In a Yahoo Finance article posted today entitled, "5 Genius Ways Colleges are Tackling the Student Debt Crisis," Mandi Woodruff discusses techniques that several colleges are using to help students understand that student loan debt is real, and will have to be paid off someday. The hope is that this will ultimately lessen the student debt burden by encouraging students to take out as little debt as possible.
Did you understand anything about loans payments, amortization, etc. (time value of money) before taking your first corporate finance class? Is it the responsibility of the college or university to teach students about student loan debt? What do you think colleges and universities should do to encourage students to borrow as little as possible?
How do you think student loan debt will affect this generation? How will it affect the American economy?
Thursday, May 7, 2015
Wednesday, April 15, 2015
When and how will the Fed raise rates?
Interest rates can't stay at these near zero levels forever and many people both on Wall Street and Main Street, have been paying attention to Janet Yellen's comments regarding when and how she plans to raise rates.
If you do an Internet search on this topic, you can find a plethora of news, for example:
Understanding a bit about macroeconomics is crucial for investors and finance professionals. When Yellen does begin raising rates, how do you think this will effect security valuation? Specifically, what will happen to the price of bonds? What do you think might happen to stocks? What about real estate and other assets?
Will higher interest rates encourage businesses to make investments? Or will higher rates discourage investment and perhaps increase unemployment?
If you were an investment professional, what advice would you provide to your clients in a rising rate environment?
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