Libor Relations

London Interbank Offered Rate

The average interest rate estimated by leading banks in London that they would be charged if borrowing from other banks.

Many financial institutions, mortgage lenders, and credit card agencies set their own rates relative to it.

The Libor Scandal arose when it was discovered that banks were falsely inflating or deflating their rates so as to profit from trades, or to give the impression that they were more creditworthy than they were.

Scope:

• Standard Interbank Products
• Commercial Field Products
• Hybrid Products

Economists Do It With Models: "What is Libor?"

New York Times: Libor Scandal

Market Relationships

The study of economics allows us as a society to see the long term affects of our decision making. Ultimately, the economy is a measure of our trust in one another.

"A Trust Fall"

M3

[not an acronym] economic indicator showing changes in manufacturing (manufacturers' shipments, inventories, and orders)

Instantaneous Gratification

Time is the new luxury item.

Beige Book

Federal Reserve

Article about the Beige Book on "The Street"

The Wealth of Nations

The Wealth of Nations, Adam Smith @ Amazon

More on Adam Smith:

Library of Economics and Liberty

Quantitative Easing

Quantitative easing (QE) is an unconventional monetary policy used by central banks to stimulate the national economy when conventional monetary policy has become ineffective. A central bank implements quantitative easing by buying financial assets from commercial banks and other private institutions with newly created money, in order to inject a pre-determined quantity of money into the economy. This is distinguished from the more usual policy of buying or selling government bonds to keep market interest rates at a specified target value. Quantitative easing increases the excess reserves of the banks, and raises the prices of the financial assets bought, which lowers their yield.

09/06/2012 Economics

Where does the data from economist graphs come from?

Actual sales data

Consumer surveys



What has an affect on the "micro-communication" that occurs between buyers and sellers in a market?

Micro-communication also known as "Natural movement."

09/06/2012 Economics

Outsourcing was an opportunity for us to revolutionize what our economy was based on

Green Jobs

More small business owners

Entrepreneurial ventures


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How many workers are there in the U.S. economy?

154.2 million employed

12.8 million unemployed

Bureau of Labor Statistics:  http://www.bls.gov/home.htm

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Is apathy a reflection of the GDP?


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"Deceptive... and Convincing"


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Uncompetitive international tax regime

Week of 8/26/2012

1. Manufacturing Returning to America?
Industry Seeks Tax Fix 
Lower and Simpler Rates Should Be Washington's Priority, Manufacturers Say (Wall Street Journal)

2. German economy suffering

3. Chevron holding onto cash
Sparks speculation of buyout or weathering the high prices of oil to come.

4. Anti-Japanese protests in China

5. Ethanol Subsidies and Corn Crops

6. Finland tired of subsidies made contigency plans for break-up of the euro zone.