wrongly, the bailout has worked. a year ago i wouldn t imagine we would be doing this, you know? there are a few things at play. a couple of things at play. one, they kind of have. they hit bottom. number two, we did have cash for clunkers which got inventory moving and got them back in the business of selling cars. number three, we are all feeling a little bit better, so people are buying those cars, people who think they might still have a job. i think the system worked, i think the economy is doing better and i think generally speaking, this could have gone the other way. don t forget one other point. their cost base has dramatically been reduced as a result of it. if you can t make money after you ve been through the process that was rammed through as fast as possible, then really, you shouldn t be in business at all. for those who believe in chapter 11 and bailouts, this is the evidence it worked, but still early days. still early days.
lessons? they re the exception, not the rule. our good friend joins us again, editor of kiplinger s personal finance and an authority on raising money smart kids. thank you for being with us. obviously this is not the lengthy lesson we can, we d love to give so many more of america s kids, but what would you say that parents who are watching us should focus on? well, as you were mentioning earlier, those teachable moments, even when your 4-year-old, christine, is asking where the money comes from, buy it at the grocery store. lesson, that s not exactly how it works. the bank is the big piggy bank for mom and dad. we freed to put money in the bank like you do. sometimes the bank is empty, like yours. very good lessons. in the recording of this piece, my producer and i learned most parents said that they were learning from their kids. i mean, in some cases, there are times, teaching kids some of these things. for parents listening and trying
go down nap would be a tremendous benefit to everyone. let me ask you this, peter. you said you think the focus on derivatives is misplace pd. one of the riesens we re focusing on derivatives when there are other parts of the legislation the president is focussed on, the others are agreed upon. this is the contentious one, the one folks are objecting to. what should you focus be on, if not derivative, peter? requiring to write a derivative that is, aig had very little money available. increasing capital requirements won t cover the problem. think about it. $600 trillion in derivatives, and in $60 trillion global economy. we re talking about the bets that are ten times the size of the global economy, or however you want to measure it. how do you 500 times the size of the u.s. economy. you just can t. what we can agree on is that the derivatives are not the only
facebook pages, christine romans@cnn and ali velshi. put them on there to see what you re recommending and whether it s right for pup it s your own personal preference. thank you, mitch. thanks, christine. appreciate it. all right. next, meet america s future financial experts. we have to look out for the dividends. i like checking the dow. my favorite stock laps to be apple. apple has been good to her. she s made a killing on apple. they started young at this school in chicago and learned using real money, a lot of money. $20,000 per class. $20,000 per class. the details, next. car insurance.
only 6% according to a recent survey by the national foundation for credit counseling, and that many people say is a problem with financial literacy in this country. 6% learning it in school. suddenly going out with student loans a job have to manage your paycheck and buy a car. one school on chicago s south side is trying to change all this. take a look. reporter: meet america s future investment bankers and accountants. we have to look out for the dividends. i like checking the dow. my favorite stock would have to be apple. reporter: at ariel academy, students learn how to make money. it helps the business. reporter: save money i. think everybody should at least save half of their money. don t forget your decimal. reporter: and invest money. real money. thanks to the school s unique saving and investment curriculum. the incoming first grade class gets as 20ds,000 endoubtment when they get to