Success as an entrepreneur isn't about rules, textbooks, or MBA's. We know because many of the world's most groundbreaking, successful businesspeople don't even have a high school diploma.
Of course, that's because they're still in high school.
Check out these crazy-successful entrepreneurial kids — ages 12 to 23 — who revealed the six traits you really need to make big money doing what you love.
1. Support — don't go it alone
The wonder kids:Adora Svitak has published two books, been featured on Good Morning America, and presented at the annual TED conference. Oh — and she's 12 years old. Most middle schoolers are snotty and self-centered, but not Adora. She told us, "I cannot emphasize enough the importance of family encouragement - not just for me, but for everyone.
Farrhad Acidwalla is a 16-year-old college student in Mumbai, India. Between classes, he manages Rockstah Media, a full-scale marketing agency with over 20 international employees. How does he do it? Farrhad says, "My team is the backbone of the company. They give shape and form to my vision."
The lesson: It's easy to get caught up in your own vision and the idea that entrepreneurs don't need anyone but themselves to succeed. But entrepreneurship will throw you a lot of curve balls — and if you don't have the support of friends, family, and team members, then it's hard to have the courage to keep swinging.
2. Hard work — nobody said it would be easy
The wonder kids: Emil Motycka started mowing lawns when he was nine years old. His senior year of high school, Motycka Enterprises pulled in $135,000, offering everything from lawn care to Christmas light installation. An overnight success? Kind of. Emil frequently works overnight, saying, "Sleep is for the weak. I sleep four hours a night on average."
Andrew Fashion made $2.5 million by the time he was 21. By 22, he had lost it all (and then some). He told us all the sordid details, but we're more interested in how he'll claw his way back to the top: this year he's writing an autobiography, an eBook on how to pick up women, and he's launched beModel.com. Andrew's advice: "If you slack on it, no one is going to believe it.
The lesson: No, entrepreneurship is not all unicorns, lollipops, and solid-gold hot tubs. Well — it is, but that part doesn't come until later. In the meantime, don't count on finding overnight success unless you're ready to stay up overnight.
3. Passion — love it or leave it
The wonder kids: Juliette Brindak's brand for adolescent girls, Miss O and Friends, has been valued by Procter & Gamble at $15 million. That's a pretty serious piggy bank for a 21-year-old college student. But money has always been secondary to passion: Juliette started Miss O because she wanted to help out girls when, "things start to get a little bit rough.
Joe Penna was studying to become a cardio thoracic surgeon at the University of Massachusetts, when he dropped out to make YouTube videos. Crazy? Probably, but the 1.3 million subscribers he's attracted as Mystery Guitar Man hint that he's onto something. That something is passion: "If you think that you are going to love something, give it a try. You’re going to kick yourself in the butt for the rest of your life if you don’t."
Every one of the 25 kids we interviewed is completely and totally in love with their business. If you think that's a coincidence, then you're crazier than Joe. Follow your passion, because a lackluster attitude can only create a lackluster business.
4. Perseverance — how to take a punch and get back up
The wonder kids: At 17, Sabirul Islam was shopping his memoir, *The World at Your Feet*, to major publishers in the UK. He got rejected — 40 times. Any normal human being would have given up at that point, but entrepreneurs don't get the luxury of being normal. Sabirul self-published his book and promptly sold 42,000 copies in nine months.
Adam Horwitz is the 18-year-old who just launched Mobile Monopoly, an online product that earned a ridiculous $1.5 million in its first three days. The most amazing part: he still lives at home with his parents. Adam says, "I’ve failed at least 30 times with different websites and stuff... But, if I hadn’t failed all of those times, I wouldn’t be where I’m at now."
The lesson: The legend of King Midas is just that, a legend. If you expect everything you touch to turn to gold, then you're going to become disillusioned in a hurry. Entrepreneurship requires falling down. Success requires getting back up.
5. Naivety — because you just don't know any better
The wonder kids: Imagine you're a dyslexic 16-year-old who just dropped out of school. You would have to be pretty naive to think that you could find major success as a writer for blogs. Tell that to Michael Dunlop, the 21-year-old owner of IncomeDiary.com. He may not have a diploma, but Michael earns a healthy six figures a year writing for a living — spelling mistakes and all.
Catherine Cook and her brother started a social networking site, myYearbook.com, while they were still in high school. When an interested party offered the Cooks a few thousand dollars for their fledgling site, common sense suggests they should have jumped on the offer. Of course, they rejected it. Today, myYearbook.com boasts over 20 million members and $20 million in annual revenue.
The lesson: Entrepreneurship and common sense don't always get along. You can't get to extraordinary success with ordinary thinking. So, the next time someone tells you that you're being naive, take heart. That's what they told Bill Gates, too.
The lesson: The sixth essential key to success is being humble enough to learn from the people who have already been there, done that, and lived to tell about it. The 25 kids we interviewed are successful because they've never stopped listening and learning.
