The Rundown: What you need to know Jan. 30
From MyRAs to taper part two, we have you covered
How about these new MyRAs all the kids are talking about? Cool stuff, huh? Granted, they won’t keep pace with inflation and who knows what Congress will do once it has that money in hand and you don’t need to remember what happened in Poland under a similar plan.
As Lance Roberts puts it, “It seemed to me that the entire point of the MyRA was really more of about getting "votes" than actually helping middle class American's substantially change their retirement futures. While the entire State of the Union address was littered with "bodies of past ideas" there was little new about changing the direction of the economy, increasing employment opportunities for the younger generation or resolving the issues of spiraling health care costs.”
There was no taper rally Wednesday after the Federal Open Market Committee made its announcement that yes, the taper is here and we’re tapering more. By closing on Wednesday, we saw a steep stock market drop that ended with a minor rally that kept the loss under 200 points (down 189.)
Incidentally, in case you missed it, QE3 has “failed miserably.” Not sure much needs to be added there.
The U.S. House of Representatives passed Wednesday a $1 trillion farm bill. While it trims food stamps a hair (1% off on a program that saw enrollment double since Obama took office) and removes one subsidy, it expands crop insurance programs in a way that more than makes up for the loss. For two years it’s been stalled in Congress. Reading through the basics, one reflects that perhaps we should have a serious discussion about the virtues of gridlock.
This may be the greatest thing on Youtube this week. “The Kronies” are a He-Man-style super-powered team that keeps America strong through crony capitalism, fighting off those small business owners and entrepreneurs who favor the chaos of the free market.