APPLE Magic: Succulent PROFITS poor TAX

The U.S. Senate has set to work to investigate the major tax fraud occurring in their country. The genius of Apple to evade taxes has no limits, the Senate knows and wants to end it. They have made a report and the data are chilling.
Fraud is the concentration of profits in some subsidiaries that are not based tax.
The report highlights the possible agreement by Apple to Ireland for a tax rebate of 10%, from 12% to 2%.
A clear example is the holding of foreign affiliates (AOI), which in the past four years has made ​​a profit of 30,000 million dollars even stated anywhere.
On the other hand, we have (ASI), which is responsible for billing the sales in Spain, using companies from Ireland to escape the Spanish hacienda, specifically 74,000 million in the past four years.
In 2011, for example, of the 22,000 million profit paid 10 million dollars, less than 0.05%
Apple has more than 100,000 million U.S. dollars outside. 61% of its sales are overseas records.
Large experts believe that the problem is that "the tax system is not up to the digital age"
The U.S. Senate has launched accusations against Ireland to facilitate such companies to enter its country attracting them with their "tax incentives"
with these statements, Gilmore, Irish Deputy Prime Minister, leaving the way of a U.S. Senate report which states that the technology giant created two subsidiaries in Ireland that had no employees or physical presence, and whose sole purpose was to channel thousands of million of its global profits to avoid paying U.S. taxes, saying the tax problem comes from other countries, not yours. How do you think that affects the economy? Could eradicate extreme poverty by taxing big companies? Yes, but 2 times.

The role of hedge funds: inequality and financial instability

Hedge funds known as hedge funds or hedge funds, are a type of mutual funds that are not only subject to regulation, and that because of it have played a crucial role in virtually every financial crisis since the nineties . Due to its relative complexity are completely unknown to most people. A population that is, paradoxically, the main affected by the performance of these financial institutions. To prevent that remains so in this article I will try to shed enough light, of course following the usual teaching style, in the murky world of hedge funds.

The performance of mutual funds is collecting money from many sources (individuals, corporate savings or other funds) and investment thereof in any financial product (shares, for example). After a time, when there has been a benefit and money has appreciated, the fund returns to owners past the nominal (money) plus interest, keeping the bank with an important commission.
Origin
The first recognized hedge fund was established in 1949 in the U.S., but its most important expansion took place from the second half of the nineties. Hedge funds differ from other mutual funds precisely in their aggressiveness and risk exposure. On the one hand have no regulatory limitations of any kind, and on the other hand tend to maintain very high leverage positions (operations with borrowed funds, such loans). This means that any fund can perform operations with no money but with so much borrowed money as you want. In case of profit profitability is much higher, but in case of loss the problem is also serious and very contagious (defaults follow each other).
Hedge funds are also managed by professionals who largely turn their profits as investment in the same hedge funds, more intense commitment to the future of the fund. As a result of all these features hedge funds usually yield high levels of profitability.
How and where is made ​​a hedge fund
Hedge funds are managed by professionals and have very high entry barriers for investors, in many cases reaching the million dollars, but in any case depends on the specific regulation of the territory in which it is constituted. These barriers to entry are very high also precisely because of the high risk associated with financial transactions undertaken by hedge funds. Regulators seek to protect small investors and believe the best way is by raising the barriers, while more liberal from orbit is considered to be lower these barriers to involve the largest population possible benefit of hedge funds.
Hedge funds therefore have a minimum of stakeholders: investors, managers and companies that offer services. As investors are currently most other mutual funds (including other hedge funds), transnational corporations and millionaires course.
 

Also, the location is usually territory other than the territory of management. Indeed, 60% of hedge funds in 2010 were located in tax havens (in fact 37% of all hedge funds are in the Cayman Islands and 27% in Delaware, ie United States). The constitution in a tax return also increases because it reduces transaction costs (interest, records, etc..). In terms of managing 80% is on American soil (ie 41% is in New York), and most of the rest is in London. Hedge funds have Anglo flavor.
But banks also have flavor. Because the managers of these funds are logically banks, plus they are also those who offer specialized services to hedge funds. And as all this is a business statistics increasingly concentrated, precisely because of the crisis.
 

