Reply #175: information asymmetry [View All]

[JDPriestly]

That's what the subprime mortgages were about -- very good term for it.

The buyers had no idea as to what they were getting into or why they were being asked to have a friend co-sign their mortgage. And many were told when they signed the mortgage documents that they would be able to refinance if the rates went up.

The average person did not understand the first thing about economics back then. Many, many people have learned the hard way just how crooked many of the folks on Wall Street and in the lending business are.

And a few of those who have learned are occupying Wall Street. It really is about time that someone did something to put these arrogant fat cats in their places.

Information asymmetry. Is it capitalism when you take advantage of a huge disparity not only in income but in knowledge to oppress ordinary people for your own enrichment and aggrandizement? I don't think that is the idea at all. That sounds more like feudalism to me.