Reflective Blogging: A Change for Once

This week in economics the class discussed credit cards and the interest debts may accrue. We were also taught two particular formulas for interest in banking--the good kind. Simple interest builds more slowly and it is found by multiplying principle value by the rate and the time. Compounding has to deal with intervals in a year which is riskier for your money but has potential to grant more money. It is found by multiplying the principle by (one minus the rated divided by the times in a year it is compounded which is then raised to the product of the times in a year the money is compounded and the time interval chosen. Mrs. Weser shared her tale of the struggle of buying too many credit cards and the 7 years the debt had to be re-payed, and enforced a very valuable lesson. 

I really like the attention to debt and how to avoid it that the class has provided. It is no doubt something that I will be using in my life time and money management is vital in this day and age. I have already been earning interest in my savings account and receiving notifications of such. Writing a check will be useful as well, and I personally am glad I will know what to do (even if it means paying bills for chairs). 

To address the elephant in the room, I decided this week to try the other form of blog post instead of my usual current events before the school year is over. Let me know what you think and I might try it again in the weeks remaining.

Keep on being exquisite you exquisite young people!

[this blog post has been brought to you by GIIERU MFG. copyright 2014 all rights reserved] 

Current Events: What not to buy

An article was released by our very own MarketWatch--written by Anna Andriotis-- about the top ten things not to by. Number ten on the list was digital camera. This is due to demand falling, mainly because smartphones and other means have replaced this once necessity. Nine was not to buy credit cards with points or miles program. Much like the Spring Break assignment, gifts that come with a card should not be reason to buy them; rates for the travel points have gone up over the years and new buyers will simply lose money over this. Eight also relevant to travel, was to not buy seats with extra legroom in coach; for the same price one of you fine people could upgrade to business class, for reasons you obviously should. Extra legroom on coach means a seat by an exit in most cases. Seven is one I do not quite agree with, but is desktop and laptop computers. She mentions how tablets can perform the same fuctions as a PC, which is not true because PC's are expandable; she also mentions the price in the article comparing ipads to macbooks and imacs but honestly- all macs are expensive- a top line microsoft pc, with gaming and other high-memory tasks, can be built for $500; so for this one, I say ridiculous. Six is two-year phone contracts because of risk of needing to change the phone and many fine-print fees. Five is hotel rooms. Rates for these puppies are also climbing so a better alternative is to rent homes or apartments for way less, and often in good condition. Four was DVD and blue-ray players, which is reasonable assuming many modern technologies can perform the same function (like PC's >:|). Three was GPS devices, as smartphones have replaced those as well. Two was ditching landline service and just use celluloid which I suppose is ok but it's nice to have a system in a house where multiple people are able to hear the call and answer but none the less; number one: cable tv. I mean, I obviously don't have much jurisdiction in this area but I suppose with internet becoming so usefull watching shows it very well may be gone in our future.
Obviously this relates to Econ but supply, demand, and sales pertaining to YOUR money so this is Dan from GIIERU signing out.

Current Events: Volkswagen or Volk *SWAG* en?

As a current event more in stocks (because of recent class activity), the company Volkswagen (VLKAY) should be noted. Volkswagen has had a good head start into 2014 so far, describes an article from the market watch news site. Between this year and the next, Volkswagen will release 100 new models. They are also working on a modular toolkit for small repairs on the go. As for their stocks, they seem to never go down. Recently, there was a huge spike in stocks purchased, making them beneficial in the long run.

Volkswagen has made me happy. Now the proud owners of Bugatti, they keep the super car name alive; and are also successful in the products that they deliver. They are the second largest car manufacturing company in the world, and I am glad to back them not only in the market watch simulation but in opinion as well.

Now what about other aspects of the economy? Volkswagen has formed a large company in addition has absorbed smaller companies to bolster its size. Now, I know what you're thinking: *ding-ding-ding* monopoly alert, right? Well to be honest yes if the company keeps expanding forever then it will eventually become a monopoly. But, currently, there is room for competition and Volkswagen is just a car company, like Coca-Cola only sells drinks. Google and Pepsi are more causes for concern because of the variety of the products they provide, because they interfere with other business types. Volkswagen could only become a large auto company in my opinion, but please: tell me what you think, and be sure to check your stocks!

This article has been provided by the generosity of GIIERU MFG.; "GIIERU, get your group going!"

ps. please excuse my bad pun I'm only human 
ヾ(⌐■_■)ノ♪

Current Events: Google splits stock and plans on buying Ebay?!

TheVerge.com has an article (written by Ben Popper) about how very recently Google divided its stock. Now, instead of just GOOG representing Google, they now have both GOOG and GOOGL. Investors in the GOOG branch will retain stock, but cannot vote on topics, whereas GOOGL investors can. Along with their current high-rolling trend, Google plans to spend their money buying the online auctioning site: E bay. 

If you are a follower to my blog (which you should be), you may have noticed I have covered both of these topics. The first--Google--I explained how the company has been growing uncomfortably large, and--as we have talked about monopolies--seems to be taking an unfair grapple in the economy. I have also mentioned E bay's current 'mismanagement': an area where Google ownership may be important. All in all, my opinion remains unchanged: Google, I understand that you are a company that wants to make money like everyone else, but please; let other companies compete so we don't have another Standardized Oil co problem*.

