www.paytax.co.cc

What is in a Franchise UFOC?

2008-08-29T07:57:00.000-07:00

There are 4 parts to a UFOC:

* Cover Page
* Table of Contents
* Items 1-23
* Exhibits

The format for each of these sections is very specific and covers the following:

Cover Page The Cover Page identifies the franchise business, including the name under which the franchisee would operate and what type of business it is. It also includes the amounts of the initial franchise fee. In addition, any additional risk factors are included on the cover in all capital letters. Risk factors that may be included pertain mostly to which state is governing the franchise agreement and where any litigation is permitted to be filed and heard.

Table of Contents The Table of Contents contains the specific 23 items listed below, as well as the exhibits, in a standard format.

Items 1-23 Item 1: The Franchisor, Its Predecessors, and Affiliates This section gives you a background on the Franchisor, including anyone he/she has purchased the franchise from, and any affiliates, meaning anyone else who has a controlling interest in the franchise. Do your research on these representatives, including a credit check if possible. You're quite possibly investing your life savings with these people and knowing any other businesses in which they have been involved and how well they manage financial aspects is important.

Item 2: Business Experience This section gives you a background on the officers and directors of the franchise for the past five years. Similar to the information you will review on the Franchisor itself, you want to carefully review the expertise these people bring to the table. These are the people you will be working with and who will contribute greatly to the success of your franchise. You should get to know them as well as you can.

Item 3: Litigation Any history of litigation, including cases terminated by settlement, must be disclosed in this section. Any Franchisor who is under some kind of restrictive injunction is one to stay away from. Additionally, if a franchisor or any officer has a criminal history or any litigation pending that may affect his or her ability to maintain a franchise then this opportunity is not a worthwhile risk.

Item 4: Bankruptcy The bankruptcy disclosure requires that they tell you up front about any bankruptcy in the last 10 years concerning, "the franchisor, its affiliate, its predecessor, officers, or general partner". Entrepreneurs often have several failures before they are successful. Learning from failed business is not the experience you want to have, which is why you are considering a franchise. This doesn't always mean that having a bankruptcy in the disclosure is a sure prediction of a bankruptcy in the future, but you want to review the circumstances of the bankruptcy carefully, including the amount of time that has lapsed since that bankruptcy. You typically don't want to give your money to someone with a proven track record of not being able to manage it.

Item 5: Initial Franchise Fee The initial franchise fee is the fee you pay to purchase the right to operate as a franchise. This does not include all of the other fees that may be required to get started or continue operation. The important thing to know about the initial franchise fee is exactly what you are getting for those dollars. Knowing how they came up with that number is important. A large initial franchise fee does not equate to a larger earning or a better investment. Consider this fee in addition to the Other Fees (Item 6) and Initial Investment (Item 7) before concluding what it will actually cost to open a franchise.

Item 6: Other Fees Other fees include any other monies you will be required to pay to the franchisor, including royalties, advertising fees, service fees, training fees, or any other ongoing or one-time fees that you as a franchisee will be expected to pay directly to the franchisor.

Item 7: Initial Investment This is the key item in terms of figuring out what is will cost you to get a franchise up and running. This section is laid out as a table, and includes the estimated costs for training, equipment, opening, inventory and other costs associated with starting your franchise. For each item in the list, you are given the amount, the method of payment, when it is due and to whom the payment is to be made. Review this information carefully. Speak with other franchisees and see if the estimated costs were realistic. Expect that you will need more for unexpected expenses. Remember that most businesses are not profitable for at least a year, so include the amount of money it would take you and your family to survive for a year without income.

Item 8: Restrictions on Sources of Products and Services If the franchisor requires you to purchase or lease from designated sources, investigate further. Sometimes the purchase restrictions are because the franchise has negotiated a lower price for certain goods in return for guaranteed orders. However, sometimes the cost of the supplies is not competitive and the franchisor makes a bit of money from the procurement of supplies. This makes the franchise more expensive to run, even if the startup costs look attractive. If the costs are reasonable, the restrictions are not a big issue. Again, talk to existing franchisees to see if they feel these restrictions are reasonable and whether or not they are satisfied they are receiving their money's worth.

Item 9: Franchisee's Obligations Your obligations as a franchisee can be laid out in various agreements, including but not limited to the franchise agreement. This section explains what your obligations are and exactly where in the legal documentation you can find the information governing your obligations. This is an important section for you to review carefully, as they define your contractual obligations and if you breech these obligations your franchise can be terminated. Talk to current franchisees and see whether meeting these obligations has presented any difficulty. If the obligations seem unreasonable, move on.

Item 10: Financing Sometimes the financing required to start-up a franchise comes from the franchisor him/herself. As with any financial contract, review the conditions and be sure that they are competitive and make sense. Have an accountant or banking representative review the terms and give an opinion. Having a credit check would, again, be handy here.

Item 11: Franchisor's Obligations Just as the UFOC lays out your obligations as a franchisee, the obligations of the franchisor must be clearly disclosed in this section. You are putting your financial future into the hands of the franchise that you purchase, at least in part. Be sure you understand exactly what you are getting for what you are paying. You may want to approach this section in a different manner than the others...perhaps backward. Rather than reading what they will provide, begin by making a list of what you think you will need to be successful. Determine what kind of training you will need and see whether they provide it, when it will be offered, what kind of training it is, and whether or not it meets your needs. What kind of ongoing support or documentation do they include? Also determine what you would need after you have opened the franchise and see whether those items are included in their list of obligations. If they are missing things that you think you will need to be successful, ask to have those things added to the franchise agreement. Verbal promises from salespeople are not sufficient - promised items should be added to this section.

Item 12: Territory Opening a franchise just to see another franchise open up a half mile down the road would be enough to make anyone crazy. The territory section of the UFOC is designed to lay out exactly what rights you have to any territory. Having the right to an "exclusive area" cuts down on the competition, at least from within your own franchise. Unfortunately, not all franchisees are alike. Some will take full advantage of their area and develop the market to its fullest. Others will assume that the lack of competition in their immediate area means they have a right to the business and therefore don't work quite as hard to develop that area. There are many other situations in which an exclusive area causes issues for a franchisor, and most will not grant them. Some will grant an exclusive area only for a specified amount of time or only as long as a certain level of achievement is reached by the franchisee. Understanding what options the franchise offers is very important.

Item 13: Trademarks This section discloses any trademarks, service mark, service name or logotype used in the franchise business and whether or not that trademark or service mark are registered with the US Patent Office. Using a trademark symbol (™) is not the same thing as having a registered trademark. The registered trademark (®) means a certificate of registration has been granted to the franchisor. A trademark registered in the Supplemental Register does not have the same legal rights and there should be a statement in the Trademarks section disclosing this information.

Item 14: Patents, Copyrights, and Proprietary Information This section is important to you only if patents are important to the franchise. If so, get a copy of the patent from the U.S. Patent Office and review the status of the patent. Be familiar with any copyrighted or proprietary information outlined in the UFOC, as the franchisor has a right to modify or prohibit use of anything patented, copyrighted, or proprietary information disclosed in the UFOC.

Item 15: Obligation to Participate in and the Actual Operation of the Franchise Business This section outlines any requirements for the franchisee to personally be involved in the operation of the franchise. If the franchise does not require the franchisee to run the business him or herself, then there must be a statement outlining whether or not a manager running the day-to-day operations of the franchise in place of the owner must complete the franchisor's training program and/or own an equity share of the business, and any limitations placed on the manager (such as being approved by the franchise).

Item 16: Restrictions on What the Franchisee May Sell Restrictions on what you may sell will affect those franchisees who want to operate an expandable business while they own the franchise. This section is also important if you are limited to selling goods or services that won't make you enough return.

Item 17: Renewal, Termination, Transfer, and Dispute Resolution This section is one of the most important in the entire document, and is presented in a table format for easy browsing. The best contract is one stating that as long as you do not breech your contract you can renew your franchise agreement, forever. Contracts that place a limit on your possibility to renew solely at the discretion of the franchisor are bad. Also pay close attention to extensive repairs or decoration that will required as a condition of renewal. The amount of money expected to be spent should be reasonable and there should be some kind of formula so that costs are not incurred all in the same year. Additionally, the refurbishment should keep you industry competitive.

There are many types of transfers. Transferring among business entities, such as from a sole proprietorship into a corporation, should definitely be allowed. A good agreement will also allow your franchise to be transferred to your heirs. If this is not allowed and you're still interested in purchasing the franchise, try to make some provision for the repurchase of your franchise by the franchisor.

This section also outlines the causes for termination of the franchise agreement, states whether the franchise can be sold and who has the right of first refusal (your own blood relatives should not, ideally, come after the franchisor on first rights), and delineates your right to arbitration. Essentially, the more rights you have to control the renewal and transfer of your franchise, the more rights you have for the continuation of your business and the better the agreement. Make sure your franchise attorney reviews these rights as well as your rights to litigation (or requirement to use arbitration). Any additional risks for litigation will also be on the cover page, remember.

