Bank Of America: To Forgive And Forget

Mortgage lenders are caving in to government pressure to reduce loan balances and avoid foreclosures. And it just might work.

Among the government bailouts none has fallen as flat as modifying mortgages so that borrowers don't lose their homes. Reducing monthly payments by lowering interest rates hasn't stemmed defaults because the most troubled mortgages are often those in which the house is worth far less than the loan. Wednesday, Bank of America said it would try reducing the principal on those mortgages in hopes of keeping borrowers current. If it works, the bank and 45,000 Americans will make out better than they would have otherwise, but it could also set a precedent rife with moral hazard.
Bank of America ( BAC - news - people )'s plan is to forgive principal on mortgages where the loan is worth at least 20% more than the property. Those include exotic and irresponsible loans like option ARMs that let homebuyers pay no interest for a time as their balance balloons, but also prime loans that have fallen delinquent. Barclays Capital analyst Jason Goldberg estimates the forgiven amount could be as much as $3 billion.

Europe's Labor Market Problem

While the continent may have lower unemployment rates than the U.S., its economic recovery will be less robust.

Back in January Paul Krugman wrote a column about the surprising comeback of the European economy. He argued that Europe had overcome its lags in IT investment and addressed many of the labor market rigidities that had saddled it with very high rates of unemployment, particularly among younger workers.
He was quickly corrected by economist Greg Mankiw and others who pointed out that Europe still lags significantly in economic wellbeing measured by per-capita GDP adjusted for purchasing power parity. For the 15 original members of the European Union (the E.U. 15) per-capita GDP is about $34,900. For the U.S. it is about $47,500--more than one-third larger.

Gold Is The Best Hedge Against Looming Inflation

You've heard the argument against owning gold a thousand times. It goes something like this: "Gold has little to no utility and doesn't earn any interest, so why own it?" The answer is that you really have no choice but to own it when the government and central bank are destroying the value of your currency.

When interest rates are negative, investors are forced to buy gold. If the interest rate garnered by placing money in a bank or owning government debt is less than the rate of inflation, you must purchase an asset that will maintain its purchasing power. Gold has a 5,000-year history of preserving its value, and that is especially important during times of inflation.

Platinum: Like Gold, Only Better

Why buy gold when platinum is rarer, dearer and far more useful?

Gold might have history on its side, but when it comes to investing in precious metals platinum arguably makes more sense. Platinum is rarer, dearer and just as pretty. What's more, unlike gold, it has an important industrial use in automotive catalytic converters and LCD TV screens. If that weren't enough to recommend the white metal, the launch of new exchange-traded funds makes platinum easier than ever to buy and sell.

Is gold a bargain, or is it a bubble?

Rarely, if ever, have views on this ancient store of wealth been so mixed. Gold bugs note that at around $1,100 an ounce gold is, on an inflation-adjusted basis, trading at a mere half its all-time high from 1980. What’s more, they argue that the flood of dollars, yen and euros central banks are printing will spark inflation and debase major currencies--risks against which some believe gold provides a hedge.

About AceTrader (forex news)

As the Internet operation arm of Trendsetter Financial Markets Limited, AceTrader provides 24-hour realtime forex trading recommendations and market commentaries to online traders through our website. These trading recommendations and market commentaries were originally available to institutional traders through Reuters network only. Now it's available to all individual online traders.

We provide genuine real-time forex market commentaries and trading recommendations to both Reuters and Internet users. Led by world renowned technical analyst, Wilson Leung, we have a team of 7 analysts monitoring the market and updating our recommendations and commentaries 24 hours a day. Wilson Leung has over 20 years of experience in forex market. He is a regular speaker at Technical Analysis seminars all over the world and has conducted over 100 such seminars with Reuters for forex traders in Asia, Continental and Eastern Europe, Scandinavia, CIS and the Middle East.

Dollar Falls on Renewed Risk Appetite (Fore News)

Asia Pacific markets were stronger today after the Fed announced yesterday that it will maintain record low rates for an "extended period of time." The language of the FOMC press release suggests that economic conditions have continued to improve with increases in household spending as well as signs of stabilization in the labor markets. US markets rallied on the news lifting the Dow some 43 points to close at 10685.98. Announcements from the BoJ also set the tone for a rally in Asian market as the central bank left interest rates unchanged. The greenback came under pressure as risk appetite steered investors towards riskier, higher yielding assets.

Listless FX Trading amid Quiet Session by Korman Tam

The dollar edged higher against the euro and Loonie in a quiet Monday session amid a dearth of economic data and Japan’s market closed in observance of the Equinox holiday. Traders remain averse to risk with the EU Summit looming on Thursday and fears that Greece may turn to the IMF for aid in the event support from the European Union fails to materialize weighing on the single currency. Also on the agenda for later in the week will be the rescheduled Congressional testimony from Federal Reserve Chairman Ben Bernanke, which was postponed from February as a result of weather. Bernanke is expected to outline the Fed’s policy strategy for exiting from its emergency lending facilities and will likely field questions over the FOMC’s upcoming moves toward policy normalization. Heading into Thursday’s Congressional testimony markets will focus on Fed speeches by San Francisco Fed President Yellen – speculated to be the next Vice Chairman, and by current Fed Vice Chairman Donald Kohn.

