There’s so many news stories that caught my eye lately that it’s just hard to keep up. I’m chronicling them here so I can refer to them later, and they appear below.
Story #1 – U.S. Budget Talks and Threat of Government Shutdown Causes EU Stock Plunge
Recent U.S. government budget negotiations remain at a standstill, and just the other day Brazil drilling slow down and EU stocks plunge because of it. As reported on the 27th of September, the Stoxx Europe experienced a total of .67 loss at week end, and .3 upon trading closing.
The Italian government bonds seemed to experience the worst economic dip recently. It seems like the entire world is waiting on the U.S. to make some important decisions for the next fiscal year.
My Response to This
This fiasco not only caught my eye, but it also gave me a wake-up call. It gives me some hint as to how close the “end of the world” really could be. (Don’t worry, I’m not going to promise you that on the 12th day of the month of Never it will happen – then it doesn’t. I’m not into that, but I do believe it could happen at some point.)
What strikes me the most is how one country can cause such a financial ripple effect throughout the world.
Story #2 – Stock Prices Climb Because of Government Stimulus Bond Announcement
Investors seemed bit hasty after hearing the Federal Reserve Stimulus bond buying initiative continues. Stock prices, including those for oil reached an all-time high.
Apparently, they seemed less afraid of the market because of the stimulus continuance. However, Ben Bernake, Federal Reserve Chairman, warned of a possible government shutdown because of this.
Story #3 – Federal Reserve Decides to Continue Stimulus Bond Buying
The Federal Reserve decided after a meeting on Wednesday, September 18th, 2013 that it would continue its $85 million month bond buying stimulus efforts.
The main reason for it is because the U.S. unemployment rate had not yet reached an agreeable amount. The government wanted the unemployment rate to drop to 6.5 percent from the 7.3 percent it was last week.