Categories: OLD Media Moves

Judging the Pulitzers

Carol Stark, the editor of the Joplin Globe in Missouri, writes about what is was like to be a Pulitzer judge this year.

Stark judged the commentary category, which was won by David Leonhardt, who writes a weekly column about economics in the business section of the New York Times.

Stark writes, “Among the entrants were columnists from all sizes of newspapers, letter writers, humor columnists, business columnists and even a guy whose cover letter intrigued all of us.

“‘These columns got me fired,’ he began.

“Well, who can resist finding out what great secret he had uncovered. Reading on we learned he was a freelance writer who got fired because the paper’s budget got the ax.

“On Monday of this week, the Pulitzer Prizes were awarded. If you’re interested, check it out at www.pulitzer.org. Our job as jurors was to present the Pulitzer Board with three nominees. We were instructed not to rank the three because the final decision would be made by the board.

“The winner in the commentary category was David Leonhardt who writes ‘Economic Scene,’ a weekly economics column for The New York Times business section.

“Leonhardt is one of the few business writers — and there are many — who can deliver a column not bogged down by jargon. In fact, he created his own reader quiz, asking readers to fix the budget. We read his columns on the first day, thus setting a high bar for all the others.”

Read more here.

Write your answers on a piece of paper and see how you do.
1. What are three ways in which investors can assess a stock relative to another stock?
2. What are three differences between mutual funds and hedge funds?
3. What is the main difference between investing in stocks and investing in bonds?
4. What are the two basic types of mortgages that a consumer can use to buy a home?
5. Why does a homeowner typically refinance his or her home mortgage?
6. What are the two basic types of health insurance coverage offered by most employers?
7. What’s the biggest difference between whole life insurance and term life insurance?
8. How should an employee invest the money he or she is putting into a 401(k) account?
9. How many times a year can consumers request a free copy of their credit report?
10. Name two government agencies to contact if you’ve been a victim of identity theft.
Now, here are the answers. Be honest in grading your work.
1. Price-to-earnings multiple, price-to-book multiple, and the net profit margin.
2. Mutual funds may advertise, while hedge funds may not. Hedge funds “short” stocks, while most mutual funds do not. (To “short” a stock means to borrow the stock, sell it, and hope the price declines before the borrowed stock must be repaid). Hedge fund managers typically collect a percentage of the profits of their investments as a performance fee in addition to a management fee. Most mutual fund managers do not collect a separate performance fee.
3. Owning stock gives you a small ownership in the company. Owning bonds gives you no ownership.
4. Fixed-rate mortgage and adjustable-rate mortgage.
5. A homeowner typically refinances when interest rates for comparable new mortgages have declined well below the interest rate on their current mortgage.
6. Indemnity plans and managed care plans are the two basic types of health insurance.
7. A whole life policy covers a person until they die. A term life policy covers the person for only a certain period, such as 10 years.
8. For most investors, a 401(k) should have a diversified portfolio, with some money in stocks, some money in bonds, some money in a money market account, and some money in another investment, such as real estate or commodities.
9. A consumer can request his or her credit report three times a year — once from each of the credit rating agencies. Watch out, though. Requesting your credit report too many times can lower your credit score.
10. The Federal Trade Commission and the Social Security Administration.
OK, let’s assess how you did. Here is my grading scale:

0 to 2 correct: You’re reading this book for a reason, right?
3 to 5 correct: You never worried about the details when it came to spending money.
6 to 8 correct: You pay attention to your finances, but you need to sharpen your skills.
9 to 10 correct: What are you doing here? You already know everything.