In short, like any mutual fund, the purpose of a hedge fund is to highlight the money deposited by investors, and for that we go to all financial markets (stocks, corporate bonds, government bonds, futures, etc..) Seeking returns. The aim is to speculate, and that almost anything goes.
Hedge Fund Strategies
The strategies used by hedge funds can vary between each other, but all seek to "exploit" the opportunities of making profits in the financial markets. And all are, in a sense, gambling. They are usually complex strategies, but sometimes can be as simple as a bet that interest rates of private bonds and government bonds are converging [1]. The usual way of hedge funds bet is to alternate short positions with long positions.
Taking a short position (short) means that the bet is "to think that the price will go down." For example, a hedge fund may sell their shares today and buy tomorrow when they have fallen. As today sells more expensive than you buy tomorrow's benefit. A naked short position (naked short) is the same but in case you are selling something that does not have [2]. For example, we sell at today's prices to deliver after tomorrow and hope that tomorrow is worth much less. Bought and delivered tomorrow after tomorrow, making the profit.
A long position is betting that "the price will go up", which is what we are accustomed. If you combine both positions in different markets can increase profits. For example, the sale we did in the short position will receive money that we invest as a long position. Money Never Sleeps.
History: hedge funds, crises and speculation
The most famous case of a hedge fund is that of Long-Term Capital Management (LTCM), managed by a team of professionals that included two Nobel laureates in economics, and its investors had even central banks. The net returns were from 42.8% in 1995, from 40.8% in 1996 and 17'1% in 1997, and the leverage was 30-1 (Vilariño, 2000). In 1998 the risky and complex hedge fund operations clashed with the Russian debt default and the losses were very severe. Finally the action of the Federal Reserve Bank of New York, who pressed a set of large investors to save the bank, prevented greater evils.
But other cases are also spectacular and also reflect the sign of the times. The first thing worth pointing is that of George Soros, who used his hedge fund to speculate against sterling. First George Soros borrowed 15,000 million pounds, and stealthily changed dollars. The purpose of short-Soros was betting with pounds, ie bet that lose value. When he was all prepared and wanted to attack it managed to make it very sounded: summoned the media and announced that he was convinced that the pound would fall. Then sold off their pounds borrowed and sent the signal to the market and the pound fell really (indeed, the sell-off, coupled with the fear of the other holders of pounds, has laid). The British government responded with all its weapons of monetary policy, but after spending more than 50,000 million dollars had to surrender: speculators had expired. With the pound on the floor Soros bought 15,000 million pounds (now worth fewer dollars) and the back (it was a loan). The gains were huge, and teaching more: a speculator, one, could sink an entire country [3].
The Asian crisis of the nineties gives many more examples of this, and the recent debt crisis even more. It teaches us that a few speculators, counted on the fingers but managing huge amounts of money, can bring down countries and set economic policies themselves.
Profitability and current developments
For all, hedge funds receive higher returns in scrambled scenes, as there is nothing worse for a mutual fund that the non-existence of space to speculate. However, widespread uncertainty scenarios or collective crisis can also be its own grave. Also, as I said before, the spread can be huge losses due to the leverage situation. Therefore, depending on which sectors and financial markets suffer losses suffer much hedge funds.
And the crisis was primed with hedge funds in 2008, as many of them had participated in toxic financial assets or had investments in mutual funds that had done so. The case of the investment bank Bear Stearns is representative, since in 2008 he had to respond to losses in two hedge funds managed (offshore) and that made him finally sinking. It was sold at a bargain price to JP Morgan [4].
But bailouts hedge funds could breathe easy again. And again they make profits and continue their speculative activity. Just look at the chart I made with TheCityUK data.
 

The hedge fund business is back up, and that's precisely what the data show not only profitability but also the data of assets managed by it. Without reach even 2007 levels, pre-crisis levels, the hedge fund space have recovered rapidly.
 

And ultimately it seems that the entire financial system returns to normal gradually. Even the leverage is regaining 2007 levels. But that's the "normalcy" that led to the crisis, because although we can guess that the hedge funds are responsible for the crisis itself that it had an important role in the expansion of the bubbles and contagion from further damage. And is that as a society we do not learn.
 

 

Conclusions
But you back to this "normality" was expected. In economics there is a concept of "moral hazard" that has to do with the incentives that exist in the market and the beliefs of the agents. Today all financial actors (investors and managers especially) know the United saved from burning to entities that are in trouble and that endanger the system (and given the amount of money that move the hedge funds and banks could say that are nearly all), so this risk no actual loss. To put it another way: they know that the bill is paid by workers with adjustment plans and other measures, so they do not care not to repeat the same activities that have made them richer and richer before and after the crisis.
We can not forget that the phenomenon of hedge funds and promote financial instability and distort the market (because liberals tell me what benefits to society of naked short operations), increase inequality in several ways. On the one hand because as industry financial elites that manage these funds promote an institutional configuration such that brings in the States tax competition and prevents them from effectively control tax evasion. Following public finances are distorted and end the welfare state ends up being paid by the middle and lower classes, being the high payments outside the system. On the other hand because logically are the upper classes who benefit most from the business of collective investment funds (pension funds, mutual funds, hedge funds, etc..) And therefore grows exponentially the difference between those less by entering your salary and who increasingly enter their financial activities.
The fact is that we are headed to another huge financial crisis. And if not, at the same time

The 12 principles of value investing (Part 2)

