BUSINESS
06/27/2009 05:12 am ET Updated May 25, 2011

Investment Choices Linked To Areas of Brain

A region of the midbrain called the ventral striatum may be partly to blame for the fact that millions of Americans fell prey to risky financial gambles, such as adjustable rate mortgages. Since the early 1980's, lenders have lured prospective borrowers with complicated loan agreements boasting low teaser interest rates, which, after staying fixed for a period of time, inflate dramatically, leaving some consumers struggling to come up with their monthly payments and resulting in skyrocketing national foreclosure rates.

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