From the New QE3 to iPhone Insanity
QE3 – It’s Not A Ship
The Federal Reserve announced plans for another round of “quantitative easing”, also known by the much snappier nickname – “QE3. A key difference this time around? This easing is open ended. The basics you need to know: The Fed will continue to buy $40 billion of mortgage bonds - per month - until the job market shows significant and sustained growth. The idea is that buying these bonds will keep interest rates low, thus spurring spending and hiring. A bold move and a frightening indication of just how bad the labor market really is.
Dow Jones Does A Happy Dance
The Dow Jones soared on news of the QE3 stimulus plan, hitting a 5 year high. Not to be a downer here, but the QE3 wasn’t exactly good news. We’ll feel much more comfortable celebrating when the labor market shows some real signs of recovery.
iPhone 5 Launch
Apple’s iPhone 5 pre-orders sold out their inventory in just one hour! Let’s hope that the excitement over the new phone doesn’t diminish the focus on labor conditions in Apple’s Chinese factories…
Middle East Violence
More violence erupted in the Middle East this week, apparently in response to an anti-Islamic film posted online. The attack on the U.S. consulate in Libya left 4 Americans dead, including our ambassador to Libya. Further attacks have taken place on U.S. embassies in Egypt and Yemen, sparking a financial debate. The issue: do these countries deserve to continue receiving foreign aid from the US? Some say this is exactly why we need to keep foreign aid open – to help fledgling democracies win over extremist groups. Other feel that especially given America’s economic crisis, we can ill afford to be sending money overseas at this time. What do you think?
Sept 11th Memorial and Museum
This week marked the 11th anniversary of the Sept 11 terrorist attacks. And in the midst of a week of tributes and prayers, a financial argument rages on. The question: is the $60 million annual operating budget for the memorial and museum too much? Or should we not be concerned with price tags when it comes to this sacred ground?