As I mentioned last week the principles are based on ideas large investment managers such as Peter Lynch, Warren Buffett, Mario Gabelli, Charlie Munger, John Templeton, John Neff, Jim Rogers, Christopher H. Browne, Friedrich A. Von Hayek, Walter Schloss, Benjamin Graham and Francisco Garcia Paramés himself. These principles are contained in a book edited by Bestinver funds and summarized weekly by people.
Here we go with the following six principles:
7) Having a bad short-term behavior is inevitable: John Neff (1931) once said that "it is not always easy to invest in what is popular, but it is the way to get outstanding returns." Thus, less popular investments can generate short-term returns ill to stand in longer periods of tiempo.Por Therefore, choosing an investment manager for their results in the short term (less than 3 years) may lead to making the wrong decision, as the short-term outcome is not a good indicator of successful long. A study of Brandes on global equity funds reveals that, while the 7 best fund managers significantly beat the market over a period of 10 years, all had a worse performance than the benchmark for short periods of time.
8) It's not worth guided by economic forecasts: The co-founder of Quantum Fund Jim Rogers (1942) stated that "to be successful investing is necessary to go soon, when things are cheap, when there is panic, when everyone is demoralized ". Investors tend to follow the macroeconomic forecasts when investing, but the correlation between the stock market and the economy is much weaker than it may seem. So it's much more productive to devote every effort to the analysis of companies. It is also important to remember that economic forecasting is a very complicated task where mistakes outnumber the successes. The predictions of the analysts on the quarterly results of companies, according to a study by David Dreman, was erroneous in 75% of the time up to 10% on the quarterly results. Therefore not worth spending time and energy to the analysis of short-term variables totally uncontrollable as GDP, interest rates, the level of stock market indices or the company's quarterly results.
9) Do not invest in companies never overrated: One of the worst decisions of long-term investment is to buy shares overvalued because euphoria fashion sector or stock, as happened with Japan in the 90s, in which the country experienced the greatest speculative bubble twentieth century, when the real estate value was multiplied by 75 and the value of the stock by 100. The most dramatic case is that of the Nasdaq market that slumped 80% in less than three years, dragging millions of investors lose 99% of your investment. Many of these investors will take decades to recover your investment or just not ever recover. The most recent overvaluation has been in China's stock market, the index traded as at 40 times profit.
10) Do not let emotions guide your investment decisions: Benjamin Graham (1894-1976), economist and investor and pioneer of value investing, once said that "getting good returns is easier than people think. Get outstanding performance is much harder than people imagine. " And all because among the greatest challenges of a power inverter is staying true to its investment philosophy, never letting emotions dictate your decisions. And they usually do at the worst time, ignoring the famous board Buffet: "Be fearful when others are greedy and become greedy when everyone is afraid." In this sense, the statistics are revealing: in the last 20 years, the average profit of American funds in the stock market and 11.6%, however, the average profit Inverter U.S. equity funds is as only 4.5%. One of the most paradoxical is the famous Magellan Fund Peter Lynch, whose investors earned on average 5% annualized when performance that had the fund over 14 years was 29 % per year.
The causes of "self-destructive behavior" of the investor are many: to be guided by fear or ambition, invest in the fashion or not stay true to his philosophy. But above all highlights the general trend is the investor to try to predict the short term movement of the stock.
11) Do not try to predict the movement of the stock in the short term: According to the legendary American investor Walter Schloss (1916), "shyness generated by past failures causes most investors lost major bull markets." As described by Peter Lynch in his book "One Up on Wall Street", in late 1972, when the stock was about to suffer one of the worst crashes in history, optimism was at its highest point (85% of advisors were bullish as reported by Investor's Intelligence). At the beginning of the market rebound in 1974, 65% of advisors feared that the worst was yet to come. Again, before the fall of the stock market in 1977, 90% of advisors were bullish. At the start of big climb which took the market in 1982, more than half of the advisers predicted downs and just before the crash of 1987, 80% thought that the market would continue to rise. Lynch perfectly illustrates how difficult it is to predict the movement of stock markets.
Although long-term performance of any stock market approaches a constant 10%, yields on short-term stock market are asymmetric. A common tendency is to give investors their investment plan out of the market in the hope of re-entry when the environment is more favorable.
12) Patience is the main virtue of the successful investor: And, according to Francisco Garcia Paramés, investment director Bestinver AM, "the most fascinating of value investing is that time always works in your favor." Active Stocks are ideal for long-term get rich. Xigen But quality and less common among investors: patience. To achieve satisfactory performance in the stock market you need to have enough stamina to stay invested, sometimes even uncomfortable. Keep in mind that the U.S. stock market has provided positive returns to 5 years in 97% of cases. The market rewards the patient investor who stays true to their investment strategy, said in Bestinver. The Value Investing depends more on common sense, daily work and patience that individual sources of information or the prediction of future events. Its correct application minimizes the possibility of permanent losses in the portfolio and has produced positive results in the long run, beating the average market returns.
And this concludes the summary of the principles of value investing. This Saturday we are in 7th Rankia meeting where I am available to you all.
A greeting.

