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Submission + - Bad Math Skills Lead to Bad Mortgages (economist.com) 2

James Cho writes: "Not all subprime borrowers are alike. While all having poor credit histories, the Economist reports that those who failed a simple arithmetic test defaulted at rate much higher than that of test-passing borrowers. The results come from a working paper by the Federal Reserve Bank of Atlanta: 'Foreclosure starts are approximately two-thirds lower in the group with the highest measured level of numerical ability compared with the group with the lowest measured level,' quantifying the problem of public innumeracy."

Honesty is for the most part less profitable than dishonesty. -- Plato