Michael Dunlop confided in us, "You’ve got to stop doing all the things that people have tried, tested, and found out don’t work... Young people really know what's going on and really are coming up with the best ideas and the best sites. If you don't listen to them, you're a fool."
Source: Businessinsider.com By Matt Wilson
We are a specialist recruitment and Executive Search Consultancy providing expert recruitment and HR services that really add value. We find the very best of the best talent in the global marketplace
Thursday, July 21, 2011
Tuesday, July 12, 2011
The China Column: Relax, you’re at a local bank; Panic, you’re at a foreign bank
There are more and more vacancies these days at both local and foreign banks in China. These positions are across the board: cashiers, credit, compliance – all the way up to CEOs.
But nowhere is the battle between domestic and overseas firms as intense as in sales. As Miss Wang, an HR director of a state-owned commercial bank in Shanghai, recently explained: “Based on what we have seen in the past two years, Chinese banks will keep focusing on attracting a large number of sales people.”
The logic behind her statement is simple. Banks in China are expending a great deal of effort in attracting and retaining high quality clients, so they need more sales people to develop these relationships.
Chinese banks used to prefer candidates with a degree in banking or finance, but this is changing, says Wang. Instead of focusing on tertiary qualifications, which might not reveal much about the person’s sales capabilities, local firms are becoming more interested in communication and leadership abilities. These interpersonal skills will largely determine if someone has the potential to be a good salesperson.
Candidates see the benefits of Chinese banks
But do salespeople want to work for local banks? The answer, usually, is yes.
To sales candidates who have recently graduated and have limited work experience, local banks are typically their first choice because of better benefits and allowances, and a comparatively relaxed working environment.
Hu Jia Liang, a post-graduate from Tongji University, has been working for a major Chinese bank for a year. As a management trainee, his base salary is not as attractive as some of his peers at foreign banks, but if you include all the benefits, his total compensation is comparable.
Moreover, his working environment is less stressful than at most foreign banks because local firms usually already have a large number of sustainable, long-term clients. Foreign banks need to build their networks.
Stress is making young people shy away form overseas banks. And these days it is becoming more common for candidates at foreign institutions to consider moving to local ones.
A personal choice
The choice between foreign and local really depends on what a candidate wants in the future. If he or she desires a challenge and to emerge stronger in terms of business development ability, foreign banks could be the ideal place. Their training programmes are also usually better than those at domestic firms.
Nevertheless, foreign banks are also known to have an informal glass ceiling for local employees. It’s rare to see local mid-management professionals move up to the top ranks, at least not at the moment.
Source: EfinancialCareers.com.sg By Zhang Xiao Qing
But nowhere is the battle between domestic and overseas firms as intense as in sales. As Miss Wang, an HR director of a state-owned commercial bank in Shanghai, recently explained: “Based on what we have seen in the past two years, Chinese banks will keep focusing on attracting a large number of sales people.”
The logic behind her statement is simple. Banks in China are expending a great deal of effort in attracting and retaining high quality clients, so they need more sales people to develop these relationships.
Chinese banks used to prefer candidates with a degree in banking or finance, but this is changing, says Wang. Instead of focusing on tertiary qualifications, which might not reveal much about the person’s sales capabilities, local firms are becoming more interested in communication and leadership abilities. These interpersonal skills will largely determine if someone has the potential to be a good salesperson.
Candidates see the benefits of Chinese banks
But do salespeople want to work for local banks? The answer, usually, is yes.
To sales candidates who have recently graduated and have limited work experience, local banks are typically their first choice because of better benefits and allowances, and a comparatively relaxed working environment.
Hu Jia Liang, a post-graduate from Tongji University, has been working for a major Chinese bank for a year. As a management trainee, his base salary is not as attractive as some of his peers at foreign banks, but if you include all the benefits, his total compensation is comparable.
Moreover, his working environment is less stressful than at most foreign banks because local firms usually already have a large number of sustainable, long-term clients. Foreign banks need to build their networks.
Stress is making young people shy away form overseas banks. And these days it is becoming more common for candidates at foreign institutions to consider moving to local ones.
A personal choice
The choice between foreign and local really depends on what a candidate wants in the future. If he or she desires a challenge and to emerge stronger in terms of business development ability, foreign banks could be the ideal place. Their training programmes are also usually better than those at domestic firms.
Nevertheless, foreign banks are also known to have an informal glass ceiling for local employees. It’s rare to see local mid-management professionals move up to the top ranks, at least not at the moment.
Source: EfinancialCareers.com.sg By Zhang Xiao Qing
Monday, July 11, 2011
Follow Reuters
European governments are ready to bail out those banks which cannot raise capital from investors after the EU details on July 15 which lenders have failed its latest, more vigorous stress test.
The European Banking Authority (EBA) announced on Friday the publication date for the results of its check on 91 of the region's top lenders. These will be accompanied by measures to bolster capital for those that failed or nearly failed, in another attempt to reassure investors that European banks can withstand future shocks.
