Real Estate Investor Magazine South Africa May 2013 | Page 14

COVER STORY

BY MONIQUE TERRAZAS

Discovering

The Money Tree

Money grows on trees “promises to pay "

T

he bank ing and f inancia l system
globally is under scrutiny as scandal
a f ter scanda l rock s what we had
always assumed was a trustworthy industry,
solid as rock.
12

May 2013 SA Real Estate Investor

But things have changed. There is little doubt
that the irresponsible practice of securitisation
and inter-bank lending brought about the
global credit crunch. After setting in motion
the subprime crisis that dumped the global

economy into the worst recession in living
memory, banks were exposed for manipulating
the Libor and Euribor interbank interest rates
- providing false figures on key interest rates
upon which mortgages and loans are priced www.reimag.co.za