The Market, October 7, 2011

The Market, October 7, 2011

After the frenetic pace and wild dips of the market last week, this week could best be summed up by “wait and see.”

This measured response even extended to the reaction to Steve Jobs's death: While the loss reverberated emotionally around the world, investors refrained from overreacting. When markets opened yesterday, Apple's stock was down less than 1% (which is low, considering that it dropped about 5% on news of Jobs's retirement). For the lessons on life and money we've gleaned from this historic figure, read this.

Sure, the economy is still tough … but there were some encouraging signs for the U.S. this week, with 91,000 new private-sector jobs created in September, better than expected. The Dow Jones Industrial Average and the S&P 500 started the week on a sour note, but rallied by Tuesday and Wednesday.

Investors are still wary, of course, but we’re dedicating this issue of The Market to the deep-rooted craving for stability:

  • In Europe, there were signs that governments might infuse cash into banks to try to stabilize the debt crisis
  • In the U.S., politicians kept trying to work out a fix for high unemployment
  • Around the world, regular people have been protesting the Too Big to Fail ethic of Wall Street, voicing their desire for basic financial security

Whether or not these efforts pay off in the short-term, we feel like they’re the product of a core human need for safety and stability. We live in a changing and often disorienting time. But in our opinion, the best defense is to be educated about all of the forces at play … and to keep everything in perspective.

Here’s what’s been going on this week:

Europe on a Rescue Course

According to the IMF, Europe will need 100-200 billion Euros to recapitalize banks and make investors feel confident again. Here’s what that would look like and what it would mean.

A Tax to Create Jobs?

In an effort to gain support for President Obama’s job creation bill—and help pay the price tag—Senate Democrats proposed a new tax on people who earn over $1 million per year. Here's why they hope it'll help unemployment.

Wall Street Protests Gain Momentum

What started as a small social media-propelled demonstration on Wall Street has spread to other cities and gained in number. Here’s why the crowds have gathered—and what they're protesting.

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