Well, what ended up happening was a large group of well known lawyers and bankers were receiving secrets revealed to them by insiders at UBS and Morgan Stanley. And they ended up using these tips to know when to buy/sell to make the most money. When people use these tips to cheat the market, it's known as insider trading, and s a huge no-no amongst the finance world.
Monday, March 5, 2007
DOW down 416 points. Why?
Well, one of the major reason that the US stocks dropped so far was because of Chinese stock slipping as well. Due to the fact of over-inflation in both countries, it's causing a deadly trend in the economy which is slowly making our money rather worthless. This is a pretty bad drop, but not nearly as bad at 9/1 orr the Great Depression, but it definitely is a serious drop.
Opportunity costs
I think when economists talk about opportunity costs they're basically just saying everything has a trade-off. For example; if I buy a 50$ game, I could have instead used that 50$'s to hang out somewhere with my friends, and that trade off is one that I have to understand before buying the game. Basically, money can be used on anythingl and learning what to use it on is what opportunity costs are.
Types of economic systems
Traditional Economy:
Well, in this form of economy, many trade skills are passed down from parents to children. For example, if my parents we're goldsmith, I often would follow steps in the same trade. It seems to be popular in a lot of countries that aren't very developed, but it stll seems to work for them.
Centrally Planned Economy:
Within this kind of economy, the government chooses what kind of goods each person gets, and what goods each person receives. Communism follows this economy.
Market Economy:
This market is the one that the U.S. uses, but it also seems to be the most practical. It is driven simply by consumer need, and the will to succeed. For example; if I want to open a business I can, but if it's an uncommon business that I open, it may not succeed.
Mixed Economy:
A mixed economy is what in actuality what all governments have. It's a fusion of all different kinds of economy in which everyone can open shop, work for the government, or follow in their parents footsteps. This also happens to be my favorite form.
Well the difference between socialism and communism is that in socialism the people have a say in what they want to government companies to produce, but in communism, the government chooses everything.
Well, in this form of economy, many trade skills are passed down from parents to children. For example, if my parents we're goldsmith, I often would follow steps in the same trade. It seems to be popular in a lot of countries that aren't very developed, but it stll seems to work for them.
Centrally Planned Economy:
Within this kind of economy, the government chooses what kind of goods each person gets, and what goods each person receives. Communism follows this economy.
Market Economy:
This market is the one that the U.S. uses, but it also seems to be the most practical. It is driven simply by consumer need, and the will to succeed. For example; if I want to open a business I can, but if it's an uncommon business that I open, it may not succeed.
Mixed Economy:
A mixed economy is what in actuality what all governments have. It's a fusion of all different kinds of economy in which everyone can open shop, work for the government, or follow in their parents footsteps. This also happens to be my favorite form.
Well the difference between socialism and communism is that in socialism the people have a say in what they want to government companies to produce, but in communism, the government chooses everything.
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