My 2 Cents!

(post by Marissa) Note: Marissa has no degree in economics and does not follow politics that closely, but I of course do have an opinion.

With all of these economic issues arising I think of a few things:

1. What the heck were these mortgage lenders and banks thinking giving loans to people who could clearly not pay for them..

2. Why is the gov't who doesn't have any money either going to bail out the banks and lenders who were only concerned about making loan origination fees a few years ago? Way to go Big Business, get the gov't involved. This will only solve things short term and in the end we'll have more problems. Just like lowering the interest rates too low for too long after 9/11. It made it better for a bit, but certainly helped create the housing bubble, which has created all of this banking nonsense.

3. Emergency Funds: Investments are not for bad times. You want an emergency fund (cash, bonds) of about 6 months salary BEFORE you start investing...why? Well, when do you need cash..when the economy and job market is great? No, you need cash when the economy is down. Rather than having to pull out from your stocks and such and lose money, you use your emergency fund so you can ride the wave of less than ideal economic performance. The stock market is emotional. When people hear bad news (which the news LOVES by the way..our economy has been tanking for like 8 years according to them..) they sell their stock because they get nervous. This then creates even more economic scurry. Meanwhile the investment brokers are in heaven because they are making lots of money on fees, fees, and more fees. So, before investing we need Emergency Funds. (thank you Professor Sudweeks. He has truly sold Steve and I on the need for an Emergency Fund).

Lastly, I propose a basic financial class be REQUIRED in high school. I mean we have to take classes like ancient Greek Mythology but not a basic money class. So many people don't even know when taxes are due or how to balance a checkbook or live in a budget. If I am ever YW president, I think I would give every laurel a little money workshop before they head ot college. Basically we tell kids it's okay to have cell phones, laptops, safe sex, but not have a freaking clue how to pay for the cell phone, laptop, or the baby that can surely come.....

(sorry for the soapbox..if it makes you feel good, you readers only get them ocassionally, Steve is subject to them lots more!)