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I don’t get it.

March 19, 2008

(i wish this were true for me)

Even though I work in a finance-related field and read the WSJ, NY Times and daily (it’s an addiction that developed some time last year when these were the only sites I could access at my client) I’ll be the first to admit that I have NO clue what’s going on with the economy.

I mean, I’m not a total idiot. I get that there is a credit crisis. But why? Are the subprime mortgages really the crux of the issue? And if so, how did they get so out of control? And where do the derivatives come in? And how is it possible that headlines could read “Bear Stearns Collapsed”?

As most of you know, I’m something of a worry wart when it comes to money. Not sure how that started – I think my dad made an offhand comment to my mom about how we needed to watch the grocery budget back in like 1988. Ever since then my poor family has been forced to constantly reassure me that family vacations, dinners out, new clothes and packages of gum would not send us into the ‘poorhouse’  (which I imagined to be like the orphanage in Oliver Twist except that Kels and I would have to wear those awful sweatshirts that are screenprinted with horses and kittens and wear our hair in scrunchies). Yeah, I know. Crazy. Anyways. The fact that I don’t understand exactly what’s going wrong with the economy just exacerbates this phobia.

Fortunately, I came across this article in the NY Times. It clearly, concisely and at a rudimentary level explains how ‘subprime mortgages could take out the whole global financial system.’ It doesn’t necessarily alleviate my fears of being unable to afford anything but acid washed jeans from Goodwill but at least now I know what is causing these nightmares…

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