Item 18: Public Figures This section requires the disclosure of any public figures the franchise uses as a spokesperson, how much they were paid, and how much control they have in the business (if any). Find out how this arrangement relates to you, whether you can use that figure in personal appearances or advertising, how much it would cost and how frequently you would be allowed to do so.

Item 19: Earnings Claims It is very tricky for a franchisor to project, estimate, or in any way forecast financial sales. There are so many variables in play for an individual franchise that it would be mostly guesswork and optimism to project for a prospective franchisee how much money they will make with their business. Any claims made by the franchisor to this effect must be substantiated, so rarely will you see any earning claims included in a UFOC. The best way to get an idea of what to expect for earnings is to talk to existing franchisees. Find out how long they've been in business, when the business turned profitable, and what their average profits have been. Remember that each business is unique and that each franchisee does not run a business equally well. Speak to several franchisees to get a clearer picture of a range that you might be able to expect.

Item 20: List of Outlets All of the existing franchise locations, along with the franchisee's contact information, is listed in this section. This is the pot of gold, right here. Contacting franchisees with questions about their relationship to the franchisor, their ability to meet their contractual obligations, their general earnings, and how realistic the start-up projections are is the best bit of research and review you can possibly do before purchasing your franchise. Prepare your questions and schedule time with franchees in advance; this one is important.

Item 21: Financial Statements This section points you to the exhibits containing the audited financial statements of the franchisor for the last three years. Take these statements to a qualified accountant for review. The financial status of the franchisor is a track record, showing you not only the ability of the franchisor to run the business, but also the likelihood of success or failure.

Item 22: Contracts All contracts or agreements a franchisee will need to sign must be attached to the UFOC. This includes the Franchise Agreement, purchase agreements, lease agreements, and others.

Item 23: Receipt This document is a receipt of acknowledgment of the UFOC. This has to be provided as the last page of the document for the franchisee to acknowledge that they have received it. This is only important because no monies can legally be exchanged until 10 days after the receipt of the UFOC (the "cooling off" period provided for by law).

Exhibits Any documents that have been identified in the UFOC for the franchise to review or sign must be included as an Exhibit. The exhibits will include copies of such things as the financial statements, Franchise Agreement, leases, or Loan Agreements.

How To Write A Successful Business Plan

2008-08-15T08:30:00.001-07:00

Whether you are planning to start a brand-new business, expand an existing company, or get financing for a business venture, you will need to write a business plan. A business plan not only lends your business a sense of credibility, but also helps you to cover all your bases, increasing your chances of success.

Although writing a business plan can be a lengthy, intimidating project, it is not necessarily difficult. Here is an overview of how to write a successful business plan.

What to Include in Your Business Plan

Your business plan needs to demonstrate that you have thoroughly considered all aspects of running your business. To that end, the standard business plan has nine major sections, covering everything from your business’s mission statement to a detailed financial analysis.

Executive Summary

The first – and most important – section of your business plan is the executive summary. This section is so important that it should literally be the first thing the reader sees – even before the table of contents! However, it should also be written last, as you’ll have a better understanding of the overall message of your business plan after you’ve researched and written the other sections.

One of the most important parts of the executive summary is the mission statement. The mission statement is only three or four sentences long, but it should pack the most punch out of everything else in your business plan: Those four sentences are responsible for not only defining your business, but also capturing the interest of your reader.

The rest of your executive summary should fill in the important details that the mission statement glosses over. For instance, your executive summary should include a short history of the business, including founder profiles and start date; a current snapshot, listing locations, numbers of employees, and products or services offered; and a summary of future plans and goals.

This section is a candidate for a bulleted format, which allows you to list main points in a manner that is easy to scan. Avoid using too much detail – remember, this section is a summary. A page or two is usually sufficient for an executive summary.

Market Analysis

The next section of your business plan focuses on market analysis. In order to show that your business has a reasonable chance for success, you will need to thoroughly research the industry and the market you intend to sell to. No bank or investor is going to back a doomed venture, so this section is sure to fall under especially close scrutiny if you are looking for financing.

Your market analysis should describe your industry, including the size, growth rate, and trends that could affect the industry. This section should also describe your target market – that is, the type or group of customers that your company intends to serve. The description of your target market should include detail such as:

• Distinguishing characteristics
• The needs your company or product line will meet
• What media and/or marketing methods you’ll use to reach them
• What percentage of your target market you expect to be able to wrest away from your competitors

In addition, your market analysis should include the results of any market tests you have done, and an analysis of the strengths and weaknesses of your competitors.

Company Description

After your market analysis, your business plan will need to include a description of your company. This section should describe:

• The nature of your business
• The needs of the market
• How your business will meet these needs
• Your target market, including specific individuals and/or organizations
• The factors that set you apart from your competition and make you likely to succeed

Although some of these things overlap with the previous section, they are still necessary parts of your company description. Each section of your business plan should have the ability to stand on its own if need be. In other words, the company description should thoroughly describe your company, even if certain aspects are covered in other sections.

Organization and Management

Once you have described the nature and purpose of your company, you will need to explain your staff setup. This section should include:

• The division of labor – how company processes are divided among the staff
• The management hierarchy
• Profiles of the company’s owner(s), management personnel, and the Board of Directors
• Employee incentives, such as salary, benefits packages, and bonuses

This goal of this section is to demonstrate not only good organization within the company, but also the ability to create loyalty in your employees. Long-term employees minimize human resource costs and increase a business’s chances for success, so banks and investors will want to see that you have an effective system in place for maintaining your staff.

Marketing and Sales Management

The purpose of the marketing and sales section of your business plan is to outline your strategies for marketing your products or services. This section also plans for company growth by describing how the growth could take place.

The section should describe your company’s:

• Marketing methods
• Distributions methods
• Type of sales force
• Sales activities
• Growth strategies

Product or Services

Following the marketing section of your business plan, you will need a section focusing on the product or services your business offers. This is more than a simple description of your product or services, though. You will also need to include:

• The specific benefits your product or service offers customers
• The specific needs of the market, and how your product will meet them
• The advantages your product has over your competitors
• Any copyright, trade secret, or patent information pertaining to your product
• Where any new products or services are in the research and development process
• Current industry research that you could use in the development of products and services

Funding Request

Only once you have described your business from head to toe are you ready to detail your funding needs. This section should include everything a bank or investor needs in order to understand what type of funding you want:

• How much money you need now
• How much money you think you will need over the next five years
• How the money you borrow will be used
• How long you will need funding
• What type of funding you want (i.e. loans, investors, etc.)
• Any other terms you want the funding arrangement to include

Financials

The financials section in your business plan supports your request for outside funding. This section provides an analysis of your company’s prospective financial success. The section also details your company’s financial track record for the past three to five years, unless you are seeking financing for a startup business.

The financials section should include:

• Company income statements for prior years
• Balance sheets for prior years
• Cash flow statements for prior years
• Forecasted company income statements
• Forecasted balance sheets
• Forecasted cash flow statements
• Projections for the next five years – every month or quarter for the first year, with longer intervals for the remaining years
• Collateral you can use to secure a loan

The financials section is a great place to include visuals such as graphs, particularly if you predict a positive trend in your projected financials. A graph allows the reader to quickly take in this information, and may do a better job of encouraging a bank or investor to finance your business. However, be sure that the amount of financing you are requesting is in keeping with your projected financials – no matter how impressive your projections are, if you are asking for more money than is warranted, no bank or investor will give it to you.

Appendices

The appendix is the final section in your business plan. Essentially, this is where you put all of the information that doesn’t fit in the other eight sections, but that someone – particularly a bank or investor – might need to see.

For instance, the market analysis section of your business plan may list the results of market studies you have done as part of your market research. Rather than listing the details of the studies in that section, where they will appear cumbersome and detract from the flow of your business plan, you can provide this information in an appendix.

Other information that should be relegated to an appendix includes:

• Credit histories for both you and your business
• Letters of reference
• References that have bearing on your company and your product or service, such as magazines or books on the topic
• Company licenses and patents
• Copies of contracts, leases, and other legal documents
• Resumes of your top managers
• Names of business consultants, such as your accountant and attorney

Writing a Successful Business Plan

Despite the quantity of information contained in your business plan, it should be laid out in a format that is easy to read. Just like with any piece of business writing, it is important to craft your business plan with your intended audience in mind – and the bankers, investors, and other busy professionals who will read your business plan almost certainly won’t have time to read a tedious document with long-winded paragraphs and large blocks of text.

Business plans for startup companies and company expansions are typically between twenty to forty pages long, but formatting actually accounts for a lot of this length. A strong business plan uses bullet points throughout to break up long sections and highlight its main points. Visuals such as tables and charts are also used to quickly relay specific information, such as trends in sales and other financial information. These techniques ensure that the reader can skim the business plan quickly and efficiently.

Think of your audience as only having fifteen minutes to spend on each business plan that comes across their desks. In that fifteen minutes, you not only have to relay your most important points, but also convince the reader that your business venture merits a financial investment. Your best bet is a well-researched business plan, with an organized, easy-to-read format and clear, confident prose.

ETFs, Funds And Shares: What Are They And What Are Their Benefits?

