, max-snippet:-1, max-image-preview:large, max-video-preview:-1\" \/>\n<link rel=\"canonical\" href=\"https:\/\/seattlebubble.com\/blog\/2008\/10\/06\/wamu-exec-warned-board-of-pending-collapse-years-ago\/\" \/>\n<meta name=\"twitter:card\" content=\"summary_large_image\" \/>\n<meta name=\"twitter:title\" content=\"WaMu Exec Warned Board of Pending Collapse Years Ago \u2022 Seattle Bubble\" \/>\n<meta name=\"twitter:description\" content=\"Interesting story from NPR: Washington Mutual Executive Predicted Collapse For casual observers, bank collapses like this one [WaMu] may seem to have appeared out of the blue. 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