Thankfully, today’s morning went a lot smoother than
yesterday’s morning, not counting forgetting about our short meet-up with Ms.
Thrift and then rushing to it once Mark sent out a group text a few minutes
before the designated time. Aside from that, I had breakfast. I was early to
class. I took a nice shower. I even had a (cold) coffee to accompany me on my
morning adventures.
Professor Mesznik commenced the day with a somewhat
impromptu warning on plagiarism and its serious consequences. While I’ve always
known about these consequences, I’ve never given them a second thought because
I didn’t feel the need to. Perhaps it’s just because I feel like it has been talked
about so often that the value and weight it once carried slowly started to
lessen just because of the number of times we heard about it. In a similar way,
I watched a lot of videos and presentations against drugs and bullying in
elementary and middle school. And while I did take the repercussions and cautions
seriously, I never felt that it applied to me enough to really think about it.
The thing is, over the years, I have noticed that it is a real problem. But it
isn’t like one of those videos from the 80’s where some kid with the coke
bottle glasses and braces gets pushed around in the locker room by some jock in
a windbreaker. It’s a lot more subtle than highschoolers like me know it to be.
Anyways, he moved on to demonstrating how to use Excel
spreadsheets to solve quadratic equations and utilize interest formulas with
the “GoalSeek” tool. Without my computer, I was able to retain only some of the
things he had gone through, but I figured that it wasn’t worth lugging around
my luggage to class. Maybe I’ll give that decision some more thought in the
next few days, because as it turns out, I don’t know very much about Excel’s
capabilities.
Once we had had enough spreadsheet goodness in us, Professor
Mesznik talked to us about the origins of our money and where it actually came
from. After a couple of suspiciously accurate responses, he went into talking
about bartering and its inevitable decline due to a lack of inefficiency. This,
in turn, led to the creation of paper money in around six or seven hundred A.D..
Eventually, we were faced with the question “What actually backs our money?”
And while many – including myself - assumed that gold stored in some highly
secure place like Fort Knox did, Professor Mesznik informed us that in
actuality it was nothing more than a mutual acceptance of a currency or “good
faith in government contracts” that backed our money. This idea came as a
surprise to me. How could such a vast and confusing network and economy consist
solely on the idea of “mutual acceptance” or “good faith?” Didn’t that go
against everything (stereo-typically) known to be true about businesses and
monetary matters?
I ate lunch with Tiara who hadn’t had breakfast and was therefore blown away by how amazing a cold Five Guys burger tasted.
The afternoon session was much better today. Just like the second
day of class, we each chose an article we found was important and presented it
to the class with a short summary on the article and opinions about it. Then
Ms. Santos established definitions and some details on financial risk and
derivatives. There were quite a few things I didn’t understand about
derivatives, chiefly because of my predisposed notions to associate derivatives
with math. However, my favorite part of the class was the very end where we got
to pick partners and use our Excel knowledge to invest in stocks for well-known
companies. Each pair was given a million dollars and the prices for shares in
companies like Starbucks, Suncor Energy Inc., and Twitter, as well as
information about the average annual low and high for each share price.
Once we had chosen how we wanted to arrange our initial investments, we were given new share prices for the next day and repeated to process until a virtual week had passed by. And although it was just a simulation, the energy in the room changed; people wanted to make money, however virtual it was. There was an electric buzz as people hurriedly discussed decisions on their shares. (We were given time constraints.) All in all, I found it to be a successful simulation: fun, slightly stressful, and comprehensive. (By the way, I figured I'd continue the soundtrack song titles theme, today's is from Tron Legacy. I also just couldn't think of a better title.)
Yes, all the photos are from the baseball game and might not have anything to do with the text directly next to them. |
I find this idea of money being completely based on trust and goodwill incredible, too, but it is so true. I remember hearing a radio show where economists had to rebuild the monetary system in a South American country--the biggest problem was to get the population to have faith in the currency again.
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