2008-08-15T08:27:00.000-07:00

Exchange Traded Funds, better known by many investors as iShares, the brand owned by Barclays Global Investors ('BGI') have been around in the UK since April 2000, with the launch of the iFTSE100 on the London Stock Exchange. From a slow start, by the end of 2005 (the latest figures available), some 125 billion was held in assets under management. Generally, when you look for your share price information, you'll find them grouped in the extra MARK section, where you'll now find some 45 different ETFs on offer. Although they have been around for sometime, let's just remind ourselves how ETFs work. They are listed on the stock exchange, providing the flexibility and trade ability of a share, including the fact that the price is continuously quoted, but that one share can provide instant exposure to an entire Index, giving you the diversification benefits of a fund. ETFs are also a flexible way of achieving cost-effective market exposure. Because the funds are registered in Ireland, there is no stamp duty to be paid on purchases. Management costs are taken from dividends that are accrued by the fund, and any excess income is then distributed to shareholders: unlike unit trusts, there are no initial fees to pay on the original purchase. The price of the fund is always close to the 'Net Asset Value' (NAV) of the underlying investments and will usually have tight spreads, unlike some unit trusts and some investment trusts. Also ETFs will disclose their holdings everyday, whereas traditional funds usually disclose their holdings twice a year.

What can I invest in?

ETFs offer a wide range of opportunities for investment with varying levels of risk: as at mid-December there were 45 different markets/indices to invest in, ranging from corporate bonds to the Taiwanese market. Starting at the lower end of the risk spectrum there are several corporate bond ETFs, as well as some Gilt-based investments. Moving on to the medium risk level, you can choose from global funds to ones that are more specific to individual regions, such as the US or Asia. There's also the option of investing in individual indices: 'index trackers' are available for the UK's FTSE100 and 250 Indexes, the US S&P 500, or Europe's Euro first 100 & 80, spanning the top European companies. For those wanting a higher level of risk, there are also ETFs which will give you exposure to emerging markets, such as Turkey, Korea, Taiwan and Eastern Europe. ETFs don't offer the same wide variety as unit trusts, but for investing in the countries and sectors they do cover, their charging structure and trade ability make up for this. As such, they provide a good, low cost, easily-traded route into the market, with the flexibility to move up the risk ladder as your experience and capital grows.

Finally, if you've an appetite for an even spicier approach, the London Stock Exchange also enables you to invest in commodities, through ETCs (Exchange Traded Commodities). Although like ETFs they are traded in the same way as shares, and are eligible to be held in a PEP or ISA, they do work in a completely different way. Whereas ETFs actually buy the underlying investments, ETC managers don't buy and store tons of wheat and copper, stack-up barrels of oil, or herd livestock into pens. Rather, they buy options on these commodities. As a result, ETCs are classed as more 'complex' investments by the FSA and you'll need to complete a special 'risk notice' confirming you understand the additional risks of investing in them. So take a fresh look at ETFs - you might just find they offer you more than you thought!

Funds: take your pick of the best

Unit Trusts and Open Ended Investment Companies (OEICs) are investments that let you pool your money with lots of other 'retail' investors. This money is invested on your behalf by a wide range of specialist fund managers, investing in, for example, Government gilts and bonds, commercial property and equities. Investing in funds gives you access to a highly-diversified range of investments at a reasonable cost. You will also have easy access to asset classes and international markets that would otherwise be difficult and expensive to invest in and benefit from the Fund Manager's contacts, knowledge, experience and expertise. Funds come in many shapes and sizes from 'trackers' to specialist or 'themed' funds.

An index-tracking fund (often referred to as a 'passively managed fund') aims to match or 'track' the performance of a given market index, such as the FTSE All Share or the FTSE 100. They do this using computer programs to work out how much of each individual company they need to buy and sell to mimic the performance of the Index as a whole. But not all 'tracker funds' match the Index they are tracking that well - so be sure to check their record. An 'actively managed fund' on the other hand employs researchers to study and engage with companies in which they plan to invest, and to keep abreast of the prospects for companies in which they already invest. They'll compare their performance to a 'benchmark' index related to the investment objectives of their fund, with the expectation that the extra work they put into tracking down the 'best' investments will literally pay dividends through higher growth than that of their benchmark.

Choosing your funds

When you pick your funds, be sure to rate them against other funds that fish in the same waters. Don't expect a 'value' fund and a 'growth' fund to have similar track records. Only by comparing funds with their true peers will you make a good choice. Whilst past performance should not be seen as an indication of future performance, past performance does matter when comparing like with like. Chasing winners however, is as dangerous as day-trading. Not surprisingly, all five of the top-performing funds at the end of 1999 were technology sector funds. Sector funds have a place in many a portfolio, but for the majority of investors they belong at its edges, not at its heart. An individual fund will give you a wider spread of underlying investments: by investing across a number of funds you're better able to smooth out the ups and downs of the market overall. But that won't work if it turns out that your funds hold virtually the same investments. So have a look at each fund report to see their top holdings and make sure you've got a good spread overall.

Individual Company shares

When it comes to the individual shares part of the investment model, the lowest risk entry point has always been recognised as companies in the FTSE 100. However, you should always bear in mind that the Index evolves over a period of time, changing its overall make-up. Consider, for example, that over the last 6 years technology shares have fallen out of the Index, while mining companies, on the back of booming commodity prices, have dramatically increased their presence. Yet, because of the volatility and cyclical nature of the sector, individual mining groups can't be classed as low risk. Other 'big names' have gone from the Index due to take-over activity - companies like P&O, Abbey National & BAA - all of which have to be replaced.

Today, some 80% of the make-up of the overall value of the FTSE100 comes from just 5 sectors - Banking, Mining, Oil & Gas, Pharmaceuticals, and Telecoms (fixed and mobile). So, if you're looking to the Footsie to form the bedrock of your investment in individual shares, where should you start? Companies involved in essential, everyday products and services, such as the water and electricity utilities and broad-based retailers often provide a solid backbone to any share portfolio. You could argue, however, that the classic 'defensive' nature of utilities has recently been undermined by the number of take-overs within the sector. The share prices of the remaining companies have climbed to all-time highs, potentially increasing the level of risk.

There is without doubt an appetite for the assured cash flow that utilities provide, and it's fair to say that a growing number of analysts agree it's hard to justify the current prices. Despite this, get your timing right, buying at the right price, and these sectors should still provide a strong base on which to build your individual holdings. To extend your scope, whilst still staying within a lower risk profile, your next ports of call should be into the banks, pharmaceuticals, tobacco and beverages sectors.

Move on up to the intermediate, 'medium risk' level, and you've an increasing choice, including the remaining FTSE100 companies, dominated by the mining sector. The majority of shares in the FTSE250 would also fit into this 'medium risk' category. Still relatively large companies, it is these shares that have seen some of the biggest gains over the last 3 years, helping push the 250 Index to record levels in 2006. One noticeable difference between the FTSE250 compared to the FTSE100, is that companies here generally have less international exposure. When it comes to the consideration of risk, you can play this one of two ways: some argue that having the majority of profits coming from the UK provides for less risk, while others (including us) favour having fingers in as many regions as possible.

Finally, at the higher end of the risk scale you find smaller companies and AIM quoted shares. These tend to be more volatile and less liquid than their larger cousins, factors that generally lead to wider bid/offer spreads. The AIM market has seen considerable growth over the last 10 years, partly because companies don't have to comply with the same stringent requirements of the main market.

Often, private investors don't get a look-in as part of the flotation, having to wait until the shares start trading, so do pick your time and use stop-loss limits - that early flush of success isn't always carried through. One of the fastest growing sub-sectors within AIM is small mining and exploration groups, many of which are based abroad but have chosen to list in the UK. Because their prospects include a significant amount of 'hope' value, such companies will represent the very highest level of risk. Equally classified as higher-risk, though as a result of different factors, are shares in overseas companies.

Household names like Volvo, Coca Cola and Johnson & Johnson are big names and big companies. The additional risk they bring for investors comes from the fact that the majority of their earnings are from overseas. So you face the added risk of changes in exchange rates. Over recent months, for example, the fall in the US$ would have had a big impact on the sterling value of dividends from US shares And when the companies you invest in are smaller ones, it's often harder to find reliable research and analysis, harder to track and compare performance, and harder to follow the news that affects the share price. True, most big UK names also trade globally, but as 'home market' companies they are well-researched, much commented upon and regularly feature in the UK business finance pages. That's not to say you shouldn't venture outside these shores - far from it - but you need to do so with your eyes open. That's why we see overseas shares as being more appropriate for investors asthey move up the experience ladder and once they've built a balanced portfolio. And it's also why, in general, we'd advise investing in market trackers and funds before moving into individual overseas shares.

Superior Leader - Warren Buffet

2008-08-15T08:25:00.000-07:00

Superior business leader and American investor Warren Buffett is often called “Oracle of Omaha” or the “Sage of Omaha” and philanthropist. (Wikipedia, 2007) Buffett is the CEO, and the biggest shareholder of the Berkshire Hathaway Company. Buffett’s has an estimated current net worth of approximately $52 billion in US funds. Forbes Magazine ranks Buffett the third richest person in the world in September 2007 behind Carlos Slim and Bill Gates.

