Today in the news it’s seniors who are the latest noted victims of financial abuse. Back with Richard Cordray was appointed I said I sure hope he understands math and formulas as that’s a big part of how all this happens. It happens to all of us, but seniors are even more likely to be victims. Read the news of late and you can see several reports to where the banks can’t even figure out what they created with algorithms and formulas and how do you expect the layman to understand it I ask.
President Appoints Richard Cordray as New Consumer Financial Protection Chief - Hope He Knows And Understands Correcting Flawed Math and Formulas To Battle the “Financial Attack of Killer Algorithms” On Consumers With Banks and Corporate USA
I watched a recent PBS 4 part video series on Wall Street and even cities and municipalities were on the hook and taken advantage of. It was very good and informative and really dove in to explain how derivatives work. It talked all about the commissions and big money made by brokers which is what drove the derivative markets and talked about the increase in the “dark pools” to where so much is hidden and skates around regulation. The videos had several interviews with former employees who were told it was their job to figure out how to get around laws and regulations and they did. None of them could talk about how much they made as that was part of their employment agreement, I assume past and present. What was fascinating though was where the whole idea was cooked up for derivatives and by who…JP Morgan but all the investment banks jumped in once the rules were set up.
It’s all about the Attack of the Killer Algorithms as that’s what was used by software engineers to build derivatives, they couldn’t have done it without them and they still build them with running up the desired results up the software flagpole.
Here’s an old post I made over 2 years ago and maybe it’s time has come?
In chapter 6 I addressed the fact that us as the middle class are now a bunch of data chasers that have to go around and fix what has been reported about us in error and the amount of flawed data out there is increasing. We have to go back and prove that the “algorithms for desired results” (not ours but theirs) are flawed when it comes to accountability and providing accurate information about all of us. BD
Attack of the Killer Algorithms Part 6–Discrimination With Consumer Credit-Same As Health Insurance Wanting Consumers to Reconstruct Records From Many Years Past As Middle Class Turns Into Data Chasers-Days of Taking Risks to Get Ahead Will Be Limited For Most…Occupy Algorithms
The majority, or 84%, of experts who deal with financial fraud of elders -- including financial planners, medical professionals and social workers -- have noticed an increase in financial abuses this year, according to a survey released this week by nonprofit organization Investor Protection Trust.
About 58% of the 762 respondents reported that they encountered investment fraud or financial exploitation of seniors "quite often" or "somewhat often."
And 96% of experts said elderly fraud is a serious problem.
Meanwhile, research from insurance provider MetLife has found that Americans over the age of 60 lost about $2.9 billion to financial abuse in 2010 -- up 12% from the $2.6 billion lost in 2008.
The CFPB's director, Richard Cordray, said that at his former post as Attorney General of Ohio, he saw many instances of financial abuse against seniors -- including fraudulent lottery or sweepstakes scams where criminals stole the last of their money.