The 12 principles of value investing (Part 1)

Bestinver has published a book that summarizes the 12 principles of management by value, with phrases and ideas of legendary managers who follow this philosophy, such as Peter Lynch, Warren Buffett, Mario Gabelli, Charlie Munger, John Templeton, John Neff, Jim Rogers, Christopher H. Browne, Walter Schloss or Francisco Garcia Paramés own. Joining them are two prominent figures Friedrich A. Von Hayek, Nobel laureate in economics and Benjamin Graham driver of investment value.
I put a short summary has been published weekly funds people, each one of these ideas:
1) The active equity is more profitable in the long term: Peter Lynch (1944), Magellan fund manager, once said that "the great advantage of investing in stocks, for those who accept the uncertainty, is the extraordinary reward for having reason. " From 1871-1992 and in spite of all bankruptcies, recessions and crises, stocks outperformed bonds in 80% of periods of 10 years and 100% of 30-year periods. Moreover, equities has resulted thirty times more profitable than bonds. The explanation is that when you buy shares you are buying a part of a business and is therefore part of its growth and expansion. "The bond investor is only the nearest source of money and the best we can hope for is to get it back with interest," says Bestinver AM on publication.
Real estate assets also increase the purchasing power of long-term investor, but not as consistent as stocks. As for raw materials, possibly the worst real asset returns over the long term due to its high cyclicality.
2) active equity is less risky in the long term: Indeed, and although it may seem paradoxical, the target equity is less risky to invest long-term, since its evolution is linked to economic growth and corporate profits . Instead government bonds depend on economic policies governments adopt q ue corresponding, often inflationary and therefore destructive of value to those "nominal assets" that do not incorporate price inflation. As an example, draws Bestinver Argentine investors. The investor in Argentine government bonds in 2001 lost 70% of their savings and have not since recovered, while the initial equity investor lost 60% in the same year and then not only recover quickly, but multiply by nine investment in five years. Moreover, the Argentine bond is approximately the same price as marked at the outset of the crisis. And, according to the manager, history is full of examples of very damaging inflationary periods for investors in all types of bonds (Argentina in 2002 and in the 80s and 90s; Russia in the 90s, Spain in the early 70, just as the U.S., or Germany in the 20s).
3) Few managers get beat market indices in the long run: Get an average annual return of over 10% that offers long-term stock market is not easy. In fact only 9% of American managers has managed to outperform the S & P 500 over 16 years (1981-1997). The fundamental reason is Bestinver is "the lack of discipline and the continuous changes of strategy they incur most fund managers", who often succumb to fads and phobias of each moment. Be true to the investment philosophy both in good and in bad times is one of the keys to obtaining a satisfactory long-term performance. History shows that the average fund manager tends to go wrong with your investment decisions and guided heavily by short-term economic forecasts. Thus, the different minima of the bag have been coinciding with maximum liquidity positions equity funds: 1970, 1974, 1982, 1987 and 1990.
4) Investment in setting produces higher returns than the indices in the long run: "All intelligent investing is value investing: buy something for less than it's worth," said Charlie Munger once (1924), vice chairman of Berkshire Hathaway . Among the different schools of management, "value investing" is the only one that brings together a group of managers who manage to beat the stock market long term and consistently. According to investment firm Ibbotson Associates, value investing has overtaken from a differential growth rate of 5% since 1932.
It is estimated that the investment value concentrates only between 5% and 10% of world capitalization by 200 managers, especially in North America and investors have achieved this common philosophy beat the market long term, although each with its own strategy.
5) The volatility and liquidity of an action are not representative of the risk: Friedrich A. Von Hayek (1899-1992), once said that "Wall Street used the CAPM model and other ways to reduce the uncertainty to a quantifiable risk. But only measure what is measurable, no matter what. " Thus, the risk that an investor takes when investing in shares is not determined by the volatility that has been in the past, but by the possibility of a permanent loss of value associated with the business of the company. Thus a volatile trading does not make a firm more risky but allows the investor to buy it at a time when the alteration between value and price is higher.
Neither the size or liquidity risk is representative, because in principle it is always easier to find major differences between value and price in small companies than in blue chips, as they are less analyzed. In fact, it has been shown that small caps are more profitable than large firms in the long run, but not necessarily more risky.
6) The stock market crises are inevitable and allow a significant value creation: As John Templeton (1912-2007), philanthropist and founder of Templeton Funds Financial, "the four most dangerous words in investment history to have been: this time is different. " Although the long-term actions are most profitable assets and secure, the history of the stock market is full of dramatic episodes. The value investor has to understand that uncertainty will always be present when investing in stocks, as strong or scilaciones are inherent to the market and investment strategy based on these oscillations is a mistake in the long term. However, staying true to the investment strategy during such episodes allows a significant value creation.
In the past 40 years the equity markets have faced several oil crises, many armed conflicts, various financial scandals, bankruptcies thousand and four major stock market crash. And despite everything, the S & P has provided an average annual rate of 9.3% since. Even from the crisis of 29, in less than four years an investor would have earned a higher return than investing in Treasury bills.
In my next article I will comment the last 6 value principles.
A greeting.

