This whole economic mess certainly has me confused. Now I don’t think I’m alone, but I’m trying to understand it as much as I can. Maybe I need to go back to something I already figured out.

            Remember first being introduced to algebra? The concept understandably proves confusing to many students when they’re first introduced to it, seeing x’s and y’s in math problems, first combining the alphabet with mathematics.

Years ago I tutored middle-school students having difficulty understanding the notion of algebra. The idea of incorporating letters with numbers seemed alien to them. However, with some work, they quickly began to see that the letter in the problem is merely a replacement for some unknown number. It took practice, some routine, but most students soon gained an understanding of algebra.

            Now, something a tad harder, would you say you have a firm understanding of what a credit-derivative is? How they work or even what they do?

            I have no trouble admitting my understanding of derivatives is limited. I know they played a role in the situation facing all economies across the globe today. As far as my limited research has told me, they’re similar to a form of insurance taken out by banks and financial companies. These entities “insure” a borrower’s ability to repay the mortgage that a bank or financial company issued to a homeowner, giving protection if that borrower fails to make payments.

Next, as far as I can tell, the process only continues in similar fashion. The bank or finance-company taking out the insurance on the borrower’s credit worthiness gets insurance from another company, all to safeguard their interest – they “inure and the insured.” This new company proceeds to get insurance on their investment, continuing on to other companies in other countries, eventually spreading to banks and finance institutions across the globe.

For years this process continued to happen. A castle of cards was constructed, one dependant on all others, where only a limited amount of missed payment could be afforded before the castle would implode. Then, as we all know, things began to fall apart. Appreciation in the housing market stopped and payments were missed. Foreclosures shot up, appreciation came to screeching halt with the surge of houses on the market, and the same banks and finance companies, which only recently were recording record profits, began losing LOTS of money.

Then it spread. With banks suffering from major loses, the credit market dried up. People stopped spending money as freely as they had. As sales dropped, businesses dependant on getting easy credit now had difficulty as banks attempted to recoup their losses. Businesses had to down-size. Soon unemployment began to rise. Then, with unemployment on the rise….

Wow – it’s starting to get really confusing again. Not sure if I can follow everything that's happening. I think I might just be happy that I have algebra figured out, because this whole economic-downturn thing might be a tad too perplexing for me….

            He was after me.

My body was paralyzed with fear. Unresponsive to the mental commands, the muscles under my control were ineffective that night. My head shook uncontrollably. Visions of darkness emanated from within me.

Pouring with sweat, I was trapped inside my cranium – trapped to my bed’s domain.

I’d witnessed his battles and vaguely recognized his mannerisms. But, I asked, why me? Why now? Hadn’t I been safe?

            Brilliance flashed and overtook my mind, thunderous screams, and then everything from the wrist toward the end of the extremity separated. Pain echoing throughout my body, I looked up, and Darth Vadar stood there laughing.

When I was younger, the dark lord of Star Wars completely scared the wits out of me. Images of my severed hand falling from my arm ran through my young mind months after I saw Lucas’s classic, The Empire Strikes Back. The dark and mechanical image, compounded by the deep voice of James Earl Jones, haunted me as nothing before or after ever had in my life.

Of course I matured and the science fiction masterpieces of the Star Wars Trilogy were appreciated for what they were meant to be: cinematic entertainment. My worries shifted from screen images to real life loss and failure.

Years ago I became a real estate investor. During my enterprising beginnings, homes were snatched up fast, and I frequently paid top price. Renovation-work and repair-money was thrown into the mix, and many were sold for profit to willing buyers.   But others were held, to be rented, for the promise of a future paycheck made possible through appreciation.

Regardless of the buying price, I told myself, appreciation will guarantee a profit and therefore justify the purchase price. Equity was borrowed, more loans were granted and more homes bought, confident of more appreciation in the coming years.

Hey, your money’s safe in real estate – right?

Yes, my fears indeed changed as I aged, particularly after I learned hard lessons: that leverage is not a guaranteed way to make income, that your money is in no way safe in real estate, that mortgages are things to avoid and nothing to cherish.

Darth Vader? Cutting off my hand?

Yes, that’s still pretty scary. But failing mortgage companies chasing you down to reclaim your home, a problem faced by millions of Americans in this time of crisis, is something pretty frightening in itself…

           I have no doubt there are lots of people out there who can’t stand to see the extravagant benefit packages given out to CEOs of failed companies verging on the brink of total failure. There the executives are, comfortable with their “golden parachutes,” telling their employers “sorry” for losing their retirement savings. They watch as the shareholders sell their shares of the company, many times for only a fraction of what they paid. These executives were indeed in charge, but all has fallen apart.

So, what do they do then?

Not what a person would expect. Many take corporate meetings in extravagant locations around the world, usually before “bowing out” – resigning, as they won’t be fired – with, many times, as much as tens of millions of dollars as “bonuses.”

