7/27/2019 Fall 2013 Optimal Bundle: Issue III

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LARRY SUMMERS: FED UP?

Lawrence H. Summers, Obamas lead candidate for Fed Chair-

man, broke the news of his withdrawal from consideration to

Obama on Sunday. After a debate over the issues in Syria, Sum-mers realized that he would not be able to win over the Senates

approval. The opposition of several liberal senators represents

Obamas struggle to get support for him among members of his

own party. Summers is viewed as a master economic theorist, but

many Democrats saw his role as Treasury Secretary in the Clinton

Administration as a contributor to the 2008 financial collapse.

Who will be the new frontrunner?CB

THE PENNSYLVANIA STATE UNIVERSITY ECONOMICS ASSOCIATION PRESENTS :

EDITOR: COLE LENNONPRINTEDUCATIONCOORDINATORCONTRIBUTORS: BEN ROWLES, CADY BOUCHER, COLELENNON, LEAH GALAMBA, RYAN SOSNADER

FALL 2013: WEEKOF SEPTEMBER 19 TH

THE OPTIMAL BUNDLE

CHECKOUTTHEARTICLE: NYTI.MS /182WFJA

DURABLE GOODS FOR DURABLE MARKETS

Upcoming Events: PennStateEA.Weebly.comEA Homepagepsueaeducation.blogspot.comEducation Blog

General Body Meeting: 9/19

The sale of more durable goods in foreign economies is be-coming a real possibility. Increases in per capita incomes indi-cate that these nations are set to spend more on durable goodsin the near future. Shifting to durable goods could revitalizethe world economy, altering the kinds of goods consumers

will demand. This is an important milestone especially inemerging economies, as more money is spent on basic com-modities in lower per capita income nations such as China andBrazil. This rebalance of consumption may not actualize soon,

but it is now on the horizon.CL

Check out the Article: bit.ly/19O7gm5

FOMC Meeting 9/17-9/18

A withdrawal from Mr. Summers.

Considering when everyone will have one.

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7/27/2019 Fall 2013 Optimal Bundle: Issue III

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#STOCKTWEET

Wall S treet wi ll be retweeting Twitters recent announcement ofits plans to work with the SEC to make an initial public offering(IPO). Granted the request goes through, it would place Twit-ter among other social-media giants and give it the potential to

become the most anticipated buy of 2014. Goldman Sachs willbe the leading adviser on the deal and will likely work to ensurethat Twitter fares better than Facebook did last year in i ts IPO.This Economist article explores how social-media affects themarket as well as how Twitter can grow while maintaining itsintegrity.LG

LOOKING

BACK

: WHEN

BANKS

WENT

BUST

Five years ago, the Treasury and the Federal Reserve pumped $698.2billion in bailouts into the financial system in order to avert a worse fi-nancial crisis. Today, taxpayers are $29 billion or 4.2% away from break-ing even. The bailouts consisted of $250 billion to banks, $187 billion tothe mortgage finance firms Fannie Mae and Freddie Mac, $152 billion toAIG, $80 billion to the auto industry, and $28 to other institutions. Inreturn, the government received shares in these firms. It actually profit-ed from sales of bank shares and of AIG but is awaiting repayment from

the other categories.BR

NEW DOVE RISING?

With Ben Bernankes term as the head of the Federal Reserve set to ex-pire in January 2014, debate on who should succeed him has beenbrewing. Now that former Treasury Secretary Larry Summers has with-drawn his name from discussion, it appears that Janet Yellen, the Feds

current Vice Chairman, will be selected. Yellens monetary policy viewsclosely align with Bernakes, making it likely that the Feds efforts tostimulate the economy back to full employment will continue if she as-sumes control. With Yellen at the helm, the federal funds rate would beexpected to remain near zero until 2015.RS

CHECKOUT THE ARTICLE: CNNMON .IE /1939WDO

Check out the Article : cnnmon.ie/163QrXo

Check out the article: econ.st/189FhKxRetweet this, immediately.

Five years later. Whats differ-

ent this time?

Is Janet Yellen the new frontrun-

ner for Fed Chair?

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