I am reviewing Ashely and Justin's podcast on the Federal Reserve. It was very in depth. It discussed the twelve branches, the FOMC, inflation, the responsibilities of the federal reserve and who created it and why it was created. The recording is audible, clear and listenable.
I really like how they put their pictures in the beginning. It made it very interactive and personal. They had great pictures that really illustrated what they were talking about and there was a lot of them too.
It was definately educational and I learned a bunch of facts my partner and I managed to miss.
Friday, March 16, 2007
Thursday, March 15, 2007
Compound Interest & the Rule of 72
Compound Interest is something to take advantage of. When you deposit money in an account, hedge funds or mutual funds your initial deposit (principal) earns interest. You earn the most interest if you invest in the stock market and the least with banks. Anyways, your principal earns interest and then the principal+interest earns more interest and so on and so forth.
Albert Einstein admires the rule of 72. The point of the rule is to find out how long it will take you to double your principal solely with the amount of interest you earn .The rule says that to find the number of years required to double your money you just divide the interest rate into 72. For example, if you want to know how long it will take to double your money at eight percent interest, divide 8 into 72 and get 9 years.
Albert Einstein admires the rule of 72. The point of the rule is to find out how long it will take you to double your principal solely with the amount of interest you earn .The rule says that to find the number of years required to double your money you just divide the interest rate into 72. For example, if you want to know how long it will take to double your money at eight percent interest, divide 8 into 72 and get 9 years.
Insider Trading - What Happened?
On March 1, 2007 a major insider trading scandal was uncovered. There were thirteen people involved, two from UBS and Morgan Stanley. All of the men were arrested and four pleaded guilty. They illegaly gained $8 million in profit from the security industry.
Insider Trading is illegal because it give an unfair advantage to people who have connections. When one tells another about their companies plans for say a merger, lay off or a new release it is connected to the value and performance of the company's stock. If I would hear from a friend who worked at Nokia that they were going to release this amazing phone that would be better than the iPhone, I could buy shares and earn a lot money. However, it is so illegal yet many choose to do it because it is so tempting. Knowing something private that will later be released to the public is an unfair advantage.
Insider Trading is illegal because it give an unfair advantage to people who have connections. When one tells another about their companies plans for say a merger, lay off or a new release it is connected to the value and performance of the company's stock. If I would hear from a friend who worked at Nokia that they were going to release this amazing phone that would be better than the iPhone, I could buy shares and earn a lot money. However, it is so illegal yet many choose to do it because it is so tempting. Knowing something private that will later be released to the public is an unfair advantage.
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