Wednesday April 16, 2008 - 16:52:32 GMT
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CEP News - www.economicnews.ca
Fed's Plosser Says Subprime Crisis a Lesson in Importance of Economic Education
12:35 04/16 (CEP News) - Philadelphia Fed President Charles Plosser
said spillover from the U.S. subprime mortgage crisis has caused
â€świdespreadâ€ť impairment of financial markets and that it should serve
as a lesson of economic education.
Speaking on 'Education
and Economic Prosperity' at Montgomery College in Pennsylvania, Plosser
said homeowners borrowed more than they could afford, some of whom were
misled by "abusive lending practices." He made no comments on economic
outlook or monetary policy.
"Education is critical to the long-run well-being of our economy and
everyone who participates in it," he said. "It enhances our
productivity and raises living standards. It enables consumers and
businesses to make more informed and thus better decisions and choices
â€” improving the broader economy in the process."
But he noted the responsibility does not rest solely with government
and policy-makers. "It rests mostly on individuals taking the
responsibility to engage in life-long learning, making investments that
will reward them handsomely," he said.
Plosse also said the Fedâ€™s actions on liquidity and Bear Stearns are
aimed at ensuring financial stability and that the Fed is encouraging
servicers and investors to help keep borrowers in their homes.
By Stephen Huebl, [email protected], edited by Nancy Girgis, [email protected]
(END) Â©CEP Newswires - Â©CEP News Ltd. 2008. All Rights Reserved. www.economicnews.ca
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