EU Finmins Seek to End Bank - Tax Row, Grill Agencies

The European Union finance ministers are still searching for a solution whether and how to recuperate the cost of the crises from the European banks.

With regard to how to charge banks for the costs of crises, the opinions are divided. Most ministers agree on making an extra levy on the banks, the issue is however on the one hand where the proceeds should go to and on the other hand what the levy should be based on. The big obstacle remains the fear that not every country will implement the decision.

http://www.nytimes.com/reuters/2010/10/01/business/business-us-eu-banklevy.html?_r=1&dbk

Isabeau Haelterman

The big squeeze

Investment banking has been  a golden age, but now the bursting of the debt bubble came and this slump may last. Firms don't want to lose their talents but banks prefer chooping people instead of cutting pay. If there is economic growth, investment banking should also pick up, but this time it could be different because the economics of the business have substantially weakened. There also can be positive effects, if borrowers move into bond markets, this would boost debt-origination business for some investment banks. 
(the economist) 

Lise Keirens

Sweden's recovery

Sweden is doing exceptionally well in these difficult times. Thanks too strong public finances and government cautiousness it has been able to raise its 2010 growth forecast for the third time in four months which makes it one of the best performing economies in Europe. Even though the rate has been raised the future remains uncertain for the country whose gross domestic product relies for about 50 percent on export. There are even some who say that the stimulus to keep the recovery going has been underestimated and that Sweden will suffer if the economic activity decreases again. Only time will tell who's right or wrong.

(Financial Times)

Mathieu Liebaert

Financial Planning For A Child With Special Needs

It’s very important to make the required financial arrangements so a loved one with special needs gets the right care after you’re gone. A Special Needs Trust and a letter of Intent need to be established. These documents are absolutely critical when it comes to the protecting of government benefits of an individual with a disability. Planning such things may involve important and emotional decisions, but need to be taken right now. (Forbes) 

Loïc Labeeu

Payback Time

For years, Grameen operated in the developing world, offering people microcredits, who would otherwise could not get a loan, particularly aiming for women. 
In 2007 this bank decided to expand its business to the US, where its popularity is rapidly growing.
Sure thing that even in the US, there are people who don’t have access to credit, that is why Grameen decided to join some other microlenders including the well-known Latin American Acción.
Nowadays some smart entrepreneurs realize that supporting microlenders is a great idea: next to making good publicity for the company, entrepreneurs are more likely to get their money back from an African-American woman, establishing her own project, than some usual middle-class big spender.

Lotte Janssens

Newsweek

Spend or save your cash?

According to Charles Bean, Deputy Governor of the Bank of England, we should be spending our cash rather than saving, if we want to help the economy recover.

But would it be wise to listen to this advice, when all over the world, workers fear unemployment? People who saved throughout their entire life are now being urged to give up some of their savings to help their country recover from this financial blow.Mr. Bean's comments are being called "irresponsible" and contrary to sound financial advice. We can find enough reasons to save our cash instead of spending it.
(The daily telegraph)

Lore Maes

Google's new pepper mill

The search engine Google is working on a whole new concept called the GPI or Google Price Index. A new inflation measure for online sold goods. "A tragedy struck our house a few months ago because my favourite pepper mill broke" quotes Hal Varian, Google's chief economist, explaining he came up with this index idea when he was confronted with a list of prices for online sold pepper mills. The GPI could outcome official statistics on accuracy and up-to-dateness but is not meant to be a replacement for the Consumer Price Index (CPI).
(The Financial Times)

Charles Libert

Frauds on the online mortgage market

As usually a lot of British university students are looking for a new accommodation at the beginning of the new academic year, but the risk to be conned by unfair landlords has grown. Many young tenants are faced with fake landlords on the internet who ask an amount of money for an accommodation that even not exists. The last few years  the demand on the internet has boomed which caused an increase in frauds on the market.  Actually students have to be careful and mind that everything starts with a legal tenancy contract, which they have read attentively.

