Technical Finance Vocabulary

Confused about the increasingly complex vocabulary that you heard in the news?
Have you heard technical terms on the news and want to know what their importance are?
Become more educated about what is causing the current financial crisis.

http://www.riskglossary.com/link_letter/link_a.htm

State Colleges Better Bang For Buck

SmartMoney and PayScale looked at the question: Are private colleges' high tuition worth it compared to state schools? They based their rankings on what the graduates earn in their early and midcareer vs. the debt they have to take on. They developed a "payback ratio" and here are their findings:

• The top state school has a three to one payback ratio compared to the highest private school
• State schools are a better deal than most of the private schools, including ivies.
• If you factor in loan costs, the private schools are at the bottom of the payback list.
• Many of the top state schools are attracting greater numbers of top quality students.
  

http://www.smartmoney.com/personal-finance/college-planning/the-best-colleges-for-making-money/

http://www.smartmoney.com/Personal-Finance/College-Planning/colleges-that-pay-off/?page=all

In the end, it's your money. So, the onus is on you to educate yourself about money.

A NY Times article -- "The 17th Floor, Where Wealth Went to Vanish" -- talks about a Ponzi scheme run by Bernard L. Madoff, which let to losses of around $50 billion for investors.
http://www.nytimes.com/2008/12/15/business/15madoff.html?pagewanted=1&_r=1&hp

Large banks and other firms entrusted their clients' money with Mr. Madoff: "Scrutiny is also falling on the many banks and money managers who helped steer clients to Mr. Madoff and now say they are among his victims."

It will be interesting to see what the investigation of Mr. Madoff unfolds, but there are three important lessons at the outset:

• Too many people, including wealthy people, lack financial literacy. They readily entrust their wealth to others, including large financial institutions, to manage it for them. If you work hard to make the money, you should work hard to preserve it. The onus is on you to educate yourself -- to gain financial literacy -- and to do due diligence about the people and institutions that are supposed to help you preserve and grow your money.
• If you don't gain financial literacy, you expose yourself and your friends to schemers.
• Don't trust all professionals! Professionals are made equal. Just because a professional has a degree or works for a large institution doesn't mean they have your best interest at heart.

Are associates really competing for tasks with paralegals?

A National Law Journal article -- "As support staff layoffs continue at firms, attorneys learn to share resources" -- reports on the increasing number of layoffs of support staff in law firms. It also suggests that some associates might be keeping their billable hours up by doing paralegal work.
http://www.law.com/jsp/nlj/PubArticleNLJ.jsp?id=1202426604353

Articles, such as this, show the kind of decisions that partners, associates, and their support staff are having to make in a down market.

It is important to note that firms are being affected differently by this economy: "'In good times, you'll see firms that have built up some extra fat in their administration. Some of these staffs have gotten really large, and they will cut nonessential positions,' Altonji said. 'Other firms will cut into the bone, and make cuts that aren't prudent. Essential services could be curtailed.'"

Job Search Advice for 1Ls in this Legal Market

This AmLawDaily article -- "Letter to 1Ls: We're Scared to Death!" -- demonstrates how the changes in the legal market are affecting students, even in their first year of law school ("1L").
http://amlawdaily.typepad.com/amlawdaily/2008/12/open-letter-to.html

The article gives good advice:

• Don't neglect your grades.
• Don't put all your eggs in one basket.
• Be specific in your cover letters.
• Demonstrate a connection to the location you are applying to.

I believe that the this advice is very important to follow. It is especially easy to neglect your grades in your first year with anxiety over jobs. Please remember, that focusing on getting great grades and getting the most out of your education should be your job right now.

In your first semester, focus on learning the new, and sometimes awkward, language of the law. Turn your attention to applying for jobs during the holiday break.

In a Down Economy, Paying for a Private College Gets Harder

The following paragraph from a WSJ article -- "Painful Choices as College Bills Wallop Families" -- summarizes the struggles that the recession is causing to students and their parents: "Many students are already making painful adjustments, including dropping out, borrowing more to stay in school, transferring to cheaper schools or taking on part-time jobs. A third of parents expect the economic downturn to affect their ability to pay for college this year, according to a survey of 7,000 parents of newly enrolled freshmen by Eduventures, a Boston-based research firm."
http://online.wsj.com/article/SB122895685290096607.html?mod=djem_jiewr_swwgn_121108

Legal Job Market Shrinks

A CnnMoney article reports: "Verdict is in: Legal job market tightens."
http://money.cnn.com/2008/12/03/news/economy/legal_industry/?postversion=2008120305

In short, just as in other areas of the economy, lawyers are losing their jobs, and recent graduates are finding it hard to get a job.

There are at least two important takeaways from this article:

1. In this market, getting a J.D., or even an LL.M, does not guaranty a safe, secure job. The tune that you have to go to school to find a safe, secure job is ringing hollow. One student's experience in the article shows this: "In addition to his living expenses, Magdy has about $150,000 in student loans and the first payments are due in the middle of this month." So, before you sink yourself into debt for a school loan, think carefully!
2. Students must study their profession. Within the law, some areas are doing well: "While hiring is slowing in certain areas, including real estate and M&A, there are other opportunities for lawyers that are flourishing in the current climate, Pierce Stronczer said, specifically, 'litigation, intellectual property, white-collar crime and bankruptcy, of course.'"

Homes You Could Buy With $150,000

In my native town, I could get a studio co-op in an apt building for under $150,000 and a starter house for around $400,000.

I often tell people that a family can get a nice house with a backyard in most areas of the country (outside of cities) for under $150,000. City dwellers don't believe me. Well, pictures can paint a thousand words!

Check out the 10 towns that AOL Real Estate chose to profile:

http://realestate.aol.com/home-prices/150000?pg=1