Markets Slide

The New York Times is running an article entitled, "Markets Slide After Central Banks' Move." The article states, "The Dow Jones industrials breached negative territory around noon, (on Thursday) erasing an earlier 100-point gain after the Federal Reserve said it would offer up to $180 billion in loans to other world banks to improve liquidity in money markets, which froze this week as fearful investors refused to lend." "On Wall Street, a sense of disbelief lingered among investors on Thursday, as they began to contemplate the full implication of the once-unthinkable moves that rocked the world of finance in the last week. The government’s $85 billion rescue of the insurance giant, American International Group, was met with a 449-point drop in the Dow. That move came just days after the bailout of Fannie Mae and Freddie Mac, the bankruptcy of Lehman Brothers and the sale of Merrill Lynch.

Read the Article!!

Questions for Younger Students

• What kinds of things can money be used for? How much money is a lot of money?
  
• Can you think of anything that your mom and dad have to spend money for? What?
  
• If somebody gives you $5 do you think it's a good idea to run to the store and buy something that is $5.00? Why/why not?
• What would happen if you wanted to buy something but didn't have enough money to pay for it? What if nobody else would give you the money to pay for it? Do you think that adults ever don't have enough money to buy what they want to buy? Explain!!

Questions for Older Students

• Vocabulary terms to discuss: Coursing; "Treasury Bills"; Liquidity; and, Stabilize.
  
• Who controls the economy of the United States of America? If nobody controls the U.S. economy, how is it run?
  
• Many people say that rather than talking about national economies in the Twenty First Century we should talk about a global economy. Based on this article does this idea make sense to you? Why/why not?
  
• What does it really mean when people say that a company has lost value? Is value tangible? Explain!!