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Radiohead to release new album online - You name the price
2007-10-04 00:34:00
Radiohead has scheduled to release the band's new album online on the 10Th of October. The album will be available for download here. The exciting and baffling part is for the first time the consumer will decide how much to pay for the right to download the songs. In my opinion this innovative initiative just might work.In order to examine the economic feasibility of this initiative we need to examine it more closely. Radiohead's initiative is literally changing the value chain in the music industry. There is little debate that the sales generated by this initiative will be considerably smaller. But there is more to the equation. By releasing their album directly online Radiohead actually gains the following:1) Shortening the value chain to the customer and making record companies redundant in the process. The drop in sales has a good chance to be compensated by the direct payment from the customer to the band.2) Creating a product in the form of a download able music file no long...
More About: Radiohead , Online , Release , Price , Album

What is offshore banking?
2007-10-03 00:37:00
Offshore banking simplified is utilizing financial and legal advantages available in a country outside the beneficiary?s country of residence. These banks are located at countries with low tax jurisdiction and more discreet privacy laws. The most infamous of these countries is Switzerland. Other countries which fit the profile characterized are Luxemburg, Andorra and the Cayman Islands.The advantages sought after by clients of offshore banks are mainly:1) Privacy and bank secrecy2) Lenient tax regulations and zero tax rates3) Easy and discreet access to accountsThe term offshore is also used to describe sophisticated tax planning designed to lower tax liability of various companies by registering them in the countries with the most suitable tax regulations.Offshore banks provide other advantages such as stability for residents of unstable countries, lower costs base and higher interest rates, potential for combining offshore tax planning and banking, creating competition in the bank...
More About: Banking , Offshore

How to put your money to work
2007-10-03 00:12:00
Your money working for you. Sounds wonderful, doesn't it? ?How do we make our money work for us?? is a simple question with simple answers. Save early, save often and invest wisely.Saving early and often sounds simple enough but is it? Saving early and often are the hardest parts of getting your money to work for you. It's never too early to start saving. ?The most powerful force in the universe is compound interest" Einstein is often quoted for saying. Every 100$ saved for 10 years with 10% yearly interest will be worth 2.5 times more. Save for 20 years and earn 6.7 times the amount.When we?re young consumption levels are naturally high as we are making our first steps in life. Making a habit of saving is a must in order to achieve the status discussed at this article. There are several ways of making a habit of saving: A fixed sum automatically saved at the beginning of each month is one, planning a monthly and yearly budget is another and more are available. The point is, make ...
More About: Money , Work

Peak Oil - How close are we?
2007-10-02 22:38:00
Peak oil, according to Wikipedia, is: "The point or time frame at which the maximum global petroleum production rate is reached. After this time frame, the rate of production will enter terminal decline. According to the Hubbert model, the production rate will follow a roughly symmetrical bell-shaped curve. This does not mean oil will suddenly "run out", but the supply of cheap conventional oil will drop and prices will rise, perhaps dramatically. The following is an illustration of Hubbert's model: According to the assumption of market efficiency these price increases will occur some timebefore the actual peak. Has peak oil production already happened? Are current price increases a part of the process? The following is an illustration of world crude oil production from 1960-2005:Hard, even impossible to tell. Hubbert originally estimated 1994 to be the year of peak oil production. Some economists and Geo-physicists estimate 2020-2030 as the years of peak oil production. Other econ...
More About: Politics , Peak Oil , Close , Peak

Transparency International - the global coalition against corruption
2007-09-29 17:59:00
Transparency International is an organization is a global civil society organisation fighting against corruption world wide. The importance of a worldwide coordinated effort to fight corruption is intuitive. Therefore I've chosen to add a link to the organisation's Homepage (also on my link list).The following map charts the organisation's corruption perceptions index (CPI) for 2007. The countries perceived as most corrupt are brightest red:The link between corruption and human rights, equal opportunities, democracy, higher living standards and everything we hold dear can easily be spotted.The organisation has set 5 defined global priorities in the fight against corruption:1. Corruption in politics2. Corruption in public contracting3. Corruption in the private sector4. International anti-corruption conventions5. Poverty and DevelopmentAmong the impacts of corruption the organisation lists the following:1. Direct impacts - Most obvious impact of corruption portraying itself by one...
More About: Politics , Strategy , Global

Stock recommendations from analysts or brokerage houses: How valuable are t
2007-09-27 17:52:00
I believe it was Warren Buffet who said ?We read analyst reports only if we can?t find the satire pages of the paper?. This saying, while extreme, demonstrates how stock recommendations by brokerage houses are often treated by investment professionals.Analysts or brokerage houses base their recommendations on research of certain companies and their stocks. More often then not there are more interests at play then meets the eye. This does not mean it is necessarily wrong to act according to these recommendations but you should always have the complete picture before acting.Take a look at the following facts about brokerage house (or analyst) recommendations:1) Analyst stock recommendations are always characterized by being quite optimistic. Almost 80% of recommendations are BUY recommendations.2) An analyst?s BUY recommendation is followed by an incline in the stock?s price and a SELL recommendation by a decline in the stock?s price.3) Approximately 15% of recommendations are made by...
More About: Strategy , Investment , Houses , Stock , Brokerage

