Financing FAQ

Posted on Thursday, 14th April 2011 by Emily Smith

On today’s show: The Planet Money team heads for Iceland with the help of Baldur Hedinsson, our Icelandic intern.

We get there just before the big election, when the people will vote to decide whether to pick up the tab for mistakes bankers made before the financial crisis.

Heiða Dóra Jónsdóttir — 29 years old, new mom — is trying to figure out how to vote in Iceland’s big election.

To make her decision easier, we set up interviews for her with everybody we can think of. Including the president.

For more:

Read our post from earlier today about Heiða’s choice.

Listen to David Kestenbaum’s Morning Edition interview from Reykjavik.

Read Baldur’s post, “Should I Pay For Bankers’ Mistakes?”

Download the podcast, or subscribe. Music: Tappi Tíkarrass’s “Beri-Beri” and Egó’s “Fjöllin Hafa Vakað.” Find us: Twitter/ Facebook.

Tags: Iceland
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Posted on Tuesday, 12th April 2011 by Emily Smith

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Consider the facts: there is over $852 billion in debt in the United States – and 98% of that debt is credit card debt. One out of every seven people uses 80% of their available credit. Most Americans carry at least three credit cards, with an average APR of 13.67%. 73% of Americans rely on credit cards to meet their needs, yet 81% of those same Americans are afraid to discuss their credit card debt.

Americans have a serious problem with credit card debt and it just keeps growing. In 2006, the average balance per open card was $1,033. By 2011, that amount had grown to over $3,752. Even in consumers over the age of 60, who typically live on a fixed income, credit card use has risen at a rate of 4% over every two years.

The problem of mounting consumer debt has unique roots to credit cards. F

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Tags: Debt, Debt Crisis
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Posted on Tuesday, 12th April 2011 by Vanessa Miller

You’ve spent hours working on your business concept, and you’ve figured out something people will pay you for. Congratulations!

Now, you may be inclined to jump head-first into creating a business. Lured by dreams of freedom and setting your own hours, you spend all of your free time researching a name and hammering out the details of getting people to your door.

But there’s a common problem that may trip you up and cause you to work long hours for low pay (not the most exciting prospect!) Here’s a good example of how that can happen, and what you can do to avoid this situation.

Recently, I had a chance to speak with Stephen Ou via email. He’s an up-and-coming entrepreneur who’s quite good at identifying problems others are having. He sent me

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Tags: Business
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Posted on Saturday, 9th April 2011 by Emily Smith

That’s right: I put an exclamation mark in a headline about China’s trade balance. If you care about global trade imbalances — and you know I do — China running a trade deficit is a big deal.

For the first three months of this year, China imported more than it exported, the Chinese government said.

This is totally contrary to the standard script for global trade. China always exports more than it imports — and the U.S., for its part, always does the opposite, importing more than it exports.

Economists say this state of affairs is unsustainable in the long run, and the big players seem to agree. The U.S. is trying to crank up its exports, and there’s a push on in China to increase domestic consumption.

In this context, China running a trade deficit is significant. But there are some big caveats worth pointing out.

For one thing, China’s trade deficit was tiny. China’

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Tags: Deficit, Trade Deficit
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Posted on Friday, 8th April 2011 by Emily Smith

THE day after Portugal threw in its hand and asked for rescue funding from the EU, the European Central Bank increased the pressure on the beleaguered economies of southern Europe and Ireland by raising interest rates. The quarter-point rise in the main policy rate, from 1% to 1.25%, had been so heavily advertised that a failure to follow through on the message of “strong vigilance” in March – code for an impending rate increase – would have been knocked the ECB’s credibility. But the timing was unfortunate, to say the least.

The rationale for the move is in any case far from convincing. Yes, inflation has risen to 2.6%, above the bank’s target of a bit below 2%. But as Jean-Claude Trichet, the ECB’s president, said today, the increase in inflation in early 2011 has largely reflected higher commodity prices. Unless these set off a wage-price spiral, they should have a temporary rather than enduring effect on inflation.

Is there any sign of such a response, the dreaded “second-round effects”? Hardly, while wages growth is still tame. Nor is th

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Posted on Thursday, 7th April 2011 by Vanessa Miller

You do not need to be an expert in Internet marketing to make money online, and there is only one set of rules for success. Part of what online businesses exciting, so many people is that to earn money to implement a variety of different tasks, and you have the opportunity to work on projects that interest you much more than in the office. But first, you can try online to help you when you first list of companies to generate ideas for those who work with your skill set and interests.

Look beyond the realm of simple web design plans to start brainstorming. Some of the best online jobs are those you can make money by blogging as an interface between customers and companies offering their services and work to generate leads for other businesses. They could provide assistance for online social networking sites or mailing lists to help generate business contacts. You need some basic skills in networking, though. It may be helpful to first consider an online seminar or counseling session, you will see the best way to set up a website and improve road safety, take.

Some other ideas for internet businesses, you can work from home advertising include the products described.

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Tags: Business, Business Ideas
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