Submitted by Taylor Cottam of Economy Politics
Another Call For The Fed To Raise Rates, So Big Banks Can Start Lending And Hiring Again
As we explained in our previous article Seeking an interest rate solution,
real interest rates are negative and nominal short term interest rates
are near zero. That is not healthy. What is a healthy interest rate? My
view is that short term rates should be above 1% to make them positive
and closer to 2%. It has caused consumer credit to contract.
Of course, banks would argue that a healthy spread is the key to a
healthy banking sector. Raising the rate would likely flatten the yield
curve. What gives?
How banks really make money
Banks are not in the business of making loans per se. They are in the
business of making more off their assets than their liabilities. In
normal times, underwriting consumer and business loans are the best
avenue for them to pursue that goal.
Banks, and many hedge funds, really make money off the yield curve. They
have assets with a higher duration than their liabilities. Although
banks fund their assets with a mix of checking, demand deposits and some
longer dated term deposits (CDs), they have the ability to swap out
longer term deposits (CDs) to make their liabilities duration almost
zero. Their assets, which are typically loans to consumers and
businesses, have a longer duration. Since the yield curve almost always
slopes upward, they make money off the yield curve spread plus the
credit spread.
In 2008, I did some modeling for a large financial institution that had
duration of liabilities of roughly 3.5 years, based upon mostly term
deposits. They were able to bring the duration on their entire
liabilities portfolio down to a duration of less than 0.25 (3 months) by
transacting a simple fixed for floating amortizing swap based upon
their CD maturity schedule. Every quarter, with the 3 month rate sunk
below 25 bps, we would receive a large cash settlement from our
investment bank counterparty. I didn't stick for the full term of the
swap, but on a 1.5 BB principal, our estimate of earnings from the swap
alone stood at $100MM over three years. Based upon where short term
rates have stayed, they could have made 1.5 times that.
With our cost of capital below 25 bps, we did the thing that any
rational person would do. We stopped lending to people and
businesses and lent to the US government instead. We bought Treasuries.
In this case, the 5-year yields were above 2% bringing our expected
risk free spread above 2 points.
In 2008 and 2009, when it became obvious that Bernanke would likely
leave short-term rates low for an extended period of time, yield curve
risk became an afterthought. Those actions have been largely vindicated.
If we held the Treasuries for at least three years, the term of the
swap, we would just sit back and make money off the spread without
having to originate a single loan.
You get to be a bank, without having to do any work to originate loans.
Who needs a large origination group, when you can make a ton of money
and fire half of your employees?
Pushed or Pulled into Treasuries
During the recession there was often talk of a flight to quality.
Investors would flee risky assets and go into something safe. However,
investors are not always being pushed, they are often pulled. During the
recession, we began seeing a very steep yield curve. The spread
investors are as much lured by the allure of easy money with a steep
yield curve as they are by the fear of risky assets.
Last night, we pointed out that as a part of their countdown to 10 billion app downloads, Apple actually revealed the top all-time app downloads for paid iPhone apps, free iPhone apps, paid iPad apps, and free iPad apps. The top results seemed pretty straightforward, with a few oddities here or there. And there may be a good reason for such oddities. The system appears pretty easy to game.
Well, technically, it’s probably not really “gaming” the system. At least not yet. It just appears that Apple is being a little sloppy in populating their lists. After speaking to a few top app developers, it seems that Apple is counting total download numbers in aggregate, regardless of if an app switched between being free and paid.
In other words, to boost yourself on the top paid app lists, all you would have to do is go free for all but one of the days, then switch to paid, and all those downloads would be counted towards your total as a paid app, it seems.
Obviously, free apps tend to be downloaded more than paid ones. So if you had a popular app and went free, then went back to paid, this could be a great way to jack your stats.
And several apps have done this switch from time to time (though we’re not saying they did it to jack their stats — they probably didn’t know that Apple would rank this way — instead it was just a nice offer to customers). Top apps like Traffic Rush and a few of the Tap Tap Revenge games are good examples of this.
One developer we spoke to, John Casasanta of TapTapTap, said that he found the numbers fishy because they’ve done multiple apps and Apple’s rankings don’t line up with their actual separated numbers. But if you take into account free and paid downloads for one app, things begin to align.
We’ve reached out to Apple about the issue, and will update if we hear back. In the meantime, be a bit wary of some of the top paid apps on that list — they may not be making as much money as it may seem given their position.
benchcraft company scam
Bad <b>News</b>: New Book Probes Role of Press in Financial Crisis
Given that some economists still debate the root causes of the Great Depression, little wonder that a multitude of competing stories still vies for affirmation as explanation for the financial crisis of 2008.