Are we facing a recession ?
2007-09-26 14:17:00
The impact of the recent sub-prime credit and housing crisis has left a relatively moderate impact on US economy. Pressures on home prices carries on as S&P/Case-Shiller U.S national home price index posts a record annual decline in the 2ND quarter of 2007.According to a recent article by the NY Times fears of recession are growing as the decline of home prices lowers personal consumption expenditures due to a weak market for mortgages. However the global economic environment enables growth of export and a decline in unemployment rates accompanied by a growth in real hourly earnings. According to Goldman-Sachs analysts quoted by the NY Times chances of a recession are approximately at 33%. You be the judge.
More About: Recession , Facing

Tips for young investors
2007-09-25 19:13:00
As many other young investors I've made my share of mistakes. These mistakes are often the result of high return on investment achieved in a short time which leaves you wanting for more (just like a casino). The following is my list of 11 tips for young investors. These are not easily learned but are crucial to success in investments:1. What goes up might come down - Risk is inherited in investing. Higher returns require higher risks. The risk of investing is not always clear. You can actually lose money and never see it again, no matter what is you term of investment. For example take the NASDAQ index. At 2000 it peaked at level of 5,500 points. If you invested at that time you have yet to see your initial investment returned as the NASDAQ is currently at around 2,650 points.2. Diversify - Young investors are usually exposed to astounding amounts of information at first from articles on certain stocks to analyst reports recommending other stocks. The hope of getting rich fast (or ...
More About: Tips , Investors

Establishing your investment goals
2007-09-24 23:43:00
Before investing your money it is wise to determine the goals of your investment. We are usually quite good at setting the primary goal of investment ? Better retirement, college fund, buying a house and more. These ultimate goals should be carefully looked at and analyzed in order to adopt the most suitable investment strategy available. Therefore goals should be formalized and examined using the proper tools. Setting goals for your investment should be based on two major parameters (excluding the initial sum of the investment which should be known by now):1. Risk and return (which always go hand in hand)2. Term of investmentIn setting investment goals you should ask yourself the three following questions:1. How much of my initial investment am I willing to lose and what is the return I expect on the risk taken?Risk, simplified, is the chance of losing some or all of your initial investment or not gaining the required return on your investment. Risk and return go hand in hand. As t...
More About: Strategy , Investment , Goals

Managerial decision making and the decision process
2007-09-24 18:14:00
Decisions drive an organization. The theory on decision making is vast but can be summarized quite effectively by using Vroom and Yetton's normative model for decision making.The model characterizes several types of decision making, each suitable for varying situations. These types are:A1: Leader takes known information and then decides alone.A2: Leader gets for information from followers, and then decides alone.C1: Leader shares problem with followers individually, listens to ideas and then decides alone. C2: Leader shares problems with followers as a group, listens to ideas and then decides alone. G2: Leader shares problems with followers as a group and then seeks and accepts consensus agreement.According to Vroom and Yetton each decision is influenced by two major factors:1.Decision Quality - Is the quality of the decision measurable?a. Does the manager have the necessary skills and information to make the decision? Do employees possess that information?b. Does the issue at hand...
More About: Leadership , Decision , Process , Decision-Making , Decision making

How to double investments in a month
2007-09-20 14:46:00
The easiest way to double your investment in a month is in a casino. This may sound simplified but it holds an important truth. To double your investment in one month you must be willing to lose it all in the same month. If this is the case then read on (although my main point should be clear by now).A well known rule of investment is that return is function of risk. 100% monthly return is equal to a whopping yearly return of 1300%. This sort of return on investment is available only in derivatives and derivatives based financial assets. Some examples are options, future contracts, convertible bonds and mutual funds trading options.Investing in derivatives can actually produce greater return then merely 100% a month (Up to 1,000% and more). What's the trick then? Trading in derivatives is highly complicated and requires a deep understanding of financial assets and markets. When trading in derivatives one is actually risking the initial investment required to purchase and option, fo...
More About: Double , Investments , Month , Mont

Trading Options: Tips for success
2007-09-20 14:44:00
Personal investors tend to lose at option trading. This is an unfortunate but unavoidable fact as these are sophisticated markets which require high proficiency and deep understanding as well as advance algorithms and computing power in trading.Tips for success in trading option should be in accordance to the aforementioned truth.1) Limit your losses - It is very easy to adopt a double or nothing attitude at options trading. This is a mistake as the risks, at times, are highly against you. Only trade money you are willing to lose.2) In options high variability yields high return.3) Control your emotions - Options trading requires cool heads and discipline. Follow your initial analysis.4) Look for trade volume for quick buy in and buy out.5) Trust your judgment and be wary of the judgment of others.6) Don't take unnecessary risks.7) Take the time to evaluate the market at various stages - Opening and closure in particular.8) Don't be quick to sell on profits or hesitant to sell on ...
More About: Trading , Success