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What Does Q3 Mean For The Market?

What Does Q3 Mean For The Market? | Financial Cognizance | Scoop.it

"More likely than not, this latest round of easing will spur fierce debate between those still committed to the Keynesian theory that the government needs to spend its way out of this malaise, and those steadfast in their belief that not only will this plan fail to improve employment, but it will also lead to dangerous inflation down the road. Although the present low velocity of money and low wage growth argue against serious near-term inflation, the problem with monetary policy moves is that the interval between action and reaction/response can be long and uncertain."

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Most tech startups acquired in 2012 had no VC funding

Most tech startups acquired in 2012 had no VC funding | Financial Cognizance | Scoop.it
Startups may be keen to chase venture capital investment, but almost three quarters of tech companies bought out last year did so with out VC help. (Ahem @jasodonnell: RT @davepeck: Wow!!

Via Ron Sela
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Dave Phillipson's curator insight, February 2, 2013 2:18 PM

For perhaps the strongest source on the planet, consider www.GlobalCEOspace.com for Funding and other Entrepreneural needs.

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The rise of the Pinterest Christmas list - Telegraph

The rise of the Pinterest Christmas list - Telegraph | Financial Cognizance | Scoop.it
A craze for posting images of suggested Christmas presents is being led by users of the social network Pinterest in the US.

Via Rami Kantari, Dona Chakraborty
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Gold Holds Post-QE Gains As S&P Drops Most In 2 Months | ZeroHedge

Gold Holds Post-QE Gains As S&P Drops Most In 2 Months | ZeroHedge | Financial Cognizance | Scoop.it

"It seems European credit markets were on to something this morning. As European tensions spilled over so the US equity markets just could not hold on to the post QEternity gains and turned down rapidly shortly after Europe closed."

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22 Stats That Show How The Emerging One World Economy Is Absolutely Killing American Workers | ZeroHedge

22 Stats That Show How The Emerging One World Economy Is Absolutely Killing American Workers | ZeroHedge | Financial Cognizance | Scoop.it
For decades our politicians have promised us that the "free trade" agenda would bring us greater prosperity than ever before. They insisted that merging our economy into the emerging one world economy would cause millions upon millions of new jobs to be added to the U.S. economy. Unfortunately, it was all a giant lie.
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Finns Prepare For Euro's End: "Deeply Suspicious" of EU's 'Gang of Four' | ZeroHedge

Insisting that the break-up of the Euro does not mean the end of the European Union, Tuomioja believes "it could make the EU function better," but comments that he is deeply suspicious of the 'gang of four' - which includes Draghi - with regard his promises (especially ESM seniority) adding that he "does not trust these people."
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China Cuts Bank Reserve Ratio

China Cuts Bank Reserve Ratio | Financial Cognizance | Scoop.it
China's central bank on Saturday lowered the level of reserves that banks must hold, a move to support growth after a spate of data revealed weakening economic momentum.
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Serial Bubble Blowers

Serial Bubble Blowers | Financial Cognizance | Scoop.it

The shrinking dollar is a modern problem. The U.S. dollar has been shrinking since the inception of the Federal Reserve — the very crew assigned the task of maintaining its value. Of late, the decline is accelerating at an alarming rate.

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Most Retailers Saving Big on Debit Card Processing Fees

Most Retailers Saving Big on Debit Card Processing Fees | Financial Cognizance | Scoop.it
Federal Reserve report shows financial reforms are making a difference for merchants, although some say it's not enough.Get the latest blog articles on...
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ThinkingFinance » Our Nation’s Current Dilemma With Credit Card Rates

ThinkingFinance » Our Nation’s Current Dilemma With Credit Card Rates | Financial Cognizance | Scoop.it

In the face of weakening economic conditions, many people have found the interest rates on their credit cards heading significantly higher. As a result of “risk based” pricing by the nations largest banks, many of these individuals saw higher interest rates even though they were not delinquent on their payments. According to CreditCard.com, the average outstanding credit card debt for households was $10,679 at the end of 2008. This puts the average yearly interest cost on credit card balances at over $2,000 if we assume the average credit card rate is 14.2% (according to IndexCreditCards.com).

