Keith Van Horne, The Sub Prime Mortgage and Financial Literacy

The Answer: Keith Van Horne, the Sub prime Mortgage Market, Financial Literacy
The Question: (hermetically sealed in a Mayonnaise Jar) Name three reasons the Economy is in bad shape?

Twenty years ago, late-night legend, Johnny Carson’s all seeing Karnack would give the answers to questions before they were asked to the enjoyment and laughter of millions in his TV audience. Unfortunately, the above question and answer isn’t funny, but is true in many ways.

How did so many people “get talked into” sub prime mortgages without fully understanding the potential risk that they faced when rates escalated? You could blame financial literacy, because as a nation we failed to teach people how to budget, how to balance a checkbook and how to save for retirement.

And, what about our children? What are we teaching them when they want to spend hundreds of dollars on MP3 players, phones, gaming systems, designer purses and shoes? The examples they follow come from the headlines and “Unreality” shows on TV which makes entitlement a divine right. It also comes from seeing people like Keith Van Horn.

Nets forward Keith Van Horn landed $4.3 million after being involved in a sign and trade from Dallas in the Jason Kidd deal Feb. 19. Van Horn, who was enjoying post-basketball life in Colorado at the time of the trade, did not play one game for the Nets after he was acquired.

I don’t have a problem with Keith Van Horn. He worked hard for his money (or did at one time.) It is another example of how “Deal or No Deal”, the lottery, and Texas Hold’em has replaced the Passbook saving account, Christmas Club and “Saving for a Rainy Day ”as a strategy for financial security.