Americans are 'financially illiterate' - survey

CNNMoney.com ^ | February 26, 2008 | Catherine Clifford

[gunservative]

This is a real shame. I propose that taxpayers contribute to a fund so that financially stupid types who overcharged too many frilly things and live too lavishly can get their bills paid.

[the_devils_advocate_666]

And they think and education is expensive? Well, how’s that ignorance doing for your bottom line?

[TChris]

Americans are not only financially illiterate, but economically illiterate as well. The fact that potentially more than half of voters are supporting presidential candidates with clearly Socialist economic beliefs, and so soon after the Cold War, is disturbing and disheartening.

[Hoffer Rand]

...and politically illiterate. And economically illiterate. But they know how to use a condom!

Which is a good thing, if you ask me. The shallow end of the gene pool is already breeding too much.

Not that everyone with a large family falls into the "shallow end" category.

[MinnesotaLibertarian]

That’s pretty sad. When I was a kid, I was never allowed to have that sugar water marketed as “juice”. Same thing with “cheese food”. It’s amazing how easily people can be misled...

[AdamSelene235]

So do you hold any investments that have outperformed gold in the last 5 years?

The only thing I've held that has done better has been Chinese oil companies.

[Hoplite]

The Bildaburgers with Cheese laugh at the impotent Illuminati.

With our new weather control apparatus, we are unstoppable!

Mwa-ha-ha, etc.

[Toddsterpatriot]

I love “cheese food”. I’m eating some right now. On pretzels. Yum!

[MrB]

Do you think that the situation you observe is by accident?

Even beyond “personal economics” - just teaching some basic supply & demand economics would have 90% of the country laughing at the leftists’ economic assertions.

[headsonpikes]

Americans are not only financially illiterate, but economically illiterate as well. The fact that potentially more than half of voters are supporting presidential candidates with clearly Socialist economic beliefs, and so soon after the Cold War, is disturbing and disheartening.

You wouldn't say that was "disturbing and disheartening" if you were a government planner or education bureaucrat; you would say "Mission Accomplished!"

[MrB]

And they think and education is expensive?

Economics education would keep leftists/democrats out of power. Can't have that.

[Toddsterpatriot]

So do you hold any investments that have outperformed gold in the last 5 years?

ING.

Plus it paid over $5.60 in dividends.

[Toddsterpatriot]

Sweet!

[AdamSelene235]

Not bad. Still its never a good sign when an unproductive asset is outperforming the DJIA.

Hell, I'm making on the Yen. Horrifying!! That ain't suppose to happen.

[Beagle8U]

It’s the damn “Pubic” school system that is to blame!

I don’t think they even require math after 9th grade and 9th grade math is a 2nd grade refresher course.

[USS Alaska]

Americans are 'financially illiterate

Okay...Compared to who? Compared to when?

Dame,

Compared to a caveman back when bucket of rocks with a hole in the middle were considered coin of the realm.

A caveman knew that a round rock with a hole in it was worth one live sheep.

There was no concept of future value.

Give me the round rock and I'll give you the sheep.

When he got four round rocks with holes, he built a platform, put the rocks with holes on it, called it a wagon, and offered to move someones sheep, somewhere, for {the future value of the sheep} when they got there.

Capitalism at work.

Present value --- future value.

Work, time, capital, profit, value.

I think they were on to something.

People can fight, kill, steal things or invest, produce, profit and share wealth.

Seems easy to comprehend.

[AdamSelene235]

Looks like its down more than 20% YOY. Maybe it can hold its 2001 levels if you’re lucky.

[expat_panama]

The point of the article is that most people don't understand compound interest. 

Adam asks if anything can do as well as gold has during the last five years --from $356.86 to $887.93.  That's an increase by a factor of two and a half; the same as an annual rate of return of 20% per year for five years running.  

That's pretty good, and the Dow Jones average has done it a couple times also.  What's important to know is that if somebody bought gold five years ago with a charge card, he'd be in debt if he sold them today if he was paying the 25% interest + fees with the plastic.

FWIW, my screening has been averaging 20.3% for the past eight years.  Doing better than gold is not all that hard.

[AdamSelene235]

Adam asks if anything can do as well as gold has during the last five years --from $356.86 to $887.93.

I'm aware of plenty of things that have outperformed an ugly chunk of unproductive yellow metal.

I'm just establishing a baseline in light of the demonetization of the dollar.

[AdamSelene235]

P.S. It is at 950 already.