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venezuela
In 2008, the United States reached the brink of financial disaster. Unemployment apparently reached its highest level in two decades [source: Boston Globe - in English]. The number of defaults on loans to homeowners was a record. Major investment banks that were active for more than a century and survived the Great Depression (in English), suffered a collapse. The economy, in other words, was going down the drain. And all this, each part of this economic disaster, was caused by a single financial instrument: the mortgaged loan.
Capital, adjusted gross income, stocks, bonds, current ratio, operating cash flow, assets, liabilities, equity – it’s easy to get lost in the jungle of terms used moving around when a person tries manage their finances. Previously, it was enough to measure income and expense, is not it? Well, when someone asks “what is my heritage?” She is not referring only to money in your wallet or bank account at the time. In fact, depending on how and how much a person invest, spend or save your money, her estate may vary. The net assets account for only a special category of their heritage. Understanding this fact helps one to form a better idea about the financial situation of living.