Key terms and concepts Forex

Exchange rate - the price of the currency of one country expressed in the currency of another country, with sales transactions. Such a price can be set based on supply and demand for a currency in a free market, or to be strictly regulated by the decision of the Government or its main financial body, usually the central bank.

Types of exchange

Direct quotation - the number of national currency per one unit of foreign

How to make transactions on the Forex market

But, first, the structure of the market Forex. Like all markets - Forex - a set of buyers and sellers of currencies. They are referred to operators Forex. These are large banks of various countries, including - central banks, the largest investment companies, pension funds (in most - North). Operators are traded between a range of currencies, making the transaction. The minimum value (contract lot) transactions - about $ 1 million. Operators linked ad network that enables instant conduct transactions. Significantly, while there is no physical movement of money, that is, if napimer, the Japanese bank will buy one billion pounds for yen, from the London bank, no one will rush to load them on a plane and sent under heavy guard in Japan. Really, why? After a day (or a few minutes) Japanese bank to sell these pounds German bank for the buck, and he - a London bank for the yen. Do not look for a special meaning here, not wrinkle brains - is the problem of market operators. The main thing for us - the small investor in this market can not fall in any way. How did he get there?

Market Overview Forex: Dollar definitely clears

According to LigaBusinessInform "Forex Club", apparently, investors tired uncertainty "of the Greek question, and they still decided to buy a dollar, thinking that this is yet to be safer. As the EU member states still have not offered any specific help, the Greek Prime Minister gave a week of European finance ministers to develop a plan, warning that otherwise he would ask the International Monetary Fund (IMF). By the way, it there was almost sent Germany, said on Saturday that "without the IMF to solve the problem will be difficult, although the head of the European Central Bank President Jean-Claude Trichet and French President Nicolas Sarkozy with this turn do not agree, because" it will say that the EU can not by itself razrulit their crises.

How to become a successful trader?

News to me is a catalyst for movement, and I do not care what it will be news, positive or negative. Often, I conclude the deal before the news, because I already know where the market goes, what news would not come out.
I do not mean to say that I am trading on the news. If I do not see potential in what may be the deal I have not concluded what would be news is not expected.

Foreign Exchange Forex

Largest international financial market - Exchange Forex - a chance to earn money for those who are not afraid to keep pace with the times, play and win.

Foreign Exchange Forex - a place where the clock are the thousands of transactions, where business life does not disappear for a minute.

Forex market participants require certain knowledge and skills, as well as seed capital. Keep in mind that gambling involves financial risks, the size of which depends on the level of preparedness of traders.

Trading Tactics Forex

Finally - we got to the main. Until then we are more - less thoroughly studied the structure and organization of the currency market Forex, the technique to perform trading operations (transactions), terminology (by the way, say that the terminology - 50% of any science). If there were any - that "white spots", I assure you, this is not so much and does not interfere with your successful work.

U.S. Stocks Gain as Financials Trim Loss, Consumer Shares Rise

By Whitney Kisling

March 15 (Bloomberg) -- U.S. stocks erased losses in the final hour as financial shares reversed declines, while consumer companies rallied on an analyst upgrade of Wal-Mart Stores Inc. and PepsiCo Inc.’s plan to return more money to investors.

American International Group Inc. erased a 2.7 percent slide after investor Bruce Berkowitz said he bought a stake in the bailed-out insurer. Financial shares in the Standard & Poor’s 500 Index recovered most of a 1.1 percent slide after Senator Christopher Dodd outlined a plan to overhaul banking rules. Wal-Mart rallied 2.8 percent on Citigroup Inc.’s recommendation to buy the shares, while PepsiCo gained 1.6 percent on plans to boost its dividend and buy back shares.

Dollar gains versus euro

    The dollar gained against the euro and the pound, but fell versus the yen on Monday as equities ended mixed and investors continued to worry about finding a concrete solution for Greece's mounting debt.

   What prices are doing: The dollar was up 0.7% versus the euro to $1.3678 and rose 1% against the British pound to $1.5053. Against the Japanese yen, the dollar slid 0.09% to ¥90.49.

More Money Monday roundup: Homebuilders' stock & more airplane fees

Personal finance from around the Web:

• Homerbuilders' shares suggest that the housing market is ready to fly solo without the assistance of stimulus programs. [Bloomberg]

• No free lunch…at 30,000 feet: Continental, the last major US airline to serve free in-flight meals, will begin charging for food in coach class on domestic flights. [The Wall Street Journal]

• Federal prosecutors allege that Park Avenue Bank president Charles Antonucci "made material and false statements" in the bank's application for $11.2 million from TARP. [Reuters]
  

Google's privacy challenge

NEW YORK (CNNMoney.com) -- When dealing with privacy, Google often finds itself walking a tightrope.
After all, the company's mission is "to organize the world's information and make it universally accessible and useful." Sticking with that mission while guarding your privacy needs can put Google in quite a pickle.

