WASHINGTONâ€”The U.S. economy looks to be in better shape, but a full recovery will only be achieved once small firms begin to prosper, Federal Reserve Chairman Ben Bernanke said Thursday.
The Fed’s most recent moves to boost the economy by buying bonds tend to benefit big companies more than small ones. Through its planned purchase of $600 billion in government bonds, the Fed aims to keep long-term rates low, a move that benefits mainly large companies that can borrow by issuing bonds at low rates. The Fed’s so-called QE2 also helps by stimulating exports via a lower dollar, but small companies account for less than one-third of U.S. exports.
Itâ€™s all to do with color. Itâ€™s all to do with round. With shape. Everything is color. Everything, you know, it must be do with orange. Not only with Orange. I hadnâ€™t seen color. Iâ€™d lived in a monochromatic world. I canâ€™t use color. I can do everything. (link)
(Second video via Robert. Thanks!)