Thoughts and Adventures From Greenlite Heavy Industries

Monday, December 20, 2010

Subprime Intelligence

I’m reading this book The Monster by Michael Hudson, it’s all about the subprime mortgage debacle and it got me wondering: why don’t they teach personal finance in high school? It seems that a class on basic household finance – what is APR, what’s wrong with credit card debt – should be required in order to graduate high school.

The purpose of public education is to create a responsible citizenry, but when you have so many people who are so gullible you actually begin to create a failing state. The financial meltdown spawned by subprime lending is a case in point. I mean how can you explain to the public the problems of deficit spending or global warming when so many members of that public will willingly sign an adjustable rate mortgage that begins at fourteen percent and climbs to twenty two percent.

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