According to a separate European Union draft document seen by Reuters, European countries will support banks that fail the stress tests if those lenders cannot raise capital from investors within six months.
The paper, being prepared for EU finance ministers to approve on Tuesday, is an about-face from promises by G20 policymakers in the wake of the financial crisis that taxpayers would never have to bail out banks again.
An official close to the EBA said all banks that fail must have a plan by September to plug the capital shortfall by the end of this year, as previously agreed by EU finance ministers.
Those just above the pass mark will be more closely scrutinised and must also plan remedial actions but their implementation deadline remains unclear and could be clarified by finance ministers next Tuesday, the official said.
Member states will be obliged to have backstops in place only for banks that actually fail the test, the official added.
European Banking Federation Secretary General Guido Ravoet said some banks may struggle to find enough capital.
"Is the European financial market deep enough to respond to the needs for capital? We are not the only sector looking for capital," Ravoet said.
PRESSURE ON PERIPHERY
This latest round of tests has been touted as being more rigorous than previous attempts, in which few banks failed, and finance ministers' officials are drawing up plans for how to deal with the fallout.
The EU document also says lenders that nearly fail the tests will be put on a critical watch list in case they deteriorate.
Sources close to the banks and watchdogs said all German banks were certain they would get the green light, although some lenders, including publicly owned landesbanks HSH Nordbank and NordLB, would just scrape through.
News that EU governments appear serious about supporting banks that fail to maintain core capital of 5 percent in the face of several theoretical markets shocks lifted Bund futures and UK gilts.
"In essence that puts even more pressure on the periphery (euro zone countries) to come up with measures, not only to shore up their budgets, but to support their banking sectors, which they can ill afford to do," said Marc Ostwald, strategist at Monument Securities.
"It's basically a charge to safety on the back of this. This is a market which is living in mortal fear of anything to do with the euro zone and anything that puts the banking sector under more stress," Ostwald said.
The Italian/German 10-year yield spread hit fresh euro-era highs amid fears that already fiscally stretched countries like Italy might have to dig into their pockets to bail out banks that fail the test as well.
Shares in Italian bank UniCredit fell more than 5 percent on fears that Italy could be pulled into the debt crisis that has already forced Greece, Ireland and Portugal to take bailouts. UniCredit is the only big Italian bank that has not yet announced a capital increase.
Italian banking association chief Giuseppe Mussari, when asked about possible government intervention for banks failing the stress test, said this was not an issue for Italian banks.
According to the draft EU document, capital-raising plans should first be based on "private-sector measures, including ... retained earnings ... raising additional common equity or high-quality hybrid instruments from private investors, assets sales, mergers."
But if the search for private capital leads nowhere, then governments should be ready to step in.
Officials do, however, make provision for "the extreme case" if efforts to rehabilitate a bank fail and it threatens wider stability, recommending "a process of orderly restructuring and resolution."
The number of banks declared by the EBA to have failed will either encourage investors that Europe is now coming clean with its banking problems, or if the tests are deemed too lax again, they will hurt the EU's already battered credibility.
Previous stress tests were widely dismissed as too lax -- with Ireland given the green light just months before the EU and International Monetary Fund had to bail its lenders and the country out.
PRIME SUSPECTS
Unlisted banks in Spain and Germany and a batch of banks that are already raising funds are the most likely to fail this year's health check, analysts at Nomura said.
Jon Peace, banking analyst at Nomura, said he expected few failures among the listed banks, and many of those who will fall short have raised capital this year or were in the process of doing so.
"We think it (failures) will be heavily skewed towards the unlisted banks in Spain and Germany and with some Greek banks in there. For large listed banks there will be few failures."
Nomura analysts said several banks could have a core Tier 1 ratio of under 5 percent under an adverse scenario based on end-2010 capital levels, including Spain's Bankinter and Sabadell, Italy's Banco Popolare; Greece's Piraeus and ATEbank; Cyprus-based Marfin Popular and Bank of Cyprus; and Bank of Ireland and Allied Irish Banks.
The new checks will measure how well the core capital that banks rely on to absorb losses such as unpaid loans holds up when exposed to an economic dip or fall in property prices.
They also gauge the impact on banks should government bonds they own, issued by states such as Greece, lose value.
Source: Reuters by By John O'Donnell
The European Banking Authority (EBA) announced on Friday the publication date for the results of its check on 91 of the region's top lenders. These will be accompanied by measures to bolster capital for those that failed or nearly failed, in another attempt to reassure investors that European banks can withstand future shocks.
According to a separate European Union draft document seen by Reuters, European countries will support banks that fail the stress tests if those lenders cannot raise capital from investors within six months.
The paper, being prepared for EU finance ministers to approve on Tuesday, is an about-face from promises by G20 policymakers in the wake of the financial crisis that taxpayers would never have to bail out banks again.
An official close to the EBA said all banks that fail must have a plan by September to plug the capital shortfall by the end of this year, as previously agreed by EU finance ministers.