Do they feel entitled to it after squandering so much? After making so many poor judgments?

I certainly don’t have a clue. I know that’s more money than I’ll ever see. There just doesn’t appear to be that much accountability.

Attempting to relate, I certainly remember my first job. Barely even a teenager, I was a common stock-boy at a local convienece store called Happy Harry’s one summer. Not much money, but work. Then, one afternoon, the manager called me back to his office.

“Matt,” he calmly said to me, seated in his chair. “We’re going to let you go. We just don’t think you’re Happy Harry’s material.”

I was crushed, and I had no clue why. Not even Happy Harry’s material? If I can’t even cut it here, I asked myself, what can my future possibly hold?

Yes, that was it for me. I can only guess my manager had held me accountable for something or other and, whether I liked it or not, my days at Happy Harry’s were over.

But I wasn’t given a few million to “leave quietly.” Not me. The company didn’t fly me down to any fancy Mexican resort to break the news to me softly. I didn’t even get a hotel in Dewey or Rehoboth.

So, am I still owed something? Could I still be owed millions of dollars from Happy Harry’s? I mean, hey, I left quietly. Of course, I didn’t have choice in the matter, but I still didn’t complain as I walked out the door.

Maybe some of these CEOs need to work for Happy Harry’s. Well, maybe not Happy Harry’s, but Walgreens would do just fine. I’m pretty sure they have a similar policy of being held accountable….

            Ever noticed how the things which amuse us change as we age?

Take what we watch on television. When I was younger, the best time of the week had to be Saturday mornings. With all those cartoons, I was up early to get as many as I could. As I made my way through school, Friday’s quickly became the best day of the week: no homework was usually given out. Plus, I didn’t have to get up as early for the next two days. Now, a young adult, my favorite time of the week has changed once again. I love Sunday afternoons, because that’s when I fill up on NFL football.

            But I don’t think I’m alone. Yes, I’m really starting to think this whole football-sport may have caught on in a few other households as well. I’m starting to consider that there may be other TVs sets that are glued to football whenever it’s on, just like so many of my friends – even the ones that just lost their jobs as the economy is falling apart.

            As television has become interactive in recent years, many people, including many of my friends, have discovered other ways to entertain them selves other than simply watching the set. One popular example is fantasy football, something that has grabbed hold of the nation. Lots of my friends are in varied pools and regularly bet on games, all based on the players they “have” in their “leagues.” Of course, I don’t know the specifics, but I’d bet loads of money can be found in this extremely popular form of entertainment, illegal as it may be in some many parts of our country.

            Now couldn’t that be a solution?

I know it exists in certain places – why not everywhere?

If more governments were to begin taxing the gambling on the easily-accessible market of sports-betting, an additional source of money could be found. Some relief can be give to our struggling economies, all by taxing something people are already doing on a regular basis. The government gets more money, people are allowed to make their bets easier, and our deficits begin to decrease.

Everyone wins, right?

Now it may not the total fix everyone’s looking for. But I’d wager to say it could be a step in the right direction…

            Remember high school? You had some great times, right?

I can certainly recall my first experiences. Yeah, before going in, my hair had to look really good – I had to impress all the girls. Next, I had to get to school, which unfortunately required taking the bus my first year. Yearning for freedom, I couldn’t wait until I’d get a license and be able to drive. Man, I used to say to myself, I’ll have my hair looking great, borrow my dad’s car whenever I need it, and everything will be good.

Back then, a new teenager with a full head of hair, the possibilities of the future were so bright in my mind. Finally given the freedom of a driver’s license when I turned sixteen, I was able to fill up for adventures on the open road with ONLY twenty bucks, all with my hair looking perfect.

Of course, that was a long time ago.

            Like all of you, I need to fill my gas-tank to drive my car. Furthermore, I noticed the recent rise in the price of gasoline. It seemed only yesterday that lots of people feared $6/gallon gas was right around the corner. Complete with a thinning hairline, one that only marches backwards with the passing of each and every year, I even considered selling a kidney, all to enable me to continue driving my car.

But unlike my years in high school, those high gas prices only happened very recently - but now they're back to being reasonable, almost like a cycle. When I filled my tank just this week the price of gas the price was well below three dollars. It’s certainly something I’d didn’t think I’d ever see again, at least not so soon. No, thankfully, gas is bearable again, at least not as crippling as it was over the summer.

It’s still funny how my hairline hasn’t returned to where it was, even as the high gas prices appear to be following a cyclical pattern.

I wonder if this cyclical notion could help my hair-line.

Maybe it’ll just start re-growing, cyclical-like? I wonder, if gas prices can change like this in such a short time, will my lost hair suddenly start re-growing? Could it really happen? The miracle so many men have prayed for?

Maybe I should just be happy we can all enjoy cheaper gas again....