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Many people know that the Federal Reserve sets interest rates in order to loan money to other banks so they can keep cash flowing throughout the U.S. financial system. Mostly, this works great for everyone involved. But, sometimes, banks and thrifts need a little extra cash, mostly so they can meet the reserve requirement (the minimum amount of deposits banks need to be considered in good financial shape).
To meet the reserve, the Fed has what's known as the discount window, which allows banks to borrow money for a short period of time at a higher interest rate (called the discount rate) than the official Federal Funds rate.
It's called a window because it used to be an actual teller window, where banks would go to borrow from the federal government. Now, it's used more as a lender of last resort. In fact, banks prefer to borrow from one another than directly from the discount window, since the interest owed can be cheaper and going to the discount window tends to imply that the bank is in a spot of trouble.
The Fed, too, doesn't like banks borrowing this way, which is why the discount rate is always higher than the target rate. It also requires banks to collateralize the loans, meaning they have to turn over liquid assets, such as loans or CDs, to the Fed in order to get the money. As with any loan, the banks get the underlying collateral back when they pay off the balance.
Home / Markets / Innovation
Friday, March 21, 2008
Innovation: Plasma TVs to Get Thinner, Brighter and Sharper
Donna Fuscaldo
FOXBusiness
New York --As if plasma televisions weren’t thin enough, manufacturers are gearing up to launch models that will be miniscule in depth
and promise even brighter picture.
In the next couple of years, consumers should expect to see advances in plasma TVs
on the market from the leading display-panel manufacturers.
“The plasma market is only about eight years old," said
Jim Palumbo, president of the Plasma Display Coalition. “There’s a lot of room for tremendous development.”
While these
new plasma displays will come with a premium, they should quickly come down in price given the nature of the consumer electronics
market, which sees prices drop precipitously each year. The moves on the part of the industry are in response to the huge
demand for flat panel TVs that hang elegantly on your wall.
“Plasmas are going to get even thinner and have extremely
better quality," said Palumbo. “Flat panel is where the industry is moving.” According to Palumbo, 30 million plasma televisions
are expected to be sold this year, up from around 25 million last year.
While plasma displays are already thin, at
least compared with their boob-tube brethren, Palumbo said manufacturers are gearing up to make them even slimmer.
“Many
members [of the Plasma Display Coalition] have announced 1.5 inch panels to be available possibly toward the end of 2009,"
said Palumbo. While aesthetically pleasing, having super-thin displays will also mean they will weigh less and use less energy,
he noted.
“There’s an ongoing development process on plasmas to drive greater brightness, higher contrast and less
energy," said the executive.
Hitachi, the Tokyo consumer-electronics maker, plans to launch its line of Ultra Thin
plasmas that are 1.5 inches in depth. The Ultra Thin plasmas are expected to go on sale in 2009. Panasonic, the Japanese manufacturer,
is working on a 50-inch plasma display that will be less than one inch thick. Meanwhile Pioneer, also of Tokyo, has been showing
a 50-inch plasma display that is a mere nine millimeters thin.
On the energy-conservation front, Panasonic displayed
a 42-inch panel at the Consumer Electronics Show in January that will have double-efficiency technology that will enhance
the brightness of the picture with half the power consumption. Panasonic is the first plasma maker to eliminate all lead from
its plasma panels. Panasonic says its plasma displays have a life of 42 years, when viewing it 6.5 hours a day.
But
energy conservation and thinness aren’t the only things the plasma makers are working on. According to Palumbo, the companies
are working to improve the viewing angle of the displays and the contrast.
“Their improving the widest viewing angle
so there’s no degradation in color from a vertical and horizontal view," said Palumbo. “Not everyone has the sweet spot in
the center.’’
As for the better contrast, he noted that Pioneer, with its Project KURO, showcased a concept
display that is the first to have a completely black screen -- which means you will easily be able to tell whether a person
on TV is wearing a black or navy blue suit, for example.
“When you turn on a program, you see a black screen but its
not always black -- there’s luminance coming through," said Palumbo. With a completely black screen you get the highest range
of contrast, he said.
While better pictures, thinner displays and more energy efficient plasmas are important, the
ultimate in bragging rights for plasma manufactures comes from the size. Today plasmas come in sizes ranging from 42 inches
to an eye popping 105 inches. But Panasonic didn’t think that was enough. The manufacturer is gearing up to introduce a 150-inch
display later in the year.
With a likely price tag of over $50,000, the mega display isn’t for everybody. But if you
have the disposable cash or are a corporate customer, that plasma display may be all it takes to prove that size does
matter.
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