Friday, March 16, 2007
Critique of Federal Reserve Podcast
I was watching Ashely and Justin podcast, and this is the link: I think that they did a great job because this podcast is organized very well, the recording is very clear and understandable. The pictures that they put make sense and clearly express what is being said in their podcast. It is creative and strong. They act both act like if they didn't know what federal reserve was it. In conclusion I think it was a really nice job.
Thursday, March 15, 2007
Compound Interest and the rule of 72
Compound interest is when you borrow money from a bank, you pay interest. Interest is really a fee charged for borrowing the money, it is a percentage charged on the principle amount for a period of a year usually. If you want to know how much interest you will earn on your investment or if you want to know how much you will pay above the cost of the principal amount on a loan or mortgage, you will need to understand how compound interest works. Compound interest is paid on the original principal and on the accumulated past interest.The Rule of 72 is a simplified way to determine how long an investment will take to double, given a fixed annual rate of interest. By dividing 72 by the annual rate of return, investors can get a rough estimate of how many years it will take for the initial investment to duplicate itself.
Friday, March 2, 2007
Insider Trading Scandal - What Happened?

Insider trading occurs when someone makes an investment decision based on information that is not available to the general public. In some cases, the information allows them to profit, in others, avoid a loss.
On March 1, 2007 thirteen people facing assorted charges of fraud and insider trading in New York were not the titans of past scandals of similar scope to Ivan Boesky and David Levine, but they were none the less privileged professionals who used access to non-public information to satisfy an all too familiar temptation greed. According to investigators, the schemes first originated with two of those charged late on Thursday. One, Michael Guttenberg, was trading secret share data stolen from UBS bank where he worked; the other, Randi Collotta, dispensed inside information about pending merger deals from her bank, Morgan Stanley. Together they spawned a scandal spanning 2001 until last autumn, which prosecutors described as one of the most pervasive on Wall Street in more than a decade.
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