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Complexity is a feature in modern financial products. It creates a larger knowledge gap between those selling the products and those buying them.
by superhuzza 8y ago
Complexity is a feature in modern financial products. It creates a larger knowledge gap between those selling the products and those buying them.
- barrow-rider 8y ago+1 People forget that the "invisible hand of the market" assumes perfect or at least reasonably accurate understanding of the risks, benefits, and outcomes. Take that info away and you inevitably have snake-oil salesmen and the Housing Bubble (a product of modern financial products) See also: "Externalities in Economies with Imperfect Information and Incomplete Markets" by Stiglitz