IndyMac: The Bank & Clients Were Equally Inept

Why did people bank with a slime outfit like IndyMac? Real simple. They thought they could get higher interest rates on their accounts. They did not think that the oh so sweet high interest rates indicated more risk:

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2 thoughts on “IndyMac: The Bank & Clients Were Equally Inept

  1. People have spent more time Educating them selves on which american idol to vote for than on basic basic financial 101 concepts. Sorry not even 101, Financial 1 concepts. People don’t even stop to question why is this bank paying higher rates than they are able to bring in from loans? They just get excited to tweek out an extra 3 dolalrs a year at a bad bank.

  2. I believe making mistakes, sometimes costly mistakes, is the only way for stupid to learn. If the government doesn’t let people fail, people will not have an incentive to learn. Instead of having a country will hard working responsible people, we now have a country full of VICTIMS!

    It’s scary that the value of the US dollar is ultimately backed by the productivity of our workforce. The next crisis will be the dollar.

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