Structured financing is a dominate form of finance used to transfer risk, support financing, liquidity, and the issuance of securities through complex legal entities. This amalgamation has tremendous benefits but creates uncertainty when the judiciary rules on issues not subject to strict letter certainty of law.
Those who utilize structured financing, many of whom, dominate domestic and global commerce, aware of these issues, exploit said benefits resulting in massive private gain at the expense of public loss. This is arguably a common denominator of our financial crisis.
As homeowners and securities investors continue to lose their investments over what is commonly argued in court as securitization, uncertainty increases, consumer confidence decreases, and thus, so does our economy.