Davy Hautekeete

http://www.independent.co.uk/money/spend-save/rise-in-scams-adds-to-problems-for-tenants-2096090.html

Tuition fees rise causes a stir

English higher education is very likely to undergo a dramatic change.

According to a review, led by Lord Brown, England takes into account the possibility of removing the current cap at tuition fees, allowing universities to charge whatever they like as in a free market system. Due to this removal it’s obvious that future fees will increase with thousands of dollars, it’s only a question how poor students will be available to pay for all of this.

Sien De Neve
(http://www.guardian.co.uk/education/2010/oct/04/poor-students-priced-out)

Sell yourself for a scholarship!

Students searching for financial aid, now can search themselves for donors to fund their education the next four years. Websites such as GreenNote, SponsorMyDegree and Scholarmatch are allowing students to search more proactive for their own funds. Each website uses a unique formula, but in essence they’re all the same. Attract donors and this way, build your own college scholarship plan.

(Financial Edge)

Emiel Lippens

Children and their pension...

Due to the fall in rates on children's savings accounts, which is caused by the introduction of the government-sponsored child trust funds, alternative saving schemes and pensions for children are thriving. Investors can choose between two options, either they invest on the investor's name, meaning the investor has to pay tax on the investment or it's a bare trust, which means the investment is exempt from capital gains and income tax. Another option for people who want to make a longer lasting investment, as most saving schemes are put on the child’s name when it turns 18, is to save money in a pension for children. This investment is exceptionally interesting for those with higher incomes, as it is a form of tax relief. (Financial Times)

Nathalie Hespeels

Why printing money makes sense

Millions of people are unemployed due to the economic crisis and instead of thinking about them, the policymakers are worried about the deficit projections of the future. The reason of the crisis is the lack of demand which can be easily solved by printing more money. People would spend more on all sorts of items, what would provide a enormous boost to the economy and create employment. Sadly, the goverment doesn't have the courage to do this so our only hope right now is a very good money counterfeiter.

Tomas Dewitte

source http://www.guardian.co.uk/commentisfree/cifamerica/2010/oct/11/useconomy-usemployment

Singapore billionaire hunting for Liverpool

Mr Lim, a Signapore billionaire, is making an offer to buy one of the most prestigious football clubs in the world. Mr Lim, whose fortune was estimated £1bn, wants Liverpool to start winning again. This is not his first step into the business of football, he already owns several Manchester United themed bars in Asia. The big question now is, is the billionaire in love with football or has he just found another cash cow? BBC

Alexander Koopman

Investing for Dummies!

The financial crisis has hit us hard. Everyone is very cautious and they want to save their money without any risk. For the economical revival, it is still very important that people keep investing. However, it is very difficult to choose a lucrative option. Gold is very safe and it has a high return. If you want to stay on the safe side, fixed deposits (with a reliable return) and mutual funds (unpredictable profit) are also an excellent choice. If you are not afraid to take some risks, investment in stocks can bring you larger profits.

(http://www.financialexpress.com/news/making-the-most-out-of-uncertainty/695395/1)

Elise Eeckhout

George Osborne is coming for your kids

It is expected that Chancellor George Osborne will take further action in his raid on child benefit.
At the Conservative Party Conference on monday, Mr Osborne already announced that higher rate British taxpayers would no longer receive child support. Now it seems likely that he will also succeed in lowering the age at which children still receive benefit from 18 to 16. In reaction to the complaints by angry mothers and Conservative supporters, First Secretary of State William Hague commented that the current deficit "is a situation we have to deal with". The Telegraph

Gilles Gerlo

As the twig is bent, so is the tree inclined

In order to improve the financial knowledge of children and teenagers, and excite their interest in the financial sector, some new projects were launched. Instead of buying a totally useless gift, you might offer the young investor a single share of a company that is related with his/her daily environment, for example Disney or Starbucks. Furthermore, three other ideas were developed: offering the youth a few sessions with a financial planner, giving them an online finance class or open a retirement account. A similar original gift will definitely teach them practical and lasting skills. (Forbes)

Pieter Dhertoge

Stop wasting, start saving

In times of crisis everyone wants to save money including the government, Sir Philip Green explains how. First of all the government should not give their employees things they do not need like cell phones.  Furthermore the government could try to find the cheapest alternative for basic office materials like paper. With just a few adjustments the government will be able to save money which they could use for other purposes without raising taxes.