 

In the face of weakening economic conditions, many people have found the interest rates on their credit cards heading significantly higher. As a result of “risk based” pricing by the nations largest banks, many of these individuals saw higher interest rates even though they were not delinquent on their payments. According to CreditCard.com, the average outstanding credit card debt for households was $10,679 at the end of 2008. This puts the average yearly interest cost on credit card balances at over $2,000 if we assume the average credit card rate is 14.2% (according to IndexCreditCards.com).
Right now, banks are cutting credit lines and raising fees — and have been reluctant to pass along the savings resulting from Federal Reserve interest-rate cuts meant to boost the sagging economy. President Obama has met with credit card executives and has called for an end to abusive credit card lending practices. Last year, the Federal Reserve passed changes to credit card practices that will take effect in 2010. The House has just passed a bill deemed to be the Credit Card “Bill of Rights” targeting credit card fees and rates. The Senate is expected to pass its own version shortly. Restrictive legislation is being passed at the same time that banks have absorbed about $55 billion in credit card defaults last year, up from $43 billion in 2007. These defaults could are likely to reach $65 billion this year.


The crux of the problem facing the banks is that credit card lending is unsecured, meaning that if an individual decides to default on his/her credit card debt that the bank has no asset to seize as compensation. This is leading to massive charge-offs (debt that has been deemed uncollectible) at the banks. Losses on consumer credit are probably the number one drag on bank earnings right now and these charge-offs jumped to an annualized rate of 8.8 percent in February, the highest in 20 years of data. The credit card losses at the banks are directly correlated with the unemployment rate in the country, and according to Moody’s, credit card charge-offs are likely to peak at 10.5 percent in mid-2010.


One of the issues that very few people are talking about because it hasn’t shown up in the data yet is that the average outstanding credit card debt for households is growing, and due to the recession, is doing so at an even more rapid pace. It’s pretty clear that in household where someone has lost a job, cash would only be used sparingly and only to pay for items that couldn’t go on a credit card such as mortgage payments, car payments, and education expenses. The reason behind this is that since the time frame in which the person will regain employment is very uncertain, its in the best interest of the individual to deplete their savings as slowly as possible so they can continue to live in their home and drive their car until they find new employment. The credit card would be used to put food on the table and to pay for all other living expenses.


Even personal finance guru Suze Orman, who has built a career advising Americans to get out of debt and how to do it, is now advocating that consumers go into credit-card debt in order to make sure that they have eight months worth of cash on hand in case of an emergency.


“If you have an unpaid credit card balance not much saved up in emergency savings, I need you to listen up. My advice has changed. I want you to only pay the minimum due on your credit card balance, and instead, make it your top priority to build as much of an emergency cash fund as you can” –Suze Orman
Because of rising charge-offs and growing credit card balances, banks have no choice but to raise credit card rates to reflect the increased riskiness of their borrowers. Even if a person has been making payments on time in the past, there is no guarantee that they will continue to do so in the future, as they could soon find themselves drowning in their own consumer debt.


Legislation to restrict credit card rate increases must be carefully crafted in order to reflect the reality of the current situation that we are in. Banks only give consumers credit cards because they expect to make money. In fact, credit card lending has historically accounted for between 15 percent and 25 percent of pre-tax income at JPMorgan, Bank of America and Citigroup, according to Moody’s. If a bank feels that it can’t raise its interest rate to a point where it properly reflects the creditworthiness of the borrower, it won’t lend to them at all. A cap on credit card rates would lead to a contraction in consumer credit, taking credit cards out of the hands of the people who need them most.
Everyone generally agrees that we need to end abusive credit card lending practices, such as the need to read the really fine print in order to avoid getting slammed with unnecessary fees, and I commend the Obama administration for showing leadership on this issue. What we don’t need is legislation driven by consumer outrage over higher credit card rates, that has the potential to drive banks to restrict credit card lending altogether. That is our nation’s current dilemma.

