Posts Tagged money
Consumer Spending in U.S. Rises More Than Forecast
Posted by Tetyana Matychak in Favourites, Trading Markets on August 30th, 2010
Consumer spending in the U.S. rose more than forecast in July, exceeding gains in incomes, a sign the improvement will not last without more jobs.
Purchases rose 0.4 percent, the most since March, after little change the prior month, Commerce Department figures showed today in Washington. Incomes climbed 0.2 percent, less than projected, and the savings rate dropped.
Disposable incomes, or the money left over after taxes, dropped for the first time since January after adjusting for inflation, showing the lack of jobs is hurting Americans’ spending power. Companies from Intel Corp. to J. Crew Group Inc. are cutting forecasts as unemployment and flagging confidence prompt households to scale back.
“This, so far, is allaying near-term double-dip concerns,” said Derek Holt, an economist at Scotia Capital Inc. in Toronto, referring to fears the world’s largest economy will tip back into a recession. “It nonetheless showcases very lackluster growth in the U.S. economy.”
Stock-index futures fell after the report, extending earlier losses, and Treasury securities rose. The contract of the Standard & Poor’s 500 Index was fell 0.3 percent to 1,060.3 at 8:54 a.m. in New York. The yield on the benchmark 10-year Treasury note dropped to 2.60 percent from 2.65 percent late on Aug. 27. Read the rest of this entry »
Raising Money During The Summer Slowdown
Posted by Tetyana Matychak in Investing on July 6th, 2010
The streets are empty in NYC this July 4th weekend and it seems like everyone is at the beach. The Gotham Gal and I are getting ready to head to Italy for a week on Sunday night. Summer is here and I can feel the pace of work life and city life slow down.
Many of our companies experience a slow third quarter because people aren’t working at quite the same pace in July and August and it is hard to get it all back in September. And many entrepreneurs and investors I work with assume for the same reasons that the summer months are a bad time to be raising money.
I don’t think the summer months are a bad time to be raising money. It’s a different time to be sure, but not necessarily worse. We see a lot less incoming activity in the summer months so it may be the best time to get a VC’s attention. If everyone else thinks it is a bad time, then the contrarian in me says it is a good time.
I just did a quick query on our portfolio and we made our first investments in eight of our twenty-seven active portfolio companies during the third quarter. Three of our investments were closed in July. Three of our investments were closed in August. And two of our investments were closed in the first couple weeks of September.
Eight out of twenty-seven is thirty percent of our portfolio, and that is north of the twenty-five percent of the year that the summer represents. So our firm has been more active on new investments during the summer than we are on average. Read the rest of this entry »
Nineteen Billion Dollars Is A Big Deal
Posted by Tetyana Matychak in Banks on July 2nd, 2010
The blogosphere is having conniptions over Scott Brown’s announcement that he won’t vote for final passage of FinReg because of the $19 billion tax on banks that was incorporated at the last minute. The recurring theme is that $19 billion is a small amount of money and that anyway it’s going to be levied on the big banks that have benefited from government efforts to keep the financial system afloat.
Here’s what Ryan Avent has to say:
The fee in question was introduced during the conference session and is designed to cover the cost of the bill, that is, to make sure it’s deficit neutral. It’s a modest amount, and it’s levied on entities that have benefitted significantly from the massive government intervention deployed to keep the financial system afloat during the financial crisis.
And Joe Weisenthal jumps on the subject with this:
This whole thing is a bit silly. $19 billion, levies across the financial system, on various players based on their size is tiny. We repeat: tiny. And beyond that, this isn’t some kind of punitive tax; it’s designed to pay for the enforcement of the bill, which presumably Scott Brown is in favor of, if he likes the rest of the bill. Read the rest of this entry »
Deflation Comes To Europe
Posted by Tetyana Matychak in Budget, Favourites on June 11th, 2010
Many economists regard deflation as more dangerous than inflation, as it encourages consumers to delay purchases as they wait for a lower price tomorrow. When consumers put off buying in anticipation of lower prices it creates a downward spiral of lower demand followed by lower production.
Deflation harms debtors as well. Countries like Greece have to pay back the money they borrowed with money that will be more expensive next year. Paying down debt with cheaper money slows economic growth. Japan has struggled with deflation for the last two decades, as growth in Japan faltered.
A sign that deflation is near comes from countries like Ireland and Spain that saw prices fall in May. Inflation was below 1 percent in five other euro zone countries.
