There has been alot of activity over the past couple of weeks to try and fix this market realignment. I've been stuck on where things might move to next. After watching this video on cnbc a few thoughts cleared up.
We have to rebuild the house- The fires have stopped, but now we are looking at a system that is structurally much different than it was a year, even 6 months ago. The challenge here is that the landscape has so drastically changed that it's hard to pick your starting point.
Systemically we are moving to a more realistic alignment of a sustainable lending industry- what we have not seen yet, at least from my perspective- is a more realistic alignment of consumer income statements and balance sheets to reflect the structural changes happening.
Based on this view, where's the opportunity? Depends on your perspective.
If you are a mortgage advisor, financial services advisor, private banking officer, are your clients personally ready for the realignment of credit risk and savings requirements that will be the norm in the new market.
If you are a tech company- are you looking at the financial services industry as a vertical for your product? As companies shed costs, they will need top line revenue growth and sustainable infrastructure costs so as to not end up in the same position a little further down the road.
I'm not sure where this ends up or what it looks like when completed- there are still many variables that need to be worked through - but this seems certain- if the house has burnt down- you will need a blueprint, a foundation and a structure to rebuild. Now's the time for imagination and innovation.
Ideas anyone?
