Tuesday, May 31, 2011

Market forces Part.III

Also note that different strategies are possible. If the market is vibrant, there will be a scalper, who will try to buy and sell at 51 to 52 immediately, therefore, be presenting as much as possible on the bid / ask spreads. The scalp is an advocate of short-term, which provides liquidity to the market: this is very useful speculator. We also find longer-term investors, who hold a position and come forth once their target price achieved. Management of losing positions is also very important how each participant will he set his stop loss, that is to say, the maximum loss that agrees to bear. Each trader, according to his temperament, and its market position, establish its own strategy. Some will hold out long large positions, others will have their paper that burns your fingers and come out very soon as a small gain is recorded. The game is an excellent education, to understand how the market works, and learn to negotiate and manage its positions.
To make the game as realistic as possible, we give a number to each participant, so note in front of which is treated. In this way, we can make a real market clearing, and fire at the end the gain or loss each. Ultimate refinement, each point is worth 10 cents (or 1 Euro), and trade for real.
If you dine one evening toward the stock market, and there in the restaurant 10 excited in a circle, screaming: I pay for 10 or 52: I have 10 to 53, you now know what its acts: the Market!

Market forces Part.II

Now look what happens to the market opening, where one side to the top 49 to 51. Each participant takes its trading book, where he notes the quantities bought and sold, and courses. If two participants are large buyers, this means that for each market is 55, as they scored 10 of their paper and if it's reality, the market is actually 60. Unless there is immediately a big seller, who then entered a small figure, and is ready to bring down the market. If the seller is an observer, he can let up the market with buyers and sell them on what he considers to be the high point. Within seconds, the market can be very animated, change direction, experience significant estimated that each is of the opinion of others, etc. ... 10 people, 10 figures on pieces of paper, and it's like in Chicago, on the floor of the CME.
Put some rules to govern the listing. For example, processing a maximum of 10 contracts by negotiation set a maximum open position of 100 contracts, purchase or sale. It is also fun to publish a regular figure, as if that came out was 2:30 p.m. ET in the U.S. CPI or the trade balance. To do this, simply draw a paper hat and announce the number.

 Almost instantaneously, the market will adjust to the new value: If 10 was published, the market must rate 55; if it's 3, it is 47, according to the same principle. Once the information is public, it is immediately incorporated into lesson: it is the principle of market efficiency.

Market forces Part.I

For the uninitiated, the financial market often resembles a black box which we do not understand much, and especially what makes it go up or down. Hence the temptation erroneous to equate to a casino, which is statistically a negative sum game since the state, takes on each win. And yet it is simple to create a game market, where it likes to quote a fictitious contract for, while playing, better understanding how the market works, evaluate the strategies used, and feel the stress of holding a position.

I also used this game as educational courses in finance schools. In this context, the challenge is to create a market rather lively, with many transactions. The wise course students have a little more trouble letting go as traders in the evening, somewhat watered it is true.
How to play? Very simple! Take 10 people, each note on a paper a number between 0 and 10, without showing it to others. We put all the papers in a hat, we form a circle to recreate a floor trading, and we score the sum of 10 numbers. It sounds stupid, but I assure you playing for hours with it, in an atmosphere worthy of the notional floor in the heyday.
Some statistical explanations:  If everyone wrote a number between 0 and 10, the mathematical expectation of the sum is 50, an outside observer. But each participant in his own opinion on the market: if I wrote the number 10, the market is for me 55: my 10 plus the expected value of the remaining 9 digits or 45. I'm ready to buy up to 55. Conversely, for those who put 0, its estimated market value is 45, so he agreed to sell up to 45.

Sell ​​in May and go away

I am a big fan of stock sayings, and Sell in May and go away talk to me particularly. I started working on the Exchange since May 1990, and I would have been better advised to sell or to abstain rather than buying at all is to celebrate my arrival. The period May to October was not the most flamboyant for shareholders.
According to this dictum, the semester from May to October is unfavorable, in contrast to the period from November to April. For a follower of the theory of efficient markets, the effect of seasons on the Bourse smile. Who thinks about behavioral finance, the question deserves to be dug.
A study by the U.S. broker SSB gives inconclusive results, economic growth over the period is a more important factor.
By cons, research conducted by Dutch researchers published in 2001 by the Social Science Research Network states that 36 of the 37 cases studied, the period from May to October has been worse than the other, and without an explanatory factor is set identified.
What prognosis for 2011? We just finished a semester beaming back interest rates, oil remains very expensive, geopolitics is hardly serene, and the effect may not have been very sensitive in the last 2 years. If we find good reasons to sell, no need to rack their brains for a long time. We will certainly have a chance to talk

