Friday, March 16, 2007

Critique of Federal Reserve Podcasthttp://www2.blogger.com/img/gl.link.gif

1.) How strong is the content of the podcast? Does it thoroughly discuss all of the important aspects of The Fed?
2.) How is the recording? Is it loud, clear, and listenable?
3.) How are the images? Do they contribute to and match the verbal content?
4.) How effective is the style of the podcast? Is it interesting and creative; or not?
5.) Did you learn anything from the podcast? Is it educational?

Would you like to see this podcast for yourself???
CLICK HERE

Compound Interest and the rule of 72

COMPOUND INTEREST:
Compound interest is very good for saving and earning money because you accumulate "free" money. Compound interest keeps the money that you originally invested plus adds the extra or the interest money. An example of this is if you had $2000 in the bank and added $500 every year for 10 years with 5% annual interest (which is very very rare), you will have accumulated $9,800.!

THE RULE OF 72:
The Rule of 72 is a rule that shows how long it will take to double the money you have invested. The rule is to divide the interest rate by 72 and the answer you get will be the number of years it will take to double the money you have invested.

Thursday, March 8, 2007

Insider Trading Scandal - What Happened?

On Thursday, March 1, 2007, thirteen people were arrested for insider trading After five years the federal authorities discovered one of the most far-reaching insider trading schemes on Wall Street. In this were involved four investment banks, a web of hedge funds, day traders, lawyers and even a few supervisors, who on discovering evidence of insider trading, blackmailed the traders to keep quiet about it. The illegal part of this deal was that these inside trading deals gave people a heads up on which stocks were doing better and worse letting them know which stocks to invest in. These inside traders were sentenced to 25years in prison

Dow down 416 pts! - Why?

The Dow Jones Industrial Average went down 416 points on Tuesday. Explain what happened. Why did the Dow go down?
Over the weekend, Chinese Investors began to sell their stocks because they were concerned that the government would increase interest rates. So they had a huge sell-off. Stocks fell off in Asia, Europe, and Shanghai.
This crash is similar to other crashes such as The Great Depression because it was all caused by sell-offs.

Opportunity Costs

Opportunity costs means that the value of the next-highest-valued alternative use of that resource. This means that you basically have two alternatives and you hav to pick out of the two. One option will have greater value than the other making your opportunity cost greater. For example, if a gardener decides to grow carrots, his or her opportunity cost is the alternative crop that might have been grown instead (potatoes, tomatoes, pumpkins, etc.).