There are four causes of deflation:
Decrease in the money supply
Increase in demand for money
Increase in supply of goods
Decrease in demand for goods Read the rest of this entry »
U.S. wants to boost airline passenger bumping fee
Posted by Tetyana Matychak in Budget on June 3rd, 2010
Maximum compensation for bumping passengers off oversold flights would rise to $1,300 under a U.S. government proposal released on Wednesday.
The Transportation Department plan would also expand its runway delay program to overseas airlines, making them comply with the same requirements as domestic counterparts for ground delays exceeding three hours.
Current bumping fees range from $400 to $800, depending on whether an alternative flight is available and whether the trip is domestic or international service. U.S. airlines also would have to clarify charges for checking luggage and notify consumers if the fees rise.
The rule builds on steps taken by the Obama administration to bolster consumer protection in the wake of long ground delays and charging for bags as a way to get more money from their customers. Read the rest of this entry »
Mutual Funds: 10 questions to test your IQ
Posted by Tetyana Matychak in Favourites, Fund Markets, Investing on May 14th, 2010
Mutual funds are a cornerstone of retirement planning. Yet they’re widely misunderstood and investing ignorance can really cost you. Do you know the difference between an expense ratio and a turnover ratio? What about an open-end fund versus a closed-end? Try this quiz, and check out the answers at bottom:
1. What percentage of households own mutual funds?
(a) 10 percent; (b) 27 percent; (c) 43 percent
2. When was the key law governing mutual fund operations adopted?
(a) 1929; (b) 1933; (c) 1934; (d) 1940
3. How many mutual funds are there in the U.S.?
(a) Nearly 1,000; (b) Nearly 4,000; (c) Nearly 8,000 Read the rest of this entry »
What If Your Tax Refund is Wrong?
Posted by Tetyana Matychak in Budget, Favourites on May 12th, 2010
Most of us get refund checks at tax time. And most of the time, those refunds are just what we had been eagerly awaiting. But occasionally, the amount on an IRS check is not what we expected. In some cases, it’s less than we figured on our 1040s. Every now and then, it’s more.
Regardless of whether the refund discrepancy goes against you or favors you, some steps can be taken to resolve the matter. That way, even if you and the tax collector aren’t necessarily satisfied with the eventual amount, you’ll at least understand the mathematical misinterpretation.
Explanation en route
First, don’t panic. There’s usually a logical explanation for why you and the Internal Revenue Service came up with different numbers.
The IRS will send you a written explanation for the unexpected amount. The only problem is that the explanation doesn’t always accompany the check. Such coordination of cash and comment is particularly difficult with directly deposited refunds, which are likely to show up unexplained in your account first.
Why your refund might be an unexpected amount: Read the rest of this entry »
Energy Efficient Home Improvement
Posted by Tetyana Matychak in Budget on May 4th, 2010
Tax breaks for energy efficient home improvement purchases are set to expire in 2010, leaving taxpayers with just enough time to take advantage and save money.
This year is a good time to make green home improvements. This is because — unless Congress extends the tax breaks again — the advantages offered by green home improvements will be disappearing. 2010 is the year they expire, so if you want to get an advantage for upgrading your home with green improvements, now is the time to do it.
Available Tax Breaks Related to Home Improvement
You can get a tax credit for 30% of the cost of making small upgrades to your home, up to $1,500. This is a credit that will reduce the amount of money you owe on your 2010 tax return (to be filed in 2011), kind of like a gift card. These small upgrades include the following:
High efficiency heating and cooling systems.
Better insulation.
Energy efficient windows.
Energy efficient doors.
New water heater.
Duct seals. Read the rest of this entry »
GLOBAL MARKETS: European Stocks Edge Higher
Posted by Tetyana Matychak in Fund Markets on April 29th, 2010
European stocks edged higher early Thursday, with investors finding some comfort in the U.S. Federal Reserve’s easy-money stance amid better-than-expected corporate earnings. However, overall sentiment remains one of caution given the euro-zone’s ongoing sovereign debt crisis saga.
The two-way pull between still decent macro and corporate news flow and the apparently deepening black hole of debt dug by the peripheral euro-zone economies will continue a while longer, said Ian Williams, strategist at Altium Securities.
By 0735 GMT, the Stoxx Europe 600 index was 0.3% lower at 259.94. London’s FTSE 100 index was up 0.2% at 5598.99, Frankfurt’s DAX. Read the rest of this entry »
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Consumer Spending in U.S. Rises More Than Forecast
30 August 2010
Monetary Policy Gets No Respect
19 July 2010
Stocks May Surprise By Year-End
5 July 2010
Is A Global Reserve Currency A Necessity?
28 June 2010
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