The Michigan Daily - Wednesday, October 12,_1994 - 7 COP IN THE BIG HOUSE Savage to discuss money management By DEVON PEREZ, For the Daily Many students have probably en- countered the frustration of a money machine that insists they are broke, a+ budget that refuses to balance or the checking account that is always empty., Help is on the way. University alum I Terry Savage will deliver the annual' Mullin-Welch lecture tonight at 7:30 in Hale Auditorium. The lecture, sponsored by the Cen- ter for the Education of Women, is titled, "Making Money Work," and deals with financial management for success. Savage advised,"You have + Read the Dail control over your money." Since graduating from the Univer- sity in the mid- I960s with a degree in American Studies, Savage has become one of the nation's leading financial advisers. She is the author of two best selling books, "Terry Savage's New Money Strategies for the '90s" and "Terry Savage Talks Money: The Com- mon-Sense Guide to Money Matters." According to Savage, her studies at the University helped prepare her for a career in financial advising "because money is American Studies." Before the speech, Savage will be offering a "class" she says is for "abso- lutely any student who is ever going to have to make a financial decision." "Money 101: A Free Introduction to What YOU need to Know About Money and Finance" will be an infor- mal workshop for students to ask Sav- age about anything pertaining to fi- nances. The workshop begins tonight at 5 p.m. in West Quad's Welch Room. Many students do not effectively manage their money, Savage said, and Money 101 is their time to get help. She said this informal lecture is her chance to "give the course I wish had been offered when I was a stu- dent." y Recycle the Daily. Write the Daily. i ........... . I U Chelsea police officer Robin Wright makes phone calls from jail to raise bail after his partner had him locked up in the March of Dimes Jail and Bail. I, /I Nobel Prize awarded to 3 economists for game theory m Los Angeles Times Three economists, two Americans ndaGerman colleague, were awarded eNobel Prize yesterday for their work on a theory that explores human behav- ior in settings ranging from a poker game to the corporate suite in an in- creasingly global marketplace. The winners,- John C. Harsanyi of the University of California, Berke- ley, John F. Nash of Princeton Univer- sity and Reinhard Selten of the Univer- sity of Bonn - are scholars of game Weory, which applies complex logic to real-world scenarios of conflict and competition. These include military strategy, politics and sports in addition to a broad range of business problems. "Eventually it will give us a higher standard of living because we make better decisions," said Harsanyi, 74, from his home in Berkeley, because the theory can lead to "better economic ecisionsby businessandgovernment." Across the Atlantic Ocean, - .. w Hersanyi's former collaborator, Selten, 64, was almost apologetic about the esoteric nature of his specialty. "I have worked a long time in the field of mathematical economic theory, and everything to do with mathematics is difficult to understand for many," he told reporters. A key to the theory is the notion that if you can understand the strategies of all your rivals, you gain insight into the outcome of a situation and the potential benefits, economists said Tuesday. Unlike textbook economics that is often divorced from the real world, game theory assumes people get tangled up in interactive situations that may be filled with bluffs, second-guessing and bold gambles. Complex scenarios are. typically spewed out of a computer in the language of mathematics. In citing the winners, the Royal Swedish Academy said they had em- ployed strategies observed in games like chess and poker to make predic- tions about the interaction between companies. "Everyone knows that in these games, players have to think ahead=- devise a strategy based on expected counter-moves from the other player(s)," the judges said. : At a Princeton University news conference, Nash jbked that he wished the $930,000 prize was bigger because it had to be divided three ways. But Nash, 66, said he was "thrilled to re- ceive this high honor." In the 1940s, military analysts wised early game theory as a tool to help guide U.S. ships in the perilousjourney across the Atlantic Ocean. Later, itwas incorporated into Cold War thinking, such as in U.S. nuclear strategy against the Soviet Union. But scholars have always appreci- ated the economic implications, which seem well-suited to a world of far- flung corporations and fierce economic competition. Few W people will ever set foot in an office At OCS you'll develop the qualities you need to be- like this. But then, few people have what it takes to be come a Marine Officer Invaluable training that could a Marine Officer Officer Candidates School (OCS) is lead to an exciting career in aviation. If you've got the first step towards preparing you for a what it takes to be a leader of Marines, you future beyond anything you could imagine.IJ6 I e could get an office with a spectacular view The w 7' PmvdL T7eMaris. Captain Conley and Captain Hitchcock will be handing out more information and answering questions on Marine Corps Officer Programs at the EECS Bldg. Atrium on North Campus from 9:00 a.m..- 3:00 p.m. on October 12, 1994. If you are interested please come by, or call 1-800-892-7318. Semper Fi! 1. Russian ruble drops 27 percent following rush of panic trading Newsday MOSCOW -- When the Russian ruble crashed through the floorboards yesterday, it landed on Polina Ivanova like a ton of bricks. And as it flattened the hopes of Ivanova and countless other Russians, the collapsing currency may have dealt a severe shock to the fragile economic and political stability this country has enjoyed in recent months. Ivanova's recent life story reads 'ike the fondest dreams of Russian re- formers come true. The 48-year-old woman from Magnitogorsk, a bleak industrial city 900 miles east of Mos- cow, quit her state-sector job two months ago, borrowed a $2,100 stake from a friend and headed for Turkey on a cheap charter flight. There, she invested the borrowed oney in inexpensive clothing and foot- ear, returned to Magnitogorsk and sold the goods in a public market. Then she got on a train and traveled to Mos- cow to exchange the rubles she had earned for dollars to repay the loan. But when Ivanova arrived in the capital yesterday, she found the bottom had fallen out of the currency market. The ruble, which was trading at 2,600 to the dollar only two weeks ago, lost 27 percent of its value in a rush of panic trading on the Moscow Interbank Cur- rency Exchange and closed at 3,926 yesterday. And at most of the private exchange points around the city where ordinary citizens trade currency, there was simply no market for rubles at any price. At the few where there was, the price was exorbitant. So Ivanova, the would-be entrepre- neur, spent the day walking around the city in despair clutching a totebag stuffed with ruble banknotes. "I can't do anything," the careworn woman said with a weary shrug. "I'm afraid to carry all this money around with me. And I'm afraid to exchange it at these rates because I'll take a terrible loss. I just don't know what to do." Ivanova's plight reflected one small piece of the crisis atmosphere that quickly descended on Moscow in the wake of the ruble's collapse. As gov- ernment ministers scrambled in and out of emergency sessions, tried to calm public fears and blamed the panic on unidentified "speculators," econo- mists offered gloomy assessments of the impact of the crash. "This could cause a total destabili- zation of the financial system," said Andrei Illarianov, a former economic adviser to the government. "Over the last nine months, neither the govern- ment nor the Central Bank have: been pursuing truly reformist policie;. The collection of stupid mistakes was accu- mulating. Now we see the results." Illarianov and other critics say while the government succeeded in lowering the inflation rate and stabilizing the ruble's value in the first eight months of the year, ift did so not through true structural reforms but through sopgap measures such as postponing the pay- ment of salaries and other obligations. Inevitably, they say, goverrnment spending began to rise again? in the summer, triggering an increae in in- flation in September and leading busi- nesses to convert rubles to dollars as a hedge against future inflation. That in turn encouraged speculation against the ruble; and when Russia'sI Central Bank abruptly stopped interening in the market - buying rubles --- to prop up the currency's value late last week, the bottom fell out. i /F ;' " ADOPTION: Let us provide a living secure personaChristian home for your baby. Sur adopted son would love a brotheror a sis :r. Call Paul and Linda anytime. 1-800/815-5 45. u OREg0.114M &it3 ROOM AVAILABLE in 5-bedroom house. 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