Econbrowser: The employment <b>news</b> is good (I think)
The employment news is good (I think). The Bureau of Labor Statistics reported yesterday that the unemployment rate has fallen from 9.8% in November to 9.0% in January, as big a two-month drop as we've seen in the last 50 years (hooray! ...
The First Look at <b>News</b> Corp.'s 'The Daily' - NYTimes.com
'The Daily,' unveiled on Wednesday, combines print, video and graphics.
benchcraft company scam
Submitted by Taylor Cottam of Economy Politics
Another Call For The Fed To Raise Rates, So Big Banks Can Start Lending And Hiring Again
As we explained in our previous article Seeking an interest rate solution,
real interest rates are negative and nominal short term interest rates
are near zero. That is not healthy. What is a healthy interest rate? My
view is that short term rates should be above 1% to make them positive
and closer to 2%. It has caused consumer credit to contract.
Of course, banks would argue that a healthy spread is the key to a
healthy banking sector. Raising the rate would likely flatten the yield
curve. What gives?
How banks really make money
Banks are not in the business of making loans per se. They are in the
business of making more off their assets than their liabilities. In
normal times, underwriting consumer and business loans are the best
avenue for them to pursue that goal.
Banks, and many hedge funds, really make money off the yield curve. They
have assets with a higher duration than their liabilities. Although
banks fund their assets with a mix of checking, demand deposits and some
longer dated term deposits (CDs), they have the ability to swap out
longer term deposits (CDs) to make their liabilities duration almost
zero. Their assets, which are typically loans to consumers and
businesses, have a longer duration. Since the yield curve almost always
slopes upward, they make money off the yield curve spread plus the
credit spread.
In 2008, I did some modeling for a large financial institution that had
duration of liabilities of roughly 3.5 years, based upon mostly term
deposits. They were able to bring the duration on their entire
liabilities portfolio down to a duration of less than 0.25 (3 months) by
transacting a simple fixed for floating amortizing swap based upon
their CD maturity schedule. Every quarter, with the 3 month rate sunk
below 25 bps, we would receive a large cash settlement from our
investment bank counterparty. I didn't stick for the full term of the
swap, but on a 1.5 BB principal, our estimate of earnings from the swap
alone stood at $100MM over three years. Based upon where short term
rates have stayed, they could have made 1.5 times that.
With our cost of capital below 25 bps, we did the thing that any
rational person would do. We stopped lending to people and
businesses and lent to the US government instead. We bought Treasuries.
In this case, the 5-year yields were above 2% bringing our expected
risk free spread above 2 points.
In 2008 and 2009, when it became obvious that Bernanke would likely
leave short-term rates low for an extended period of time, yield curve
risk became an afterthought. Those actions have been largely vindicated.
If we held the Treasuries for at least three years, the term of the
swap, we would just sit back and make money off the spread without
having to originate a single loan.
You get to be a bank, without having to do any work to originate loans.
Who needs a large origination group, when you can make a ton of money
and fire half of your employees?
Pushed or Pulled into Treasuries
During the recession there was often talk of a flight to quality.
Investors would flee risky assets and go into something safe. However,
investors are not always being pushed, they are often pulled. During the
recession, we began seeing a very steep yield curve. The spread
investors are as much lured by the allure of easy money with a steep
yield curve as they are by the fear of risky assets.
Last night, we pointed out that as a part of their countdown to 10 billion app downloads, Apple actually revealed the top all-time app downloads for paid iPhone apps, free iPhone apps, paid iPad apps, and free iPad apps. The top results seemed pretty straightforward, with a few oddities here or there. And there may be a good reason for such oddities. The system appears pretty easy to game.
Well, technically, it’s probably not really “gaming” the system. At least not yet. It just appears that Apple is being a little sloppy in populating their lists. After speaking to a few top app developers, it seems that Apple is counting total download numbers in aggregate, regardless of if an app switched between being free and paid.
In other words, to boost yourself on the top paid app lists, all you would have to do is go free for all but one of the days, then switch to paid, and all those downloads would be counted towards your total as a paid app, it seems.
Obviously, free apps tend to be downloaded more than paid ones. So if you had a popular app and went free, then went back to paid, this could be a great way to jack your stats.
And several apps have done this switch from time to time (though we’re not saying they did it to jack their stats — they probably didn’t know that Apple would rank this way — instead it was just a nice offer to customers). Top apps like Traffic Rush and a few of the Tap Tap Revenge games are good examples of this.