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China Shakes The World

I recently read a book recently published by James Kyng, former Financial Times correspondent in China, under the title "China Shakes the World, The Rise of a hungry nation."
Some ideas to be learned from this fascinating book:
- The Chinese labor force increases by 25 million people each year who must find work. This is without counting the internal population movements, with the influx from the countryside to the cities. The strong long-term growth of the economy is a vital necessity. To simplify, China said the jobs to us, the West said to us profits.
- The vastness of the Chinese domestic market is a dream, not only the West; the Chinese as well. In fact, the Chinese domestic competition in all segments of consumer products is intense, especially since the producers are on equal terms. The consequence is that the margins are very low, and profits are sought for export.
- At the cultural level, the numbers of very great importance. The official slogans are an illustration. This is a consequence of the permanent situation of overpopulation, and the difficulty to feed every mouth. China is a country that really hungry, in every sense of the word. We can better understand the speed with which China has integrated science and technology.

For the future, let us ask some questions about the future role of China in the world of finance. With 1.2 trillion dollars in foreign reserves, increasing rapidly, and a large domestic savings, the raw material does not fail! For now, the asset allocation is not optimal. But it is likely that major Chinese banks will quickly integrate the tools of modern finance. With the size of their balance sheets, they will become formidable competitors. Moreover, the government plans to create an investment agency, with $ 200 billion to begin with, history of investing a portion of foreign exchange reserves of more optimally, a little on the model of Singapore's Temasek. This will be an institutional investor interest. The time is not far distant when China initiated the takeover bid will win over European and U.S. exchanges.

Are The Banks Illiquid?

To understand the current financial crisis, it is good to keep in mind the following concepts:
- The real business of a bank is to make the transformation: to transform short-term resources into long-term jobs. By definition, a bank is illiquid. The maturity of its assets is always longer than its liabilities, that resources are deposits of customers or funds borrowed from the market. Transform the asset into a negotiable instrument in any market changes nothing; it merely shifts the problem.
A bank and the banking system generally work only on trust: if the bank cannot find resources on the market, or if depositors fearing for their money, liquidity risk materialize. You can create all the regulations, regulations, national supervisory bodies and international as you want, it makes no difference.
And on this point, the structure of bank capital is of little influence.
On 29 September, Dexia and Natixis lost over 25% in stock. DEXIA is owned by Belgian public authorities and the CDC, NATIXIS is not owned banks, mutual insurance group, and Caisses d'Epargne, in the bosom of the CDC still. These are no short-term shareholders or speculators eager to immediate profits.

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Monday, May 30, 2011

Investment Safety Net

Where is the safety net in the financial system? In fact, every bank has, more or less formal, more or less explicit. A bank is not actually a business like any commercial company: its transformation function of financial flows on the one hand, the leverage of its balance sheet on the other hand, make a bank failure involves systemic risk significant. The existence of the safety net is in itself an element of risk, since it can reduce the sense of risk among investors as among bank customers. And when risk aversion raises abruptly loud reaffirmation of the existence of safety net policies and the monetary authorities do not help to restore confidence. This question is not new: Alan Greenspan had raised the subject in May 2001.
Currently, the market requires less risk, which is materialized by the requirement for reduction of bank leverage: decrease in assets, so credit crunch, increasing equity, so severe dilution of existing shareholders, and the final stage being nationalized with an elimination of shareholders earlier.
Strengthen regulation is a double edged up capital ratios exacerbates the credit crunch. We can see the confusion that exists between minimum standards and the assessment in the market. The crisis is not over, and the political and monetary authorities are preparing a few more to rescue financial institutions, illiquid and / or insolvent.

Credit 0%

What is the advantage to invest in an instrument whose return is zero, then we get the same result by quietly leaving the money in a bank account? The problem is that it is not so easy with a bank account, it was opened at bank, and including advertising adorns this post. Or is it the fear of deflation, which suggests a yield of 0% still provides a positive real rate? The credit market is very ill, much more in fact than the equity market, which has adjusted the profit expectations.
Without understanding what was happening, I recently bought a convertible bond, which gives me 27% return in just over a year. The company has no other debt, generates cash flow largely positive, and blocked the bank the amount of reimbursement for such convertible. Is it the risk that the bank will default that gave this profitability? I noticed that an investor sold his shares in bundles of 500, hidden orders, so obviously forced. I turned the problem into my poor brain disoriented; I did not find any other explanation for what seemed like a gift, although I'm not really quiet on this. The title has yet taken up 12% since.
0% for a Treasury Bond, 27% for a corporate bond with little risk of default risk compensation definitely does not turn round on the planet by Finance.

