Friday, June 25, 2010, 4:46 pm
The orgins of the financial crisis
Want to better understand the source of the financial crisis and the role mortgage fraud played in it? Click the video below for an interview conducted by Santa Rosa attorney Rachel Dollar of Smith Dollar, attorneys at law.
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I believe the financial crisis in real estate was precipitated from capital gains paid to real estate transactions without any paid in principal and interest from wages or income to the note itself. This created a timing imbalance between paid in capital from wages, the mortgage markets, and real estate markets. Refinancing still kept the relationships equal to internal management. Obviously, as income to sales price diminished, it was a matter of time before bank cash positions were depleted again.
by Timothy Sepik