Economic Woes


ON THE RECORD

“The United States has some real economic problems that have been hidden under the tremendously easy credit caused by foreigners reinvesting their balance of payments earnings in American securities. Eventually this inflow will have to end as foreigners begin to use these funds to improve their own peoples’ standard of living. At that time, the excessive borrowing, low savings rate, and house price inflation will have to be readjusted, a development that may hurt many who have lived on cheap credit and inflated housing values.”

—Dr. Paul Nadler, Rutgers University, remarks at the AICPA Personal Financial Planning Conference, San Diego, January 2006.

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QUIZ

Test yourself on these often confused words

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