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Book review: Financial Literacy (Panacea or placebo? - A Central European Perspective) 1
Subprime mortgages, credit crunch, contagion, mortgage-based securities or credit default swaps were words on every economist's lips in the aftermath of the crisis in 1933. Does anyone mention them anymore today?
On March 12, 1933 the then President of the United States of America addressed the American public during a radio broadcast in order to restore confidence in the banking system. This came after a four-day holiday, during which the Congress had passed new legislation to aid the dwindling financial sector hit by a fourth wave of banking panics. This can be considered one of the first financial education efforts for the public at large. It did work as there were no bank runs when banks reopened after the bank holiday.
It does not make sense...