Berkeley CSUA MOTD:Entry 51942
Berkeley CSUA MOTD
2019/04/20 [General] UID:1000 Activity:popular

2008/11/12-26 [Finance/Banking, Academia/GradSchool] UID:51942 Activity:nil
11/12   Harvard looks to tighten its belt
        Why is a Uni with a $30B+ endowment worried about spending cuts?
        \_ For the same reason that companies with $30B in the bank are
           worried about the economy; the fact that you have that money
           is already factored into your plans, so loss of other money is
           a problem.  -tom
2019/04/20 [General] UID:1000 Activity:popular

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2013/7/31-9/16 [Reference/RealEstate, Finance/Investment] UID:54720 Activity:nil
7[31    Suppose you have a few hundred thousand dollars in the bank earning
        minimum interest rate and you're not sure whether you're going to
        buy a house in 1-5 years. Should one put that money in a more
        risky place like Vanguard ETFs and index funds, given that the
        horizon is only 1-5 years?
        \_ I have a very similar problem, in that I have a bunch of cash
2013/5/13-7/3 [Finance/Banking] UID:54676 Activity:nil
5/13    Does FDIC ever matter? How likely is it that your deposit of
        over $250k going to be screwed over in a major US bank?
        \_ Was Washington Mutual a major bank?
        \_ Was Washington Mutual a major US bank?
        \_ Hahahahahahahahahahaha. Good one.
        \- As with nuclear weapons, this insurance produces much of its value
2013/3/9-4/16 [Finance/Banking] UID:54621 Activity:nil
3/9     In a 15/30 year loan, the amount of payment stays the same but
        the payment on interest decreases while the principal increases.
        Suppose I decide to pay off a huge chunk of principal, will
        the amount of interest I need to pay decrease drastically, or
        do banks still want to take out a huge chunk of interest rate?
        \_ You don't actually have separate "interest" and "principal"; you
2011/11/27-2012/1/10 [Finance/Banking] UID:54243 Activity:nil
11/27   Whoa, since when did FDIC coverage go up to $250,000? That's cool.
        So is this coverage per customer per bank, per account per bank,
        total per person, etc?
        \_ I believe that it is per customer per bank. Not 100% sure though.
           \_ Yes, and you can get even more with joint accounts, etc.:
2013/4/30-5/18 [Academia/Berkeley, Academia/GradSchool] UID:54667 Activity:nil
4/30    Cal is a public Ivy League school!
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Single Page| * | * Text size - + Even the world's richest university is feeling the pinch from the economic downturn. Harvard's president, Drew Faust, said yesterday that the university is looking for ways to reduce spending across the campus, raising the specter of cuts to programs and compensation, as Harvard's endowment plummets. It is also assessing all aspects of its sweeping plan to expand across the Charles River in Allston, she said. "We must recognize that Harvard is not invulnerable to the seismic financial shocks in the larger world," Faust wrote in an e-mail to faculty, staff, and students. She did not specify what cuts were on the table and declined to be interviewed. "The letter is the letter," said John Longbrake, university spokesman, who would not elaborate on the implications of Faust's e-mail. "Look, this is a serious situation, and they're planning and looking at things across the board." A Harvard official familiar with its financial picture said the university is considering imposing a wage freeze for administrators and faculty, as well as a budget freeze on all programs. Harvard's move follows a range of belt-tightening at colleges and universities across the country. Last month, Boston University instituted a hiring freeze and a moratorium on all construction projects that are not already underway. Yesterday, Dartmouth College said it was trimming its budget after its endowment lost $220 million during the turmoil. Harvard officials would not say how much the endowment has lost in recent months, but Faust referenced a Moody's projection of a 30 percent decline in the value of college and university endowments this fiscal year. For Harvard, that would mean an $11 billion loss - that is, about $550 million in lost income. Also under review are Harvard's expansion plans in Allston, Faust said. Construction projects that remain the highest priority include a $1 billion science complex in Allston and a law school addition in Cambridge, and renovations to the Fogg Museum. Faust's letter laid out other financial challenges that Harvard faces, despite its great wealth. The university cannot expect continued generous contributions from donors and foundations, she said. The pool of federal grant money for research is also at risk of drying up. And any increase in tuition, which accounts for 20 percent of the university's revenue, should be kept modest during the tough economy, Faust said. It costs $47,215, including room and board, to attend Harvard, a 35 percent increase from last year. Amid the financial storm, Faust affirmed Harvard's commitment to recent initiatives to expand financial aid for low- and middle-income families. Students from families making below $60,000 will still get a free ride, she said. And families making up to $180,000 per year can expect to pay no more than 10 percent of their income. Some faculty members said Faust's letter, though sobering, did not come as a surprise. "This strikes me as a drumbeat getting us ready to think in terms of a slowdown in growth, or even cuts and freezes," said Andrew Gordon, a history professor on Harvard's faculty council. Michael Smith, dean of the Faculty of Arts and Sciences, was unavailable for comment. But he warned faculty and staff yesterday that everyone would be affected in the belt-tightening. The Faculty of Arts and Sciences draws more than half its operating expenses from the endowment. "Given the prominence of endowment income in our finances, we must consider budgeting scenarios that significantly reduce our annual operating expenses," Smith wrote in an e-mail after Faust's letter. Wilfried Schmid, a math professor who also serves on the faculty council, said Faust's reaction to the bleak economy is sensible. "Nobody has any idea whether this is going to be a replay of the Great Depression," Schmid said in an interview. "Harvard is resilient enough to weather quite a storm, but exactly what this means, we'll have to see. Harvard is still the top university, and we'll do whatever's necessary to stay there." us Your Name Your e-mail address (for return address purposes) E-mail address of recipients (separate multiple addresses with commas) Name and both e-mail fields are required. com does not share this information or keep it permanently, as it is for the sole purpose of sending this one time e-mail.