Frederick Dobbeleare

The Financial Times

Currency war, a race to the bottom

As the International Monetary Fund flopped this weekend in soothing
the anxiety of a currency war, the forex markets are about to encounter a volatile period.
The IMF tried to act as a referee in the currency-game between China and the USA.
China is being accused of keeping its currency artificially low
in order to climb out of recession, making other countries drop in competitivity. China aggreed to steadily raise its rate of exchange to avoid social unrest, but it's still a long way to accomplish the IMF's objective. (the Guardian)

Lorenzo Facq

Warren Buffet vs. Barack Obama

President Obama has proposed a levy to recover $117 billion of taxpayers’ money, which banks consumed during the financial crisis. Warren Buffet opposes to this proposition, as he believes the money was used to save the American economy, not solely the banks. Moreover, financial institutions such as Goldman Sachs and Wells Fargo & Co., have already repaid the government sufficiently in bailout funds. Obama is still determined to recover the money as a response to the massive profits and bonuses these particular institutions have reported. (Bloomberg.com)

Tobias Hollanders

10 million new jobs at risk

The Institute of International Finance (IIF), that stands for 420 of the largest financial institutions in the world, announced yesterday that an overreaction of the banking regulation could lead to catastrophic sequences on the economic recovery, with perhaps a cost of 10 million jobs. This reaction is given on the national governments, who want to speed up the implementation of Basel III, an agreement that involves enormous savings for the banks. This would, according to the IIF, put at risk the lending to the real economy and by that losing job opportunities that normally would be created. Despite the efforts of the IIF, more and more organisations arise, who want the Basel III agreements to go through. (The Independent)

Lara Moons

The rich pay, the poor suffer.

Political parties in the USA are debating the issue whether rich people, those who earn more than $250,000 a year, should pay more in taxes. N. Gregory Mankiw, a republican, considered what he would do if he had to pay more. And the answer is clear: he can afford to work less, so why wouldn't he do that? Therefore the conclusion is that the poor would bear the financial problems of this ‘solution’.  (The New York Times)

Michiel Meire

How to avoid paying hidden credit card fees

Be aware, using your credit card as a payment method is not that costless as you may think.

Many companies charge an extra fee every time you make a big purchase with your credit card, so at the end the total cost knows a significant rise. Even the bank industry admits that the extra fees are often not in comparison to the real costs the companies have to make by  processing a payment. Nevertheless, it doesn’t have to be so that these companies can take your money, there are ways to avoid these credit card fees!

Mechtildis Goessens

Telegraph

How Germany brings joy to the world

While the Americans remain uncertain whether the economy is re-emerging or not the Germans have every reason to look happy to the future. The latest data show that the German economy has grown by 2.2% in the last three months, which is far better than even the most optimistic predictions. The main reason for this growth is the giant surge in export which stimulates the national economy thus even lowering the unemployment rate under the rate before the crisis.

Although the growth is not yet certain to continue this news brings joy to the whole world because the fact that German export is booming also means that in other countries there is money enough to keep buying.


Wouter Fransaer

(The Economist)

"Spending genes"

A recent academic study has shown that spending behaviour is genetically determined. Researchers tested some 360 twins, because they have the same family background, but not always the same genes, since there are genetically identical and genetically dissimilar twins. The tests showed that the consumer habits of both types of twins tended to be similar. According to the same research, prudence and risk-taking behaviour, two qualities that are very characterizing when it comes to spending, are very heritable. (The Independent)

Ann-Sofie Dewaele

Financial crisis, let's go buy a house! Or not?

