Economic Primer

Last weekend was the 70th anniversary of Social Security, and the following information puts into relief the difficulty with which the management of risk and return in investment accounts is easier said than done since the world is now flat and the economy is now global.

Market Close – Friday August 19, 2005
Major U.S. Indexes		Close
Dow Jones Industrial Average		10,559.23
S&P 500 Index		1,219.71
NASDAQ Composite		2,135.56
Money Rates		%
Bank Prime Rate		6.50
Discount Rate		4.50
Federal Funds Rate		3.50
Currencies
Nation	$1 in Foreign Currency	Foreign Currency in Dollars
Britain	0.5568	1.7961
China	8.1042	0.1234
Euro	0.8222	1.2163
Mexico	10.7410	0.93101
Switzerland	1.2743	0.7847
Vietnam	15,858	0.000063
Notes
Nations that trade in Euros: Austria, Belgium, Finland, France, Germany, Greece, Ireland, Italy, Luxembourg, the Netherlands, Portugal, Spain.
Source: Los Angeles Times (www.latimes.com/markets)