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b_b  ·  3905 days ago  ·  link  ·    ·  parent  ·  post: The Danger of Financial Jargon

Way back before the financial crisis, one of the Federal Reserve board members (Edward Gramlich, chair of the Kansas City Fed), in a 2007 essay arguing against subprime mortgages posed the question: Why are the riskiest mortgage products sold to the least educated borrowers? The answer he offered was the obvious one: They are being intentionally duped. He was, unfortunately, largely ignored yet proven correct by history.