RS DEATH SAVES YOU MONEY

Smoke equals money $

 

This blog is about cigarette smokers, mainly in Czech Republic and their response to a recent study there. Phillip Morris concluded from a study about smokers, and the fact that they are actually saving the government money from smoking. It shows that most smokers die at a relatively young age, therefore the government does not have to worry about the costs of the benefits they are entitled to when they become elderly. When people heard about this, they immediately contacted these cigarette companies in Czech Republic and tried to pull a law suit against them because they are “killing” people.

After listening to a podcast about this, I just wanted to reach out to the people who are saying these cigarette companies are “killing” these people and profiting from it. First of all the government is the one profiting the most because they do not have to spend excess tax money on people who are dying young.  In addition, the person who decides to smoke, and continues to buy cigarettes has the power to quit when they want to. Smoking is a prime example of a secondary effect because it not only costs a lot of money; it has a wear on your health. These people who decide to begin smoking should take an economical perspective before they take that first puff knowing they may become addicted. It is also startling that the government is somewhat in on people smoking. They let these tobacco companies raise the taxes to make more money off them resulting in their prices going up, but yet since there are the additives people remain addicted and continue to buy. I do not find anything wrong with this because for most governments tobacco tax is a great source of income and if people choose to smoke it is a personal choice on their part.

RS 5 Americas Enconomic Cotastrophy

This blog post is my outlook on the documentary “Inside the Meltdown” by PBS.org. In February 2009 this documentary was released, which was focused on the economic struggle America put itself into.  The main focus is the meeting between the Federal Reserve and the United States Congress with the reasoning behind the problems and their solutions. The main point of the meeting was to inform everyone in that room that if they did not act now that the financial system of this country will breakdown in a matter of days.

                The problems all began in 2008 when a rumor was being discussed in Bear Sterns as the economy collapsed. There was a fault in the stock market similar to the stock market crash in the 1930’s and the stocks plummeted down. There was a mass effect upon American companies where they were running out of money rapidly and some even on the edge of filing for bankruptcy. Former Chairman of Bear Stearns, Ace Greenberg has been questioned about the market because he was analytically incorrect which were his rumors and hidden files which had cost his company 18 million dollars within a month.  Due to the foreclosures rising in houses the mortgages that Bear Stearns bought and sold to investors began to rapidly decline their value and stock.  Ace can be placed within a guidepost of the eight within economics. He possess the economist value of the guidepost dealing with the test of a theory is the ability to predict because he analyzed the economy and based a prediction off his own theory of the collapse.

Bear Stearns building in New York City

In effect Bear Sterns stocks quickly declined as did the company. The company was falling crumbling within its own hold day by day and they were in a predicament between which paths to take from where they stood as a Wall Street company. They knew that if they went under that other Wall Street businesses would go under with them because all of Wall Street is tied together with money and financials. Knowing so they looked to Obama and the Federal Reserve Bank for a bail out to keep this from happening. As a secondary effect of the Federal Reserve Bank bailout the price of Bear Sterns stock dwindled to two dollars per stock which was unheard of since the business has emerged.

                Furthermore, our nation was in a scare when we realized that any American business even those that were thought never to go under did. It was when Fannie Mae and Freddie Mac stated this and all of America began to panic. The Lehman Brothers was another business to collapse during this financial crisis which was the turning point where it was the worst financial crisis since the Great Depression. Next came AIG who did not have money in the bank to support the commitments it made.  The biggest insurance company that did business with almost every bank in the world was now controlled by the government after an 85 million dollar loan.  The plan to end all disaster was a 700 billion dollar proposal to buy the entire toxic mortgage securities that was causing problems for the banks.   The request was passed however the contagion went global.  The U.S. intends to spend trillions of more dollars to protect the financial systems in America. I believe this crisis is going to continue worldwide because the rapid growth of technology and fraud within our own systems will exist.

RS SPRING BREAK!

What is your strongest memory from this class so far

My strongest memory from the class so far was making the xtranormal videos because they were funny and at the same time can understand the concept of economics.

2. What is your strongest memory about an economic concept

If I had to chose a memory other than the xtranormal videos, I would have to say that my strongest memory is the keg stand effect relating the the guide post decisions may have a secondary effect.

3. Why do you think I had you create the xtranormal video

I think that you had use create the video so that one, you can see if we understand the concepts and two, to see how we can put our own twist and get insight about us as people.

4. What was your favorite topic to write a blog post about? Why?

My favoritetopic to write a blog post was when we wrote about the lobbyist because it shows how our government is corrupt and how econimics play a huge role on this.

5. What blog post do you think you did your best work on? What was good about it?

I think I did my best blog post on the one abot Katy Perry because it had a very good looking picture of her and also I tied in economics concepts in my reflection.

6. What about the Engel Indoctrination Program (this class) has made you a better person? Or are you worse? If so, why?

I think that it is a great cl

ass and has made me a better person because he is a great person with good enegy and vibes that make you enjoy his class.