The Stock Market Game is a curriculum-based teaching tool that allows students to invest a hypothetical $100,000 online stock portfolio to learn about long-term saving and investing.
It was another wild week on Wall Street with the
dominating the headlines.
The House shot down the initial $700 billion plan on Monday. In reaction, the markets sold off, causing the
to fall 778 points -- its worst single-day point loss ever. As credit markets remained frozen and the
, a revised version of the plan made it through the Senate on Wednesday night and faced the House of Representatives on Friday.
The House passed the Emergency Economic Stabilization Act (EESA) and the President signed the bill into law.
Advocates of the plan argue it was crucial for the government to address the credit crisis threatening the well-being of the economy and free up banks to lend more. Opponents say the plan rewards Wall Street mistakes, puts the financial burden on taxpayers and fails to address the real economic problems facing Americans. Regardless of whether you agree with the advocates or opponents of the EESA, it's clear this is a monumental event with long-term implications.
The markets seemed somewhat calmer Friday morning as investors kept a close eye on the fight for
. Earlier in the week, the company agreed to sell its banking operations to
for $2.2 billion in a deal requiring the involvement of the federal government -- the
would cover any losses over $42 billion on Wachovia's $300 billion loan portfolio. However,
provided a sweeter offer: $15 billion for all of Wachovia's assets with no strings attached.
Unlike many of its financial peers, Wells Fargo has managed to ride out the credit crunch and turmoil in the housing market and reported better-than-expected earnings for the second quarter. But Citigroup remains determined to close the deal and is not giving up its plan to buy Wachovia just yet. This may be a great story for your Stock Market Game students to follow and provide updates for their classmates.
In the coming week,
that have the potential to rebound now that Congress has passed the financial rescue plan.
With the current status of the economy and the collapse of many long-standing financial institutions, don't be surprised if your Stock Market Game students grow frustrated that their total
remains in the red for a good portion of their trading session.
If you haven't done so already, now is the perfect time to get your students ready to participate in
-- The Stock Market Game's national and state-wide essay competition. The program allows students to synthesize what they are learning during the trading simulation while strengthening their writing skills by responding to a real-world investing scenario. To help prepare your students for the program, be sure to check out the
How to InvestWrite
lesson in the
. It's located in the
In the Classroom
. Essays are due Dec. 5, 2008. Good luck to those participating!
Don't miss the Fall 2007-Spring 2008 InvestWrite champions:
High School: "InvestWrite Champ: Himax Is Hot, but Wells Fargo Rules"
Middle School: "InvestWrite Champ: Corn Impacts Monsanto and Kellogg"
Elementary School: "InvestWrite Champ: Ann Taylor Beats Abercrombie"
To learn more about The Stock Market Game, visit www.stockmarketgame.org.
This article was written by a staff member of The Stock Market Game.