"Our mission statement inherently leads to privacy being an issue for us, and we want to acknowledge that" said Mike Yang, managing product counsel for Google. "The underlying rationale for most companies is to keep the minimum amount of data on hand about its users, but our company's business model relies on data."

Google may leave China soon

EW YORK (CNNMoney.com) -- Google appears to be getting closer to shutting down its strictly monitored search engine in China, according to news reports.

The reports, which cited people close to the situation, indicate that Google advertisers in China are being advised to switch over to rival Baidu Inc., out of fears that Google could abandon the country. 

Following a targeted cyber attack on Gmail accounts emanating from China in December, Google announced on Jan. 12 that it intended to give all of its users open access to the Internet.

Google has since been negotiating with the Chinese government, as such a move would clash with China's censorship laws. Those laws forbid access to Internet sites that criticize the government, display pornography or promote certain religious material.

Find Happiness At Work

Achieving happiness at work is a skill that can be acquired, says Jane Howard, chief people officer of San Francisco-based Joie de Vivre Hotels. She flexed her happiness muscle recently--one cold February morning in a not-so-pleasant airport terminal.

A Simple Solution For Google In China

Richard StiennonBio
Stiennon has been a white hat hacker for PricewaterhouseCoopers, VP Security Research at Gartner, and an executive at Webroot Software and Fortinet, Inc. He is founder and Chief Research Analyst at IT-Harvest.  

The Wall Street Journal reported over the weekend that:

Channel 4 boss warns of cuts

Channel 4's chief executive Mark Thompson has warned staff to expect substantial job cuts ahead of a crucial board meeting on the fate of FilmFour Ltd, the firm's loss-making film production arm.

Mr Thompson, the former head of BBC Television, told staff he wanted to create a leaner company, employing fewer people, with eight commissioning departments instead of 13.

He said a smaller staff was vital if the channel was to recreate its bold, risk-taking spirit. 

What should be that you took Western business?

 In the western saloons like to wash up the bones of Russian emigres. Especially in recent years, when immigrants from Russia began there in a big way to spend and invest professionally earned capital in the home. However, there is a separate category of people who have achieved success outside of Russia. They do not appear in the list of billionaires, but that the country owes its unflagging reverence before "the Russian genius."

The secret of success of Japanese business

The secret of success of Japanese business - the ability to hear the opinion of the minority. On the Japanese tradition in the business are legendary. What exactly have these national characteristics of business? Questions answered by the general director of the Independent Center of the Japanese "Professor Anatoly Solntsev. - Take for example the decision making process: how it differs from Western?

Money loves account

Consider! This is a good   Ukrainian tradition! " V. Spivakovskiy, Ukrainian millionaire.

There are people who are struggling to make ends meet, and from time to time "shoot" a little money to hold out until payday. There are people who just a few years ago were rich, but now can not understand what has become of their money. And the millionaire and the poor very quickly lose all their savings if they spend more than comes to them. The problem is not how much money you have. 

Laws of Nature and Business

Laws of Nature and Business

Laws of Nature

Recall the statement: "The universe is fair, reasonable, harmonious." Existing laws in Nature provide reasonableness and fairness of the universe. What are these laws? Immediately specify that there were laws invented by people, to some extent reflect the laws of Nature. In those countries where these (social) laws closer to nature, society is more harmonious, reasonable and just. Such states are more viable to have fewer social and natural disasters, higher living standards, lighter and more secure life. In those countries where social laws are at odds with nature, we find a different picture.

Focus on money

The law of concentration says: "All of what we think and speak, multiplied and increased, and that we deprive our attention - shrinks, fades and disappears," or in other words: that on which we concentrate our attention, we and multiply.
If a woman is directing its efforts at losing weight, it becomes slender, almost slender or "too" slender shape. If a woman is concentrating its efforts on the development of abdominal muscles, it strengthened the muscles of the press. If she collects recipes, her growing collection of recipes. If a person is fond of growing pot plants, it increases every year the number of pots with flowers. So, what man concentrates, he and develops. 

New York - the capital of hedge funds

In New York based almost half of all hedge funds in the world
At the beginning of 2010, the number of hedge funds based in New York, was 118, down last year only 2. It is reported by Forbes magazine with reference to the research service of Hedge Fund Intelligence. The share of New York funds accounted for 46.6% of all global assets. Second place - for London. In the British capital was the headquarters of 55 hedge funds, whereas the year before they were 65. At the London funds have 15,9% of the market. 

The builders promise to rising real estate prices due to housing shortage

In the near future the market will react to a slowdown in construction growth in house prices, as the proposal clearly would not meet demand
As deputy chairman of the Verkhovna Rada Committee on Construction, Urban Development and Housing and Communal Services and Regional Policy, the president of the Construction Chamber of Ukraine Volodymyr Polyachenko.

Which of the billionaires get the lowest salaries

As you know, modesty is decorated, and prosperity - is tempting. Can we be humble and rich at the same time? Undoubtedly. An excellent example of a combination of these characteristics is the world's most respected investor, "Oracle of Omaha" Warren Buffett. In 2009 the billionaire who heads Berkshire Hathaway Inc., Received in the company's salary of only 100 thousand dollars.