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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
Friday, March 28, 2008
Game Plan
How to Stay Present and Productive
Nancy Colasurdo, Life Coach
FOXBusiness
A few years ago, a fellow life coach and I decided to keep each other accountable and provide support for each other’s
goals by scheduling regular talks or “sessions.” We speak twice a month.
As we typically do with our clients, we each
create a list of actions to help us get closer to our goals. It keeps us on track and acts as a guideline, or plan, for the
coming weeks until we speak again.
Lately, though, for reasons unknown, I have preferred talking to list-making in
those sessions. I like to share what I’ve been doing, work through issues, and bounce ideas off of her. I haven’t made a list
since mid-February and it’s been working wonders. I feel like I’m more in a flow and my professional life has been filled
with challenging, appealing opportunities.
Coincidence? I wasn’t clear if one had anything to do with the other until
Monday night. I was participating in an international webinar on the book A New Earth with its author, Eckhart Tolle, and
Oprah Winfrey, who had selected it for her book club. It was the fourth class and the first three had centered very much around
explaining the concept of life lived “in the now.”
Early in the fourth class, Oprah brought up a question her hair
stylist had asked, which essentially was, how do you ever plan for anything if you are living in the present all the time?
Tolle’s response was, and I paraphrase: Planning will be fruitful if preceded by presence and stillness. The idea is to keep
your main focus not on where you want to get to, but in the doing, the now.
Far be it for me to get all “woo-woo” in
the business section, but truly this has its practical applications. Tolle explained that we should not be continuously in
the next moment. Bottom line, it’s not productive. It diverts our energy from what we’re doing now.
In my nearly 15
years in sports writing, I saw that play out again and again -- the baseball player whose attention is solely on that at-bat,
the football player who can focus on one yard at a time, the basketball player on the foul line who can make it about her
and the hoop. These athletes, the ones who had it down, could do that and still follow an overall plan to win. In that moment,
though, they concentrated on the baby step.
Tolle even used a sports example in an anecdote. He told of a Zen master
watching an archery competition who said this after watching one competitor: His need to win drains him of power. That’s something
to think about, isn’t it?
Apply it to public speaking. We have all seen the natural speakers who seem to be enjoying
themselves and the ones who seem stiff and rehearsed and just have the end in mind. This week I received a newsletter called
“Speak and Grow Rich eNews” and its lead story was about a speaking pro named Tom Antion. Here’s what it said: “The audience
was listening to every word. A cell phone rang. The presenter stopped his presentation and looked in the direction of the
disturbance. Every one was silent, wondering what he'd do. Not missing a beat in his presentation, he said, ‘If that's my
mother, tell her I'm not married yet.’ We all cracked up.”
Had Antion not been “in the now” or had it been a speaker
that had to stay on script, that moment could have been awkward rather than funny. Instead, he enjoyed that moment as much
as his audience.
This all goes a long way in explaining why my list-less approach has been producing results lately.
I have given myself space to create each day rather than turn to the list and see what I “should” do next. I have structures
in place, certainly, but I like working without preconceived ideas sometimes. I am more present. And the results show it.
Does
this mean lists are off-limits from now on? Not necessarily, but I will be more inclined to recognize when a client might
benefit from tossing them out and trying a different approach.
Of course, we’ll see what’s happening in the moment.
Nancy Colasurdo is a practicing life coach and freelance writer. Her Web site is www.nancola.com.
Please direct all questions/comments to FOXGamePlan@gmail.com.
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