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- Sep 2, 2007
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Financial illiteracy a big part of current crisis
A few years back, the person winning the dream home raffle at Edmonton`s summer fair now known as Capital Ex was shocked to find out how much she would have to pay for things like property taxes and utilities.
Similarly, one reason for the housing crisis in the United States is that many first-time homebuyers didn`t understand that mortgage interest rates kept unusually low in the wake of the 2001 terrorist attacks would soon rise and in many cases become unmanageable.
"That whole sequence of events initiated the subprime issue, and I don`t know that the consumer understands this causal web," said Dave Salloum, portfolio manager with RBC Dominion Securities.
http://www.canada.com/edmontonjournal/news...d9-f9ca4e929198
A few years back, the person winning the dream home raffle at Edmonton`s summer fair now known as Capital Ex was shocked to find out how much she would have to pay for things like property taxes and utilities.
Similarly, one reason for the housing crisis in the United States is that many first-time homebuyers didn`t understand that mortgage interest rates kept unusually low in the wake of the 2001 terrorist attacks would soon rise and in many cases become unmanageable.
"That whole sequence of events initiated the subprime issue, and I don`t know that the consumer understands this causal web," said Dave Salloum, portfolio manager with RBC Dominion Securities.
http://www.canada.com/edmontonjournal/news...d9-f9ca4e929198