Demand for gold has been rising across the globe, defying economists’ expectations and sending prices soaring to new heights. The video below looks at how the gold trade has changed in recent years as everyday consumers enter the market alongside major investors. Costco, for example, sells $200 million worth of gold bars every month to members on the lookout for what they consider to be stable investments.

Questions:

  1. Why have gold prices been rising across the globe recently?
  2. Do you Continue reading
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September 22, 2023

For years, going public on the New York Stock Exchange or Nasdaq was the culmination of a longtime dream for many companies. After all, initial public offerings (IPOs) gave stakeholders a good chance to get rich quick while also bringing in new capital to expand their businesses even further. Unfortunately, this has not been the case for the last 18 months as rising inflation and growing economic uncertainty has created a poor environment for IPOs. In recent weeks, though, several Continue reading

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July 12, 2023

According to consumer watchdogs, for years Bank of America charged customers a variety of “junk fees” while also mishandling accounts. Not only did the financial giant withhold perks that were promised to some credit card holders, but it also double-charged overdraft fees and secretly opened cards in customers’ names without their knowledge. As a result, Bank of America received a $150 million fine from the Office of the Comptroller of the Currency and the Consumer Financial Protection Bureau (CFPB), which Continue reading

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Retailers have long relied on credit cards and companies like Paypal to provide payment options for customers, but recently these services have faced some new competition. Firms like Affirm, Klarna, and Afterpay offer “buy now, pay later” models that can be an appealing alternative to credit cards. As the video below shows, though, these services could potentially be dangerous to consumers while also failing to maintain steady profits for investors.

Questions:

  1. What are the potential advantages and disadvantages of using Continue reading
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Lawmakers are once again butting heads about raising the debt ceiling, a limit on the total amount of money that the federal government is authorized to borrow. This video looks at the potential economic consequences that could follow if legislators fail to reach an agreement and default on the nation’s debt. 

Questions:

  1. How does debt help drive the U.S. economy?
  2. Why are U.S. bonds traditionally seen as reliable investments? How could that change if the country defaults on its debt?
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April 13, 2023

Since launching its digital payment system in 2014, Apple has steadily increased its market share in a space traditionally dominated by big banks. This video looks at how Apple Pay has frightened Wall Street stalwarts like JPMorgan Chase and caused financial institutions to expand their own digital payment efforts in order to compete. 

Questions:

  1. What advantages and disadvantages does Apple Pay have compared to traditional financial firms?
  2. Do you prefer to pay with cards or digital platforms like Apple Pay?
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March 24, 2023

The Federal Deposit Insurance Corporation (FDIC) does not get much attention unless something goes drastically wrong in the financial world, such as the recent collapse of Silicon Valley Bank (SVB). This video explains how the organization covers customers’ deposits in order to prevent bank runs, and how the fall of SVB presented the FDIC with some unique challenges.

Questions:

  1. Why was the FDIC formed, and how does it protect customers’ deposits?
  2. How did the FDIC’s handling of the SVB collapse Continue reading
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March 16, 2023

The video below provides an in-depth look at Silicon Valley Bank’s downfall, from its heavy investments in bonds to the bank run that has sent shockwaves through the market. (For more information on investigations into potential misconduct at SVB, check out this video.)

Questions:

  1. How did SVB’s substantial investments in bonds backfire on the bank?
  2. Do you think federal regulators should place limits on how much money banks like SVB can invest? Why or why not?
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March 14, 2023

Last Friday, a combination of imprudent decision-making and panicked customers led to the collapse of Silicon Valley Bank (SVB), a 40-year-old financial institution based in Santa Clara, California. The Federal Deposit Insurance Corporation (FDIC) stepped in to prevent further fallout, putting nearly $175 billion in customer deposits under the regulator’s control. SVB’s meltdown represents the second largest bank failure in U.S. history, and the largest one since the 2008 financial crisis. As a result of this chaotic situation, stock prices Continue reading

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March 1, 2023

Last Friday, the stock market tumbled to its lowest point so far this year, with the S&P 500 falling for three weeks straight while the Dow Jones similarly slumped due to disappointing economic data. Investors expected inflation to decline more at the start of 2023, but experts say that it has actually re-accelerated in recent months. As a result, the Federal Reserve may continue to raise interest rates, a measure used to combat inflation that reduces the amount of Continue reading

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