The Exchange
  • QE3 Won’t Solve All Our Problems, but It’s a Start

    By Scott Sumner

    Ever since interest rates fell close to zero in late 2008, many pundits have expressed skepticism that Fed policy can stimulate the economy. And yet, if the Fed really is "out of ammunition," then why did stocks rise so sharply on the news of QE3? Fortunately the Fed still has plenty of ammunition. The recent policy initiative represents baby steps in the right direction, but the Fed still needs to do much more.

    The Fed Isn't Done Yet

    Once rates fall to zero, the Fed has two primary tools for impacting aggregate demand, or total spending in the economy. One tool is "quantitative easing" often dubbed QE, or "printing money." In fact, the recent policy is not quite the same as printing money, as most of the new injections are simply commercial bank reserves stored electronically at the Fed. And also because the Fed now pays interest on those reserves, whereas cash does not earn interest. With interest rates being relatively low on alternative investments, the banks are

    Read More »from QE3 Won’t Solve All Our Problems, but It’s a Start
  • Internet Explorer users, get your updates or go somewhere else for your browsing needs.

    New Microsoft Logo and Store Microsoft (MSFT), the owner of one of world's most widely used Internet browsers, says it has to plug a hole that's left IE9 and earlier versions of the product vulnerable to hackers who could trick users into visiting malicious Web sites, allowing the remote execution of harmful code.

    The company said Monday it had received "reports of only a small number of targeted attacks" and a fix was in the works. Microsoft issued instructions on what users could do for the time being to better protect their computers, the details of which can be found here.

    While IE versions back to 6 are affected by the problem, IE10 isn't, Microsoft said.

    According to software security firm Symantec (SYMC), the hack is hosted on the same servers used in what's called the Nitro attack, a 2011 campaign against a variety of chemical and defense companies. During Nitro, hackers used a known Trojan horse called Poison Ivy,

    Read More »from Microsoft Warns of Internet Explorer Hack Potential
  • The Federal Budget Sequester Is Coming, and It Won’t Be Pretty

    By Ron Haskins

    "Stupid, ridiculous, insane, nuts, outrageous" — these are just a few of the labels that politicians, editorial page writers and budget analysts have applied to the budget sequester that will hit hundreds of federal programs on January 2, 2013. Although the sequester has been in place since last summer, a new wave of outrage was caused by last week's Office of Management and Budget report that provided greater detail about the programs that would be cut by the sequester. Personally, I agree with all of the above labels. And yet...

    What Is the Sequester?

    But before we get to the "and yet...," let's review the bidding. For many years, federal policymakers have spent more money than they have coming in. Policymakers were able to "steer" this irresponsible course because the U.S. has the most powerful economy in history and a long record of repaying its debts. So private American investors, the Chinese, the Japanese, the Saudis, and almost everyone else with a little lose

    Read More »from The Federal Budget Sequester Is Coming, and It Won’t Be Pretty
  • Apple (AAPL), a.k.a. the U.S. economy, was hitting another all-time high Monday and pushing ever closer to $700 a share. The stock no one thinks will ever go down thanks to its regular roll-out of products we must have -- at the moment it's the iPhone 5 -- went above $699 earlier in the session, the best level it's ever reached.

    Shares of Apple closed at $378.30 on Oct. 5, 2011, the day company co-founder Steve Jobs died, an event that pessimists thought might spell serious trouble for Apple's products and its stock. So far, that's not happened. Shares are up nearly 84% since then, according to FactSet data, and as noted, the goods keep coming and getting bought by us.

    Here's a brief look at some of the factoids around Apple's journey higher since the death of its leader last fall:

    • Trading days: 238
    • Days the stock rose: 127, or 53.5% of the time
    • Days the stock fell: 109, or 45.8% of the time
    • Unchanged days: 2
    • Average gain on up days: 1.43%
    • Average decline on down days: 1.08%
    • Best
    Read More »from Apple Doesn’t Go Up Every Day, It Just Crushes Non-Believers

Pagination

(655 Stories)
 
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