Those just above the pass mark will be more closely scrutinised and must also plan remedial actions but their implementation deadline remains unclear and could be clarified by finance ministers next Tuesday, the official said.
Member states will be obliged to have backstops in place only for banks that actually fail the test, the official added.
European Banking Federation Secretary General Guido Ravoet said some banks may struggle to find enough capital.
"Is the European financial market deep enough to respond to the needs for capital? We are not the only sector looking for capital," Ravoet said.
PRESSURE ON PERIPHERY
This latest round of tests has been touted as being more rigorous than previous attempts, in which few banks failed, and finance ministers' officials are drawing up plans for how to deal with the fallout.
The EU document also says lenders that nearly fail the tests will be put on a critical watch list in case they deteriorate.
Sources close to the banks and watchdogs said all German banks were certain they would get the green light, although some lenders, including publicly owned landesbanks HSH Nordbank and NordLB, would just scrape through.
News that EU governments appear serious about supporting banks that fail to maintain core capital of 5 percent in the face of several theoretical markets shocks lifted Bund futures and UK gilts.
"In essence that puts even more pressure on the periphery (euro zone countries) to come up with measures, not only to shore up their budgets, but to support their banking sectors, which they can ill afford to do," said Marc Ostwald, strategist at Monument Securities.
"It's basically a charge to safety on the back of this. This is a market which is living in mortal fear of anything to do with the euro zone and anything that puts the banking sector under more stress," Ostwald said.
The Italian/German 10-year yield spread hit fresh euro-era highs amid fears that already fiscally stretched countries like Italy might have to dig into their pockets to bail out banks that fail the test as well.
Shares in Italian bank UniCredit fell more than 5 percent on fears that Italy could be pulled into the debt crisis that has already forced Greece, Ireland and Portugal to take bailouts. UniCredit is the only big Italian bank that has not yet announced a capital increase.
Italian banking association chief Giuseppe Mussari, when asked about possible government intervention for banks failing the stress test, said this was not an issue for Italian banks.
According to the draft EU document, capital-raising plans should first be based on "private-sector measures, including ... retained earnings ... raising additional common equity or high-quality hybrid instruments from private investors, assets sales, mergers."
But if the search for private capital leads nowhere, then governments should be ready to step in.
Officials do, however, make provision for "the extreme case" if efforts to rehabilitate a bank fail and it threatens wider stability, recommending "a process of orderly restructuring and resolution."
The number of banks declared by the EBA to have failed will either encourage investors that Europe is now coming clean with its banking problems, or if the tests are deemed too lax again, they will hurt the EU's already battered credibility.
Previous stress tests were widely dismissed as too lax -- with Ireland given the green light just months before the EU and International Monetary Fund had to bail its lenders and the country out.
PRIME SUSPECTS
Unlisted banks in Spain and Germany and a batch of banks that are already raising funds are the most likely to fail this year's health check, analysts at Nomura said.
Jon Peace, banking analyst at Nomura, said he expected few failures among the listed banks, and many of those who will fall short have raised capital this year or were in the process of doing so.
"We think it (failures) will be heavily skewed towards the unlisted banks in Spain and Germany and with some Greek banks in there. For large listed banks there will be few failures."
Nomura analysts said several banks could have a core Tier 1 ratio of under 5 percent under an adverse scenario based on end-2010 capital levels, including Spain's Bankinter and Sabadell, Italy's Banco Popolare; Greece's Piraeus and ATEbank; Cyprus-based Marfin Popular and Bank of Cyprus; and Bank of Ireland and Allied Irish Banks.
The new checks will measure how well the core capital that banks rely on to absorb losses such as unpaid loans holds up when exposed to an economic dip or fall in property prices.
They also gauge the impact on banks should government bonds they own, issued by states such as Greece, lose value.
Source: Reuters by By John O'Donnell
Wednesday, July 6, 2011
DARE TO DREAM AGAIN AND PLAY FULL OUT!
Now its time to look clearly at what not really going for your dreams has cost you – mentally, emotionally, spiritually and financially. Give your full attention and commitment to this exercise. It is vital for creating the kind of success that you deserve to have in your life.
Spend two or three minutes on each of the questions below. Don’t take a lot of time thinking about your responses. Just write the first thoughts that come in to your mind. Play full out and really go for it.
1) What is the cost of playing small and not really going for your dreams and not really playing full out in life?
2) What has that cost you so far in life? What does it cost you spiritually? What does it cost you emotionally? Financially?
3) What would it continue to cost you if you were to carry on playing small and not really going after your dreams? What would it cost you over the next year? Over the next 3 years? The next 5 years?
4) Then what would it cost you ultimately in your life? What would you lose out on? What would you miss out on? What’s the ultimate price that you would have to pay for selling yourself short, playing small and not going for your dreams?
5) What do you stand to gain by stepping up and making the commitment today to play full out, follow your heart, and live your dreams? What’s the ultimate benefit?