Warren Buffett is known for his economical and plain lifestyle. Buffett still lives in the same Omaha, Nebraska house that he purchased in 1958 for $31,500 with a current value of $700,000. In 1989, Buffett spent $9.7 million of the Berkshire’s funds on a corporate jet. He jokingly named it “The Indefensible” because of his past criticisms of such purchases by other CEOs. (Wikipedia, 2007)

Warren Buffett decided to make a commitment to give his fortune to charity back in June 2006. Buffett’s charity donation is approximately $30 billion, which is the largest donation in the history of the United States. The donation was enough to more than double the size of the foundation with 83% of it going to the Bill and Melinda Gates Foundation. Buffett believed that his family had enough money to get started in life so Buffett decided to give his fortune to charity. Buffett’s annual salary in 2006 was only $100,000. In 2007, Buffett was listed among Time Magazine’s 100 Most Influential People in the World. (Wikipedia, 2007)

What makes Warren Buffett a good business leader? This is what everyone wants to know because Warren buffet is so successful. It all starts with leadership. Warren buffet is a true leader where his leadership makes a difference in the world. Leadership is very much related to change and Warren Buffett has the capabilities of leadership change to fit the changing world. Warren Buffett has repeatedly demonstrated the ability to map read in the irregular waters of change. Is Warren Buffett born a leader? The authors of this paper believe not. Experience and research has shown little evidence that an individual who comes to power is a “born leader.” Warren Buffett took the falls that any other leader has to take. Warren Buffett learned from his mistakes and turned his mistakes into a positive thing. Warren Buffett shares his leadership at all organizational levels and Buffett is empowered to share leadership responsibilities. In the world of business, many titles related to leadership roles are actively used in business and Warren Buffett wears those titles to make him effective in multiple leadership positions in business. Distinction between good leadership and good management is made often. Managers are made to be organizational, controllers and budgeters. Warren Buffett has leadership in all three departments and one must have these traits to be a good business leader.

Another important trait in Today’s business leadership is communication. Warren Buffet is a skilled communicator in all aspects of life. Communication is the real key of leadership. Skilled communicators have an appreciation for positioning in the business world. Warren Buffet is experienced at positioning himself at the right place at the right time. Warren Buffet has the understanding of the people he is trying to reach and what he can and cannot hear from the people. Knowledge of audiences’ needs and wants gives the orator the ability to listen. Warren Buffett is an excellent listener with the ability to convey his understanding.

When Warren Buffett talks, people listen. Warren Buffett can send a message through an open door and does not have to push the message through a wall.

Leadership is crucial to any successful business and good leadership is what Warren Buffett is all about. This is what makes Warren buffet a good business leader.

Mr. Warren Buffett’s investment strategies and course of leadership are shining examples of characteristics shared by cognitive theorists. Cognitive theory is an approach of explaining behavior through perception, anticipation, and thinking. Mr. Buffett’s continual approach of analyzing both possible investment choices, market trends, and the ability to place management resources of the right caliber in the right position has consistently brought this investor to the forefront amongst peers and the marketplace. At the core of every sound investor is a creative innovator.

Innovation demands creativity. Creativity in turn draws on our cognitive faculties, across the full amplitude from emotion to reason. In the number-heavy world of global investing, innovative thinking is critical. Innovative investors decipher future trends, spot likely winners by combining science (financials) with art (acuity and perception) and continuously mitigate risk. They assess user needs, product features, the proper deployment of money, professional organizational structures and risk management. (Kore Kalibre, 2006)

Mr. Buffett’s instinct and ability to interpret market trends is also held by tight reigns. Despite over 50 years of growth, Mr. Buffett always adheres to one of the most basic business principles: “…only compete where you have a competitive advantage. Warren Buffett refers to staying within your circle of competence. Social psychologists tell us, though, that we are prone to overconfidence when it comes to assessing our abilities…” (Arthridge, 2006) A man of Warren Buffett’s position and track record could easily be derailed to a sense of over confidence. The principle of only competing within your range of competitive advantage is a principle that can be applied to many other areas in life, and Mr. Buffett’s ability to work and live by this idea has allowed him to continue forward with minimal bruising.

By establishing the previous examples, the authors can reinforce the principles of cognitive theory in that Mr. Buffett behavior patterns are clearly dictated by thought processes, which include interpretation, analysis, and foresight. “As experiences and events gain meaning and value, the process becomes increasingly top down as the mind in (a) attempt at an orderly process influences perception though beliefs, goals and external process” (Gardener, 2007)

Warren Buffett’s is a self empowered leader, because he is loyal, sets goals, plans a strategy for achievement, and stays committed until he accomplishes his purpose. Up to date, he is the greatest stockbroker of all-time. He is a very conservative investor that prefers to invest in companies that sell name brand products that he uses. For example, Coca-Cola, Gillette Razors, See’s Candy, Gulfstream Jet, and GEICO are the major companies he invested in. In the nineties his assets quadrupled in less than five years. He is a smart investor that usually does not take big investment risks. For example, he will not invest in internet stock, because the return is unpredictable. He likes to invest in companies that he is sure will be successful 20 years later. He buys the company with the intentions of keeping it forever. Usually, the management team of each company is the same staff that sold it Warren Buffett from the beginning. He stays loyal to his partners, and the team workstheir best to keep him happy.

After Warren Buffett’s wife died, he decided to donate 85% of his money to charity. However, “he wants his money to be used the same year he donates it”.(Harris, 2006) The requirement will accelerate the process to help the world. According to Fortune magazine, five-sixths of his money will go to the Bill and Melinda Gates Foundation. This foundation which focus on finding cures for diseases that are common in poor nations. The rest of the money will be split among four other charities, that are each run by his three children and one that is in his late wife’s name.

Warren Buffett is not a huge spender. In fact, he still lives in the same house he bought 40 years ago. Warren “told ABC News “Nightline” that being born into wealth did not entitle his children”(Harris, 2006). In addition, he told Fortune magazine that, “A very rich person would leave his kids enough to do anything, but not enough to do nothing.”(Harris, 2006) In other words, he wants his children to work earn their money and value hard work and smart choices.

In the year 2006, Warren’s first annual donation to the Bill and Melinda Gates Foundation was $1.5 billion and the rest was divided among the four charities. He was the first person to make a donation better than Bill Gates, the richest man in the world. It seems as if Bill Gates and Warren Buffett set a good example and lead others to be more generous, because now the Barron Hilton has committed to donating half of his fortune to charity also. Barron Hilton is the founder of the Hilton Hotels and is worth $2.3 billion. Hopefully, a trend started among the fortunate to give to the less fortunate.

The personality of Warren Buffett ties to the Social Cognitive Level, because he tries to understand and make sense of other people. He observes the differences in social knowledge when dealing with people. Social cognition refers to making sense of ourselves, others, and how the information is used. In the sixties and seventies Albert Bandura and Walter Mischel were psychologists, studying personality development. They found that social learning and cognitive principles improve ones abilities to self-regulate and to follow goals. Warren investment choices were successful, because he conditioned his the way he processed information, choices, and expectations.

How to Successfully Navigate Your Business through an Economic Downturn

2008-08-15T08:22:00.000-07:00

An economic downturn is a phase of the business cycle in which the economy as a whole is in decline.This phase basically marks the end of the period of growth in the business cycle. Economic downturns are characterized by decreased levels of consumer purchases (especially of durable goods) and, subsequently, reduced levels of production by businesses.

While economic downturns are admittedly difficult, and are formidable obstacles to small businesses that are trying to survive and grow, an economic downturn can open up opportunities. A well-managed company can realize the opportunity to gain market share by taking customers away from their competitors. Resourceful entrepreneurs capture the available opportunities, from an economic downturn, by developing alternate methods of doing business that were never implemented during a prior growth period.

The challenge of successfully navigating your business through an economic downturn lies in the realignment of your business with current economic realities. Specifically, you, as the business owner, need to renew a focus on your core clients/customers, reduce your operating expenses, conserve cash, and manage more proactively, rather than reactively, is paramount.

Here are best practices that will help you to successfully navigate your business through an economic downturn:

Goals:

The primary goal of any business owner is to survive the current economic downturn and to develop a leaner, more cost-effective and more efficient operation. The secondary goal is to grow the business even during this current economic downturn.

Objectives:

• Conserve cash.

• Protect assets.

• Reduce costs.

• Improve efficiencies.

• Grow customer base.

Required Action:

• Do not panic… History shows that economic downturns do not last forever. Remain calm and act in a rational manner as you refocus your attention on resizing your company to the current economic conditions.

• Focus on what YOU can control… Don’t let the media's rhetoric concerning recessions and economic slowdown deter you from achieving business success. It´s a trap! Why? Because the condition of the economy is beyond your control. Surviving economic downturns requires a focus on what you can control, i.e. your relevant business activities.

• Communicate, communicate, and communicate! Beware of the pitfall of trying to do too much on your own. It is a difficult task indeed to survive and to grow your business solely with your own efforts. Solicit ideas and seek the help of other people (your employees, suppliers, lenders, customers, and advisors). Communicate honestly and consistently. Effective two-way communication is the key.

