Monday morning (the financial remix version)

[lagilman]

Yesterday was interesting. Today will be even more so.

As I said in comments on a previous post, I am not a financial advisor, nor do I play one on the internet. When I post financial links here it's because I found them of interest and hope someone else will as well --because I think it's something every adult should have a basic education in, even if we don't match up to the standards of the MBAs and Wall Street wonks.

Meanwhile, there's lots of financial bluster in the blogosphere from both sides of the political aisle, a lot of which seems designed not to explain, but to accuse and gloat. If you're looking for a way to understand what's happened/is happening, those probably aren't the best places to start... (or finish, IMO but some people seem to find comfort there).

EtA: for those who are interested, nycdeb is holding a one-day paper run on the stock market, with updates as they happen, here.

Comments

[neutronjockey.livejournal.com]

I'm still trying to convince my old man that the economy is in a sustained recession (i.e. a DEPRESSION) ... he's still trying to convince me not to believe everything I read.

Dear Dad,
I believe.

[lagilman]

well, if you believe everything, you're going to be nipping at your hindquarters and whining anxiously pretty soon!

(also: I have this-here bridge I think you'll find is a real bargain...)

[nycdeb.livejournal.com]

the only word I've ever been able to come up with for the lack of financial education in this country (and most others come to that) is "staggering."

It should be in the curriculum. Like vocabulary (do they still do vocab? I hope so) and multiplication tables (which I suspect more and more they don't bother to do because they just hand the kids calculators). As you say, not everyone needs to be an MBA or qualify for a brokers license but they should know:

• the difference between the Treasury Department and the The Fed (I discovered yesterday the sad fact that even people I assumed would know didn't).
  
• about interest and why their credit cards keep raising their limits for them (No, they aren't doing it because they like you)
  
• in broad strokes at least, how the stock market works. Even then, I'd have my doubts about letting the majority of people lose in the market but at least then they wouldn't look so shocked when someone told them it's not ever a sure thing.

When people ask - I do try and explain things or point them to where they can find more information but it never ever ceases to amaze me how little people really know and understand about how finances and the economy work. I mean all people - even otherwise well read, highly educated people. Nothing. They look like deer in the headlights.

Oh dear. That got longer than I meant it to.

:-) Sorry.

[lagilman]

To be fair, I'm not sure even economists know exactly how 'the economy' works. They've just got strong constitutions and a good line of patter.

(and I admit, I only have a vague layperson's idea of what the Treasure Department does. The Fed I know -- I got to soak up a lot of info about them, over the years. Some of it was even complimentary.)

[shui-long.livejournal.com]

The even more worrying thing is how many bankers do not fully understand what they are doing - and were quite happy for the wizards in the specialist groups to carry on creating structures that had no correlation to underlying value. So long as it allowed the deal to be done, and the fees collected...