Stocks and Bonds Together

There is no surprising that the rising stock market has since been held in conjunction with the rise of the bonds, the yield of government bonds to 10 years back from 4% to 3.50%.
In my opinion, the phenomenon is rather healthy. It is true that in times of intense crisis, we see the fall of actions coincide with the rise of the bonds, in a movement of flight to quality. This divergence implies then a very strong rise in the risk premium on equities.
In an assessment of market shares made by discounting future cash flows, the relevant discount rate is the rate "risk free" government bonds plus the risk premium on the market. This means that the increase of joint stocks and bonds is reflected, side actions, lower the discount rate as a result of lower risk-free rate. Looking back a little, we know that rising stock between 1995 and 1999 could be largely explained by lower bond yields during this period.
In recent months, there was again a decline in risk premium, which can be read for example in the course of corporate CDS and in reducing the implied volatilities of options and that improved earnings expectations.
Decrease the risk free rate, reducing the risk premium, higher earnings forecasts: These three elements combine to explain the current rally in equities.
Whether it goes well in the optimism is that another story.

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The electric vehicle, a challenge for insurance Part.III

For insurers, do not tackle this is now a danger of losing market share to competitors precursor material, but also pay much more in the next few years data electric vehicles needed for underwriting. More broadly, the development of electric vehicles will certainly be accompanied by the emergence of new actors in the value chain (owner of batteries) or enlargement of certain activities (automakers also becoming renters). It is these players those could come the most dangerous competition for insurance companies today. In the manner of low-cost insurers, manufacturers could build their own insurance from scratch to ensure their own fleet. If later this distribution were to grow as vehicle fuel as some predict, it is a huge market share that could lose the insurance.

In this context, insurers must now embark on the establishment of dedicated charging electric vehicles. For this first step will probably be training teams to the problems of electric vehicles: the training of actuaries to identify and define the market pricing but also training of subcontractors, experts such as repairmen, to anticipate the impacts of electric vehicles on the treatment of claims, etc.. The second step is then to obtain a large volume of detailed data on these vehicles, a prerequisite for appropriate pricing so competitive in the long term. To do this, insurers will necessarily be closer to only stakeholders that have these data: manufacturers and fleet managers. Whether at the staff level or pricing, the better the knowledge of the vehicle and its electrical characteristics and the larger the market share captured.

The electric vehicle, a challenge for insurance Part.II

In contrast, the second condition is far from being completed at present: those assurances now marketed are not specific to this new engine but consist mainly of a discount offered on classic car insurance. Now the challenge for insurers is quite contrary to design a new product specific and appropriate pricing, since the claims as collateral will be profoundly affected.

First, the mode of vehicle operation, radically different, will be the first technological breakthrough in public car. Insurers will therefore have to follow a long learning process to acquire the knowledge necessary for electric vehicles and their claims. Currently, the feedback is very low, on electric vehicles in general and on each model in particular. In addition, some of these models are designed by companies previously unknown in the car. First the Blue because Autolib vehicle selected for in the Paris area, is developed by Bollore. In terms of pricing, reliability will be a potentially large impact on the cost of guarantees or troubleshooting assistance, now included in most contracts. In addition, some risks could increase in frequency, such as fires in car parks, and other shows, like the electrification of third parties.

Furthermore the operation, use is also different, with again a significant impact on pricing and new securities corresponding to that particular use to invent. On the one hand, electric vehicles are intended primarily for urban use, the loss will be mainly city with such a low average speed. On the other hand, because of the prohibitive cost of batteries, use patterns and alternative acquisition will certainly grow: car sharing, leasing, vehicle ownership but lease the batteries etc.. In particular, manufacturers may have an interest in leasing these vehicles to keep as much control as this emerging technology to offer their customers a more competitive product. These rules determine the identity of the owner and therefore the client of insurers, the driver of the vehicle, the hirer of the vehicle or the battery.

If the large-scale development of electric vehicles is not fully acquired, a series of factors led to consider shortly, and later when the battery technology is mature. For insurers the stakes are high: a market share of electric vehicles from 5% to 10% would represent in terms of insurance premiums a market of 1 to 2 billion Euros.

The electric vehicle, a challenge for insurance Part.I

Long-awaited development of large-scale electric vehicle could finally begin in the next few years because of recent developments, both social and technological. The various projections foresee a market share of electric vehicles from 5% to 10% within 10 years, or 1 to 3 million vehicles in France alone.

Globally, an MIT study projected that 10 million electric vehicles will be in circulation in 2016.

Car insurance is a key product for insurers: loss leader, accounting for 40% of the market for property insurance and is primarily designed for individuals, but also to professionals or businesses. For several years, this market is sluggish: the volume of contributions has stagnated or even regressed, rather are captive customers and consumer products show little differentiating. In this lackluster environment, insurance attractive to electric vehicles could therefore be the key to growth for the precursors. Indeed, it would enable them to attract new customers at the expense of competition, while improving their image, positioning them as active in sustainable development.

To establish an attractive, one of the following conditions are necessary: ​​tariffs lower than for conventional vehicles and conditions specific to electric vehicles, including innovations that these cars. The first condition is already fulfilled today because many companies offer insurance quotes for electric cars at a lower price than gasoline vehicles. In addition, short term, as the volumes of electric vehicles remain very low, insurers may offer cheaper deals to or loss, without taking excessive risks.