With the current high foreclosure rates and tumbling home prices, you might think now is the time to buy yourself a nice home in the USA , well think again. According to online real estate search engine Trulia and their Rent vs. Buy Index, the choice between renting or buying a house depends on the city you'll be wanting to live in. This index compares the costs of purchasing a two-bedroom property with the costs of renting one across the 50 largiest cities in America. As a first rule of thumb, consider that it is better to rent if the home price is 15 times higher than the annual rent for a similar property. (CNNMoney.com)

Laurens Helewaut

To invest in gold or not to invest? That's the question.

Nowadays, you don't get much interest on your saving account and investing in stocks is very risky. Some say buying gold is the answer because in the past eleven years gold prices have increased more than 430%. Others are sceptical about gold and say that the rise of gold won't last forever. What should you do? Is it worth the gamble? (the guardian)

Jonas Lefevere

Is the music business duying?

Sales of the CDs, tapes and records have declined for the past ten years as a result of the music sites, like Apple’s Itunes. Although not many people are buying CDs, the music business still makes a lot of profit. The most money is earned by giving concerts due to the raise of the ticket prices. Also T-shirts, baseball caps of the artists and other forms of merchandising are a way to make profit.

Eline Janssens (The Economist)

University, a privilege?

As university costs keeps on rising it can pay back to study overseas. Even in the EU today there are big differences between the countries. In the UK you pay up to £10000 so teenagers miss out on university because their parents can't afford it, in Sweden you pay nothing nevertheless they offer a high level of education.
Moreover there are other advantages, dispite the teary wave goodbye and the culture shock, it will be an amazing experience which will seduce future employers.
(the guardian)

Stef De Visscher

Safe online shopping with the Visa CodeSure card

Card giant Visa has launched a hich-tech bank card to make online payments more secure and to reduce fraud on the Internet. The card looks exactly the same as a standard credit or debit card, but has a LCD screen above the signature strip and a built-in keypad; also a battery is embedded in each card. When purchasing online, users first have to input their card number;  they then have to enter their pin, at which a unique one-time-passcode will appear on the display, this passcode will be used to authenticate the payment. Visa CodeSure is expected to be adopted by banks and soon, it will also be rolled out to customers across the UK.
(Guardian)

Silke Hubrecht

Rebuilding your life = having an account

Ex-prisoners have to have a bank account to reintegrate into society. They need an account to receive a salary or to pay bills and not to be excluded from society. When they have a bank account, the opportunity to relapse is cut by a third. Halifax and Barclays propose an altered account while they are still in prison: they are not allowed to go into the red; other banks should follow this scheme.

(The Independent)

Tim Mannens

Money makes you happy… or doesn’t it?

A survey of 1000 Americans proved that happiness rises with income… as long as you’re not a high earner.

According to this investigation, happiness rose gradually the more people were paid, but only until they earned around £50,000 a year. The life satisfaction and happiness of high earners appeared to depend on other factors, such as spending time with family and friends and enjoying leisure.

The most significant conclusion of the researchers is that making more money does not necessarily implies being happier, but earning less money relates definitely to more emotional pain.

(Guardian)

Annelies Martens

Transform your CREDIT card into a MERIT card...

Credit card companies charge a lot of interest, leaving you irritated with a financial hangover. But now it’s payback time; with a few savvy tricks & tips you can acquire a nice profit, and the best part: it's completely legally!

The concept of the “reward cards” is simple: the more you spend the more points you earn. By using cunning spending techniques and by repaying your debts meticulously, you can swap these points for gift rewards or cash.

If done properly, it can save you up to several hundred dollars a year.

The Independent

Steven Hoornaert

Mobile payment, the new way of paying

In a near future, people will be paying purchases with their mobile phone, that's by and large Visa's new project. A chip placed in the handset will make it possible to transfer money from your account to the concerned retailer. With this new system, Visa promises people to win a lot of time. It wil be very successful according to Visa, who wants the coming London Olympics to adopt this new way of paying.

