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.

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Wednesday, October 08, 2008

Build-A-Bear Workshop(R) Introduces Hopeful Wishes Teddy(R) II

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ST. LOUIS, Oct 08, 2008 (BUSINESS WIRE) ----In conjunction with Breast Cancer Awareness month Build-A-Bear Workshop(R) is unveiling Hopeful Wishes Teddy(R) II to support and advance breast cancer education, research and support groups.

One hundred of these beary special furry friends are available in Build-A-Bear Workshop stores and online at www.buildabear.com for $25 CDN, while quantities last.

With every Hopeful Wishes Teddy II purchase, a $5 donation will be made to the Cure Foundation, which works collaboratively to fund, support and advocate for relevant and innovative research, meaningful education and awareness programs, early diagnosis and effective treatment, and a positive quality of life for those living with breast cancer.

"In 2008, an estimated 22,400 women in Canada will be diagnosed with breast cancer, which certainly touches many of our Guests and their loved ones," said Maxine Clark, Build-A-Bear Workshop founder and chief executive bear. "We are proud to lend our support to the Cure Foundation and its efforts to assist the many Canadians affected by this illness."

Hopeful Wishes Teddy II embodies the Build-A-Bear Workshop philosophy of supporting its Guests and their families who are working to overcome health obstacles and meet wellness challenges.

"We receive so many letters from Guests about the importance of teddy bears, especially when someone is facing an illness, difficult time or simply in need of an extra special bear hug," said Clark. "We want Hopeful Wishes Teddy II to be a symbol of support and caring as well as a source of strength for those affected by breast cancer."

Also, in Honor of Breast Cancer Awareness Month, 100 percent of the donations for the purchase of a purple satin heart ($1 CDN) will be donated to the Build-A-Bear Workshop Foundation which will allocate those proceeds to organizations that advance breast cancer education, research and support groups. Also during the month of October a limited number of pink satin hearts, will also be available.

For more information about Hopeful Wishes Teddy(R) II, or to find a store in your area, visit www.buildabear.com.

About Build-A-Bear Workshop, Inc.

Build-A-Bear Workshop, Inc., is the only global company that offers an interactive make-your-own stuffed animal retail-entertainment experience. The company currently operates more than 385 Build-A-Bear Workshop stores worldwide, including company-owned stores in the U.S., Puerto Rico, Canada, the United Kingdom, Ireland and France, and franchise stores in Europe, Asia, Australia and Africa. Founded in St. Louis in 1997, Build-A-Bear Workshop is the leader in interactive retail. Brands include make-your-own Major League Baseball(R) mascot in-stadium locations, Build-A-Dino(R) stores and friends 2B made(R) doll locations. In December 2007, Build-A-Bear Workshop(R) extended its in-store interactive experience online with the launch of its virtual world at www.buildabearville.com. Build-A-Bear Workshop (NYSE: BBW) posted total revenue of $474 million in fiscal 2007. For more information, call 888.560.BEAR (2327) or visit the company's award-winning Web sites at www.buildabear.com and www.friends2Bmade.com.

TRADEMARKS

We would like to thank you for your interest in covering our business. As you write your story, we would ask that you use our full name: Build-A-Bear Workshop(R) and that when referencing the process of making stuffed animals you use the word "make" not "build."

Build-A-Bear Workshop is our well-known trade name and our registered trademark of Build-A-Bear Retail Management, Inc. Build-A-Bear Workshop(R) should only be used in capital letters to refer to our products and services and should not be used as a verb.

SOURCE: Build-A-Bear Workshop, Inc.

 for Build-A-Bear Workshop, Inc. Jen Buchalter, 416-366-7735, ext. 235 Cell: 416-704-6266 Jbuchalter@strategicobjectives.com

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