6) When you achieve the ultimate benefit, what will that allow you to do or have?
7) What’s important to you about those benefits?
8) How committed are you to that?
What are you waiting for……
DARE TO DREAM AGAIN AND PLAY FULL OUT!
Spend two or three minutes on each of the questions below. Don’t take a lot of time thinking about your responses. Just write the first thoughts that come in to your mind. Play full out and really go for it.
1) What is the cost of playing small and not really going for your dreams and not really playing full out in life?
2) What has that cost you so far in life? What does it cost you spiritually? What does it cost you emotionally? Financially?
3) What would it continue to cost you if you were to carry on playing small and not really going after your dreams? What would it cost you over the next year? Over the next 3 years? The next 5 years?
4) Then what would it cost you ultimately in your life? What would you lose out on? What would you miss out on? What’s the ultimate price that you would have to pay for selling yourself short, playing small and not going for your dreams?
5) What do you stand to gain by stepping up and making the commitment today to play full out, follow your heart, and live your dreams? What’s the ultimate benefit?
6) When you achieve the ultimate benefit, what will that allow you to do or have?
7) What’s important to you about those benefits?
8) How committed are you to that?
What are you waiting for……
DARE TO DREAM AGAIN AND PLAY FULL OUT!
Dreams Come True - Especially A Dream Job
There are a lot of people out there who dream, but only a few are willing to work on their dreams and make them come true. If you want to land your dream job then you may have to make short-term sacrifices. And boy, will it be worth it!
What To Dream
For example, maybe you are a janitor and you dream of becoming the president of the bank. It's going to be a step-by-step process, moving towards your goal. So,if you want to land your dream job then you must use your money wisely and get the education and training you will need to achieve this prestigious goal.
You work to save the money that you earn from being a janitor and invest it in your business education - you are on the first step of your dream - so, celebrate, many people don't even start!
Be In The Right Place
Whilst you are getting that business education, you can apply for a lesser position in the company where your dream job exists. When you are in that lesser position in the right company doing a great job will then provide you with opportunities to make your moves over time.
And at some point in time, you will become the vice president of the company and then eventually you will become the president. What you just did is land your dream job. This is your dream and you wanted it to happen and you planned your course of action and you worked on it. Focused action towards a real and possible goal.
You have to make sure that you will put in the necessary effort to make things happen in a deliberate and focused way with all your attention and effort. Then, anything is possible, because everyone started at the bottom once.
Dreams Come True - Only If You Work At Them!
You can not simply sit and expect to land your dream job out of nowhere. If you want your dream to happen then you have to work hard at it. You have to make sure that you are covering all the necessary requirements to make your dream a reality.
If you are a teaching assistant in the university, who wants more, then you must seek a level higher education that helps you on your way to becoming the Dean. You also have to deliver the teaching hours requirement if you want to go up the university ladder.
Studying hard, putting the hours in all along a planned path will get you there. Many people don't do this and fall by the wayside with complaints of unfairness and other excuses. Good luck and fortune often comes to those who put the effort in, so that at the end of the day, you will be able to be successful enough to land your dream job once and for all.
Put In The Dream Job Effort
It's about working hard and making sacrifices - yet you don't have to kill yourself. Work smart too. By focusing your actions and leveraging your time and resourcefulness, you can take shortcuts.
A dream job is accessible to everyone. A job where you love getting up each morning to face the great challenges of your working day. A day where you will feel fulfilled and you will truly be a round peg in a round hole and not the other way round.
The time is yours, the time is now. What are you waiting for?
Source: 123direct.com
What To Dream
For example, maybe you are a janitor and you dream of becoming the president of the bank. It's going to be a step-by-step process, moving towards your goal. So,if you want to land your dream job then you must use your money wisely and get the education and training you will need to achieve this prestigious goal.
You work to save the money that you earn from being a janitor and invest it in your business education - you are on the first step of your dream - so, celebrate, many people don't even start!
Be In The Right Place
Whilst you are getting that business education, you can apply for a lesser position in the company where your dream job exists. When you are in that lesser position in the right company doing a great job will then provide you with opportunities to make your moves over time.
And at some point in time, you will become the vice president of the company and then eventually you will become the president. What you just did is land your dream job. This is your dream and you wanted it to happen and you planned your course of action and you worked on it. Focused action towards a real and possible goal.
You have to make sure that you will put in the necessary effort to make things happen in a deliberate and focused way with all your attention and effort. Then, anything is possible, because everyone started at the bottom once.
Dreams Come True - Only If You Work At Them!
You can not simply sit and expect to land your dream job out of nowhere. If you want your dream to happen then you have to work hard at it. You have to make sure that you are covering all the necessary requirements to make your dream a reality.
If you are a teaching assistant in the university, who wants more, then you must seek a level higher education that helps you on your way to becoming the Dean. You also have to deliver the teaching hours requirement if you want to go up the university ladder.