• Negotiate, negotiate, and negotiate! The value of a strong negotiation skill set cannot be overstated. Negotiating better deals and contracts is an absolute must for realigning and resizing your company to the current economic conditions. The key to success is not only knowing how to develop a win-win approach in negotiations with all parties, but also keeping in mind the fact that you want a favorable outcome for yourself too.

Recommended Best Practice Activities:

The Nuts and Bolts… The following list of recommended best practice activities is critical for your business' survival and for its growth during an economic downturn. The actual financial health of your particular business, at the outset of the economic downturn, will dictate the priority and urgency of the implementation of the following best practice activities.

1. Diligently monitor your cash flow: Forecast your cash flow monthly to ensure that expenses and planned expenditures are in line with accounts receivable. Include cash flow statements into your monthly financial reporting. Project cash requirements three-to- six months in advance. The key is to know how to monitor, protect, control, and put cash to work.

2. Carefully convert your inventories: Convert excess, obsolete, and slow-moving inventory items into cash. Consider returning excess and slow-moving items back to the suppliers. Close-out or inventory reduction sales work well to resize your inventory. Also, consider narrowing your product offerings. Well-timed order placement helps to reduce excess inventory levels and occasional material shortages. The key is to reduce the amount of your inventory without losing sales.

3. Timely collection of your accounts receivable: This asset should be converted to cash as quickly as possible. Offer prompt payment discounts to encourage timely payments. Make changes in the terms of sale for slow paying customers (i.e. changing net 30 day terms to COD). Invoicing is an important part of your cash flow management. The first rule of invoicing is to do it as soon as possible after products are shipped and/or after services are delivered. Place an emphasis on reducing billing errors. Most customers delay payments because an invoice had errors, and therefore, will not pay until they receive a corrected copy. Email or fax your invoices to save on mailing time. Post the payments that you have received and make deposits more frequently. The key is to develop an efficient collection system that generates timely payments and one that gives you advance warning of problems.

4. Re-focus your attention on your existing clients/customers: Make customer satisfaction your priority. A regular review of your customers' buying history and frequency of purchases can reveal some interesting facts about your customers' buying habits. Consider signing long-term contracts with your core clients/customers which will add to your security. Offer a discount for upfront cash payments. The key is to do what it takes to keep your current customers loyal.

5. Re-negotiate with your suppliers, lenders, and landlord:

i) Suppliers: Always keep your negotiations on the level of need, saying that your company has reviewed its cost structure and has determined that it needs to lower supplier costs. . Tell the supplier that you value the relationship you have developed, but that you need to receive a cost reduction immediately. Ask your supplier for a lower material price, a longer payment cycle, and the elimination of finance charges. Also, see if you can buy material from them on a consignment basis. In return for their price concessions, be willing to agree to a long-term contract. Explore the idea of bartering as a form of payment.

ii) Lenders: Everything in business finance is negotiable and your relationship with a bank is no exception. The first step to successful renegotiations is to convince your lenders that you can ultimately pay off the renegotiated loan. You must point out to your lenders why it would be in their best interest to agree to a new arrangement. Showing them your business plan and your action plan that includes your cost-savings initiatives, along with "the how" and "the when" of the implementation of your plan is the best way to achieve this goal. Explain to them that you will need their cooperation to insure that you can survive, as well as, grow your business during the economic downturn. Negotiated items include: the rate of interest, the required security to cover the loan, and the beginning date for repayment. A beginning date for repayment could be immediate, within several months or as long as a year. The key is to realize that your lender will work with you, but that frequent and continual communications with them is critical.

iii) Landlord: Meet with your landlord. Explain your need to have them extend the term of your lease at a reduced cost. Make sure you have a clause in the lease agreement that entitles you to have the right to sublet any or all of the leased space.

6. Re-evaluate your staffing requirements: This is a very critical area. Salaries/wages are a major expense of doing business. Therefore, any reduction in the hours worked through work schedule changes, short-term layoffs or permanent layoffs has an immediate cost saving benefit. Most companies ramped up hiring new employees in the good times, only to find that they are currently overstaffed due to slow sales during the economic downturn. In terms of down-sizing your staff, be very careful not to reduce your staff to a level that forces you to skimp on customer service and quality. Consider the use of part-timers or the current trend of outsourcing certain functions to independent contractors.

7. Shop for better insurances rates: Get quotations from other insurance agents for comparable coverage to determine whether or not your present insurance carrier is competitive. Also, consider revising your coverage to reduce premium costs. The key is to have the right balance-to be adequately insured, but not under or over insured.

8. Re-evaluate your advertising: Contrary to the other cost-cutting initiatives, evaluate the possibility of increasing your advertising expenditures. This tactic realizes the advantage of the reduced "noise" and congestion (fewer advertisers) in the marketplace. The downturn period a great opportunity to increase brand awareness and create additional demand for your product/service offerings.

9. Seek the help of outside advisors: The use of an advisory board comprised of your CPA, attorney, and business consultant offers you objectivity and provides you with professional advice and guidance. Their collective experience in working with similar situations in past economic downturns is invaluable.

10. Review your other expenses: Target an across-the-board cost-cutting initiative of 10-15%. Attempt to eliminate unnecessary expenses. Tightening your belt in order to weather the downturn makes practical, financial sense.

Proactively managing your business through an economic downturn is an enormous challenge and is critical for your survival. However, through well-planned initiatives, an economic downturn can create tremendous opportunity for your company to gain greater market share. In order to take advantage of this growth opportunity, you must act quickly to implement the above best business practices to continue realigning and resizing your company to the current economic conditions.

Understanding the Mortgage Meltdown; What happened and Who's to Blame

2008-08-15T08:08:00.000-07:00

People are losing their homes and many more will lose their jobs before the mortgage meltdown works its way through the system.

To paraphrase Alan Greenspan's remarks on March 17th, 2008, “The current financial crisis in the US is likely to be judged in retrospect as the most wrenching since the end of the Second World War. The crisis will leave many casualties.”

How many casualties? Experts are predicting that in the next few years, between 15 and 20 million homeowners could have homes worth less than what they owe. Walking away from a bad situation may actually make sense for people who mortgages that are 'upside down' considering the fact that refinancing is out of the question and home equity is nonexistent.

It seems quite easy to point fingers at greedy Wall Street titans for causing the sub-prime mortgage crises. They after all, put together the deals that allowed banks to underwrite mortgages and then offload these liabilities to investors. What many fail to realize is that there is no shortage of blame to go around from homeowners buying more home than they could afford to real estate agents looking for more commission dollars. Mortgage brokers and bankers, the banks themselves, ratings agencies such as Moody's and Standard & Poor's, Wall Street, the Fed and last but certainly not least, the Federal Government.

Let's start with the homeowners--the people who are now in the process or soon to enter the process, of losing their homes. Some of these people had never before owned a home and as such, may not have been prepared for the costs associated with homeownership. Basic financial literacy is sorely lacking in this country despite there being no shortage of budgeting and tracking programs readily available such as Quicken and Microsoft Money. The lack of financial literacy does not absolve these buyers of their responsibility. Every borrower receives a truth in lending disclosure statement. Here is a portion of what the act covers:

The purpose of TILA (Truth In Lending Act) is to promote the informed use of consumer credit by requiring disclosures about its terms and cost. TILA also gives consumers the right to cancel certain credit transactions that involve a lien on a consumer's principal dwelling, regulates certain credit card practices, and provides a means for fair and timely resolution of credit billing disputes. With the exception of certain high-cost mortgage loans, TILA does not regulate the charges that may be imposed for consumer credit. Rather, it requires a maximum interest rate to be stated in variable-rate contracts secured by the consumer's dwelling. It also imposes limitations on home equity plans that are subject to the requirements of Sec. 226.5b and mortgages that are subject to the requirements of Sec. 226.32. The regulation prohibits certain acts or practices in connection with credit secured by a consumer's principal dwelling.

Much of the subprime mortgage crisis can be traced directly back to variable-rate mortgages. As is clearly stated above, “TILA does not regulate the charge that may be imposed for consumer credit. Rather, it requires a maximum interest rate to be stated in variable-rate contracts secured by the consumers dwelling.” It also clearly states that TILA also gives consumers the right to cancel certain credit transactions that involve a lien on a consumer's principal dwelling. One has to wonder whether or not these homeowners:

1. Bothered to read the truth in lending act disclosure at all.

2. Understood what the truth in lending act disclosure meant.

3. Chose to ignore the information printed clearly the truth in lending act disclosure.

A number of months ago, just as the subprime mortgage crisis was beginning to unfold, The New York Daily News ran an article about a family in New York City, who had bought a home and were now faced with the prospect of foreclosure. The article was sympathetic to this family, highlighting the fact that they're living the American dream and that this dream was about to come to an end. What I found to be distressing was the fact that clearly visible in the photo that accompanied this sympathetic article was a very expensive flat screen television hanging on the wall. Perhaps I'm naïve, but I can assure you that if I were faced with the prospect of losing my home and having my family put out on the street, there is absolutely no way that I would still have that expensive television hanging on my wall. It would have been one of the first things to be sold and some financial relief would be found by jettisoning what I'm sure was the expensive cable bill.