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The Unabridged And Illustrated Federal Budget For Dummies - Part 3: Debt & Deficits | ZeroHedge

The Unabridged And Illustrated Federal Budget For Dummies - Part 3: Debt & Deficits | ZeroHedge | Financial Cognizance | Scoop.it
Excessive spending has created record levels of debt and deficits, and the worst is yet to come, threatening opportunity and prosperity for younger generations.
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The Unabridged And Illustrated Federal Budget For Dummies - Part 1: Spending | ZeroHedge

The Unabridged And Illustrated Federal Budget For Dummies - Part 1: Spending | ZeroHedge | Financial Cognizance | Scoop.it
In a four-part series, on the premise that a picture paints a thousand words, we present, via The Heritage Foundation, everything you wanted to know about the Federal Budget - In Charts.
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The Real Reason the Economy Is Broken (and Will Stay That Way)

The Real Reason the Economy Is Broken (and Will Stay That Way) | Financial Cognizance | Scoop.it
We are far enough and deep enough into the most heroic monetary and fiscal efforts ever undertaken to finally ask, why aren't these measures working?
Or at least we should be. Oddly, many in
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From Black Friday To White Noise: Why Thanksgiving Sales "Data" Is Biased And Irrelevant | ZeroHedge

From Black Friday To White Noise: Why Thanksgiving Sales "Data" Is Biased And Irrelevant | ZeroHedge | Financial Cognizance | Scoop.it
While the common wisdom, espoused by any and all commission-taking wealth manager looking to up his AUM, is that Black Friday sales (and the anecdotal evidence from self-referential store-owners and CEOs) can tell us about the trend in the economy...
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How A 12th Century Mathematician Just Doomed Bernanke's Wealth Effect | ZeroHedge

How A 12th Century Mathematician Just Doomed Bernanke's Wealth Effect | ZeroHedge | Financial Cognizance | Scoop.it

"Leonardo Fibonacci (1170-1250) may have just stuck his 'golden-ratio-based' fork in the equity market's rally."

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Peak Career Risk: Only 8% Of Hedge Funds Are Outperforming The Market | ZeroHedge

Peak Career Risk: Only 8% Of Hedge Funds Are Outperforming The Market | ZeroHedge | Financial Cognizance | Scoop.it
Peak career risk. That's how one can summarize what the hedge fund community, long used to "nimbly" outperforming the market populated by slow, dumb money managers and getting paid 7+ digit bonuses, is feeling right now.
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Will Bernanke Bail Out An Incompetent Congress Once More?

Will Bernanke Bail Out An Incompetent Congress Once More? | Financial Cognizance | Scoop.it
The vital question of the moment is whether of not The Bernank will signal an intention of moving towards QE3 in his much-anticipated 'Jackson Hole' conference in two weeks.
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How Close Are We to New Great Depression?

How Close Are We to New Great Depression? | Financial Cognizance | Scoop.it
The risk of a new depression — a sustained, severe recession — has struck fear into the heart of markets and driven monetary policy in developed economies since the current financial crisis began.
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More Recessionary Market Signs | The Daily Capitalist

As  regular Daily Capitalist readers know, I have been observing a topping process for the U.S.
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"The Paucity Of Growth" - Previewing The New Political Landscape In Europe | ZeroHedge

From Peter Tchir of TF Market AdvisorsThe Paucity Of HopeBy Monday there will have been a real shift in the political landscape in EuropeIn Greece, there is a real backlash against the alleged bailout.  The bailout was never about Greece.  In the...
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Smartypig - One of the best savings tools around!

Smartypig - One of the best savings tools around! | Financial Cognizance | Scoop.it
SmartyPig is a free online piggy bank for people saving for specific financial goals like a wedding, a vacation or a flat-screen TV. Even if your goal is saving for a rainy day, SmartyPig is here to help.
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The Unabridged And Illustrated Federal Budget For Dummies - Part 4: Entitlements | ZeroHedge

The Unabridged And Illustrated Federal Budget For Dummies - Part 4: Entitlements | ZeroHedge | Financial Cognizance | Scoop.it
In this final part of the four-part series from The Heritage Foundation, we look at the scale of the entitlement society we live in relative to the Federal Budget.
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The Unabridged And Illustrated Federal Budget For Dummies - Part 2: Revenues | ZeroHedge

The Unabridged And Illustrated Federal Budget For Dummies - Part 2: Revenues | ZeroHedge | Financial Cognizance | Scoop.it
In this second part of the four-part series describing the state of the Federal Budget, we present 10 charts courtesy of The Heritage Foundation on Federal Revenues.
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