The U.S. economy grew 2.4% in the first quarter

Washington, May 30 (Thomson Financial). - The U.S. economy grew at an annual rate of 2.4% in the first quarter, a tenth less than originally planned, as a result of public spending cuts approved by Congress, especially on defense. However, Commerce Department data released today highlight that consumer spending rebounded in the first three months of the year at a rate of 3.4%, the highest in the past two years. The data is particularly significant in an economy like the U.S., where private consumption accounts for almost 70% of the total Gross Domestic Product (GDP). In its first estimate, the federal agency had estimated GDP growth at 2.5% for the period between January and February. In this way, the U.S. economy recorded over two years of sustained growth, despite its still palpable warmth accelerates its expansion over the last quarter of 2012, when it expanded 0.4%. The U.S. trade balance data also showed positive, with an increase in exports of goods and services by 0.8% compared with a fall of 2.8% reported for the fourth quarter of 2012, and imports which grew by only 1.9 % compared with a decrease of 4.2% in the previous period. Also, the real estate sector seems to consolidate its recovery from the 2008 crisis, and residential fixed investment grew at a rate of 12.1%. As a brake on economic growth, in contrast, behaved steep spending cuts amounting to 85,000 million approved last March to the end of the fiscal year in September 2013. Government spending fell 4.9% compared to 4.1% forecast in the first of three official estimates, with special emphasis on the defense sector which fell by 12.1%, compared with 11, estimated 5% previously. Without these cuts, the U.S. economic growth would have been 3.4% in the quarter. Meanwhile, prices remained controlled behavior, registering a growth of 1% in the annual adjusted, down from 1.6% at the end of last year, let alone the 2% threshold marked by the Federal Reserve ( Fed) U.S.. Although the data show some optimism about the U.S. economic discourse, the truth is that it is too weak to continue lowering the high unemployment rate in the country, which remains a major concern of citizens and which closed April in a 7.5%. In a parallel data released today, the figure weekly esempleo subsidy claims in the U.S. rose by 10,000 and stood at 354,000 last week. Experts valued the good performance of the economy in the context of sharp cuts in public spending, but said that is unlikely to affect the aggressive monetary stimulus policy implemented by the Fed to stimulate growth. In a recent appearance before the Joint Economic Committee of Congress, the Fed chairman, Ben Bernanke, stated that the policy stimulus including interest rates between 0% and 0.25% and monthly program billionaire bond buying is changed unless finding an economic expansion "continuous and sustainable." The third and final data on U.S. GDP will be released on June 26. MarketWatch

Washington, May 30 (Thomson Financial). - The U.S. economy grew at an annual rate of 2.4% in the first quarter, a tenth less than originally planned, as a result of public spending cuts approved by Congress, especially on defense. However, Commerce Department data released today highlight that consumer spending rebounded in the first three months of the year at a rate of 3.4%, the highest in the past two years. The data is particularly significant in an economy like the U.S., where private consumption accounts for almost 70% of the total Gross Domestic Product (GDP). In its first estimate, the federal agency had estimated GDP growth at 2.5% for the period between January and February. In this way, the U.S. economy recorded over two years of sustained growth, despite its still palpable warmth accelerates its expansion over the last quarter of 2012, when it expanded 0.4%. The U.S. trade balance data also showed positive, with an increase in exports of goods and services by 0.8% compared with a fall of 2.8% reported for the fourth quarter of 2012, and imports which grew by only 1.9 % compared with a decrease of 4.2% in the previous period. Also, the real estate sector seems to consolidate its recovery from the 2008 crisis, and residential fixed investment grew at a rate of 12.1%. As a brake on economic growth, in contrast, behaved steep spending cuts amounting to 85,000 million approved last March to the end of the fiscal year in September 2013. Government spending fell 4.9% compared to 4.1% forecast in the first of three official estimates, with special emphasis on the defense sector which fell by 12.1%, compared with 11, estimated 5% previously. Without these cuts, the U.S. economic growth would have been 3.4% in the quarter. Meanwhile, prices remained controlled behavior, registering a growth of 1% in the annual adjusted, down from 1.6% at the end of last year, let alone the 2% threshold marked by the Federal Reserve ( Fed) U.S.. Although the data show some optimism about the U.S. economic discourse, the truth is that it is too weak to continue lowering the high unemployment rate in the country, which remains a major concern of citizens and which closed April in a 7.5%. In a parallel data released today, the figure weekly esempleo subsidy claims in the U.S. rose by 10,000 and stood at 354,000 last week. Experts valued the good performance of the economy in the context of sharp cuts in public spending, but said that is unlikely to affect the aggressive monetary stimulus policy implemented by the Fed to stimulate growth. In a recent appearance before the Joint Economic Committee of Congress, the Fed chairman, Ben Bernanke, stated that the policy stimulus including interest rates between 0% and 0.25% and monthly program billionaire bond buying is changed unless finding an economic expansion "continuous and sustainable." The third and final data on U.S. GDP will be released on June 26. MarketWatch

