Wednesday, February 15, 2012

Fed Policy & Outlook

http://www.federalreserve.gov/newsevents/press/monetary/fomcminutes20120125.pdf

Read this on current and upcoming Fed policies

- Mr. Joy

Friday, February 10, 2012

Midterm Comments, and Course Direction moving forward

While I can't discuss the contents of the midterm, I can say this: students who feel they need a crutch, be it asking questions, a certain electronic devise, etc., had better adapt, and quickly.  We are doing ourselves no favors by having testing scenarios that do not accurately depict the testing scenario this May, nor future testing scenarios next year.

From that podcast we listened to last week about setting priorities and having goals, adversity and hardship go hand-in-hand with success.  Without understanding the bitterness of defeat, we can never truly understand the joy that comes from our triumphs.  That contrast needs to be truly ingrained as a part of your experience today as high school students, and tomorrow as university students and professionals.  Please take the time to ask questions (in-class, after-class, email, etc.) of me, but don't be afraid to ask them of yourselves either.

Next week is a short week, as is the week of 2/21.  2/27 is a full week, however, as is the week of 3/5.  As it stands right now, we will complete chapter 15, 16, and 17 for the next midterm, and then ch. 18, 19, 37, and 38 for the final midterm of the semester.

Chapter 15 homework will be due next Tuesday, 2/21.  However, Chapter 16 homework will be due 2/24.  I would have had Chapter 15 be due 2/17, but its a holiday.  I also aim to have Chapter 17 due 3/2, with a midterm the week of 3/5.  I am also thinking about having a 2-day midterm on both 4/4 and 4/5, due to tight schedules on both days.  This would give us the weeks of 4/16, 4/23, 4/30, and 5/7 solely for exam prep and Country-project research in the library.  During those four weeks, we will practice multiple choice questions, complete several 45-minute free response sections, dive deeper into domestic and international macroeconomic analysis, and challenge ourselves to succeed where others have failed.

The homework for Chapter 15, "Monetary Policy," is #2, 3, 4, 5, 6, 7, 8, and 10.  (only 8 questions!).  Chapter 16 is #1, 2, 3, 4, 6, 7, 8, and 9 (again only 8 questions!).  The most important goal of these chapters is to definitively understand the role of monetary policy in maintaining economic balance and growth, as well as understand the Phillips Curve.  You will be asked about the Phillips Curve on the AP exam, so the better you understand it, the more successful you will be.

Have a good weekend.  Hopefully will see some of you tomorrow night at the "Snowflake Serenade."  $15 at the door, or so I'm told.

Mr. Joy

Tuesday, February 7, 2012

Question 17

This question has to do with finding financial statements of different banks, all of which is public information.

First, go to www.fdic.gov
Second, on the right hand side, under "Find My Bank," select California and then type in your bank name. There is also an advanced search that allows you to enter the City and Zip Code.  In 95501, there are several active banks that the FDIC has information for.  They can be found using this search tool:
http://www2.fdic.gov/idasp/main3.asp
They are:
1.  Bank of America National Association (based in North Carolina)
2.  JP Morgan Chase Bank National Association (based in Ohio)
3.  Redwood Capital Bank (based in California)
4.  US Bank National Association (based in Ohio)
5.  Umpqua Bank (based in Oregon)
6.  Wells Fargo Bank National Association (based in South Dakota)

This question requires you to look at total assets, total liabilities, total deposits, net income, and the number of branches from 2010 to 2011.  All the data can be found under "Institution Directory - 2 Year Financial Report" on the bank's main FDIC page.  You should be able to find all the data on that sheet.  Be sure and compare 2010 to 2011.

Also, you don't have to give a report on your specific bank.  There are plenty of other banks that you could do research on.  Instead of saying you live in Eureka, CA (95501), say you live in New York, NY (10010), and you will find more than 350 different financial institutions.

You can also compare these banks from the present time to the end of 2008, to see how their assets and liabilities have changed as a result of the crisis.  For example, Goldman Sachs' total assets have gone from $163 Billion in 2008 down to $105 Billion at the end of 2011.

Friday, February 3, 2012

Midterm Set for Friday, February 10th

Hello All,
I didn't know whether the Midterm would be next Thursday or Friday, but Mr. Shanahan's weekly staff bulletin has solved this problem.  During 4th on Thursday, we will all be in the library for scholarship work with Cassandra of the Humboldt Area Foundation.  I encourage you to take a close look at the bulletin for today to look at the different scholarships that are available, as well as explore others.

This is what next week will look like:
Monday - Review Chapter 14 HW
Tuesday - Collect Chapter 14 HW, Ch. 12-14 Review passed out
Wednesday - Final Questions about the midterm
Thursday - Scholarship workshop
Friday - Midterm

We will start with Chapter 15 the following Monday, 2/13.