(the Guardian)

Caroline Latour

Loss of child benefit

 

Removing child benefit from higher rate taxpayers to save £1bn a year, the new plan of chancellor George Osborne, doesn't hit the popular fancy. Child benefit cut would cause several negative consequences such as our commitment to marriage and the suffering of middle-class single mothers. There would be a decline in the income of married couples and single parents with children, what would make their life harder. To choose between welfare of households or save £1bn, it is hard, isn't it? (The Guardian)

Sander Dhooge

Cheque out from your bank!

Consumers rarely see the value of switching their current account, although they could save a lot of money because other banks offer better deals. On the one hand, there is a lack of fairness and transparency of banks about their charges, which makes it very difficult for clients to compare. On the other hand, consumers see too much barriers for an easy switch: extra costs, hassle, errors, few benefits... But the British Bankers' Association recently reported a high satisfaction level of the switching process, so maybe it's time to choose another current account. (The Independent)

Ruben Gryp

Children, victims of recession

British children are facing a reduction in the amount of pocket money they receive. One in four parents admit they have reduced the amount of pocket money as a direct result of the crisis. Youngsters also have to help more around the house in exchange for some money. The average child receives 5.80£ a week, but it is a striking fact that boys receive more pocket money than girls…           (the guardian)

Simon Hosten

Biggest monthly drop in 27 years

In September the house prices fell 3.6%, it is the biggest monthly drop since Halifax started collecting data in 1983. Nevertheless it's not a reason to panic about a huge house price crash. According to Halifax the underlying trend is rather given by the quarterly figures which is only -0.9% for the three months to the end of September. Even this rate of decline is slower than the fall in quarterly changes in the second half of 2008 which was between -5 and -6%, so it's to early to say this fall of 3.6% is the beginning of a long period of declining house prices. (The Guardian)

Thomas Dewulf

It's payback time! Realistic or way too optimistic?

Within two years, AIG will be privately owned again, at least that’s what they predetermined in a plan they set up with their rescuers. Due to the credit crunch and the big financial risks they took, AIG had to borrow more than 120 billion dollars, a debt AIG wants to pay off as soon as possible. The plan consists of three main steps, which are: a 20 billion dollar repayment to the Fed, an interest refund on the Fed loan and a 12% stake increase (from 80% to 92%) by the Treasury. Time will show whether the sceptics (who estimate 5 to 10 years for the execution of the plan) or whether AIG will prove their right… (The Economist)

Mathias Goeminne

It’s a man’s world

After all those years women still earn less than men, even if the work is as hard or harder than men. Although women could become the No 1 breadwinner, they are faced more than men with the reality of the work/life balance equitation. When women come home from their job, there is still some housework to do. Is this just about sexism? (The Guardian)

Liesbet Gillis

Belgians can’t pay their debts

A huge amount of Belgian family’s aren’t able to pay back their debts. In September 2008 7.1% of the family’s in Belgium couldn’t pay their bills on time. This year, due to the economic crisis, this number is even higher. Now 7.3% of the Belgian population is kown as a defaulter. Especially the mortgage and the installment loans know the highest increase (15-16%) of people who can’t pay their debts. (De Standaard)

Maarten De Tant

Africa: a potentially big source of profits?

Everyone is looking at Africa, ever since ICBC (the world’s biggest bank by value) paid billions in 2007 for a 20% stake in Standard Bank, one of South Africa's big four banks. The continent is becoming more and more competitive, as two sorts of firms operate in it's region: the biggish locals and the rich-world firms. Many banks envy the Standard Bank set-up, but doubt that uncertain alliances with Chinese banks are worth it. “They suck everything out of you”, says one European bank boss. The hard-headed approach, however, is a compliment too: banks are taking Africa seriously.

(The Economist)

Myrthe Herregodts

Saving a bank = bringing down a country

The failure of the nationalised Anglo Irish Bank could not only bring down the bank its self, but the entire country! The bank already received 23 billion euros, and now, in the worst case scenario, they are going to need another 11 million to habilitate their bailout. Due to this plan, the Irish deficit will rise up to 32% of the GDP and the total cost (spread out over 10 years) will be more than the entire GDP of the whole republic. Luckily, the Irish government still has faith and they say they won’t need to lend money from the IMF or the ECB to habilitate their debts. (Guardian)

Thomas Goeman

Saving for a rainy day?