The U.S. economy grew 2.4% in the first quarter - Expansion.com

Washington, May 30 (Thomson Financial). - The U.S. economy grew at an annual rate of 2.4% in the first quarter, a tenth less than originally planned, as a result of public spending cuts approved by Congress, especially on defense. However, Commerce Department data released today highlight that consumer spending rebounded in the first three months of the year at a rate of 3.4%, the highest in the past two years. The data is particularly significant in an economy like the U.S., where private consumption accounts for almost 70% of the total Gross Domestic Product (GDP). In its first estimate, the federal agency had estimated GDP growth at 2.5% for the period between January and February. In this way, the U.S. economy recorded over two years of sustained growth, despite its still palpable warmth accelerates its expansion over the last quarter of 2012, when it expanded 0.4%. The U.S. trade balance data also showed positive, with an increase in exports of goods and services by 0.8% compared with a fall of 2.8% reported for the fourth quarter of 2012, and imports which grew by only 1.9 % compared with a decrease of 4.2% in the previous period. Also, the real estate sector seems to consolidate its recovery from the 2008 crisis, and residential fixed investment grew at a rate of 12.1%. As a brake on economic growth, in contrast, behaved steep spending cuts amounting to 85,000 million approved last March to the end of the fiscal year in September 2013. Government spending fell 4.9% compared to 4.1% forecast in the first of three official estimates, with special emphasis on the defense sector which fell by 12.1%, compared with 11, estimated 5% previously. Without these cuts, the U.S. economic growth would have been 3.4% in the quarter. Meanwhile, prices remained controlled behavior, registering a growth of 1% in the annual adjusted, down from 1.6% at the end of last year, let alone the 2% threshold marked by the Federal Reserve ( Fed) U.S.. Although the data show some optimism about the U.S. economic discourse, the truth is that it is too weak to continue lowering the high unemployment rate in the country, which remains a major concern of citizens and which closed April in a 7.5%. In a parallel data released today, the figure weekly esempleo subsidy claims in the U.S. rose by 10,000 and stood at 354,000 last week. Experts valued the good performance of the economy in the context of sharp cuts in public spending, but said that is unlikely to affect the aggressive monetary stimulus policy implemented by the Fed to stimulate growth. In a recent appearance before the Joint Economic Committee of Congress, the Fed chairman, Ben Bernanke, stated that the policy stimulus including interest rates between 0% and 0.25% and monthly program billionaire bond buying is changed unless finding an economic expansion "continuous and sustainable." The third and final data on U.S. GDP will be released on June 26. MarketWatch

The U.S. economy grew 2.4% in the first quarter - Expansion.com

Washington, May 30 (Thomson Financial). - The U.S. economy grew at an annual rate of 2.4% in the first quarter, a tenth less than originally planned, as a result of public spending cuts approved by Congress, especially on defense. However, Commerce Department data released today highlight that consumer spending rebounded in the first three months of the year at a rate of 3.4%, the highest in the past two years. The data is particularly significant in an economy like the U.S., where private consumption accounts for almost 70% of the total Gross Domestic Product (GDP). In its first estimate, the federal agency had estimated GDP growth at 2.5% for the period between January and February. In this way, the U.S. economy recorded over two years of sustained growth, despite its still palpable warmth accelerates its expansion over the last quarter of 2012, when it expanded 0.4%. The U.S. trade balance data also showed positive, with an increase in exports of goods and services by 0.8% compared with a fall of 2.8% reported for the fourth quarter of 2012, and imports which grew by only 1.9 % compared with a decrease of 4.2% in the previous period. Also, the real estate sector seems to consolidate its recovery from the 2008 crisis, and residential fixed investment grew at a rate of 12.1%. As a brake on economic growth, in contrast, behaved steep spending cuts amounting to 85,000 million approved last March to the end of the fiscal year in September 2013. Government spending fell 4.9% compared to 4.1% forecast in the first of three official estimates, with special emphasis on the defense sector which fell by 12.1%, compared with 11, estimated 5% previously. Without these cuts, the U.S. economic growth would have been 3.4% in the quarter. Meanwhile, prices remained controlled behavior, registering a growth of 1% in the annual adjusted, down from 1.6% at the end of last year, let alone the 2% threshold marked by the Federal Reserve ( Fed) U.S.. Although the data show some optimism about the U.S. economic discourse, the truth is that it is too weak to continue lowering the high unemployment rate in the country, which remains a major concern of citizens and which closed April in a 7.5%. In a parallel data released today, the figure weekly esempleo subsidy claims in the U.S. rose by 10,000 and stood at 354,000 last week. Experts valued the good performance of the economy in the context of sharp cuts in public spending, but said that is unlikely to affect the aggressive monetary stimulus policy implemented by the Fed to stimulate growth. In a recent appearance before the Joint Economic Committee of Congress, the Fed chairman, Ben Bernanke, stated that the policy stimulus including interest rates between 0% and 0.25% and monthly program billionaire bond buying is changed unless finding an economic expansion "continuous and sustainable." The third and final data on U.S. GDP will be released on June 26. MarketWatch