One developer we spoke to, John Casasanta of TapTapTap, said that he found the numbers fishy because they’ve done multiple apps and Apple’s rankings don’t line up with their actual separated numbers. But if you take into account free and paid downloads for one app, things begin to align.
We’ve reached out to Apple about the issue, and will update if we hear back. In the meantime, be a bit wary of some of the top paid apps on that list — they may not be making as much money as it may seem given their position.
benchcraft company scam
Bad <b>News</b>: New Book Probes Role of Press in Financial Crisis
Given that some economists still debate the root causes of the Great Depression, little wonder that a multitude of competing stories still vies for affirmation as explanation for the financial crisis of 2008.
Econbrowser: The employment <b>news</b> is good (I think)
The employment news is good (I think). The Bureau of Labor Statistics reported yesterday that the unemployment rate has fallen from 9.8% in November to 9.0% in January, as big a two-month drop as we've seen in the last 50 years (hooray! ...
The First Look at <b>News</b> Corp.'s 'The Daily' - NYTimes.com
'The Daily,' unveiled on Wednesday, combines print, video and graphics.
bench craft company reviews
[reefeed]
benchcraft company portland or
benchcraft company scam
Bad <b>News</b>: New Book Probes Role of Press in Financial Crisis
Given that some economists still debate the root causes of the Great Depression, little wonder that a multitude of competing stories still vies for affirmation as explanation for the financial crisis of 2008.
Econbrowser: The employment <b>news</b> is good (I think)
The employment news is good (I think). The Bureau of Labor Statistics reported yesterday that the unemployment rate has fallen from 9.8% in November to 9.0% in January, as big a two-month drop as we've seen in the last 50 years (hooray! ...
The First Look at <b>News</b> Corp.'s 'The Daily' - NYTimes.com
'The Daily,' unveiled on Wednesday, combines print, video and graphics.
benchcraft company scam
Submitted by Taylor Cottam of Economy Politics
Another Call For The Fed To Raise Rates, So Big Banks Can Start Lending And Hiring Again
As we explained in our previous article Seeking an interest rate solution,
real interest rates are negative and nominal short term interest rates
are near zero. That is not healthy. What is a healthy interest rate? My
view is that short term rates should be above 1% to make them positive
and closer to 2%. It has caused consumer credit to contract.
Of course, banks would argue that a healthy spread is the key to a
healthy banking sector. Raising the rate would likely flatten the yield
curve. What gives?
How banks really make money
Banks are not in the business of making loans per se. They are in the
business of making more off their assets than their liabilities. In
normal times, underwriting consumer and business loans are the best
avenue for them to pursue that goal.
Banks, and many hedge funds, really make money off the yield curve. They
have assets with a higher duration than their liabilities. Although
banks fund their assets with a mix of checking, demand deposits and some
longer dated term deposits (CDs), they have the ability to swap out
longer term deposits (CDs) to make their liabilities duration almost
zero. Their assets, which are typically loans to consumers and
businesses, have a longer duration. Since the yield curve almost always
slopes upward, they make money off the yield curve spread plus the
credit spread.
In 2008, I did some modeling for a large financial institution that had
duration of liabilities of roughly 3.5 years, based upon mostly term
deposits. They were able to bring the duration on their entire
liabilities portfolio down to a duration of less than 0.25 (3 months) by
transacting a simple fixed for floating amortizing swap based upon
their CD maturity schedule. Every quarter, with the 3 month rate sunk
below 25 bps, we would receive a large cash settlement from our
investment bank counterparty. I didn't stick for the full term of the
swap, but on a 1.5 BB principal, our estimate of earnings from the swap
alone stood at $100MM over three years. Based upon where short term
rates have stayed, they could have made 1.5 times that.
With our cost of capital below 25 bps, we did the thing that any
rational person would do. We stopped lending to people and
businesses and lent to the US government instead. We bought Treasuries.
In this case, the 5-year yields were above 2% bringing our expected
risk free spread above 2 points.
In 2008 and 2009, when it became obvious that Bernanke would likely
leave short-term rates low for an extended period of time, yield curve
risk became an afterthought. Those actions have been largely vindicated.
If we held the Treasuries for at least three years, the term of the
swap, we would just sit back and make money off the spread without
having to originate a single loan.
You get to be a bank, without having to do any work to originate loans.
Who needs a large origination group, when you can make a ton of money
and fire half of your employees?
Pushed or Pulled into Treasuries
During the recession there was often talk of a flight to quality.
