Periscope: Ten Years Since 9/11

A & I Financial Services LLC Newsletter

For the Week of

September 14, 2011

Greetings!

Sincerely, we are blessed. I hope you find time to remember how fortunate we are to live in this incredible country and to have made it 10 years without a major terror attack on our soil.

September 2001 brings back so many incredible memories, and life has changed in so many large and small ways since then. Sometimes, it's nice to remember what really matters, and how it has always been this way: family, friends, faith and a life lived with gratitude.

A Surprise Trip to Washington

Many of you have spoken with Renee in our office. Well, the Bergstrom family traveled to Washington, D.C. last week and Kirk sat with the First Lady during the presidential address. Renee and the kids watched from the White House. What an experience!

Click here to read more.

Europeans Pay Even Less for College!

Last week's Periscope sparked some great replies, not the least of which was disbelief! Sallie Mae says that Americans pay less for college than they used to. It's still true.

And the greater truth is that many Europeans pay next to nothing for higher education.

Here's a nice example.

So, why do people want to come to America to go to college? International demand is keeping our college costs high, but with a structural unemployment problem like we currently face, will college costs need to come down? Or, will America continue to "Export Education"?

The Education topic sounds to me like a great one for a future Lunch & Learn. And, after last week's extremely popular Social Security Roundtable, I think we'll open it up for you to bring your experience, education, opinions and advice. Please e-mail me if this is of interest to you and we'll host it!

WILL CONGRESS PASS THE $447 BILLION JOBS PLAN?
Thursday, President Obama challenged Congress to swiftly approve the American Jobs Act - a plan that would cut the payroll tax for workers and businesses to 3.1% in 2012 and offer tax credits as large as $4,000 to companies hiring people out of work for more than 6 months. If passed, the AJA would also pour about $80 billion into public works projects and extend long-term jobless benefits. A written response from House Speaker John Boehner (R-OH) and three other key Republican leaders noted that the plan will be quickly considered, but cited a need to "find common ground" and an assumption that the bill was not "an all-or-nothing proposition." (1,2)

ISM SERVICES INDEX TOPS FORECASTS
Economists polled by Bloomberg News thought that the Institute for Supply Management's non-manufacturing index would fall to 51.o in August. Instead, it bettered the 52.7 reading from July. The 53.3 August reading indicates some expansion in the industries that account for roughly 90% of the economy. (3)

BEIGE BOOK REPORTS TEPID OVERALL GROWTH
The latest Federal Reserve review of 12 U.S. economic regions noted expansion "at a modest pace, though some districts noted mixed or weakening activity." Five regions reported some growth in July and August. Analysts wonder if this latest Beige Book is one more factor that could prompt the Fed to ease monetary policy. (4)

RECORD LOW YIELD FOR THE 10-YEAR NOTE
The benchmark Treasury yield decreased to 1.89% last Thursday, the lowest yield ever recorded by the Federal Reserve. The yield closed at 1.92% Friday.(5,6)

STOCKS ALTERNATELY SOAR, SWOON
Rumors of an imminent default in Greece thwarted any weekly gain for U.S. stocks. The S&P 500 finished the week at 1,154.23, while the NASDAQ and DJIA respectively ended the week at 2,467.99 and 10,992.13. As of Friday, the Dow had traded in a triple-digit range in 19 of the past 24 market days. (7)

Market Summary