The funding problems that entrepreneurs are living in this country are clearly reflected in the Cotizalia news published today. Which is commented as “an undetermined number of entrepreneurs has been pushed to seek mortgages, with the guarantee of own home or other real estate assets, in order to meet the cash requirements of their businesses or even the salaries of their employees.”

This approach contradicts the law of balance of the company’s financial structure, by which a long-term loan, such as a mortgage loan should be used to finance the acquisition of an asset in the long run, as is the buying a property, and not to finance short-term assets. However, employers have to resort to this type of financing for much difficulty to obtain bank loan at the shorter term.

This imbalance can pass bills to applying for funding that compromised his return by the different rates of generation of active flows in the short and long, and the result in the loss of good mortgage in favor of the lender bank guarantees operation.

In other words, can mean bread today, hunger for tomorrow.

Social networks not only are revalued in stock (up to 377% percent in the last year), but also help predict the vagaries of stock market, according to some studies. In this context, it is easy to see why over 80% of financial adviser believes that over the next five years, social networks help to attracting customers and also enhance the relationship with them. Currently, between 15% and 20% of the investment is captured through social network.

Behind this trend, in the words of Marc Garrigasait, president of Koala Capital SICAV, the transparency that social networks provide the financial world. “If you are transparent, investors will appreciate what this means more empathy and more benefits,” he says.

Over 70% of financial advisors are registered in any of the social networks, especially Facebook, LinkedIn, and Twitter Unience, according to a survey on the use of social networks by EFPA Spain (European Association of Advisers and Financial Planners -Heritage). The vast majority believe that social media are very useful for several reasons: because they represent an efficient channel of communication, constitute a direct and easy communication, are a good tool to keep abreast of new trends, and consider marketing tool  and online advertising.

The economic and financial situation is so convoluted that companies have to make real financial engineering. Currently based out any financial aspect is crucial in organizations, but from Finance Strategy wonder if there is any priority or major concern for any specific area of financial management. That’s why we published a survey with which we intend to know if during this year’s financial managers will focus their objectives in seeking financing, risk control, improved management or strategy development internationalization.

The results obtained so far show that the risk control and the search for funding are the main priorities. Do you agree with this result?

No doubt, there can be limited to a single priority for financial management has to play many sticks and cannot leave any leg of their activity without considering and look closely. Thus, the managers have noted the views that have made Linkedin. In any case everything happens for a lack of credit and therefore the need of working capital.

What do you think are the priorities of the CFO in 2011?

Consider the sin question of the categories of trade. The financial statements are calculated (sometimes raised in dollars and local currency) using the prevailing rating of 31 December last fiscal year. In a country with a volatile currency, the reality was distorted. This is especially true if much of the activity presided over this arbitrary date. The same applies to financial reports that were not adjusted for inflation in countries that have this problem. The report will look inflated and may reflect true earnings where leaks. The accounting of “average figures” (which uses the average scores throughout the year) may be more confusing. The only way they can truly reflect reality is if the bank has two sets of separate accounts: one in the local currency and a dollar (or other currency as the reference). Otherwise, fictitious growth could occur in the asset base, due to inflation of the currency.

Another example: in many countries, changes in regulations can seriously affect the financial report of a bank. In 1996, in Russia, for example, the Bank of Russia changed the algorithm for calculating an important banking ratio (the ratio to calculate the capital asset risk weight). Unless a Russian bank could write back their financial reports according to the new provision, were unrealistic changes in profitability. (more…)

Please, stop watering our boastful comments that discredit your actions. Throughout this financial crisis, politicians have often acted with courage and determination. Their ability to destroy themselves by demonstrating their incompetence by their statements in financial matters is unlimited.

It is clear that you want to vote collectively an EU directive which will limit the risks that hedge funds pose to financial stability and economic. Was he, Mrs. Merkel, as you go about your decision and isolated national short selling and hedge funds? You must surely know that your action will have no effect in reality and you destabilize a consensus. Not in Frankfurt as it happens, but in London, Hong Kong, Tokyo or New York. What is your goal? There is nothing to gain from oratorical effects on both global issues and techniques. You have done more than any other State Member of the European Union in this crisis to destabilize the Eurozone. This was the case again yesterday.

The question is not speculation: it accounts for only about 5% of exchange rate movements. Banning short selling while the EU directive does for hedge funds will have a very clear result: investors, instead of covering their risk by various techniques will simply sell their bonds. The effect will be worse. The public debt markets will be dearer. And all countries will pay the price. (more…)