Clearly the public needs easy access to financial literacy courses. Too bad we don't see the need to make this a mandatory course of study in our educational system.

Mortgage bankers and brokers have in the last four or five years been raking in cash by the bucket load in the form of commissions paid when mortgages they've originated, close. Many of these people have not needed to do much in the way of prospecting. Instead, their phones have run off the hook as people have jumped on the homeownership and refinancing and take out extra cash bandwagon, despite their ability to pay for their home. No-document loans were readily available without the borrower having to produce documentation that backed up their income. Clearly this practice can and indeed has, lead to substandard loan underwriting processes. Were some of these mortgage bankers and brokers dishonest? Sure. Were all of them dishonest? I think not. To have a massive nationwide conspiracy, where thousands and thousands of people involved in the mortgage banking and mortgage brokering profession got together to create this situation is simply not feasible. Yes, some of the blame does belong with those in the mortgage industry, but they were simply a small cog in the huge machine that created this mess.

Let's discuss real estate agents. In 2007, we bought a home, and also sold a home. The agent we used to purchase our home was absolutely fantastic. In our opinion, she went above and beyond to make our deal happen. She answered every phone call, followed up on every concern and was the epitome of professionalism. We consider this individual to be a friend, and we have sent referrals her way that have resulted in her earning additional commissions. We will continue to recommend her to all who ask or mention that they'd like to buy or sell a home in our area.

The real estate agent, we used to sell our home, could not have been more different. We got our old home ready to sell prior to closing on our new home. We decided to list it as “For Sale by Owner.” In the event that we didn't sell this home on our own, it was our intention to list it with an agent as soon as we had closed on the purchase our new home. Literally, from the day we put the sign in front of our home and listed it on a “For Sale by Owner” website we were inundated with phone calls from real estate agents. We were told many lies and were constantly harassed; although we had already made it quite clear to every agent who called, and there were more to 60 who did; that we were willing to pay half the commission-the same as they would have received had they sold another agent's listing. We also told every agent that called that we had already lined up an agent to sell our home in the event that we chose to no longer sell it ourselves. Our deadline was the closing date of our new home purchase. We did have an interested buyer who shortly after our closing date decided to keep looking so we listed our home with a local agent so that we could concentrate on getting our new home ready for our moving date at the end of the school year. This agent showed our home a maximum of two times and got an offer which we accepted. We ended up getting $1,000 less than we had wanted in a declining Real Estate market. The agents who had called many times to harass us called our listing agent on a number of occasions and he lied telling them that the house was under contract when in fact it wasn't at that time-clearly a breach of our agent's fiduciary duty. Quite frankly an ethical agent would have continued to show our home until closing in the event that the deal fell through.

But wait, there's more. Our agent also acted as the buyer's mortgage broker. At the closing table, we learned that he had signed documents from the buyer stating that he (our agent) represented them and we had signed documents stating that he represented us. We also learned that the buyer had effectively put down approximately 2-3% of the purchase price when financed closing costs were factored into the equation. Their first mortgage had what we thought was a high fixed rate and their second mortgage came with a rate in excess of 8.5%. Because the closing happened in August, literally in the midst of the first wave of the meltdown, if they didn't close on the day they did (August 31st, 2007), Citibank wasn't going to extend their rate. When my wife & I have bought houses in the past, it had always been a very happy day. These people looked absolutely shell-shocked at the closing table. I'm not convinced that they knew just how much their monthly payment was going to be until closing day. We knew down to the penny well in advance having budgeted and planned everything on a spreadsheet. Were these people stupid or just inexperienced and mislead by a greedy combination of real estate agent & mortgage broker? I'm extremely confident that they are intelligent people but inexperienced and taken advantage of by an unscrupulous agent.

The banks are also culpable. Prior to bank deregulation, Savings and Loans provided mortgages to home buyers and kept these loans on their books. Non-performing loans had a negative effect on the S&L's profitability which of course caused tighter lending guidelines such as job stability and decent down payments in order for prospective home buyers to be approved for a mortgage. Way back then, a home buyer had to actually save up enough money for a down payment 10 or even 20% before a bank would ever consider underwriting a mortgage. The checks & balances kept banks solvent and borrowers responsible. Although this approach worked, some cried foul stating that the regulated system was racist and discriminatory-and there certainly was some truth to this. Skipping forward to the present, banks made a bundle on mortgages over the past five or six years. For the most part, they allowed their underwriting criteria to be stretched so far out of alignment that almost anyone could and indeed did, qualify for a mortgage despite their ability to pay. Some folks even applied for and received mortgages for more than the property was worth. Sometimes for as much as 25% more than their property was worth!

Under the prior system, 125% mortgages would not have been possible because of course these loans were held on the banks' books and could have led to losses that would have had to have been absorbed directly by the bank.

So what went wrong? Under the current system, these loans were sold to the big Wall Street investment firms who repackaged them as collateralized mortgage obligations (CMO's), Mortgage Backed Securities (MBS's) and other similar acronyms. These instruments were then sent to the ratings agencies for their blessing and more importantly a letter rating. Many of these structured finance deals receive AAA ratings-the highest ratings available meaning that in theory, these instruments were least likely to default. How does one create a 'triple A' or AAA rated financial instrument out of sub-prime mortgages? Herein lies the magic. These Asset Backed Securities (ABS) are made up of different tranches or slices, each carrying a different risk and reward level. The first dollar of principle and interest is applied to the securities with the highest rating, and the first dollar of loss is applied to the tranche with the lowest ratings. The lower slices are designed to provide a security blanket that in theory protects the higher-rated securities. The investment banks that package or 'structure' these securities in order to earn fat fees when they sell them to investors are the same entities that pay the ratings agencies to rate these instruments. Clearly the possibility for conflict of interest is present. If investors and not the investment banks that stand to rake in millions in fees were to pay for the rating, the potential for this conflict of interest would be negated. Furthermore, the investment banks have a vested interest in convincing the ratings agencies of the credit worthiness of these securities.

So we've already pointed fingers at homeowners, some greedy, many more I suspect, naïve or uninformed, real estate agents-one out of more than 60 in my experience was a gem, mortgage brokers & bankers, banks, Wall Street and ratings agencies so who's left? The Federal Reserve and the Government of course.

The Fed as its known is responsible of the country's monetary policy and for supervision and regulation of banks. This is the definition of the Fed's roles in their own words:

Monetary Policy

The Fed is best known for its role in making and carrying out the country's monetary policy-that is, for influencing money and credit conditions in the economy in order to promote the goals of high employment, sustainable growth, and stable prices.

The long-term goal of the Fed's monetary policy is to ensure that money and credit grow sufficiently to encourage non-inflationary economic expansion.

The Fed cannot guarantee that our economy will grow at a healthy pace, or that everyone will have a job. The attainment of these goals depends on the decisions of millions of people around the country. Decisions regarding how much to spend and how much to save, how much to invest in acquiring skills and education, how much to spend on new plant and equipment, or how many hours a week to work may be some of them.

What the Fed can do, is create an environment that is conducive to healthy economic growth. It does so by pursuing a goal of price stability-that is, by trying to prevent inflation from becoming a problem.

Inflation is defined as a sustained increase in prices over a period of time.

A stable level of prices is most conducive to maximum sustained output and employment. Also, stable prices encourage saving and, indirectly, capital formation because it prevents the erosion of asset values by unanticipated inflation.

Inflation causes many distortions in the market. Inflation:

· hurts people with fixed income-when prices rise consumers cannot buy as much as they could previously

· discourages savings

· reduces economic growth because the economy needs a certain level of savings to finance investments that boost economic growth

· makes it harder for businesses to plan-it is difficult to decide how much to produce, because businesses can't predict the demand for their product at the higher prices they will have to charge in order to cover their costs

Bank Regulation & Supervision

The Fed is one of the several Government agencies that share responsibility for ensuring the safety and soundness of our banking system. The Fed has primary responsibility for supervising bank holding companies, financial holding companies, state-chartered banks that are members of the Federal Reserve System, and the Edge Act and agreement corporations, through which U.S. banking organizations operate abroad.

The Fed and other agencies share the responsibility of overseeing the operation of foreign banking organizations in the United States. To insure that the banking system remains competitive and operates in the public interest, the Fed considers applications by banks for mergers or to open new branches.

The passage of the Gramm-Leach-Bliley (GLB) Act in November 1999, was the culmination of a multi-decade effort to eliminate many of the restrictions on the activities of banking organizations.

Some of the main provisions of the GLB are:

· Repeals the existing limitations on the ability of banks to affiliate with securities and insurance firms

· Creates a new organizational form that allows banking organizations to carry new powers. This new entity called a "financial holding company," (FHC) and its non-banking subsidiaries are allowed to engage in financial activities such as insurance and securities underwriting

The Fed's enlarged role as an umbrella supervisor of FHCs is similar to its role in supervising bank holding companies. The Federal Reserve Banks will supervise and regulate the FHCs while each affiliate is still overseen by its traditional functional regulator.

