If Iím to believe everything I see, hear, and read lately, weíre going through a pretty tough financial time in this country.
High unemployment levels refuse to budge, news from Wall Street gets worse every day, and theyíve already announced there will be a sequel to the Smurf movie.
Things couldnít look bleaker. More bleak. Whatever.
Iím a silver lining person, but Iím having a hard time finding one lately. I want to believe the best in our nationís leaders, but Iím beginning to have the looming feeling that I may actually have a better understanding of basic finance than they do.
Now thatís frightening.
I find myself listening to endless debates about how to shore up our ailing pocketbooks. I donít know about you, but even though I nod a lot, I understand little about what Iím actually hearing.
So I thought today weíd take a basic quiz on frequently used economic terms and their meanings. Hopefully through this process, you too will be able to nod while possessing little understanding of what youíre hearing.
Question 1: The term ědebt ceilingî describes: (a) the amount of debt you will incur replacing your bathroom ceiling. (b) a limit on the total amount of money our nation can borrow to finance government operations. Or (c) an imaginary entity similar to air with no real structure or meaning, used only as a reference point for political talking heads.
Of course, the correct answer is (B), unless youíre a member of Congress. Then, the correct answer is (C).
Question 2: The term ěgross national productî refers to: (A) The stuff that flies out of an Americanís mouth every time they sneeze. (B) the market value of all products and services produced in one year by labor and property supplied by residents of our country. Or (C) Guacamole.
In this case, the correct answer is again (B). If you chose (A) or (C), that is a common mistake. You may have thought I said ěgrossest national product.î
Question 3: ěFannie Maeî is: (A) an abbreviation of the Federal National Mortgage Association, designed to expand the secondary mortgage market. (B) the answer to the question ěwhat part of my body holds the money Iíll use to pay my taxes next year?î Or (C) Ellie Mae Clampettís ugly sister.
The correct answer is (A), though Iíd consider marrying (C) to secure my financial prospects down the road.
Question 4: ěStandard and Poorísî is: (A) A comedy team that used to appear regularly on The Ed Sullivan Showî. (B) A pretty darn good description of everyoneís 401K right now, or (C) A financial services company that recently referred to America as a bunch of no-good, low-lying welchers in terms of credit worthiness.
In this case, the correct answer is a combination of all three.
Standard and Poorís is a group of New York comedians that recently torpedoed our credit rating to the point that it pretty much blasted our 401Kís out of the water.
You now have the foundation of a pretty good education in financial terminology. Please pick up your diploma at the door.
Kent Bernhardt lives in Salisbury.