Calendars for Charity

The promotional gift items are the corporate give ways by most of the companies to promote and popularize their brand and their image. These could be anything from calendars to a simple key chain. These could be gifted to potential customers to please them and thereby keeping them abreast. The utility item such as calendars are regularly used and valued by all. The bright colors and the designs of calendars register your logo in the minds of potential customers. Creating a calendar is something you can start on your own but attracting your viewers needs some expertise. Here The Calendar Company extends their helping hands to you.

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The company which gifting charity calendars are not only gives more exposure to their company logo but also serve for a noble cause. Yes, the charity calendars helps to raise funds for a noble cause. The company which uses charity calendars as promotional gifts indirectly donates to the worthy charities there by using charity calendars as promotional calendars.

The calendar company will assist you in creating a charity calendars. They help you to choosing the right subject for your charity fund raising calendar. They will assist you in getting and arranging the right pictures or the art work for your charity calendars. If the charity fund raising calendars are ordered by organization itself then the calendar people assist you in marketing too. Creating a calendar with Calendar Company is an excellent pleasing experience. Last but not the least the customers will enjoy your novel creation every day of the year.

The Greek government sells its enterprises

Meeting of State Greek to reduce its deficit; the state is ready to sell his shares in the postal bank, telecommunications companies and ports, hoping to draw 50 billion Euros in the next 4 years.

Greece, no longer have much choice, is forced to implement austerity measures in order to reach 7.5% deficit. Wanting to warn the country, the rating agency Fitch has dropped three notches the rating of debt in the long term.

Being aware of the impatience of the international creditors, the Greek Finance Minister George Papaconstantinou last week at the end of the meeting of the Government, has announced the first round of privatization. State actions within the telecommunications operator OTE and the Postal Bank, valued at 16% and 34%, will be sold to the highest bidders by the end of the year. All this announced without considering management companies in the ports of Athens and Thessaloniki, with state holdings amounting to 75% and 74% of capital, which they also will be sold.

Euro fears the fear of contagion from the debt crisis

After stabilizing euro, the euro does not escape the fears in financial markets. Last week the European currency dropped below $ 1.40 in session, a level it had not reached the past two months, which could provide some contagion of debt.

It may be that the Euro has slipped because of the spectrum of contagion those folds once again on Europe. Until the debt crisis seemed confined to the three countries most vulnerable to the euro area, Greece, Ireland and Portugal, the euro seemed to regain its natural color.

For about two months, the euro had not reached such a level.
The slump in the currency of 1.59% to 1.3969 dollar is a sign that can be described as disturbing. The crisis of European sovereign debt threatens to turn into a crisis for the euro, says an economist at RBS.

However, political leaders want to dampen the atmosphere by ensuring that this phenomenon is a crisis affecting some countries of the monetary union but say, otherwise there are several reasons for thinking a resurgence effects contagion more brutal.

In terms of the following reasons, the market no longer believes that the tools established by the government to stop the debt crisis are sufficient, the restructuring of the Greek debt undermines the stability of other countries and political risk remains very high.

Despite this climate very offensive, the European commission recently  raised 4.75 billion Euros of bonds to 10 years and this, through the mechanism of financial stability (MESF) to fund aid to Ireland and Portugal.

Hire A Professional

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Tuesday, May 10, 2011

What is SubPrime Crisis? Part.2

Credit agencies specialize in subprime collapse and the financial world follows. What relationship there between the U.S. housing market and the global economy? The answer lies in the word "securitization" To summarize; securitization is to transform its debts or other financial assets into securities that can then discuss the financial markets.

To finance these loans, the specialized agencies transformed risk loans granted to their client’s financial products that would be traded on financial markets. Financial products created were classified as high-risk products and products like any risky potential gains are much greater than other products without risk. As the U.S. housing market had risen in real estate related products for more money but since the summer of 2007.

Anyone wishing to generate significant capital gains has to accept this kind of high risk. Excluding finance against certain products, most of financial products sold, were fairly opaque to the "fill" of various financial products without specifying its nature as subprime "securitized." Banks and institutional investors bought financial products without knowing that they contained subprime-related products.

     A large number of banks have in their portfolios of subprime-related products leading to the fall in the value of their portfolios following the sub prime crisis.  Unable to identify clearly the financial products purchased containing products related to subprime, no Bank, no investor is able to measure the real impact of the crisis on their portfolios. The defaults of subprime loans in the U.S. are at the early, early impairment placed by investors are only the beginning of the crisis.

   Banks do not assess their knowledge related to subprime losses, bankruptcies of several dozen organizations credit risk and market stress pushing banks to conduct extremely suspicious and dare them to lend more money for fear of not being reimbursed following a hypothetical bankruptcy of the borrower.