Studying hard, putting the hours in all along a planned path will get you there. Many people don't do this and fall by the wayside with complaints of unfairness and other excuses. Good luck and fortune often comes to those who put the effort in, so that at the end of the day, you will be able to be successful enough to land your dream job once and for all.
Put In The Dream Job Effort
It's about working hard and making sacrifices - yet you don't have to kill yourself. Work smart too. By focusing your actions and leveraging your time and resourcefulness, you can take shortcuts.
A dream job is accessible to everyone. A job where you love getting up each morning to face the great challenges of your working day. A day where you will feel fulfilled and you will truly be a round peg in a round hole and not the other way round.
The time is yours, the time is now. What are you waiting for?
Source: 123direct.com
Tuesday, July 5, 2011
US Debt deal not that far out of reach
You would never know it from all the hot air rising out of Washington, but President Barack Obama and congressional Republicans could easily reach a deal to raise the debt limit and avoid an early August default.
Before talks hit a brick wall last weekend, negotiators were tantalizingly close to a $2 trillion-plus budget deal that would enable Congress to sign off on further borrowing, according to Democratic and Republican sources.
Since then, things have not looked good. Obama compared Republicans to lazy schoolchildren and Democrats accused them of deliberately sabotaging the economy. Republicans have not shied away from salty language, either.
"Washington is addicted to spending, and the addict-in- chief is the president," Republican Senator Jim DeMint said on the Senate floor on Thursday.
Analysts worry lawmakers may be painting themselves into a corner. "In order to get out of this mess they're going to have to eat some of their words," said Joe Minarik, a former budget official in the Clinton administration.
The Treasury Department has warned the country will face default if Congress does not lift the $14.3 trillion debt ceiling by August 2. That could push the country back into recession and upend financial markets across the globe.
Whether Republicans and Democrats can bridge their differences over the coming weeks remains to be seen.
From a dollar standpoint, the two sides are closer to a deal than it might appear.
In talks led by Vice President Joe Biden, negotiators had agreed to reduce discretionary spending, which covers everything from space exploration to pollution control, by between $900 billion and $1.7 trillion over 10 years.
Republicans resisted cuts to military and other security spending sought by Democrats, but Senator Charles Schumer, a Democrat known as a hard-nosed partisan, said on Thursday he thought a compromise was possible in this area.
The two sides had also tentatively agreed on cuts to a wide range of benefit programs, such as farm subsidies, student aid and federal employee retirement plans -- a total of roughly $200 billion, according to Democrats.
STRUCTURAL CHANGES TO MEDICARE?
Democrats have hammered their conservative opponents over a Republican proposal to scale back the Medicare program for future retirees, but the budget talks have yielded some consensus in this area as well.
Democrats say the deal could save roughly $200 billion through structural changes to health programs like Medicare and Medicaid, the healthcare program for the poor and handicapped, that don't scale back benefits.
Both sides have also taken a look at changing the inflation index, which could slow the growth of benefit payments and tax exemptions. That could yield $300 billion.
The lowered spending levels would reduce the amount the government spends on interest payments. That could yield a further $400 billion or so in savings, according to a back-of-the envelope calculation.
That adds up to at least $2 trillion in cuts -- roughly enough to ensure that Congress would not have to revisit the politically toxic issue before the November 2012 elections.
The main sticking point is tax increases. Republicans leaders have said they're off the table, and Democrats no longer expect to get the increase in income-tax rates for wealthy households that they had initially sought.
Instead, they aim to close a range of tax breaks that could generate $400 billion in new revenue. Republicans are not likely to agree to the largest of these, which would generate $300 billion from wealthy taxpayers by limiting the amount of deductions they can claim.
But other breaks for corporate jets, yachts and racehorses have a minimal impact on the budget and provide Democrats with vivid fodder for campaign attack ads. Throwing a few of these into the deal could avert a few headaches for Republicans and allow Democrats to claim a moral victory.
"It's going to be a difficult lift, but I still think that calmer minds will prevail in the end and they'll recognize that we don't have any alternative but to move forward," said Bill Hoagland, a former Republican congressional aide who has worked on budget issues for decades.
Source: Reuters by Alister Bull and Deborah Charles
Before talks hit a brick wall last weekend, negotiators were tantalizingly close to a $2 trillion-plus budget deal that would enable Congress to sign off on further borrowing, according to Democratic and Republican sources.
Since then, things have not looked good. Obama compared Republicans to lazy schoolchildren and Democrats accused them of deliberately sabotaging the economy. Republicans have not shied away from salty language, either.
"Washington is addicted to spending, and the addict-in- chief is the president," Republican Senator Jim DeMint said on the Senate floor on Thursday.
Analysts worry lawmakers may be painting themselves into a corner. "In order to get out of this mess they're going to have to eat some of their words," said Joe Minarik, a former budget official in the Clinton administration.
The Treasury Department has warned the country will face default if Congress does not lift the $14.3 trillion debt ceiling by August 2. That could push the country back into recession and upend financial markets across the globe.
