|I have mentioned before that I am surprised that nobody mentions fraud in connection with the banking crisis and sub prime lending.
At last, I have found somebody else whothinks there has been fraud. To quote George Soros in his new bookThe New Paradigm for Financial Markets he says “The sub-prime area,which dealt with inexperienced and uninformed customers, was rifewith fraudulent activities. The word “teaser rates” gave thegame away”. The teaser rate refers to the starting interest ratesfor mortgages which increased hugely after the first few years. I amglad to be in such prestigious company.