The Fed has to delineate the financial relationship between a bank and other FHC affiliates. Its primary goal is to establish barriers protecting depository institutions from the problems of a failing affiliate. To do this efficiently the Fed has to ensure increased communication, cooperation, and coordination with the many supervisors of the more diversified FHCs.

The Fed has access to data on risks across the entire organization, as well as information on the firm's management of those risks. Regulators will be in a position to evaluate and presumably act on risks that threaten the safety and soundness of the insured banks.

It would appear that the Fed has failed to curb housing inflation which played a role in this entire debacle then made matters worse and in their efforts or lack there of, to properly supervise banking institutions.

Finally the government, a.k.a. Uncle Sam, the big Kahuna 10,000 pound elephant etc. Where do we begin? How about with: 'Where were they?'

It now appears that after millions of horses are out of the barn (some horses ran, others were foreclosed upon) the government wants to step in with a bailout to save the rest. While nobody wants to see people lose their homes, the question that must be raised is this: What about all those of us who were responsible? Those of us, who scrimped and saved up a decent down payment, bought less-house than we could afford and who live below our means? Many of us drive older cars and keep them longer. We don't run out and buy the latest and greatest at inflated prices, we watch, wait and budget.

When the World Trade Center was attacked, families who decided not to sue received government payouts and we certainly don't begrudge them as I'm sure that given the choice, they'd prefer to still have their loved-ones over the money. The problem, in typical government fashion is that those who were responsible and had insurance policies in place received less than those who were irresponsible and didn't plan ahead. I'm not talking about dishwashers at Windows on the World and blue collar workers; I'm talking about executives, traders and people who should have known better.

Now our government, the same government that sat by idly watching as this bubble got bigger and bigger despite many warnings, wants to step in and bailout people who are in danger of losing their homes. There has been no talk about educating people, let's not teach people to fish, rather, let's give them a fish and bail them out once again at the expense of those who are responsible.

Clearly, by keeping the majority of the population financially ignorant, there is a lot of money to be made by the poverty industry.

Identifying the Investment Objective

2008-07-10T08:29:00.002-07:00

Your banking goals will vary, based on your age, lifestyle, banking independence, ancestors commitments, akin of assets and expenses, a part of abounding added factors. Therefore, the aboriginal footfall is to appraise you needs. Begin by allurement yourself these simple questions:

Why do I wish to invest?

The apparent answers could be:

* “I charge a approved income”

* “I charge to buy a house/finance a wedding”

* “I charge to brainwash my children,” or

* A aggregate of all the above

How abundant accident am I accommodating to take?

The adventurousness accommodation of individuals alter depending on assorted factors. Based on their accident address capacity, investors can be classified as:

* Very conservative

* Conservative

* Moderate

* Aggressive

* Very Aggressive

What are my banknote breeze requirements?

For example, you may require:

* A approved Banknote Flow

* A lumpsum afterwards a anchored aeon of time for some specific charge in the future

* Or, you may accept no charge for cash, but you may wish to actualize anchored assets for the future

Types of Funds

2008-07-10T08:29:00.001-07:00

There are a advanced array of Alternate Armamentarium schemes that baby to your needs, whatever your age, banking position, accident altruism and acknowledgment expectation. Whether as the foundation of your investment affairs or as a supplement, Alternate Armamentarium schemes can advice you accommodated your banking goals. The altered types of Alternate Funds are as follows:

Diversified Disinterestedness Alternate Armamentarium Scheme

A alternate armamentarium arrangement that achieves the allowances of about-face by advance in the stocks of companies beyond a ample amount of sectors. As a result, it minimizes the accident of acknowledgment to a individual aggregation or sector.

Sectoral Disinterestedness Alternate Armamentarium Scheme

A alternate armamentarium arrangement which focuses on investments in the disinterestedness of companies beyond a bound amount of sectors — usually one to three.

Index Funds

These funds advance in the stocks of companies, which comprise above indices such as the BSE Sensex or the S&P CNX Nifty in the aforementioned weightage as the corresponding indice.

Equity Affiliated Tax Saving Schemes (ELSS)

Mutual Armamentarium schemes advance predominantly in equity, and alms tax answer to investors beneath area 80 C of the Assets Tax Act. Currently abatement u/s 80C can be availed up to a best investment of Rs 1,00,000. A lock-in of 3 years is mandatory.

Monthly Assets Plan Scheme

A alternate armamentarium arrangement which aims at accouterment approved assets (not necessarily monthly, don’t get addled by the name) to the unitholder, usually by way of dividend, with investments predominantly in debt balance (upto 95%) of corporates and the government, to ensure regularity of returns, and accepting a abate basic of disinterestedness investments (5% to 15%)to ensure college return.

Income schemes

Debt aggressive schemes advance in anchored assets balance such as bonds, accumulated debentures, Government balance and money bazaar instruments.

Floating-Rate Debt Fund

A armamentarium absolute of bonds for which the absorption amount is adapted periodically according to a agreed formula, usually affiliated to an index.

Gilt Funds - These funds advance alone in government securities.

Balanced Funds

The aim of counterbalanced funds is to accommodate both advance and approved assets as such schemes advance both in equities and anchored assets balance in the admeasurement adumbrated in their action documents. They about advance 40-60% in disinterestedness and debt instruments.

Alternate Funds

2008-07-10T08:29:00.000-07:00

A Alternate Armamentarium is a assurance that pools calm the accumulation of a amount of investors who allotment a accepted banking goal. The armamentarium administrator invests this basin of money in balance — alignment from shares and debentures to money bazaar instruments or in a admixture of disinterestedness and debt, depending aloft the objectives of the scheme.
Why accept Alternate Funds ?
Investing in Alternate Funds offers several benefits:

* Able expertise:

Armamentarium managers are professionals who clue the bazaar on an on-going basis. With their mix of able accomplishment and bazaar knowledge, they are bigger placed than the boilerplate broker to accept the markets.

* Diversification:

Since a Alternate Armamentarium arrangement invests in amount of stocks and/or debentures, the associated risks are abundantly reduced.

* Relatively beneath expensive:

When compared to absolute investments in the basic market, Alternate Funds amount less. This is due to accumulation in allowance costs, demat costs, archive costs etc.

* Liquidity:

Investments in Alternate Funds are absolutely aqueous and can be adored at their Net Assets Value-related amount on any alive day.

* Transparency:

You will consistently accept admission to abreast advice on the amount of your investment in accession to the complete portfolio of investments, the admeasurement allocated to altered assets and the armamentarium manager’s investment strategy.

* Flexibility:

Through appearance such as Systematic Investment Plans, Systematic Withdrawal Plans and Allotment Investment Plans, you can systematically advance or abjure funds according to your needs and convenience.

* SEBI adapted market:

All Alternate Funds are registered with SEBI and action aural the accoutrement and regulations that assure the interests of investors. AMFI is the authoritative physique of the Alternate Funds industry.

The History of Vegetable Oil-Based Diesel Fuels (Part 2)

2008-06-19T05:16:00.000-07:00

Unfortunately, the bibliography for the corresponding chapter in the biography by Nitske and Wilson (3) does not clarify where the authors obtained this information nor does it list references to the writings by Diesel discussed here. Thus, according to Nitske and Wilson, the peanut oil-powered diesel engine at the 1900 World’s Fair in Paris was built specifically to use that fuel, which is not consistent with the statements in Diesel’s book (1) and the literature cited below.

Furthermore, the above texts from the biography (3) and Diesel’s book (1) imply that it was not Diesel who conducted the demonstration and that he was not the source of the idea of using vegetable oils as fuel. According to Diesel, the idea for using peanut oil appears to have originated instead within the French government (see text below). However, Diesel conducted related tests in later years and appeared supportive of the concept. A Chemical Abstracts search yielded references to other papers by Diesel in which he reflected in greater detail on that event in 1900. Two references (4,5) relate to a presentation Diesel made to the Institution of Mechanical Engineers (of Great Britain) in March 1912. (Apparently in the last few years of his life, Diesel spent considerable time traveling to give presentations, according to the biography by Nitske and Wilson.) Diesel states in these papers (4,5) that “at the Paris Exhibition in 1900 there was shown by the Otto Company a small Diesel engine, which, at the request of the French Government, ran on Arachide (earth-nut or pea-nut) oil, and worked so smoothly that only very few people were aware of it. The engine was constructed for using mineral oil, and was then worked on vegetable oil without any alterations being made. The French Government at the time thought of testing the applicability to power production of the Arachide, or earth-nut, which grows in considerable quantities in their African colonies, and which can be easily cultivated there, because in this way the colonies could be supplied with power and industry from their own resources, without being compelled to buy and import coal or liquid fuel. This question has not been further developed in France owing to changes in the Ministry, but the author resumed the trials a few months ago. It has been proved that Diesel engines can be worked on earth-nut oil without any difficulty, and the author is in a position to publish, on this occasion for the first time, reliable figures obtained by tests: Consumption of earth-nut oil, 240 grammes (0.53 lb) per brake horsepower-hour; calorific power of the oil, 8600 calories (34,124 British thermal units) per kg, thus fully equal to tar oils; hydrogen 11.8 percent. This oil is almost as effective as the natural mineral oils, and as it can also be used for lubricating oil, the whole work can be carried out with a single kind of oil produced directly on the spot. Thus this engine becomes a really independent engine for the tropics.” Diesel continued that (note the prescient concluding statement), “similar successful experiments have also been made in St. Petersburg with castor oil; and animal oils, such as train-oil, have been used with excellent results. The fact that fat oils from vegetable sources can be used may seem insignificant today, but such oils may perhaps become in course of time of the same importance as some natural mineral oils and the tar products are now. Twelve years ago, the latter were not more developed than the fat oils are today, and yet how important they have since become. One cannot predict what part these oils will play in the Colonies in the future. In any case, they make it certain that motor-power can still be produced from the heat of the sun, which is always available for agricultural purposes, even when all our natural stores of solid and liquid fuels are exhausted.”