Whether Republicans and Democrats can bridge their differences over the coming weeks remains to be seen.
From a dollar standpoint, the two sides are closer to a deal than it might appear.
In talks led by Vice President Joe Biden, negotiators had agreed to reduce discretionary spending, which covers everything from space exploration to pollution control, by between $900 billion and $1.7 trillion over 10 years.
Republicans resisted cuts to military and other security spending sought by Democrats, but Senator Charles Schumer, a Democrat known as a hard-nosed partisan, said on Thursday he thought a compromise was possible in this area.
The two sides had also tentatively agreed on cuts to a wide range of benefit programs, such as farm subsidies, student aid and federal employee retirement plans -- a total of roughly $200 billion, according to Democrats.
STRUCTURAL CHANGES TO MEDICARE?
Democrats have hammered their conservative opponents over a Republican proposal to scale back the Medicare program for future retirees, but the budget talks have yielded some consensus in this area as well.
Democrats say the deal could save roughly $200 billion through structural changes to health programs like Medicare and Medicaid, the healthcare program for the poor and handicapped, that don't scale back benefits.
Both sides have also taken a look at changing the inflation index, which could slow the growth of benefit payments and tax exemptions. That could yield $300 billion.
The lowered spending levels would reduce the amount the government spends on interest payments. That could yield a further $400 billion or so in savings, according to a back-of-the envelope calculation.
That adds up to at least $2 trillion in cuts -- roughly enough to ensure that Congress would not have to revisit the politically toxic issue before the November 2012 elections.
The main sticking point is tax increases. Republicans leaders have said they're off the table, and Democrats no longer expect to get the increase in income-tax rates for wealthy households that they had initially sought.
Instead, they aim to close a range of tax breaks that could generate $400 billion in new revenue. Republicans are not likely to agree to the largest of these, which would generate $300 billion from wealthy taxpayers by limiting the amount of deductions they can claim.
But other breaks for corporate jets, yachts and racehorses have a minimal impact on the budget and provide Democrats with vivid fodder for campaign attack ads. Throwing a few of these into the deal could avert a few headaches for Republicans and allow Democrats to claim a moral victory.
"It's going to be a difficult lift, but I still think that calmer minds will prevail in the end and they'll recognize that we don't have any alternative but to move forward," said Bill Hoagland, a former Republican congressional aide who has worked on budget issues for decades.
Source: Reuters by Alister Bull and Deborah Charles
Monday, July 4, 2011
Time for Career Confidence
With all the media coverage of financial sector crisis, market uncertainty and burgeoning recession, it would be easy to convince yourself that now is not the best time to be reassessing your career direction or out in the recruitment market, and that you’d be best to keep your head down – but you’d be wrong!
Now is a perfect time to sit back and take serious stock of your career situation. Use the time productively to carefully analyse what you offer the market, define your preferred career future and work out a way of getting there. In effect you are taking time to sharpen up your marketing plan, perfect your sales pitch. Most importantly, you are investing in your key shareholder – yourself. You are building career confidence.
Whilst the talk on the street is generally negative right now, the corporate heart of Ireland is still beating strongly, with companies still looking to fill key organisational roles, at all levels. The jobs are out there, both through agencies and under direct company advertisement, for which interview candidates still need to be found. If you are career confident – i.e. you know exactly what you’re after work-wise, and have honed your self-marketing skills to perfection, then now is actually an excellent time to be offering your services in the job market.
This is because many talented people prefer to play safe and stay put, rather than venture out into candidate-land - even when they’re in jobs they are sick of, and don’t want to spend another minute in! Their lack of career confidence displays as a high preference for time-dependent job security. For that reason, the level of high-class competition, particularly for high level jobs, can be significantly reduced right now.
If you’re in a work situation where you are worried that redundancy may be around the corner, then you should be making career confidence your best friend. Do this by being fully aware of your skills & talents, know how to apply them to best effect in work, and understand their real value. Analyse them alongside your specific work requirements and take time to determine the most personally profitable career future for yourself. Finally, develop your CV into an effective marketing brochure, and start to practice your interview techniques. It is amazing just how much being career confident shows at work, and is actually capable of averting a redundancy situation.
Source: Onlinecareermanager.com
Now is a perfect time to sit back and take serious stock of your career situation. Use the time productively to carefully analyse what you offer the market, define your preferred career future and work out a way of getting there. In effect you are taking time to sharpen up your marketing plan, perfect your sales pitch. Most importantly, you are investing in your key shareholder – yourself. You are building career confidence.
Whilst the talk on the street is generally negative right now, the corporate heart of Ireland is still beating strongly, with companies still looking to fill key organisational roles, at all levels. The jobs are out there, both through agencies and under direct company advertisement, for which interview candidates still need to be found. If you are career confident – i.e. you know exactly what you’re after work-wise, and have honed your self-marketing skills to perfection, then now is actually an excellent time to be offering your services in the job market.
