|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 who thinks there has been fraud. To quote George Soros in his new book The New Paradigm for Financial Markets he says “The sub-prime area, which dealt with inexperienced and uninformed customers, was rife with fraudulent activities. The word “teaser rates” gave the game away”. The teaser rate refers to the starting interest rates for mortgages which increased hugely after the first few years. I am glad to be in such prestigious company.