In times of a financial crisis, is it a good idea to save some extra money?  Not according to The Bank of England’s deputy governor Charlie Bean! He claims that, while savings earn very little interest, we should help the struggling economy by ‘hitting the high street’. Another good reason to spend some extra euros is the fear of hyperinflation since there has been so much government spending. 

But other experts warn that, with a pensions gap of £379bn in Britain, it might not be such a bad idea to set some money aside. Also, we should be prepared for higher taxes, unemployment and the dropping value of houses. So after all, it might not be such a bad idea to save up for a rainy day!

(The Guardian )

Jasmina Devinck

No interest paid on most current accounts

Interest rates on current accounts are dropping, whilst the number of current accounts charging monthly fees, in exchange for benefits, is rising. According to Michelle Slade, spokeswoman for Moneyfacts.co.uk, even a 0.10% interest loss will be a significant cost saving for banks. Big names such as Royal Bank of Scotland, HSBC and Barclays are known to follow this trend. On the other hand, accounts offering benefits, such as travel insurance, in exchange for monthly fees no longer come alongside better overdraft and credit interest rates.

Lena Kaliningondo

Currency wars: the return of the crisis?

The I.M.F. (international monetary fund) warns global economy for an unequal battle fought by China. Emerging markets such as China have a major competitive advantage by holding their currency on an extremely low level. With the result that they get a tremendous advantage in exports of goods and services which creates a certain tension on the global markets. If China does not appreciate his currency, other countries are forced to follow his example whereby we might arrive in a huge currency war giving the ideal conditions for an other crisis in less than four years.

Bob Dossche  http://www.nytimes.com/2010/10/08/business/global/08imf.html?_r=1&ref=business

Boost your account!

In times of crisis extras are always welcome.  A second income boosts your account so you can spend more, get over those debts or save for unexpected occasions.  And if you think earning some extra cash is hard, you’re wrong. It can be easy and fun! You can rent out spare rooms, driveways and garages, sell some old stuff, take part in online surveys, become (a little) famous by working as a supporting artist or a model… They’re so many possibilities to make your life easier. (The independent)

Jolien Dobbelaere  

Savings Clubs

Most of the poor people are not allowed by banks to deposit their small amout of money on a savings account. But what happens next for those groups of the population? The explanation why the banks do not accept their money, is simple: it is unpretentious for them to deal with such small amounts of cash. So less fortunate people had to form communities to gather their money, in order that it would be possible to save. This types of arrangements are unregulated and their money is unprotected of course. The question is, do they really want to be helped? (The Guardian)

Dhondt Simon

Cash = History

After the credit card and the debit card, now the contactless card is being introduced and even used, the newest hype in banking world.

These cards are used to do  small payments, like buying coffee in coffee shops, newspapers, food, etc. and they are estimated to be 25m of all money in the UK by the end of 2012.

No endless searching after coins anymore, queues will disappear and everything will be much easier due to another plastic.

We are now only waiting for the big supermarkets to join, people to trust the contactless cards and it all will be set, ready and go. (the guardian)

Amanda Morina

Example post: Pay your dues

British students starting their university training now expect to end up with a degree… and around £30,000 in debt! Students are facing ever higher tuition fees and rising prices for food and lodging. It takes over 10 years to repay these debts. Luckily for British students, most parents help out even after their kids leave university. (The Guardian)

The English teachers

Example post: Thank you, please come again

Banks will do just about anything to get their hands on university students. British high-street banks are offering up to £50 in cash when students open an account. The reason is simple: although students won’t make banks rich while they are still at university, after graduating, they will be depositing their pay cheques every month, taking out mortgages and life insurance policies. That is why banks waste no time in securing these potentially lucrative clients. (The Guardian)

The English teachers