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Tuesday, July 07, 2009

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Matt Wallace

I like that the Federal Reserve's justification for not fully addressing perverse incentives like the Yield Spread Premium in their initial round of post-mortgage-meltdown regulation was that it could lead to "consumer confusion." I hadn't yet had a chance to read this report which shows that the confusion was largely on the grounds that consumers just couldn't believe that the game was so often rigged to give them a bad deal.

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