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Tag: gresham’s dynamic

Why did the Fed Refuse to Heed the Appraisers, Prosecutors, and Industry’s Fraud Warnings? William K. Black

Two of my recent columns have explained the effort by a very large number of appraisers to combat the “Gresham’s” dynamic that home lenders and their agents were deliberately generating by extorting appraisers to inflate appraisals. A “Gresham’s” dynamics perverts market forces. When cheaters prosper the markets drive honest firms and professionals out of business. Honest appraisers tried to block this dynamic.