The Real Deal Miami

Lack of “financial democracy” contributed to financial crisis

October 09, 2008 02:36PM

Robert Shiller, chief economist at MacroMarkets, says the subprime crisis is due in part to failures of “financial democracy.” Shiller says many first-time homebuyers who took out high loan-to-value mortgages with adjustable rates did not have access to financial advice and information about what they were doing. Shiller said information should be available to the public, not just in books or business television, and investment professionals who want to communicate honest information to the public should be able to make a living doing so.