The U.S. economy grew 2.4% in the first quarter - Expansion.com

IMF cuts growth forecast for China and warns of the credit problem

The Fund, which last month had placed the growth prospects for the Republic at 8% this year and 8.2% next, now estimates that the economy of this country will only increase by 7.75% this year and in 2014.
The IMF has doubts about the quality of Chinese investment by the rapid increase créditoEn a press conference in Beijing at the end of their annual mission to evaluate the progress of the Chinese economy, the Fund Deputy Managing Director David Lipton, attributed the cut in estimates of the weakness of the global economy, which has reduced the appetite for Chinese exports.
Lipton said the rapid growth of social financing, an indicator of credit available has grown very quickly, which "raises concerns about the quality of investments and their impact on the ability to repay the loans."
In particular, concerns increase while the increase represents "a rapidly growing part of the credit flows through parts unless supervised financial system."
The financial and monetary policy developed by Beijing is "appropriate" in this sense, Lipton found that one of the risks is that the loans are intended for investments "that are not sufficiently useful for the country."
In his view, control the overall growth of social finance is a "priority" will require greater oversight and accountability of investors for the decisions they make.
These policies may slow growth in the short term, he admitted, but stressed at the same time support the transition to a more sustainable model of growth.
However, Lipton insisted that financial and monetary policy developed by Beijing is "appropriate".
If this year's growth were to fall below the targets? Chinese government has set a target of 7.5 percent for this year?, The Fund recommends using a fiscal stimulus that favors income and domestic consumption.
The new Chinese government which took office in March is preparing a series of economic reforms that intends to present in October and which may include, among other things, greater openness to private investment and measures to promote the development.
Growth has become too dependent on the continued expansion of inversionesEntre detected problems are international financial institution which growth [...]

How the International Monetary Fund work

To get in history, the International Monetary Fund was created in 1945 in the United States, and its main objectives are to promote international monetary cooperation, facilitate international trade, and reduce, ultimately, poverty. It also conducts economic policies international regulatory and conciliatory. It is part of the United Nations being an intergovernmental organization made up of 187 members. Headquartered in Washington DC, but has several offices around the world.

IMF Performance

• The main objective of the International Monetary Fund is to ensure the stability of the international monetary system that allows member countries, and therefore its citizens transact with each other, which makes maintaining a stable financial system, sustainable and balanced.
• For this, the International Monetary Fund provides funding to member countries to improve the margin of maneuver of each country in relation to its balance of payments. Between national authorities and the International Monetary Fund made an action plan, ensuring effective both for its compliance.
• It also provides technical support and does a great job as a consultant to member countries to develop effective economic policies, for example on tax administration, monetary and exchange rate policy, supervision and regulation of banking systems and the regulations governing them.

IMF Resources

• Currently, the countries to become members of the International Monetary Fund, quotas must deposit called "subscription fees", which are directly related to the economic capacity of the country.
• These assessments determine the economic aid that the Fund will provide each country as well as their right to vote in decisions about regulations. Thus, the higher the contribution of a country, the more power on joint decisions and have more financial aid when tackling a crisis.
• When a country needs financial aid, IMF gives 25% of its shares, with the country's commitment to return within a period ranging from 3 to 5 years. It is expected that the country must repay the loan as soon as possible to not leave without credit to other member countries.
• In the past, obtaining resources from the International Monetary Fund was made by obtaining the interest on loans outstanding, which made it less effective and solvent, then opting for the model that is currently running .

What are the criteria of banks to lend

Unlike what banks and preach the good credit history of a customer is the most important when lending to this, but taking into account factors that are related to the ability to repay the loan voluntarily or necessity, and that should be very clear.

The ability to pay

The business of a credit institution not sue their debtors and keep their property in the event of default, which also usually results in losses, but to collect the amount borrowed and the interest and fees on time.
For this reason, the main criterion for granting loans is that the applicant can meet the periodic installments. Generally, in the case of mortgages, the monthly fee should not exceed 35% of the borrower's monthly income and your household.
If it is a loan in the medium or long term, banks and fixing the type of employment contract that the customer has, in addition to the strength of the employer. If this does not convince them, may require hiring a payment protection insurance, for example.

The warranty

Second, to ensure that in case of default can recover the borrowed capital and interest, the guarantee granted is very important. If it comes to purchasing a home, precisely the mortgage on the property is essential because the loan shall not exceed 80% of the valuation of this.
In other cases, especially whether to grant loans for amounts higher or long periods, you may require the financial institution, for example, the guarantor, that is, someone other than the client is committed to your estate to pay the debt if it does not comply.
It is also usual for the agency credit loans is fixed in current assets of the applicant, that is, both money and other personal property such as stocks or jewelry that may eventually be left with the first, as a garment, and use it to collect the debt.

How to negotiate with the bank's best interest rate

If getting a loan is in itself complicated, get a good interest rate may seem impossible. However, if you follow certain trading strategies, the results will be more profitable than those which have been finalized to not use them.Trading ResourcesTo get a good interest rate is necessary to have two tools that support robust negotiation otherwise the lender will not even bother to raise a possible downgrade. It is important to feel in a position strong enough to require a modification of the standard conditions.
The first of them is to have a good credit history and be customer for several years. In this case the bank does not lose the customer interested and can offer good rates, in fact, experience shows that once a borrower has a loan with an institution, the tendency is to take it both accounts as the other products .
Additionally, it is critical information in advance, asking for contributions to various lending institutions, preferably in writing, about the interest rate they offer. Only in this way you can tell if the rate you are offering the bank concerned is outside of the standard in the market and if it is reasonable to request a rebate.LinkagesOne of the mechanisms currently used by lending institutions to lower the normal interest rate is called bonding, which is to ask the client to hire some additional products and maintain during the term of repayment of the loan.
Within these there is the payroll debit and utility bills, such as electricity, water, telephone and gas contracting life insurance and payment protection, hiring credit cards, and plans pensions and savings.
It is important to analyze how many basis points interest rate cut each product and determining whether compensated hire and if you are able to keep. In the case of savings funds, for example, the borrower is obliged to make monthly contributions.