The crisis of summer 2007 caused many challenges and pointed out the following discrepancies.
     One of the key players in finance is singled out, these are the rating agencies that failed to anticipate the decline in U.S. housing market and lower the rating agencies to credit risk.
     Non-transparency of financial products linked to subprime mortgages and bad categorization are also challenged: Some products were produced in monetary corresponding to products of low risk.

What is SubPrime Crisis? Part.1

The subprime crisis hit the world of finance in August 2007. The consequences have been immediate and impacts on the economies of societies and countries are still not clearly known.  Before returning to the origin of the crisis and its ripple effect, Let us first understand what is subprime.
The subprime mortgages are subprime.  In simple words, the principle allows a person to purchase a property for a fixed interest rate particularly low the first 2 years (e.g. 1.45%) and then switch to a floating rate contains a risk premium (e.g. 8%). In return, the property is mortgaged.

In this case, credits are awarded after consideration of the desired value of the property contrary to practices where banks extend credit after the creditworthiness of the borrower. The monthly payments increase significantly after the second year, making it impossible for most buyers to repay their loans.
The latter sold their property with a capital gain (the U.S. housing market growing 10% per year) enabling them to repay the loan and interest. In 2007, Beneficiaries wishing to sell their subprime real estate at the end of second year was leading a face down in the U.S. housing market.
The property value has decreased since purchase and no longer allows the sale to repay the subprime credit. The borrower's credit subprime personal files for bankruptcy, the bank gets the house and put on sale. It will be sold with a significant loss may go beyond 20%.

At least, nearly 1.5 million procedures were personal bankruptcy during and after the U.S. Senate nearly 3 million households could lose their homes. Credit agencies are faced subprime loan defaults pile up and generate huge losses due to losses made on the sale of foreclosed homes. These significant losses have caused the bankruptcy of more than thirty credit agencies; they always present provisioning amounts of losses of hundreds of millions of dollars.

Micro credit

Micro credit is the lending to the poor to enable them to develop an economic activity, make them aware of their ability to generate income, put in a position of success and open to sustainable economic, social and human development. They can create their own employment and small business.

The concept of micro credit is not about charity. Quite contrarily this is to provide a realistic financial structuring for projects that real professionals are emerging and are sustainable over time. A candidate for a micro credit loan holder must be truly an operational and realistic. The challenge is to find a place economic, financial and social integration that will eventually allow the candidate to have full access to formal credit and banking practices and mainstream financial professional. It is a true path of integration through enterprise creation.

Micro credit dated early 70. Its establishment became famous as a result of the disaster in Bangladesh in 1971. There have organized initiatives for this population ravaged by famine and war could once again live, work and eat. This concept was coined by Professor Muhammad Yunus. Since then, micro finance has made fans throughout Asia, Africa and South America. Originally, the loans were about $ 1. Today it is estimated that the average loan in developing countries is about 100 dollars for 10 million people around the world accompanied by 2000-3000 micro credit organizations. This loan is a "social investment and intelligent, which gives access to sources of financing to micro entrepreneurs traditionally with out bank facility." Micro entrepreneurs are located in Cameroon, Cambodia, and India.

Rubberecycle - 2

We have assigned a job of beautifying our company guest house to our contractors. They have done a wonderful tremendous job with Landscape rubber mats. Hence I am here to share my experience with you. Our decorators had used landscape mulch mats for this purpose. These landscape mats are made up of unique rubber granules formulated cent percent from recycling of the used tires by using the state of the art technology. Since these mats mulch trees, shrubs and everything in the garden without getting our hands dirty. This landscape mulch protects our soil in extreme climates and at the same time by passes the water into to the soil. They never fade or decay and look beautiful always and prove worth for the money well spent. They are cost effective, non toxic, and are available in rich colors. We have done the play ground surfaces also by using the landscape surfacing, with play safe rubber curbs of eight inch height to minimize the risk of impact. The high impact areas under the slides and the swings were protected by rubber mats. The loose fill surface of the play ground also was covered by mats for the safety and elegant look. Virtually there is no maintenance is needed for at least twenty years. This high quality landscape mulch is far better than the wood mulch in terms of life time and maintenance.

Leasing Advantages and Disadvantages

The principle of leasing is simple: the company who need a well-form application to a leasing company that buys the specified property and leases it for a given period. Leasing may involve equipment (equipment leasing), or property leasing.

The advantages of leasing for the company are numerous. First, it provides full funding of the property value without any input from the business, and enables companies to acquire property without incurring costly debt alleged purchase of the product. Rents paid by the company are also operating expenses deductible from income tax.
The use of leasing also allows the company to avoid cash flow problems generated by the VAT. Indeed, early activity, the input tax on purchases often exceeds the VAT collected on sales, and requires the company to meet this need cash.