Mr. Joy

Wednesday, January 25, 2012

WSJ GOP Editorial

Let's just say right now what voters will be saying in November, once Barack Obama has been re-elected: Republicans deserve to lose.
It doesn't matter that Mr. Obama can't get the economy out of second gear. It doesn't matter that he cynically betrayed his core promise as a candidate to be a unifying president. It doesn't matter that he keeps blaming Bush. It doesn't matter that he thinks ATMs are weapons of employment destruction. It doesn't matter that Tim Geithner remains secretary of Treasury. It doesn't matter that the result of his "reset" with Russia is Moscow selling fighter jets to Damascus. It doesn't matter that the Obama name is synonymous with the most unpopular law in memory. It doesn't matter that his wife thinks America doesn't deserve him. It doesn't matter that the Evel Knievel theory of fiscal stimulus isn't going to make it over the Snake River Canyon of debt.
Above all, it doesn't matter that Americans are generally eager to send Mr. Obama packing. All they need is to be reasonably sure that the alternative won't be another fiasco. But they can't be reasonably sure, so it's going to be four more years of the disappointment you already know.
gloview0124
Getty Images
Is this the best they can do?
As for the current GOP field, it's like confronting a terminal diagnosis. There may be an apparent range of treatments: conventional (Romney), experimental (Gingrich), homeopathic (Paul) or prayerful (Santorum). But none will avail you in the end. Just try to exit laughing.
That's my theory for why South Carolina gave Newt Gingrich his big primary win on Saturday: Voters instinctively prefer the idea of an entertaining Newt-Obama contest—the aspiring Caesar versus the failed Redeemer—over a dreary Mitt-Obama one. The problem is that voters also know that Gaius Gingrich is liable to deliver his prime-time speeches in purple toga while holding tight to darling Messalina's—sorry, Callista's—bejeweled fingers. A primary ballot for Mr. Gingrich is a vote for an entertaining election, not a Republican in the White House.
Then there is Mitt Romney, even now the presumptive nominee. If Mr. Gingrich demonstrated his unfitness to be a serious Republican nominee with his destructive attacks on private equity (a prime legacy of the Reagan years), Mr. Romney has demonstrated his unfitness by—where to start?
Oh, yes, the moment in last week's debate when Mr. Romney equivocated about releasing his tax returns. The former Massachusetts governor is nothing if not a scripted politician, and the least one can ask of such people is that they should know their lines by heart. Did nobody in Mr. Romney's expensive campaign shop tell him that this question was sure to come, and that a decision had to be made, in advance, as to what the answer would be? Great CEOs don't just surround themselves with consultants and advance men. They also hire contrarians, alter egos and at least someone who isn't afraid to poke a finger in their chest. On the evidence of his campaign, Mr. Romney is a lousy CEO.
But it's worse than that. The usual rap on Mr. Romney is that he's robotic, but the real reason he can't gain traction with voters is that they suspect he's concealing some unnameable private doubt. Al Gore and George Bush Sr. were like that, too, and not just because they were all to the proverbial manor born. It's that they were basically hollow men.
Thus the core difference between Mr. Romney and Mr. Obama: For the governor, the convictions are the veneer. For the president, the pragmatism is. Voters always see through this. They usually prefer the man who stands for something.
What about Rick Santorum and Ron Paul? They are owed some respect, especially for the contrast between their willingness to take a stand for principle against the front-runners' willingness to say anything. But Messrs. Santorum and Paul are two tedious men, deep in conversation with some country that's not quite America, appealing to a devoted base but not beyond it. Sorry, gentlemen: You're not going anywhere.
Finally, there are the men not in the field: Mitch Daniels, Paul Ryan, Chris Christie, Jeb Bush, Haley Barbour. This was the GOP A-Team, the guys who should have showed up to the first debate but didn't because running for president is hard and the spouses were reluctant. Nothing commends them for it. If this election is as important as they all say it is, they had a duty to step up. Abraham Lincoln did not shy from the contest of 1860 because of Mary Todd. If Mr. Obama wins in November—or, rather, when he does—the failure will lie as heavily on their shoulders as it will with the nominee.
What should readers who despair of a second Obama term make of all this? Hope ObamaCare is repealed by the High Court, the Iranian bomb is repealed by the Israeli Air Force, and the Senate switches hands, giving America a healthy spell of Hippocratic government.
All perfectly plausible. And the U.S. will surely survive four more years. Who knows? By then maybe Republicans will have figured out that if they don't want to lose, they shouldn't run with losers.

Tuesday, January 24, 2012

Game Theory Returns!

Skip to the third section of this Colbert Report show:
http://www.hulu.com/watch/322350/the-colbert-report-mon-jan-23-2012

Wednesday, January 18, 2012