tips on to help you save money

 

Then read ten helpful tips on to help you save money, either for special projects, education of your children, your retirement or family emergencies that may occur.Record your expenses for a monthSaving money is not as complicated as it seems, but before cutting your expenses, you need to know exactly what the money is going.To find out, write down your expenses for a month daily, weekly and monthly. You can do a mobile app or a book that you always carry in your bag. It is quite possible that you take a surprise.Once you realize what you spend the money, you can decide what things are necessary and what you can do without. That coffee shop you way to work or bottled water you usually drink, they can add a considerable amount at the end of the year, you could have saved with a little planning.You can for example, always go home with a bottle filled with tap water or buying you a thermos to take to work homemade coffee. If your work have a coffee machine, another option is to wait to get your job facilities to take the coveted coffee.What about that beautiful baby clothes shopping with your credit card? Think of the interest they charge you every month if you do not pay all of the purchases. Do not think that you can not enjoy your daily cup of coffee or dress your baby with these great fashion garments. Sure you can! The important thing is to find alternatives that allow you to save. Ask yourself the goal of spending a little less and save a little more each month. If you think so, maybe you'll have more motivation to avoid unnecessary expenses.You pay yourself firstThe secret to make saving a habit is to give priority to you. This does not mean you buy everything that catches your eye, but you will pay each month as you pay all your creditors usual.Ask yourself a realistic long-term and then "pay yourself" saving a fixed amount of money in a savings account or investment. Be sure to do the same day of each month (for example, every 10th of the month). If you wait until end of the month to see what's left, probably you will find that not much left.The easiest way to do this is to schedule an automatic transfer of a portion of your salary, however small, from your checking account to a savings account, a pension fund or a savings account for your children's college . Your goal is to make saving a habit so ingrained that it can not imagine your life without him. At the end of each month you will have the satisfaction of knowing you've got to protect your future and your family a little more than before.Plan your transfers in stagesMost pension funds, like the IRA (Individual stands for Individual Retirement Accounts and Pension Funds), savings accounts or other college savings options, allow you to choose the date for automatic transfer from your account. Plan these dates so that you know that you will not transfer money the same day to several accounts.If you are paid every two weeks, a transfer program every two weeks. If you are self-employed and the money will arrive irregularly, planning two dates in half of the month, if not usually pay most of your bills.Reduce your debtsSettle your debts is one of the best ways to save money, because the interest you pay on most loans (especially credit cards) is much higher than you earn on most savings accounts. So as you can reduce your credit card debt, student loans, loan to buy the car and any other debt you may have, so you can save more. The only large debt is reasonable to have for a long time is that of a home mortgage.For more information on how to pay your debts, see our guide.Become your own loan officerWhen you finish repaying a loan, continues to make monthly payments, but you! Schedule an automatic transfer of the same amount from your checking account to a savings account or an investment fund.Motivate yourself for a specific purposeDecide what you really want or need (a new couch, a new phone, a holiday) and see what it costs. Then set yourself a realistic goal, for example, take six months to save enough. Post photos of your goal in the refrigerator or in your wallet. Every time you will want to buy some new shoes or buy your child a toy more, you really do not need, look at the picture and ask yourself if you want this fad as much purpose for which you are saving.Open a savings account you can not touchSave for bigger expenses, like a down payment on a house or a car, opening CDs. These bank accounts pose no risk and offer a higher interest rate than normal savings accounts, but the money must remain in the certificate of deposit for a period of time (if you take it out ahead of time, you have to pay a penalty). That way, you can not touch it when you're feeling tempted to buy something you do not really need.Fill a jar with loose changePlace a large bottle narrow mouth (so you can not stick your hand) in a conspicuous place, and empty the coins there every night that's in your wallet. When the jar is full, you can make yourself packets (in banks will give the papers to wrap coins) or use the change counting machines found in some supermarkets, so you change coins for bills. After a few months, this may be enough pocket money to pay for a Christmas gift or membership in a gym, for example.Save the extra revenueEach time you receive a lot of extra money, for example, a tax refund, a payment had been delayed a lot, a bonus at work or a monetary gift, enter it in your savings account. Or, if you have debt, use it to pay your credit cards and loans, or to make an extra payment on your mortgage (money capital to reduce the amount of interest you pay over the years).Gasoline CutGasoline is expensive and the less you use, the more you save. If you can not buy a car that uses less fuel, is less often handle.Make turns with other moms and dads to pick up the kids from day care or with co-workers to get to and from work. Plan your errands so that you can make several in the same area at a time. Whenever you can, walk from one store and another or use public transport. And for your next vacation by car, consider traveling to a nearby location.