However, the main obstacle to the use of leasing is cost. Indeed, it is superior to that of a conventional bank loan, since the leasing company is compensated by its margin on the rent of the lease. On the other hand, it is more difficult to rent property very specific (obsolescence of the property, equipment not resalable ...), the leasing companies were reluctant to acquire such property.

The second risk is default by the tenant. The leasing contract is in effect a final commitment to time-limited undertaking that requires the user to pay rents fixed date. Otherwise, the company will be forced to return the property but will also be required to pay all rent yet due until the end of the contract.

Car Loans Part.3

Long Term Rental:

The leasing allows the borrower to sign a lease with stable monthly payments without an option to purchase the vehicle at the end of the contract. In recent years this type of credit can be offered by banks. LLD can change the car but will not become the owner. This is a simple car rental.

Personal Loan:

Personal loan is the specialty of banks and credit institutions. It is rather for persons wishing to receive an immediate cash reserve, which can quickly become the vehicle owner, or make another use of money lent. It requires little or no personal contribution. The interest rate, duration and amount of stipends are known input. However, this type of auto loan has many disadvantages. First, the credit contract is not related to the purchase of the vehicle, so if the car purchase is not made, refunds of credit are required. Second, interest rates are excessively high (around 15%). This type of car loan remains a last resort in case of refusal of financial institutions or banks manufacturers.

And the last one often used by car manufacturers. It is to pay low monthly payments for several months and at the end of the credit if the borrower wishes to purchase the vehicle, it pays a higher amount.

* Before getting a Car Loan, consider your budget!

The need for a new car may be acute in many circumstances of life: birth of a child, moving, education, inheritance, changing jobs, etc.. But everyone must remain vigilant in its budget and its operating margins, particularly when the credits begin to accumulate. If you already have a mortgage, consumer credits, but you are thinking of buying a new car, a credit solution is not to give up your projects: the purchase of credit. The purchase of credit will allow you to keep your monthly payments at a reasonable level and keep control of your various loans.

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Car Loans Part.2

How to choose car loan?

The acquisition of an automobile represents a considerable investment. For budgetary reasons, it is not always possible for the buyer to pay "cash" and leave with the car of his or her choice. Also, it is sometimes unavoidable and often relevant to carry out a car loan. Today the majority of vehicles purchases in the world are also financed through a vehicle loan. Like the mortgage, there are many forms according to the use made of the vehicle and the objective of the borrower. The borrower's interest is carefully consider while selecting the types of car loans and compare them to make the right choices according to their budget. There are 6 main types of car loan:

 The appropriation:

This is the classic car loan monthly payments that you can subscribe on-site sales. This credit is automatically canceled if the purchase does not occur. In case of dispute on the vehicle purchased, refunds of credit will be suspended. The overall effective rate (interest expense) of this appropriation is less than that of a personal loan. The term of the financing (12 to 60 months) is chosen by the borrower according to his budget. The appropriation is for the buyer who takes out a classic car loan with a maximum of security against repayment of credit. Note that it is for individuals and professionals alike.

 Exchange offer:

It combines classic credit Car loans and bridge loans. The bridge loan provides a "transition" between buying a new car and selling the old one. The sale reimburses the bridge loan and a portion of the purchase of the new car.

 Lease purchase option:

Credit Hire with Option to Purchase is distributed primarily by financial companies of auto manufacturers and some specialized agencies. Its principle is: the borrower leases a vehicle over a period defined by the contract, setting a monthly "rent". He holds the same time an option to purchase the vehicle at the end of the lease period at an acquisition price agreed when signing the contract. Only a guarantee deposit is required at the start of the loan representing between 0 and 15% of the value of the vehicle. The interest rate does not come into play in the lease-purchase. For professionals, this type of loan is called upon leasing.

Car Loans Part.1

The car loan is also known as vehicle loan. It is defined as a loan of money on certain condition, granted by a credit institution or a bank to buy a new car or used by the borrower. The credit is a financing solution designed for consumer goods.    Now days, the acquisition of a car is almost essential for the majority of the population, because of economic, geographic, but also for comfort and freedom offered by a car.

First, moving from home to workplace tends to lengthen. The car is often the only or the best mode of transportation available to active living far from the workplace, whether frontier workers, employees in industrial areas or employees downtown. In addition, many professions require almost constant use of the automobile sales reps, employees of various services etc...

Secondly, the possession of one or more automobiles in a household is even more crucial that the today’s population is increasingly being installed in the periphery or in the extension areas. However, in the absence of public transport in areas that are under-served, rural populations and urban cannot cope without a car for most of their trips: grocery shopping, driving children to school, leisure, weekends, transport equipment, etc... For the Upper class, the car is the mode of family transportation by excellence.

