The Ed Show | September 13, 2012
>> you probably already know the details. apple's latest smartphone, the iphone 5 is faster, sleeker than its predecessors. you'll need a new connector which is kind of a bummer and a scam from apple but you'll have a larger screen. but did you know this? the iphone 5 could be more than just another upgrade. it could quite possibly make a big difference in the economy in the next quarter. here's the explanation. in a new analysis, jp morgan 's chief u.s. economist michael feroli calculates sales of apple's latest product could boost economic growth in the fourth quarter by up to .5 percentage points, half of 1%. what does that mean in english? could be a difference between another quarter of bad results and a quarter of a little bit better results. froli's math is simple. the iphone will sell for about $600 a unit. subtract $200 for imported parts. that leaves $400 to be added to the gdp. if apple sells 8 million iphones, that's a $3.2 billion boost to the economy in that quarter. that increases annual fourth quarter growth by .33 percentage points. factor in the notion these iphones are cool in improvement and will be a lot of accessories sold and numbers get better, around a half percentage paint. froli himself warns to be skeptical of these figures but points to sales of the iphone 4s, the last iphone , as proof his projection is a real possibility. that iphone way outperformed expectations and there was a lot less buzz around that product and it wasn't even the 5. so the iphone 5 could give the economy a much needed shot in t the arm. so thank you, apple.
>>> we are continuing to monitor the situation in cairo, where protesters are gathering in the streets. we'll be sure to report the latest developments as and when they happen.
>>> up next, jared bernstein and dave weigel will join me to discuss how ron paul 's fight against the fed has been catching on within the