A borrower is someone to whom money is lent with the expectation that it will be paid back. If you’re not planning on paying it back, it’s either a gift or you’re stealing.
Archive for the ‘Grow Page’ Category
A Borrower is…
Thursday, November 5th, 2009Real Loss is…
Thursday, November 5th, 2009Real loss is a financial loss whose value is adjusted for inflation. For example, if an investor lost $2,000 on the stock market 20 years ago, and inflation has risen 25% since then, the real loss is 25% smaller, or $2,500.
Art Auction Draws Attention From Investors of All Types
Wednesday, November 4th, 2009A batch of prestigious works of art that once hung proudly in the corporate headquarters of Lehman Brothers find new homes at auction in Philadelphia.
- The works were sold for a total of $1.35 million in order to help repay Lehman creditors.
- The sale lasted six hours and most pieces sold for significantly more than their presale high estimates.
- The Lehman name attracted art collectors and investors that were looking for a piece of history.
Facts & Figures
- 283 pieces were sold at more than double their projected total of $760, 800
- Lehman owes $250 billion to its creditors
- The top lot was Roy Lichtenstein’s Statue of Liberty print (1982) for $49,000, estimated presale at $25,000
Best Quote
“I think there was a certain amount of trophy hunting. What’s not to like? It’s nice boardroom art, presented nicely, ready to go up on the walls. People laced it up.” – Alasdair Nichol, Vice Chairman and Auctioneer of Freeman’s Auctioneers in Philadelphia
Who is “the Fed?”
Monday, November 2nd, 2009The “Fed” is the Federal Reserve, otherwise known as our national banking system. There are 12 Federal Reserve banks scattered across the country; their job is to loan money to local banks, who then loan it to the people. The Fed is controlled by the Federal Reserve Board, which consists of seven governors chosen by the President and approved by the Senate. The Board’s responsibilities include determining monetary policy, making reports to Congress, overseeing national banks, consumer protection, and discount rates, and setting standard requirements for other banks or institutions that store money.
The most important thing the Board does is head up the Federal Open Market Committee (FOMC), which meets eight times a year to discuss monetary policy. The FOMC consists of the seven members of the Federal Reserve Board, the President of the Federal Reserve Bank of New York, and four of the other eleven Federal Reserve Bank Presidents, who take turns serving on the Committee. The FOMC votes to determine the discount rate (the interest rate at which the Federal Reserve lends to other banks), how much capital banks will be required to have on hand for financial security, and open market securities (how and with which companies the Federal Reserve will trade).
Development is…
Monday, November 2nd, 2009Development is the process through which relatively poor countries’ economies become richer, larger, and more complicated. In addition to simple economic growth, development also implies the formation of financial institutions and a diversity of industries and activities. Economies undergoing development are also called developing countries or emerging markets. The development of China in the last 20 or so years from a relatively poor, rural, state-led economy into a vibrant, dynamic, more capitalist power has impressed many journalists and economists alike.
A Probate is…
Monday, November 2nd, 2009A probate is either a) the process of officially proving that a will is legitimate or b) a will that has already gone through that process.
Overhead is…
Monday, November 2nd, 2009Overhead is the cost or expense of the general upkeep or running of a business, nonprofit, plant, or any other property. Overhead does not include the costs of production or sale of goods.
New GDP Figures Turn Decline Upside-Down
Friday, October 30th, 2009Could the Great Recession be over because the GDP did not shrink for one quarter?
- The gross domestic product of the United States grew at a rate of +3.5% in the third quarter of 2009, which is the same amount as the average growth rate of the last 80 years.
- Although jobs are still sparse and the housing market is still in bad shape, government programs helped encourage consumer spending on all sorts of goods.
- There is still a risk of slowed growth or a dip in GDP because the third quarter’s growth can be attributed in part to strong stimulus packages, which will expire in coming months.
Facts & Figures
- The stimulus packages that encouraged growth in GDP include the $787 billion package approved in the winter of 2008-2009 and the Cash for Clunkers program.
- Jobless rate reached 9.8% in September 2009, despite GDP growth.
- American exports (goods being sold outside the country) grew at an annual rate of 14.7% and imports (goods coming in from abroad) grew at a 16.4% annual rate.
Best Quote
“The big-picture perspective is that things have improved. The question is, how sustainable is this growth going forward?” – Jan Hatzius, Chief U.S. Economist at Goldman Sachs
Financial Expert Heidi Steiger On Getting Started…
Thursday, October 29th, 2009
Heidi Steiger is the author of “Wealthy and Wise: Secrets About Money,” and an expert in financial management. After a long and successful career in the financial industry, she’s currently an Advisory Director at Berkshire Capital, an investment banking and strategic advisory firm that works with companies in the financial services industry. She also sits on four different corporate boards. We asked Heidi a few questions about what she does and how she does it, and she really came through. Enjoy!
TILE: How did you end up where you are today?
Heidi: Well, it isn’t always about talent. Sometimes it’s just luck. I went to college for broadcast journalism. It so happened that I worked at Fidelity one summer after an internship fell through at the last minute. The man who ran the finances of the company (the controller) mentored me, and ultimately helped me get a job there. That was the break which launched my career!
TILE: How does what you do affect the world at large?
Heidi: How can financial independence and the ability to pursue what you love not be somehow intertwined? If I can create services which help people successfully invest, provide easy access, education and the ability to reach one’s goals, then I think I’ve done my job well.
TILE: What’s the biggest secret about money?
Heidi: The biggest secret about money is that most people never answer the question “What’s the money for?” before they decide how to invest it.
TILE: At what age do you think young people should start to take responsibility for their own finances?
Heidi: At about 6 or so. Really! I started my kids with an allowance they could manage. As they got older, they got more money with the instructions that 1/3 was for spending, 1/3 was for saving and 1/3 was for giving. Maybe at age 10 they didn’t know what specific organization should get the money, but they did know who they would like to help. At age 13, they each got a checking account, and then a credit card when they were 14. I remember speaking at a meeting once where a mother was complaining that her college-age daughter didn’t know how to book a plane reservation. I asked her if her daughter had a checking account or a credit card. The answer was no. How could her daughter know how to make a plane reservation when she hadn’t taught her daughter the most basic things?
TILE: What’s the best advice you would give to your teenage self?
Heidi: Spend and save wisely. Just because something’s more expensive, doesn’t mean it’s better. Prioritize and don’t worry about the rest.
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