Finally, owning a car is also about fun, comfort, independence and speed. Freedom of movement in time and route that the car gives is unparalleled. In continuation let us see how to choose a Car loan in the next post.

Buy God The Ultimate Asset

The best and easiest way to invest in gold is undoubtedly the purchase of physical gold that is essentially the purchase of coins or gold bars. But many people may feel slightly bewildered at the idea of acquiring; accumulating and keep the metal in an optical savings habit from time immemorial have been lost over the generations. The following lines are intended to demystify the so-called complexity of an approach to investment in physical gold. First, although less active than some years ago, the gold market is still alive in our country and some investment products still liquid.

I have found an online site goldcoinsgain.com which has an ancient custom of responsible and reliable business live out confirmed high evaluation standards. They are having over fifty years of mutual practice in the precious metals industry. They are assisting us to buy and sell gold coins and gold bullion on conception an enduring tax deferred retirement plan, usually known as Gold IRA. Investing in gold IRA will not be affected by the negative economic growth, hence it is the ultimate asset in the planet. With your gold 401k you can buy gold coins and bars which is a true and safest form of investment. By setting up your 401k gold account here you can keep the crisis management commodity under your control within a click of your mouse. Here, we can able to handle your IRA transfer account in both the ways. We will get a perfect picture of assurance that they for all time giving us the correct investment for us. We can expect our orders get delivered to us at the earliest of purchase. It takes pride in bring into line with outstanding customer service, safety, ranking and data. I have suggested this online site to one of my friends who needed to buy gold. They are having a best team of customer service intended to serve us. We may just dial
1-800-940-7793 for further information.

Friday, May 6, 2011

Online Payments Security Part. III

Banks are not the only one to offer new payment solutions. Weneo, an adapted version of the online payment inherited "Moneo" offers a USB key that stores electronic money units, to make secure purchases of small amounts (below 30 €) on the internet without disclosing their bank details.

The market for trusted third party also whets the appetite. The historical actor PayPal (credit institution licensed in Luxembourg, for its European operations) is now challenged by Google Checkout (ELMI registered in the United Kingdom). In France there are also some establishments such as payment or Limonetik Cards-Off, which is also responsible for completing the transaction by credit card instead of the merchant site. The buyer did not then enter their bank details to the merchant site.

Also there are companies like Secuvad offering integrated solutions to secure payments (fraud detection real-time scoring and historical bases), but these solutions if they protect traders, does not protect the buyer himself.

The surprise could come from so many;  Buyst, authorized payment institution recently created by Orange,  SFR, Bouygues Telecom and Atos Origin, surfing the development of Smartphone and offering both secure payments m-commerce and e-commerce via the mobile phone.

It is unclear whether these new entrants will have hard time to major banks in the field of online payments. Still, they are laboratories of innovation than traditional banks must watch closely.

Online Payments Security Part. II

The strong authentication devices: 3D Secure e-Card ...

Thus, in order to identify the owners of cards, but also and especially to strengthen the security of online payments, some banks have introduced single-use maps (such as e-Carte Bleue) from 2002. Electronic clone a credit card, they provide a single use code generated by the user on the site of his bank card from her real. Once payment is made with this code, it is no longer usable for any other purchases. But this type of solution prolongs the act of buying and makes it less suitable for repeated payments of small amounts (news article, listening to the unit ...). It also represents a considerable cost both to the bank and for the user, and has been poorly received by the public.

Therefore, some banks have decided to implement the system in 2008 "3D Secure". Any buyer must take on a secure page on the bank a secret code known only to him, as well as authenticating the cardholder. The debate remains about the nature of this code. Used to launch 3DS, date of birth as the user PIN is gradually put aside in favor of an SMS sent by the bank, the most popular solution among Internet users, or a code transmitted by a "token “.  It remains to weigh the cost of these solutions, which can range from 0.5 to over 10 € per cardholder per year.

Unfortunately, this system proved to be confusing in practice much more than expected to the Internet. Very little communication was made to holders of cards, whether through banks or online shopping sites, most buyers were confused and even frightened at the appearance of a separate page asking them for such as their date of birth, and that at the most critical of the act of purchase: payment. Many of them have therefore preferred to abandon their purchases for fear of attempted fraud or phishing ... Consequently; a large number of sites selling online immediately contacted their banks to exit the 3D Secure system, after finding a reduction in sales volume up to 20%.

The challenge is therefore to secure adequate payments to deter fraudsters, without complicating the process of payment and impacting end of the chain volume of sales.

Online Payments Security Part. I

The credit card is by far the payment method preferred by two third of the people in the world by using the Internet regularly to access their purchases directly on the Internet. But it is also the use of the card that is increasingly threatened by fraud. Indeed, the total amount of fraudulent transactions on the Internet is growing much larger than the amount of fraud carried out by other channels (using a stolen use card number to purchase by mail order over the phone etc.).