This is because many talented people prefer to play safe and stay put, rather than venture out into candidate-land - even when they’re in jobs they are sick of, and don’t want to spend another minute in! Their lack of career confidence displays as a high preference for time-dependent job security. For that reason, the level of high-class competition, particularly for high level jobs, can be significantly reduced right now.
If you’re in a work situation where you are worried that redundancy may be around the corner, then you should be making career confidence your best friend. Do this by being fully aware of your skills & talents, know how to apply them to best effect in work, and understand their real value. Analyse them alongside your specific work requirements and take time to determine the most personally profitable career future for yourself. Finally, develop your CV into an effective marketing brochure, and start to practice your interview techniques. It is amazing just how much being career confident shows at work, and is actually capable of averting a redundancy situation.
Source: Onlinecareermanager.com
Friday, July 1, 2011
The European Banking Authority said on Friday it had received all the extra information it wanted from banks, paving the way for publication of its sector health-check this month
The European Union watchdog is stress testing 91 lenders to see whether they can still stand on their own feet in the face of scenarios such as the economy shrinking for two consecutive years or big falls in house prices.
The aim is to restore investor confidence in a sector still being propped up by taxpayers in parts and under pressure to contribute to a Greek bailout.
The EBA planned to publish the result in June but had to ask banks to resubmit information because it was too optimistic. It also toughened up the impact of a big ratings downgrade on sovereign debt -- putting countries like Greece into theoretical default.
"All the data is now in, and we are now entering the third phase of peer review," an EBA spokeswoman said.
Officials familiar with the stress test said the need to put further questions to banks could not be ruled out but that the results are expected to be published in July.
The date may be disclosed next week.
Some banks, however, believe the EBA may be forced to delay publication beyond mid-July.
"The EBA will never make their deadline. I think it's highly unlikely that it will publish the stress test results by July 13. The stress tests are in complete disarray," a chief executive of a German landesbank participating in the health-check told Reuters.
"Even now, new questions keep arriving. The reason is that the EBA is realising that not as many banks will fail as it had hoped in order to rebuild its own credibility - so it keeps adjusting the test," the CEO said.
Last year's test was judged a flop after only seven lenders failed, none of them from Ireland, even though Ireland's banks later had to be rescued by a bailout from the EU and International Monetary Fund.
EBA Chairman Andrea Enria has staked the fledgling watchdog's reputation on delivering a credible stress test.
"We expect the EBA to come back with more questions. It looks like the EBA is adjusting the test in a way that will produce this many failures -- and this way rebuild its own credibility," a manager at another German bank said on condition of anonymity.
Reuters reported this week that up to 15 lenders may fail the test, but Enria said on Wednesday that a result has not yet been reached.
Sources have told Reuters the results will be published mid-July, probably just after a meeting of EU finance ministers on July 12 to discuss the results first and make sure "backstops" are in place, if needed, to prop up lenders that fail.
Source Reauters Reporting by Huw Jones in London, and Arno Schuetze in Frankfurt
The aim is to restore investor confidence in a sector still being propped up by taxpayers in parts and under pressure to contribute to a Greek bailout.
The EBA planned to publish the result in June but had to ask banks to resubmit information because it was too optimistic. It also toughened up the impact of a big ratings downgrade on sovereign debt -- putting countries like Greece into theoretical default.
"All the data is now in, and we are now entering the third phase of peer review," an EBA spokeswoman said.
Officials familiar with the stress test said the need to put further questions to banks could not be ruled out but that the results are expected to be published in July.
The date may be disclosed next week.
Some banks, however, believe the EBA may be forced to delay publication beyond mid-July.
"The EBA will never make their deadline. I think it's highly unlikely that it will publish the stress test results by July 13. The stress tests are in complete disarray," a chief executive of a German landesbank participating in the health-check told Reuters.
"Even now, new questions keep arriving. The reason is that the EBA is realising that not as many banks will fail as it had hoped in order to rebuild its own credibility - so it keeps adjusting the test," the CEO said.
Last year's test was judged a flop after only seven lenders failed, none of them from Ireland, even though Ireland's banks later had to be rescued by a bailout from the EU and International Monetary Fund.
EBA Chairman Andrea Enria has staked the fledgling watchdog's reputation on delivering a credible stress test.
"We expect the EBA to come back with more questions. It looks like the EBA is adjusting the test in a way that will produce this many failures -- and this way rebuild its own credibility," a manager at another German bank said on condition of anonymity.
Reuters reported this week that up to 15 lenders may fail the test, but Enria said on Wednesday that a result has not yet been reached.
Sources have told Reuters the results will be published mid-July, probably just after a meeting of EU finance ministers on July 12 to discuss the results first and make sure "backstops" are in place, if needed, to prop up lenders that fail.
Source Reauters Reporting by Huw Jones in London, and Arno Schuetze in Frankfurt
Subscribe to:
Posts (Atom)