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Thanks Heather after Friday's dismal job numbers the Federal Reserve looks set to launch its own version of a stimulus a third round of bond purchases so what would QE3 mean to you -- your wallet.
Let's ask personal finance expert you're given thank you -- -- an irony is that I am lots of -- here let's start with jobs well and you -- the economy with cash to keep interest rates at rock bottom levels and companies have greater access to capital that can make those additional investments.
That would need to theoretically adding the payrolls.
But I don't think in this environment won't see that -- companies are used to getting you know.
Three jobs from one worker and it's just not that's had an environment nothing you do it interest rates -- morning -- policy.
Right OK what about getting alone well again technically it should be easier right you'd think for easier for consumers to get loans easier for businesses to get loans.
But banks are not lending now and it has nothing do with the size of a cash reserves and don't assume that that's the only people are getting money these days -- the credit -- people people don't need the money.
Who actually do.
And that environment upon -- And the on the stock market just for active investors people -- in their 401 okay and whatnot stock market benefit yes yeah and had a better right okay equities have actually been on the rise in anticipation we will get another round of stimulus is certainly looking more likely given that -- jobs report so.
-- -- to rise when you have this easing because -- you really compels investors to get out of those low yielding investments.
And moving too risky investments so.
It's a rise for the market reported him 1000 with thirteen thousand in large part large part is because of the quantitative -- them but back to the downside now by the impact on your purchasing power right so you into one of the main impacts of easing is you've got a weaker -- -- that major imports more expensive your -- and -- -- a German cars and European vacations for example.
Commodities tend to rise so.
Sugar corn wheat gold is on fire right now suspect there is -- money into these types of things and then you -- -- paying more at the pressure store at the pump.
That's our as the value of the dollar declines but meanwhile if you're trying to save you wanna put money the CD or whatever interest rates there are horrible right there -- horrible so.
When there's easing rates can actually go lower which again is good for creditworthy borrowers but very bad for savers -- -- you just when you think rates can't get any lower.
They -- Yes so I think you've got the stock market -- looking better.
But things like CDs not so good so if you're looking right -- to make some kind of a move into stocks.
Yeah I'm -- you just -- a little bit just so many.
You know uncertainty is right now given that -- with the election just around the corner but yes it's obviously good to have a well rounded balanced portfolio mix of everything about that for.
The diplomatic answer well I thought I'd sound advice I have to diversify our -- given thank you it anyway --
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