Investors would flee risky assets and go into something safe. However,
investors are not always being pushed, they are often pulled. During the
recession, we began seeing a very steep yield curve. The spread
investors are as much lured by the allure of easy money with a steep
yield curve as they are by the fear of risky assets.
Last night, we pointed out that as a part of their countdown to 10 billion app downloads, Apple actually revealed the top all-time app downloads for paid iPhone apps, free iPhone apps, paid iPad apps, and free iPad apps. The top results seemed pretty straightforward, with a few oddities here or there. And there may be a good reason for such oddities. The system appears pretty easy to game.
Well, technically, it’s probably not really “gaming” the system. At least not yet. It just appears that Apple is being a little sloppy in populating their lists. After speaking to a few top app developers, it seems that Apple is counting total download numbers in aggregate, regardless of if an app switched between being free and paid.
In other words, to boost yourself on the top paid app lists, all you would have to do is go free for all but one of the days, then switch to paid, and all those downloads would be counted towards your total as a paid app, it seems.
Obviously, free apps tend to be downloaded more than paid ones. So if you had a popular app and went free, then went back to paid, this could be a great way to jack your stats.
And several apps have done this switch from time to time (though we’re not saying they did it to jack their stats — they probably didn’t know that Apple would rank this way — instead it was just a nice offer to customers). Top apps like Traffic Rush and a few of the Tap Tap Revenge games are good examples of this.
One developer we spoke to, John Casasanta of TapTapTap, said that he found the numbers fishy because they’ve done multiple apps and Apple’s rankings don’t line up with their actual separated numbers. But if you take into account free and paid downloads for one app, things begin to align.
We’ve reached out to Apple about the issue, and will update if we hear back. In the meantime, be a bit wary of some of the top paid apps on that list — they may not be making as much money as it may seem given their position.
benchcraft company portland or
benchcraft company portland or
Bad <b>News</b>: New Book Probes Role of Press in Financial Crisis
Given that some economists still debate the root causes of the Great Depression, little wonder that a multitude of competing stories still vies for affirmation as explanation for the financial crisis of 2008.
Econbrowser: The employment <b>news</b> is good (I think)
The employment news is good (I think). The Bureau of Labor Statistics reported yesterday that the unemployment rate has fallen from 9.8% in November to 9.0% in January, as big a two-month drop as we've seen in the last 50 years (hooray! ...
The First Look at <b>News</b> Corp.'s 'The Daily' - NYTimes.com
'The Daily,' unveiled on Wednesday, combines print, video and graphics.
benchcraft company scam
benchcraft company scam
Bad <b>News</b>: New Book Probes Role of Press in Financial Crisis
Given that some economists still debate the root causes of the Great Depression, little wonder that a multitude of competing stories still vies for affirmation as explanation for the financial crisis of 2008.
Econbrowser: The employment <b>news</b> is good (I think)
The employment news is good (I think). The Bureau of Labor Statistics reported yesterday that the unemployment rate has fallen from 9.8% in November to 9.0% in January, as big a two-month drop as we've seen in the last 50 years (hooray! ...
The First Look at <b>News</b> Corp.'s 'The Daily' - NYTimes.com
'The Daily,' unveiled on Wednesday, combines print, video and graphics.
bench craft company reviews
Bad <b>News</b>: New Book Probes Role of Press in Financial Crisis
Given that some economists still debate the root causes of the Great Depression, little wonder that a multitude of competing stories still vies for affirmation as explanation for the financial crisis of 2008.
Econbrowser: The employment <b>news</b> is good (I think)
The employment news is good (I think). The Bureau of Labor Statistics reported yesterday that the unemployment rate has fallen from 9.8% in November to 9.0% in January, as big a two-month drop as we've seen in the last 50 years (hooray! ...
The First Look at <b>News</b> Corp.'s 'The Daily' - NYTimes.com
'The Daily,' unveiled on Wednesday, combines print, video and graphics.
bench craft company reviews
Bad <b>News</b>: New Book Probes Role of Press in Financial Crisis
Given that some economists still debate the root causes of the Great Depression, little wonder that a multitude of competing stories still vies for affirmation as explanation for the financial crisis of 2008.
Econbrowser: The employment <b>news</b> is good (I think)
The employment news is good (I think). The Bureau of Labor Statistics reported yesterday that the unemployment rate has fallen from 9.8% in November to 9.0% in January, as big a two-month drop as we've seen in the last 50 years (hooray! ...
