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T HE P ENNSYLVANIA S TATE U NIVERSITY E CONOMICS A SSOCIATION P RESENTS :

T HE O PTIMAL B UNDLE
F ALL 2013:
WEEK OF

O CTOBER 24 TH

E DITOR : C OLE LENNON P RINT EDUCATION COORDINATOR C ONTRIBUTORS : B EN R OWLES , C ADY B OUCHER , C OLE L ENNON , L EAH G ALAMBA , R YAN S OSNADER

Upcoming Events: General Body Meeting: 10/24


Delayed Sept. Jobs Report: 10/22

Psuea.org EA Homepage psueaeducation.blogspot.com Education Blog

WAGING ECONOMIC WARFARE


International bodies have continued to enforce crippling sanctions against Iran following the controversial unveiling of its nuclear program in 2002. Since 2006, six UN resolutions have opposed Iran's uranium enrichment programs, and Iran's energy sector is now stifled. Sanctions issued in 2012 by the US and EU targeted Iranian banks and oil exports, limiting their access to global financial markets. Iran's impulse to finagle its way out of the sanctions is limited, as the economic damage is not considered severe enough for negotiation. Newly elected President Rouhani could soon decide to negotiate, but conditions could worsen.CL CHECK
OUT THE ARTICLE: BBC . IN / TZ LP Z 7

Conditions do not seem to be improving.

DONT HATE, REGULATE


The European Central Bank has announced its new plan to review the 130 largest banks in the 17 countries that use the Euro, and the man at the center of it all is Ignazio Angeloni. Mr. Angeloni will begin reviewing a banking system that few understand. He will attempt to distinguish which banks are sound and which need improvement. The aim is to bring regulation and consistency into all of the European banks, rather than let them each operate independently from one another. While it is a daunting task, the world's confidence in the European banking system depends upon Mr. Angeloni's success. LG

Haters are going to hate, and regulators are going to regulate.

Check out the Article: nyti.ms/1caEfqd

B REAKING THE F IXED E XCHANGE R ATE


This week marks the 30th anniversary of Hong Kongs currency peg to the U.S. dollar. Although Hong Kong has a healthier economy than the US at present, it is still adopting the USs monetary policy. This has caused high inflation and rising housing prices in Hong Kong that would not have occurred if its currency were not pegged to the dollar. Many economists believe that Hong Kong would be better off with independent monetary policy. Not only would it work to eliminate the aforementioned issues, but it would also allow the nations economy to align with mainland China. CB
Check out the article: econ.st/H0Fpqj

This image appears to fit the bill.

U NDER (I NFLATIONARY ) P RESSURE


In his new book The Map and the Territory , Alan Greenspan made a rare comment on the Feds current operations. He warned that the Feds ever-expanding balance sheet may lead to higher from 3% to double digits inflation over the next five to ten years. Greenspan questions whether the Fed will successfully act against that inflation, as any credit tightening will, as usual, run into considerable political opposition. It always has. Nobody has been correct in predicting higher inflation for some time (it seems to be ever-decreasing), but the unprecedented scale of the Feds asset purchases leaves concerns.BR CHECK
OUT THE ARTICLE: NYTI . MS /H E E3Y R
The economy, shown here, possibly about to be scrambled.

T HE M OVE TO I NTERNET M OVIES


Netflix stock (NFLX) jumped 10% last Thursday after the company revealed higher-than-expected third quarter earnings despite exceedingly high expectations for the stock. NFLX has increased 440% over the past 12 months. Netflix has been expanding its reach into original content, producing shows such as Orange is the New Black as well as a new season of Arrested Development. Company executives have repeatedly said that Netflix wants to become HBO faster than HBO can become Netflix. Whether or not this strategy will work remains to be seen, as some investors have become concerned that the Netflix stock bubble will soon burst. RS
Check out the Article: cnnmon.ie/15Z0x9b

There actually is money in online movies!