Occupy Seattle protests

Thousands of protesters took to the streets of Seattle to protest issues such as America’s continued involvement war and the fundamental corruption at the root of some of the current economic mess. Police ordered the large number of tents to be removed earlier this week, but protests continued into the weekend. Labor leaders threw their support behind the Occupy Seattle movement with a clear union presence in the crowd. The protest have caught the attention president Obama who commented on the crowd’s frustration:

“It expresses the frustrations that the American people feel that we had the biggest financial crisis since the Great Depression, huge collateral damage all throughout the country, all across Main Street,” the president said. “And yet you’re still seeing some of the same folks who acted irresponsibly trying to fight efforts to crack down on abusive practices that got us into this problem in the first place.”

Photo from MSNBC

QE3: don’t worry, be happy.

 

Speculation is abound that the Federal Reserve will initiate a third round of quantitative easing. Although Wall Street was buoyed on this speculation, the longer-term impact of QE3 remains unclear (see: “QE3 may do more harm than good”). Can any significant stimulus be achieved against the backdrop of major budget cuts? Whether Ben Bernanke will even announce plans for further stimulus is unknown, but the decision is most likely dependent on whether the Fed thinks that inflation has peaked. The situation is unfortunately reminiscent of Japan’s unsuccessful policy of quantitative easing in the 1990′s and 2000′s.

 

 

Pawlenty Drops Out of Presidential Race

Former Minnesota governor Tim Pawlenty will end his campaign for the White House according to ABC News. Pawlenty came in a disappointing third in the Iowa strawpoll over the weekend behind both Ron Paul and winner Michele Bachmann. Voters continued to have issues with Pawlenty’s reserved demeanor opting instead for a bolder candidate that they believe will engage Obama.

Tim Pawlenty

Iowa poll results:

Bachmann: 28.55% (4,823 votes)

Ron Paul: 27.65% (4,671 votes)

Pawlenty: 13.57% (2,293 votes)

Santorum: 9.81% (1,657 votes)

Herman Cain: 8.62% (1,456 votes)

Rick Perry WRITE-IN: 3.62% (718 votes)

Romney: 3.36% (567 votes)

Gingrich: 2.28% (385 votes)

Huntsman: 0.41%: (69 votes)

Thad McCotter: 0.21% (35 votes)

Michele Bachmann

 

 

 

Obama to barnstorm midwest states

On Monday, Obama will conduct a bus tour through Minnesota, Iowa and Illinois. The listening tour will focus on jobs and the economy. Obama’s presence is part of a strategy to counter the constant attacks from GOP candidates campaigning in the Iowa strawpoll. With voters embittered by a stalling economy, Obama must send a strong message that he can lead the country to more prosperous times.

 

Barack Obama