The First Look at <b>News</b> Corp.'s 'The Daily' - NYTimes.com
'The Daily,' unveiled on Wednesday, combines print, video and graphics.
how to lose weight fast benchcraft company portland or
bench craft company reviews
benchcraft company scam
benchcraft company portland or
Bad <b>News</b>: New Book Probes Role of Press in Financial Crisis
Given that some economists still debate the root causes of the Great Depression, little wonder that a multitude of competing stories still vies for affirmation as explanation for the financial crisis of 2008.
Econbrowser: The employment <b>news</b> is good (I think)
The employment news is good (I think). The Bureau of Labor Statistics reported yesterday that the unemployment rate has fallen from 9.8% in November to 9.0% in January, as big a two-month drop as we've seen in the last 50 years (hooray! ...
The First Look at <b>News</b> Corp.'s 'The Daily' - NYTimes.com
'The Daily,' unveiled on Wednesday, combines print, video and graphics.
benchcraft company scam
Many people try to make money online through many different methods. Some try doing survey while other create blogs or websites. They way I am talking about are between Both Associated Content (AC) and eHow. Both Sites have many similarities and also many various differences. Below is a list of some differences and similarities between AC and eHow.
One major similarity between both sites is the fact that they both deal with making money by writing articles. On both sites you write articles dealing with a variety of topics. You are free to write about almost anything you want. There is one difference between the writing styles however and that is the fact that for eHow you can only write about "How to" articles. AC on the other hand lets you write in any type of writing including; poetry, stories, how to, news, etc the list goes on and on.
One difference when writing your articles on AC your articles must have a minimum length of 400 words. AC offers the choice to write about articles they want which they call Calls for Content which at times are allowed to have less then 400 words but not always. eHow only requires a writer to write a minimum of 150 words. This can be good because it allows their users to pump out more articles faster but those "how to" articles might not be as well written or not have a great amount of information because of the length.
How you earn your money nearly the same way on both sites. eHow pays there members by page views. Meaning for every time someone reads your article you earn a small amount of money. The more people that read your article the more money your make. eHow does not explain the exact amount you get paid for every view but that is how they pay their members. AC also pays its members through page views. You can earn anywhere from $1.50 to $2.00 for every 1000 views. The amount of money you earn per view will increase as you write more and more content and get more and more views. AC also gives you the opportunity to earn money through upfront payments. This means if you want to publish an article you have the possibility to earn money instantly on top of also making money with the page views.
Both sites pay their writers only through Paypal and not check or any other form. They both also tend to only pay U.S. citizens so if you are not a U.S. citizen then you don't have an opportunity to earn money. Another downfall to some is that fact that you will have to enter your Social Security Number after you make a certain amount of money. With eHow once your earnings add up to ten dollars they will ask for your SS#. AC on the other hand will let you reach 500 in a calendar year before the stop your payments. AC is defiantly the better choice when it comes to not entering any extremely personal information right away.
One final difference is the overall layout and design of the websites. If you take a look you will see that eHow's website seems a little more mashed together then AC. They try and fit as much as they can on one page and everything about eHow is not always clear. eHow is more of a do it yourself website where they let you figure things out on your own. AC has a nicer, crisper, and easier to read website compared to eHow. Associated Content has more possibilities to talk with people and find out interesting facts about the site. AC really tries to help their members find what they need to know.
big seminar 14
Bad <b>News</b>: New Book Probes Role of Press in Financial Crisis
Given that some economists still debate the root causes of the Great Depression, little wonder that a multitude of competing stories still vies for affirmation as explanation for the financial crisis of 2008.
Econbrowser: The employment <b>news</b> is good (I think)
The employment news is good (I think). The Bureau of Labor Statistics reported yesterday that the unemployment rate has fallen from 9.8% in November to 9.0% in January, as big a two-month drop as we've seen in the last 50 years (hooray! ...
The First Look at <b>News</b> Corp.'s 'The Daily' - NYTimes.com
'The Daily,' unveiled on Wednesday, combines print, video and graphics.
big seminar 14
Bad <b>News</b>: New Book Probes Role of Press in Financial Crisis
Given that some economists still debate the root causes of the Great Depression, little wonder that a multitude of competing stories still vies for affirmation as explanation for the financial crisis of 2008.
Econbrowser: The employment <b>news</b> is good (I think)
The employment news is good (I think). The Bureau of Labor Statistics reported yesterday that the unemployment rate has fallen from 9.8% in November to 9.0% in January, as big a two-month drop as we've seen in the last 50 years (hooray! ...
The First Look at <b>News</b> Corp.'s 'The Daily' - NYTimes.com
'The Daily,' unveiled on Wednesday, combines print, video and graphics.
big seminar 14
No comments:
Post a Comment