That said you may or may not agree with me. It is important to know how a company this size can affect other parts of our economy. The stock market has new classes of shares for Google, but it seems like one of the only options for investment. Google --as you all should know-- make the majority of their money off of advertisements; what then? With this rise in power, E bay will not be one of the only websites seeing more ads -enough said. Politically, Google may have more connections with the government than I am comfortable with. The central point is that no one business should be so huge that a majority sees it as an "only option". That isn't the individual's right of free choice.

Let me know what you all think in the comments though, because no matter what, this current event is quite significant.

*Standard Oil Co. was a monopoly in the early-mid 1900's that was then broken up as part of trust buster's initiative.



This article was brought to you by GIIERU MFG. soon to open an independent research wing. "GIIERU MFG., now bringing you SCIENCE, 20% off!"

Current Events: Radiation: Jobs or Safety --take your pick

Radiation: Jobs or Safety --take your pick

A recent Time magazine article by Dan (;D) Frosch discusses an unusual scenario. The town of Carlsbad, New Mexico has been the host of a radioactive Waste Isolation Pilot Plant --a safer means of handling radioactive waste than other methods. It holds (held) waste of nuclear weapons in particular, mainly from the cold war. It was closed down by a radiation leak contaminating 17 employees back in February. *Side note on Radiation- tick tick tickity on your Geiger counters means scram*. Thankfully, it wasn't enough to cause radiation sickness or worse, but the event has indeed aroused controversy. Surprisingly, instead of the majority of the town shunning the facility, they are worried about it not reopening: this is because of the number of jobs it brings to town. The energy department is currently investigating a 'puff' of radioactive cloud that escaped salt mines 2000+ feet below the surface.

So what to make of this? The site is obviously necessary to not only the town but the rest of the country, as waste shipments are piling up because of the incident. The WIPP also has lured scientists and engineers to the town and served as a steady income for awhile. Whether or not they reopen the facility is not different from what we choose here in Weserville, and disasters, such as the flood (watch out for debris!) have affected our local economy. 

That said, I believe the facility is good for the town and for jobs my fine readers. They are slowly working out a team to go into the mines and investigate --something they would not do if it were unsafe. I place my bets on it being a rare problem, and it promises areas of improvement. It is a necessity on multiple levels.

But, it's good to hear everyone's voice here so comment on which side you would take! 

Current Events: Stockton's rise from Bankruptcy

Stockton's rise from Bankruptcy:

A recent article by Rana Foroohar (Time) shows the effects of Stockton, California coming out of its bankruptcy. The city suffered severe unemployment--currently at 15%--and public workers losing budget due to large health care payments along-side with pensions for the retired. A lot was cut from health care, but the pensions remained high, and city officials worried about loosing the police (never a good idea). Truthfully though, numbers have shown that the cut in 400 police officers over the past 4 years there and in surrounding cities has greatly increased the crime rate. The bad economy has also caused people to live in "tent cities" in neighboring towns--it is understood that Stockton was one of the hardest hit towns in the recession, mainly due to mismanagement. 

As you can see, this is one of those 'not good muchacho' moments. The mayor intends to get the homeless 

to work refurbishing buildings, but there's still that pension tying everyone down. In my honest opinion boys and girls: they need to start trimming. You see, being out of bankruptcy can only last so long. Running out of time, the council needs to make positive decisions before their work is undone. Stockton is one of the "most miserable" towns before Detroit.

In this case, Stockton is a lot like Weserville. The unemployment was greatly noticeable, and the town has been working on ways of bringing in tourist funds. Luckily, we have not had any debt problems or with civil service *knock on wood*, but the town sizes are the similar. On the governmental level, the mayor of Stockton is working with neighboring mayors to come up with effective plans on solving this ordeal.

Current Events: The Worst Governance

The Worst Governance

>>Ever<<

A time magazine article by Victor Luckerson on Wednesday shows how ebay is considered the most poorly managed (major) company , also known as a poor governance. An activist by the name of Carl Icahn regularly fights with the tech CEOs. The main topic of the fighting lies within the chat service of Skype. See, the problem was when Marc Andreessen sold Skype to Microsoft. Icahn believes it could have easily been sold for more (the selling price was 8.5 billion). It turns out that Andreessen wasn't the one who sold Skype in the first place. The facts and contracts were poorly handled. Arguments still continue, and it will be pressed again in a follow-up in the month of April. There are also debates on the Paypal system, another ebay service.

I'll let you form your own ideas about this, boys and girls. For me, ebay's management seems hectic and chaos is never good for a company; not good for most things for that matter. You have Icahn jabbing at flaws in the company, to what extent? 

Well, in all honesty, he is not only making the public aware of this, but also to the company itself. (An important thing to take note of is that Carl Icahn is also a major investor, so this type of interaction can be justified by the value of the investment). 

Icahn in the end is helping ebay slap itself into shape. A behavioral criticism (in moderation, as everything should be) can be a positive aid, and ebay currently needs it.

So the other aspects of the economy; what about them? We've been learning demand--as we all have nailed so far--so mismanagement can apply. Say the use of ebay as an auction site goes down. What could this be from? If the consumer's expectations go down, and maybe they find a substitute website, ebay will suffer a loss. This loss can hurt the investment of Icahn's business: Icahn Enterprises. The investors for HIS business will be hurt, and it will chain down, affecting a large portion of the economy. 

So helpful tip before you go: get organized, hire people to keep that organization, and keep those people working efficiently. You will be a happier person (financially)