The possibility of access to credit and loans from individuals or companies enables recirculation of money from the sector of the economy where there are surplus to the sector of the economy where there is demand for it. This activity promotes the growth of economic activity, commercial and industrial development of any country.

In principle, if the money comes from bank in the form of loans or, which is, loans, these channels enter a country’s trade and generate activity. This activity is growing gross domestic product and makes the same economic variables are “hot” inflation rising slightly by excess demand for goods and services.

Some countries and territories that seek to fear inflation that money in the banks is getting, so “cool” commercial and business activity. This is accomplished through sterilization strategies among which are going out to buy U.S. dollars in circulation in excess of the local currency of the country.

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…)

The Internet stock exchange in the United States has become a powerful fashion in recent years. While growth rates in this country have been declining, the currency remains strong, and this is what really matters at the international level. Unemployment rates have been improving, and the consumption rate remains stable.

However, what does all this with the stock market? Surprisingly, have a lot. The macroeconomic trends are simply the sum of macroeconomic decisions and realities. If the economy is suffering, there is a good possibility that most companies are experiencing low growth rates, and all this would be reflected in the price of its shares on the NASDAQ.

This also means that shareholders will feel the pressure, and some even avoid transactions, resulting in a lower growth rate.

Most online trading sites were based in North America, and that means you can have a wide selection of companies to choose from to make your stock exchange service. (more…)

Firstly, the emotion on the speculation of hedge funds is not justified. Hedge funds have been reduced by two and the $ 1 trillion they represent a range of different funds, some of them acting on the foreign exchange market. This amount represents less than the value of daily transactions on the exchange market. They do not in any way the ability and mean to destabilize the euro and speculation to $ 1 dollar interest. The future market is still three months was $ 1.30.

We have to stop back by the specter of a speculation on Sterling by George Soros twenty years ago: the foreign exchange market was smaller and we did move the Sterling £ 1 billion. The pound is a currency that does not count anymore. (more…)

“Dare I take a risk in investing?” These questions may often utter when you are considering investing. Say you have the money USD 1 million, and you are confused whether to put it in a bank or elsewhere. If placed in the bank, you may feel secure. But sometimes, offering investment elsewhere often quite large and very tempting, so it is sometimes frightening you.

Whose name must be no risk investment? Well, from my experience so far, usually only three the risk of the most feared people when they invest:  (more…)