We’ve taken on a lot of biggies. In the past three days we Banished Blanket Statements, Gut-punched Gravity and brought Art to Asteroids. What’s left?
How about Financial Industry Reform? The Senate passed it yesterday so it’s all over the news today, which means it’s high time for some Uninformed Commentary from Bud Buck.
Finally Congress has passed a financial reform measure! This was sorely needed after the sub prime loan debacle and the collapse of major banking institutions that were Too Big To Fail. There was some other stuff that happened regarding money things that are too difficult to understand. Something about derivatives and bundling and credit-default swaps. Whatever.
But now all of that has been addressed. Or if it hasn’t been addressed, at least I can stop trying to think about it, and that provides some personal relief for me in these terribly stressful times. Thank you congress!
But there is one part of the bill that irks me, and that’s the section that creates a new Office of Financial Literacy. In addition to lowering the boom on predatory lenders and Wall Street Fat Cats, now Washington is going to try to make me smarter about money so I don’t squander so much of it! I don’t know what that will entail, exactly. I can be stubborn, so my first bit of money saving advice for the government is to not waste any resources trying to educate me! I’m doing great!
For example, I always read agreements and contracts completely before I sign anything, which is a real headache for sales people since they have to sit there and watch my lips move while I read and they wait. But over the years I’ve been able to speed up the process by skipping over the terms I don’t understand. Instead, I just go with the way the word “feels”. For instance, I always make sure my bank accounts pay “simple” interest instead of “compound”. Why? Because all simple things are good, and houseflies have compound eyes, which are creepy.
If I see that a loan has “balloon” payments, I sign it. Balloons are happy, colorful things, and so much of the other stuff that you see in contracts is gray and dismal. If the balloon payments can be shaped like pretzels or wiener dogs, all the better!
Investing is important to me, so I always go for the highest number when it comes to the projected return, especially if some fund or bank or individual is paying a whole lot more than the others, because that means there’s somebody super-smart involved – somebody who knows a lot more than all the other dummies on Wall Street. Like this guy I ran into on the street corner just outside my bank. Inside they were paying, like 2% on savings, but he said he could get me 22% on a special deal he called a “Ponzi”. That sounds like “Fonzi”, who was a very cool, very big star years ago on “Happy Days”. That’s proven celebrity talent, and if a celebrity says I should do it, I usually do. Being popular is their main job, so why would they lie?
Finally, I always make sure my finances are organized so I can get a big fat tax check back from the government in the spring. My paycheck is smaller, but what could be better than money in the mail?
So here’s a notice to the new Office of Financial Literacy – don’t fritter away those precious government dollars trying to improve my situation. Direct the money toward dealing with the truly important issues like Too Big To Fail, and leave me my Too Good To Be True.
This is Bud Buck!
Assess your financial literacy.





