Why Business Franchising is a Bad Deal

December 10, 2013 by · Leave a Comment 

The most often cited reason to go into business is to make money. At least that is what you are supposed to believe. If that was the only motivation, there are many other options to turn a quick buck and avoid all the pit falls and responsibility of making a payroll. For the brave of heart and persistent of will, starting your own business is a dream come true. Therefore, at first look, it seems reasonable to follow a pattern of a proven winner, when the leap requires putting your entire net worth on the line. Franchising has the appeal of lessening the odds of failure, to the uninitiated.

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Economics of Non-governmental Organizations

November 12, 2013 by · Leave a Comment 

What is the first thing that comes to mind when the term NGO appears? Well, many will respond, the United Nations. Directly from a UN site is their definition for Non-governmental organizations. How uplifting and benign the altruistic effort, the deep-seated purpose and intention of such associations, frequently projects that noble endeavors need to enhance the governance process. The term governance essentially is a loaded political concept that benefits a model of economic activity that requires a managed society as opposed to a free, independent and individualistic economy.

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Climate Change by Executive Order

November 5, 2013 by · Leave a Comment 

President Obama maintains his consistency on pushing the economy to the edge with his latest attempt to remake America. Fox News lays out the facts on Obama uses executive order in sweeping takeover of nation’s climate change policies.

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Insurance Companies Profit from Obamacare

October 29, 2013 by · Leave a Comment 

No one can reasonably deny that the major Insurance Companies were the driving force behind the writing of the Affordable Care Act legislation. “The health care industry spent nearly $500 million lobbying for health care issues in 2012, and $243 million so far in 2013.” Obamacare or Corporate-care: The Writing of the Affordable Care Act, sums up the process.

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Transfers excluded, JP Morgan Chase is Wired

October 22, 2013 by · Leave a Comment 

The rumblings of capital and currency controls are causing a stir among perceptive financial observers. You do not have to be a business-banking customer to fear the consequences of restricting the transfer of money. Both domestic and international wires are no longer available to be sent from a business savings account, may seem unimportant to the average Chase customer. Many do not have enough money on deposit to pay the wire fee. However, the kicker is that you can still receive wire transfers.

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IMF Proposal to Tax Bank Deposits

October 15, 2013 by · Leave a Comment 

A report by Agence France-Presse, the International Monetary Fund strongly suggests countries tax the rich to fix deficit, is a caveat for a bigger risk. “The IMF has set off shockwaves this week in Washington by suggesting countries fight budget deficits by raising taxes. In its Fiscal Monitor report, subtitled “Taxing Times”, the Fund advanced the idea of taxing the highest-income people and their assets to reinforce the legitimacy of spending cuts and fight against growing income inequalities.”

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Rehypothecation of Collateral

October 8, 2013 by · Leave a Comment 

Before you get a headache or a pain in your side, rehypothecation is not as difficult to understand as spelling the word. Definition of ‘Rehypothecation‘:

“The practice by banks and brokers of using, for their own purposes, assets that have been posted as collateral by their clients. Clients who permit rehypothecation of their collateral may be compensated either through a lower cost of borrowing or a rebate on fees.

In a typical example of rehypothecation, securities that have been posted with a prime brokerage as collateral by a hedge fund are used by the brokerage to back its own transactions and trades. While rehypothecation was a common practice until 2007, hedge funds became much more wary about it in the wake of the Lehman Brothers collapse and subsequent credit crunch in 2008-09.”

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Renminbi Soon to Be a Reserve Currency

October 1, 2013 by · Leave a Comment 

In a provocative examination, financial expert John Mauldin addresses the relationship of the reserve currency status of the U.S. Dollar and the up and coming Chinese Renminbi. His article, The Renminbi: Soon to Be a Reserve Currency?, is an important analysis. The doom and gloom predictions that the dollar is finished gets a rebuttal argument. While this viewpoint may seem a little too late, the actions of the Chinese Inc. continues to lay into place a more prominent international role for their RMB currency.

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Corporate Profits and Worker Unemployment

September 24, 2013 by · Leave a Comment 

The informative business publication, Zero Hedge, featured the voice of common sense and economic insight, Rick Santelli.

“CNBC’s Rick Santelli asks the (rhetorical) question that everyone should ask: “[What the Fed minutes said] is, listen, we have to wait for bigger confirmation that the economy is doing better; and for that, we’re going to look at the employment side. [At the same time] we have the fewest people working that can work in 30 years, and all-time-record-high profits for corporations. Now, does that strategy sound rational to you?” It seems, now that Bernanke has seemingly promised that it will really never end, that Santelli’s question will become increasingly critical in this country.”

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Financial Meltdown Five Years After

September 17, 2013 by · Leave a Comment 

So appropriate that the architect of banking deregulation, Larry Summers pleads that he is not the right person to head up the Federal Reserve. No S$%#. Well, the Fed is certainly the hot seat under normal circumstances. What will it be like when the next crisis directly puts into play the reserve currency status of the dollar? Do not worry, anniversaries are supposed to look at the brighter side. Never mind, our benevolent government is hard at work presenting the public with the kind of assurance that would make anyone start singing happy birthday.

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Forecasts of a Doomed Economy

September 10, 2013 by · Leave a Comment 

Contrary investing used to be a profitable endeavor. Things have changed. The doom business is in full swing as many financial prognosticators seek to hedge their normally ecstatic outlooks in order to sell their advice. When tragedy becomes a consensus sentiment, it used to be the time to buy. Now that formula has to factor in a different set of risks. Namely the incoherent political intrusions and stimulus-austerity gyrations has to head the list. Has forecasting become a lost art or did it evolve into an algorithm supercomputer project? In either case, the doom factor is sure to continue to be a stable from the Cassandra circle as long as an economic recovery allures the former members of the middle class.

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Chinese Banks Quasi Government Institutions

September 4, 2013 by · Leave a Comment 

When is a bank an appendage of state? In China, the incorporation of commercial banking under the auspice of governmental policy is virtually indistinguishable. Philosophically, any government should have control of their currency and structure the precepts of banking and lending system. Capitalist banking would command a greater pragmatic function if competition among banks was based upon free enterprise. However, under the central banking scheme governments regulate banks, but are creatures of fractional reserve debt money issued by central bank parentage. The Chinese way has included a touch of mystery when analyzed within the context of western international banking.

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