FOX Translator
No data currently available.
No data currently available.
We like to think that when we deposit a dollar at the bank, it goes into a big vault and we can pull out that same dollar at any time. But that¿s not how the U.S. banking system works. Banks take that money and invest it to make money themselves, so cash gets spread around. This, naturally, leads to a big risk: What happens if those investments go sour? Well, you¿d be out of luck. You can¿t get your dollar back.
The Federal Reserve doesn¿t like that scenario, so it prohibits banks from putting all the cash it has on deposit on the line. In fact, the Fed forces banks to keep a portion of their assets at the Federal Reserve itself, to make sure that some of your assets won¿t get squandered if the bank¿s bets go south. These are called ¿reserves,¿ (hence, Federal Reserve. Got it? Good), and usually amount to 10% of the total cash kept in checking accounts.
These reserves are never exactly 10%, and banks like to keep a little extra in reserve ¿ not, as you might think, to make you more comfortable that they¿re in good financial shape, but rather so they can take that excess and lend it to other banks and make money off it. (They¿re banks, they can¿t help themselves.) The rate at which they make these loans is called the Federal Funds rate, which is set by the Federal Reserve¿s Federal Open Market Committee.
When you hear people chattering about how the Fed cut or hiked interest rates, this is what they¿re talking about: the interest rate banks can charge for lending money from their reserves. This begs the question: If these are essentially loans between banks, why is the Fed Funds rate so important for the rest of the economy?
Well, simply put, because loans make the financial world go round. Bank A lends Bank B $10,000 at a Fed Funds rate of 5%. Bank B then lends out $10,000 to a small business at 7%. The small business then takes that money and expands the business and hires new workers. Now someone is employed, Bank B has made interest off the loan, and Bank A is the richer for making it all happen. It¿s perhaps overly simplistic, but you get the idea. When you want the economy to thrive, you make lending cheaper.
Of course, sometimes you don¿t want the economy to thrive. In fact, you might want it to cool down, mostly to avoid money flooding the system and causing inflation. In that case, the Fed raises interest rates, making it difficult to lend or borrow.
Home
Tuesday, July 22, 2008
FSU President Joins Ranks of Older Adults Planning for the Future
Comtex
TALLAHASSEE, Fla., July 22, 2008 /PRNewswire via COMTEX/ ----As president of Florida State University (FSU), T.K. Wetherell leads the charge for tens of thousands of students looking to the future with their education and careers. Wetherell is now integral in helping another generation set the course for their future planning by joining the growing number of adults, age 62 and better, looking at Continuing Care Retirement Communities (CCRCs). In the case of Wetherell and his wife Ginger, the couple has chosen to reserve a residence at Westcott Lakes at Southwood, the FSU-sponsored community being developed by PRAXEIS LLC.
(Photo: http://www.newscom.com/cgi-bin/prnh/20080722/AQTU112)
"Education is a lifelong journey and the benefits of FSU aren't limited to students," said Wetherell. "Ginger and I are passionate about Westcott Lakes because while it allows us to plan for our futures, including healthcare, if ever needed, it's a community that fits our lifestyle and encompasses everything we love about FSU."
While Wetherell and his wife have no intention of slowing down, a university-sponsored senior living community, like Westcott Lakes, offers great appeal. It provides a unique connection to a lifestyle enriched by lifelong learning and access to arts and culture.
"Our connection to FSU is really a draw for so many, regardless if they're an alum or not," said Mark Griffis, Westcott Lakes Vice President. "Westcott Lakes members will enjoy faculty-like campus privileges at FSU that will enable them to audit classes, and have access to research facilities, libraries and cultural events. In fact, through its Life College initiative, Westcott Lakes members may already participate in classes as early as this fall."
The FSU sponsorship is also reciprocal in nature, in that students and faculty will be involved in various initiatives at Westcott Lakes by being involved in lectures, healthcare and physical fitness programs, to name a few.
Wetherell is also in a unique position regarding Westcott Lakes because, not only has he placed a deposit to reserve a residence, he also championed the university's sponsorship of the community. It is his conviction that reaching out to older adults is a natural extension of what FSU is all about.
"All universities reach out to alumni in a variety of ways through travel programs and sports," added Wetherell. "Sponsoring a senior living community only makes sense, as people over the age of 62 strive for lifelong learning and have a desire to remain connected with an institution that provides access to a world of opportunities."
In developing the FSU sponsorship with Westcott Lakes, Wetherell traveled to other university-sponsored communities, and then worked with a team to create a partnership that worked for them and the developer, PRAXEIS. He believes the long-term significance of the partnership between the university and Westcott Lakes goes well beyond the lifelong learning and intergenerational aspects.
"In the broader sense, this is about culture and economic development," said Wetherell. "Our nation is about to experience a huge age wave with the Boomers reaching the age of retirement. This sponsorship signals that we embrace people of all ages and look forward to the untapped potential and their personal growth yet to come."
On his own personal level, Wetherell admits his decision to become a member of Westcott Lakes is more about thinking of tomorrow, not today. "When I'm 85 years old, I want to look back and say 20 years ago, that was a good decision."
Westcott Lakes at SouthWood -- to be located in the master-planned SouthWood community in Tallahassee -- is a Life Fulfilling Community(R) for adults who want to experience the educational, cultural, social and entertainment benefits associated with an institution of higher education. It features a wide variety of distinctive maintenance-free apartment residences and club homes, surrounded by distinguished amenities including multiple dining options, state-of-the-art fitness club, tennis courts, walking trails, creative arts studio, theater, ballroom, housekeeping and transportation. As a true Life Care Community, Westcott Lakes community members also benefit from guaranteed access to premium healthcare and rehabilitation services, called the Health Assurance Guarantee. If ever needed, members have on-site assisted living, memory support and skilled nursing, in all-private accommodations at a considerable discount to the market rate. More information on the Westcott Lakes at SouthWood lifestyle is available at http://www.westcottlakes.org or by calling 866-510-1515.
For more information, contact:
Randy Eilts, 913-754-2341
reilts@glynndevins.com
SOURCE Westcott Lakes at SouthWood
http://www.westcottlakes.org
Copyright (C) 2008 PR Newswire. All rights reserved
Market Snapshot
| Symbol | Last Price | Netchange | Volume |
|---|---|---|---|
| -- | -- | -- | -- |
| -- | -- | -- | -- |
| -- | -- | -- | -- |
| -- | -- | -- | -- |
| -- | -- | -- | -- |