This observation, which is not new, had led banks and systems vendors to offer more secure during the 2000s. The generalization of SSL (Secure Socket Layer) has limited the flight card numbers during data transfers between bank buyer, seller, and their respective banks. Adding a cipher text security "arbitrary" helped to stem the proliferation of generating fraudulent card numbers with valid 16 digits (which follow a very specific algorithm). Sellers have also limited the storage of this information in their databases, to prevent intrusion attempts in their massive e-commerce platforms. Finally, the payment terminal are masking a part of the card number on the invoice slips and allows the payer to introduce its own map without intervention by the cashier, which limits data retrieval via the retail channel. But other fraud techniques have over taken it.

The major risk lies in failure to identify the buyer as the rightful holder of the card that is a strong authentication. It leaves the door open to other techniques for recovering the coordinates, such as "phishing" (to believe that a cardholder is for an interlocutor trusted by mail or through a fake website) particularly popular in recent years.

Certainly, if the buyer is not the rightful holder, then the genuine holder may challenge the transaction as the law allows it and then be reimbursed free of transaction amount. But this leads to increasing costs for banks and continues to fuel some psychological barriers among potential users of e-commerce.

CO - Childrens Orchard

Hello Friends,
Today I come across a beautiful online kid’s boutique. It is one of the top most resale boutiques in US. Here you can find gently used popular brands of premium quality childrens clothes, toys, kid’s furniture, children books and other accessories. They are not only resellers but also a retailer of children boutiques. If you have gently used kid’s toys, books, childrens clothes, furniture and other accessories in the corner, then this is the right place for you to sell those things. Yes there are great deals to steal. They are in this field since 1980 and they are the first to recognize the upscale resale of childrens clothes and other accessories. Children’s Orchard definitely fulfills the needs of every kid and their mom who visit this online store. However, it is not like most other retail stores, a shopping extravaganza inside this boutique-style used children’s fashion store won’t steal your purse. Most of the seasonal childrens clothes crab the attention of the moms. Here, one more good news; yes they are going to expand their product variety to Education, Computing, Health & Beauty and Sports. If you are attracted by the novelty of this business, here you have the franchise option. With lesser investment you can be one of a proud owner of children’s orchards business. They are giving a good support and assistance in all respect including evaluation and resale purchasing and they are giving you firsthand on site training. Who knows this may be a beginning of your bright future, Money may rain or shine on you. To know more log on to childrensorchard.com or just call at:  1.800.999.KIDS.

Wednesday, May 4, 2011

Heavy charges on the Credit Cards

The latest survey conducted in France points out the lack of transparency in the banking community regarding fees and charges levied by them on credit card transactions. Sense of opacity and injustice are the two main feelings expressed by the artisans and traders surveyed by the   on the commissions charged by banks on credit card transactions
According to the latest survey , commissions  weigh heavy for these entrepreneurs. Between 0.5% and 1% of their turnover for the three quarters of them, plus a set fee from the rental payment terminal at the telephone terminal via the contribution for those offering financial payments on credit.

 Over 40% prefer to limit their costs by denying the CB below a minimum purchase, while nearly half say they are aware that these practices adversely affect their turnover business.

The banker did not explain how the amount of commission or the default interest is arrived; entrepreneurs are forced to do their own calculations and analysis more over variation as a function of turnover for some of the industry for others, even the client's head for 28%!

For artisans and traders surveyed by the Team, the solution lies in greater transparency of bank with one hand, the average rate of release that would allow them to play competition and, secondly, the provision of summary of fees charged. In contrast, only 20% considering Government  intervention, with setting a maximum charge of credit card transaction or incremental costs of commission.

The term loans

Banks may grant loans to businesses in the short medium and long term which is called as term loans. When talking about the term loans they are defined according to the duration of the loan. The term of a loan is important; the conditions for long-term loan are not the same as that of the short term loan. In real estate, loans given out are most long-term loans that is the repayments spread over a period of more than 7 years. For the short-term credit, it is a credit whose duration does not exceed 2 years. Most of the short term loans are given out for the consumer products. Generally 70% of the maximum net amount of investment will be given as term loan and the additional 30% need to be raised by the borrower himself.

Though each bank shall fix their own lending rate of interest, the interest rates for the short term loans will be more than the long term loans. The duration for the short term will be less than two years. The term for the medium term loan is between 2 to 7 years and for the long term loan it is between 7 and 15 years which depend upon the nature of investment and the repayment capacity of the company.

The short-term loan is a loan whose term is less than 2 years. The medium-term loan is a loan whose duration is between 2 and 7 years. The long term loan is a loan whose duration is between 7 and 15 years (especially for commercial property). Depending on the nature of investments and the repayment ability of the company, a grace is possible. Apart from the interest, the borrower has to pay one time processing fee or the administrative fee and yearly recurring insurance premium against which the loan is raised.