Investing

Starter Questions Is saving money hard or easy for you? Why do people invest money? What do people do with their money now that the financial crisis is here? Have you invested in anything?

Is saving money hard or easy for you?

Why do people invest money?

What do people do with their money now that the financial crisis is here?

Have you invested in anything?

Brainstorming What are some typical investments? Let’s make a list together!

What are some typical investments? Let’s make a list together!

Real Estate Why is real estate a popular investment? Have you bought a home? What was your experience like? What’s happening to real estate prices in China? Is the rapid rise in real estate prices good or bad? Will the real estate market crash?

Why is real estate a popular investment?

Have you bought a home? What was your experience like?

What’s happening to real estate prices in China?

Is the rapid rise in real estate prices good or bad?

Will the real estate market crash?

Your Stock Portfolio What’s a stock portfolio? Look at the stocks below – which ones would you buy and why? Baidu Disney Haier Toyota Samsung Budweiser McDonald’s Lenovo Wal-Mart IKEA Li-Ning Nokia Microsoft Sinopec VW Pepsi

What’s a stock portfolio?

Look at the stocks below – which ones would you buy and why?

Baidu

Disney

Haier

Toyota

Samsung

Budweiser

McDonald’s

Lenovo

Wal-Mart

IKEA

Li-Ning

Nokia

Microsoft

Sinopec

VW

Pepsi

Venture Capital What is a venture capitalist? Investor or company that directs funds towards promising businesses Why are they important? Provide seed money for entrepreneurs and startups Help important young companies manage cash flow Bankroll many, many IT companies Why do they do it? Hope for profit from a company’s IPO

What is a venture capitalist?

Investor or company that directs funds towards promising businesses

Why are they important?

Provide seed money for entrepreneurs and startups

Help important young companies manage cash flow

Bankroll many, many IT companies

Why do they do it?

Hope for profit from a company’s IPO

Get-Rich-Quick Schemes What is a get-rich-quick scheme? Plan to make a lot of money fast with little work Charles Ponzi Italian-American who created a get-rich-quick scheme in the first half of 1920 Told his investors they had a chance to make a lot of money in a short time Then made money from new investors and paid back the first investors In Feb., he made $5,000 In Mar., he made $30,000 By May he made $420,000 By July he made millions In August, he was arrested Do you know of any stories like this in China?

What is a get-rich-quick scheme?

Plan to make a lot of money fast with little work

Charles Ponzi

Italian-American who created a get-rich-quick scheme in the first half of 1920

Told his investors they had a chance to make a lot of money in a short time

Then made money from new investors and paid back the first investors

In Feb., he made $5,000

In Mar., he made $30,000

By May he made $420,000

By July he made millions

In August, he was arrested

Do you know of any stories like this in China?

Madoff, the Modern Ponzi Who is Bernard Madoff? Wall Street insider who ran a modern Ponzi scheme Stole an estimated $65 billion from investors over 20+ years How was he caught? Was under suspicion for fraud for years, but the government did nothing Finally, his sons turned him into the police What was his punishment? 150 years in prison, $170 billion fine

Who is Bernard Madoff?

Wall Street insider who ran a modern Ponzi scheme

Stole an estimated $65 billion from investors over 20+ years

How was he caught?

Was under suspicion for fraud for years, but the government did nothing

Finally, his sons turned him into the police

What was his punishment?

150 years in prison, $170 billion fine

Government Investments Q: What’s the single biggest investment the Chinese government has made in the last ten years? A: US Government Treasury Bills The Chinese government buys American debt at a rate of $1 billion a day This means every American has borrowed around $4,000 from China Why does China do this?

Q: What’s the single biggest investment the Chinese government has made in the last ten years?

A: US Government Treasury Bills

The Chinese government buys American debt at a rate of $1 billion a day

This means every American has borrowed around $4,000 from China

Why does China do this?

A Vicious Cycle The US government always spends more money than it has This kept the US economy growing faster than most developed countries China, Japan, European, and Arab countries have regularly financed American debt This is because America buys most of their exports Without America to buy their products, their economies slow down

The US government always spends more money than it has

This kept the US economy growing faster than most developed countries

China, Japan, European, and Arab countries have regularly financed American debt

This is because America buys most of their exports

Without America to buy their products, their economies slow down

Discussion – Choose Any Question What’s the safest investment? Would you ever like your company to pay you in stock? What will happen to China’s real estate market in the future? Will China keep financing US debt in the future? Why do people believe in get-rich-quick schemes?

What’s the safest investment?

Would you ever like your company to pay you in stock?

What will happen to China’s real estate market in the future?

Will China keep financing US debt in the future?

Why do people believe in get-rich-quick schemes?