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Sun Feb 3, 2013, 11:39 PM

"Friends of Fraud" by Paul Krugman at the NY Times

Friends of Fraud

by Paul Krugman at the NY Times

http://www.nytimes.com/2013/02/04/opinion/krugman-friends-of-fraud.html?smid=tw-NytimesKrugman&seid=auto

"SNIP.............................................


There was, however, one piece of the reform that was a shining example of how to do it right: the creation of a Consumer Financial Protection Bureau, a stand-alone agency with its own funding, charged with protecting consumers against financial fraud and abuse. And sure enough, Senate Republicans are going all out in an attempt to kill that bureau.

Why is consumer financial protection necessary? Because fraud and abuse happen.

Don’t say that educated and informed consumers can take care of themselves. For one thing, not all consumers are educated and informed. Edward Gramlich, the Federal Reserve official who warned in vain about the dangers of subprime, famously asked, “Why are the most risky loan products sold to the least sophisticated borrowers?” He went on, “The question answers itself — the least sophisticated borrowers are probably duped into taking these products.”

And even well-educated adults can have a hard time understanding the risks and payoffs associated with financial deals — a fact of which shady operators are all too aware. To take an area in which the bureau has already done excellent work, how many of us know what’s actually in our credit-card contracts?


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Reply "Friends of Fraud" by Paul Krugman at the NY Times (Original post)
applegrove Feb 2013 OP
applegrove Feb 2013 #1
cherokeeprogressive Feb 2013 #2
JDPriestly Feb 2013 #3

Response to applegrove (Original post)

Sun Feb 3, 2013, 11:41 PM

1. I disagree that the banksters are so much in denial. They like the boom & bust cycle.

They make fortunes and then live off those fortunes after the bust. They like it. It is the middle class and the poor who get destroyed by such an economy. Banksters are in denial that they are a small part of a country if anything.

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Response to applegrove (Original post)

Sun Feb 3, 2013, 11:44 PM

2. When I saw this I read "Friends of the iFraud".

I thought it was a story about fanbois.

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Response to applegrove (Original post)

Mon Feb 4, 2013, 02:15 AM

3. Incredibly good op-ed.

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