D.F.
Krause
Read D.F.'s bio and previous columns
September 19, 2008
Wall Street: There Goes
the Neighborhood
Eight-year-old T.F. Krause wanted an explanation.
“Daddy, where’s Wall
Street?’
“Why would you want to know that?” I asked.
“Because I heard at
school that there’s trouble there. I don’t even know anyone who lives
there. Is it a bad neighborhood?”
“Yeah, you could say that. There are a lot of weird people there. They
wave their arms around and wear these lab-coat type things. And throw
paper around.”
“We do that in third
grade too!”
“Right, it’s actually not all that different.”
“So what’s the
problem?”
“Well, a bunch of people loaned money to some other people, and they
probably should have known that the people wouldn’t be able to pay the
money back, but they didn’t know, so they made the loans, and now the
people who loaned the money are in trouble.”
“What kind of trouble,
Daddy? Like what happens to me when I have to go see the principal?”
“What did you have to go see the principal for?”
“Putting papers up the
air vent.”
“Why would you do that?”
“You told me that’s
what you did when you were in school!”
“Oh yeah. Well anyway, it’s sort of like that. Except that they have to
go see Ben Bernanke instead. They can’t get their money back, so some of
them go out of business, some get bought by other companies, and some
get taken over by the government. That’s the worst one of all.”
“Why?”
“Who would want to join the government?”
“Not me. I joined Cub
Scouts. I have enough to do.”
“Me too.”
“So why did they loan
people money if they couldn’t pay it back?”
“Well, it gets complicated. They thought some other people would come
along and pay back the money.”
“Why would anyone do
that? That’d be dumb.”
“I
agree.”
“So no one else paid
back the money?”
“Nope.”
“I’m not lending anyone
my money! I have $40, you know.”
“Well that’s good thinking, T.F. We’ll open a bank account for you and
you can earn some interest with that $40.”
“What’s earn interest?”
“That’s when the bank pays you to leave your money with them.”
“Wait a minute, Daddy.
Why would I leave my money with them?”
“Well, because it will be safe here.”
“It’s safe next to my
bed.”
“Well, yeah, but it isn’t earning any interest there.”
“So they’ll pay me to
leave my money in their bank?”
“Yeah.”
“Why?”
“Well, they’ll lend it to people who will pay them back with even more
interest.”
“How do they know those
people will pay them back when the people on Wall Street didn’t get paid
back?”
“Uh, well, that’s a good question.”
“These banks kind of
sound like dufuses, Daddy.”
“I
can see your point.”
“No wonder Wall Street
is a bad neighborhood.”
Eight-year-olds think they know so much.
© 2008 North Star
Writers Group. May not be republished without permission.
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