The following discussion is based on numerous references available mainly from searching Chemical Abstracts or from a publication summarizing literature before 1949 on fuels from agricultural sources (6). Because many of the older references are not readily available, the summaries in Chemical Abstracts were used as information source in these cases. By: Gerhard Knothe

The History of Vegetable Oil-Based Diesel Fuels (Part 1)

2008-06-19T05:14:00.000-07:00

It is generally known that vegetable oils and animal fats were investigated as diesel fuels well before the energy crises of the 1970s and early 1980s sparked renewed interest in alternative fuels. It is also known that Rudolf Diesel (1858-1913), the inventor of the engine that bears his name, had some interest in these fuels. However, the early history of vegetable oil-based diesel fuels is often presented inconsistently, and “facts” that are not compatible with Diesel’s own statements are encountered frequently.

Therefore, it is appropriate to begin this history with the words of Diesel himself in his book Die Entstehung des Dieselmotors (1) [The Development (or Creation or Rise or Coming) of the Diesel Engine] in which he describes when the first seed of developing what was to become the diesel engine was planted in his mind. In the first chapter of the book entitled “The Idea,” Diesel states: “When my highly respected teacher, Professor Linde, explained to his listeners during the lecture on thermodynamics in 1878 at the Polytechnikum in Munich (note: now the Technical University of Munich) that the steam engine only converts 6-10% of the available heat content of the fuel into work, when he explained Carnot’s theorem and elaborated that during the isothermal change of state of a gas all transferred heat is converted into work, I wrote in the margin of my notebook: ‘Study, if it isn’t possible to practically realize the isotherm!’ At that time I challenged myself! That was not yet an invention, not even the idea for it. From then on, the desire to realize the ideal Carnot process determined my existence. I left the school, joined the practical side, had to achieve my standing in life. The thought constantly pursued me.”

This statement by Diesel clearly shows that he approached the development of the diesel engine from a thermodynamic point of view. The objective was to develop an efficient engine. The relatively common assertion made today that Diesel developed “his” engine specifically to use vegetable oils as fuel is therefore incorrect.

In a later chapter of his book entitled “Liquid Fuels,” Diesel addresses the use of vegetable oils as a fuel: “For [the] sake of completeness it needs to be mentioned that already in the year 1900 plant oils were used successfully in a diesel engine. During the Paris Exposition in 1900, a small diesel engine was operated on arachide (peanut) oil by the French Otto Company. It worked so well that only a few insiders knew about this inconspicuous circumstance. The engine was built for petroleum and was used for the plant oil without any change. In this case also, the consumption experiments resulted in heat utilization identical to petroleum.” A total of five diesel engines were shown at the Paris Exposition, according to a biography (2) of Diesel by his son, Eugen Diesel, and one of them was apparently operating on peanut oil.

The statements in Diesel’s book can be compared to a relatively frequently cited source on the initial use of vegetable oils, a biography entitled Rudolf Diesel, Pioneer of the Age of Power (3). In this biography, the statement is made that “as the nineteenth century ended, it was obvious that the fate and scope of the internal-combustion engine were dependent on its fuel or fuels. At the Paris Exposition of 1900, a Diesel engine, built by the French Otto Company, ran wholly on peanut oil. Apparently none of the onlookers was aware of this. The engine, built especially for that type of fuel, operated exactly like those powered by other oils.”

Cellulose for Your Diet

2008-06-10T05:29:00.000-07:00

Cellulose is one type of fiber. Fiber is an indisgestible substance found in plant foods. Fiber absorbs water and helps to form a larger, softer stool for easy elimination from the bowels. Cellulose is a Water-insoluble fiber that can be found at whole wheat flour, Unprocessed bran, cabbage, peas, green beans, wax beans, broccoli, brussel sprouts, cucumber with skin, green peppers, and carrots.

Why consume cellulose is recommended for your diet?it's because consume cellulose may help to decrease the risk of certain diseases(e.g Colon cancer) and has shown beneficial in the treatment of obesity, diabetes, and high cholesterol. diet with cellulose is recommended for many conditions including constipation, spastic colon, irritable bowel syndrome (alternating diarrhea and constipation), and uncomplicated diverticulosis.

The Values of a Business Coach

2008-06-04T04:24:00.000-07:00

Yesterday I saw an article on www.microei.org by Angelo Edwards about the values of a Business Coach and I think it's very helpful information to me, I think You all should know ho wimportant it is. So what is the value of the business coach to the organization? The value of the coach should be in four areas: Strategic-Thinking Partner, Business Companion, Outside Objective Resource, and Value Drift. Let’s start with the first value.

Strategic-Thinking Partner

The business coach should help you visualize creative future scenarios that are beneficial to the organization for example, (reaching a fundraising goal, increasing market share, establishing new program services.) The coach can aid in transforming dreams into commitments, enthusiasm, and results that are grounded in reality and not fanciful panaceas. The coach can assist you to think beyond the constraints of what you already know and design new ways forward.

Invite the coach to your annual retreat where you’re developing your strategic plan. As the organization is determining where it must be at a specific point in its business cycle, the coach should be a participating partner. The coach is a partner with your organization providing expert analysis or sometimes acting as a facilitator, but what you’ve garnered is a partner without the downside of a partnership. Your new partner can now become a non-judgmental sounding board as the organization sets realizable goals and objectives and provides feedforward in their attainment.

Business Companion

A business coach as a business companion focuses on high-value actions vs. low-value activities, thus eliminating wasted energy. Wasted energy in projects that are stymied, lead nowhere or, are ill-conceived can be detrimental to the success of the organization. The coach provides fresh perspectives and objective observations as projects are designed, implemented, and monitored. The coach helps the organization evaluate new opportunities and assists with handling challenges that may arise as the organization attempts to move forward in a positive direction. Lastly, as a business companion, the coach is there to help transform apparent obstacles into creative ways forward and applying experienced brainstorming techniques and models for making specific decisions.

Outside Objective Resource

A coach’s main strategy is to bring their resources of new ideas, insights, proven approaches, solutions, and help to the betterment of the organization. With the involvement of the coach, they can also bring attention and momentum to projects that would otherwise never begin. They are someone with whom to collaborate, invent and discover. Being an outsider, they are a great source to help develop new networks and alliances to expand the organization’s reach.

Value Drift

If a coach is doing a good job, the organization’s sense of the coach’s value naturally declines over time. This decline is called “value drift” as defined by Germaine Porche and Jed Niederer, authors of “Coach Anyone About Anything.” The coach works with the organization in a developmental aspect, constantly moving towards the goals and objectives set by the organization. As the organization gains more confidence in achieving its goals and objectives, the drift becomes natural, almost to the point where the organization may perceive that the coach is just coming along for the ride. A good coach embraces this value drift as part of doing business and considers it as a welcomed occupational hazard. Be careful as an organization not to become coach-dependent. Remember, the coach is there to help lead you, not to set up shop.

Of all the values discussed, the most important value that the coach should bring to the business relationship is the Value Drift. Gone are the days when consultants would milk their clients through unnecessary long-tern billable hours without there being any value-add to the organization once the consultant’s contract has ended. Now you know that a valuable coach should work their way out of a job.

Diseases linked to calcium deficiency

2008-06-02T05:27:00.000-07:00

Diabetes is a common metabolic disorder. The energy of patients declines day by day, just like in a dying tree, because of the urine containing a great amount of sugar. Through the urine, a great amount of calcium is also lost. The deficiency in calcium metabolism reinforces the symptoms of diabetes. Sixty percent of diabetics suffer from osteoporosis. Therefore calcium deficiency is a serious problem for diabetics. Diabetics should pay more attention to supplying calcium from food and other sources to reactivate their vital force.

Calcium ions play an important role in a process that neurotransmitters release. The transfer of calcium ions from both
inside and outside of the nerve cell is closely related to the activating and resting of brain messages. When the human body
lacks calcium, the release of the nerve messages will be blocked,and the mechanism of activating and resting will also be desstroyed. The resulting symptoms in children are restlessness in sleep, fidgeting, insomnia, and hyperactivity. In middle aged and elderly people, symptoms will be stubbornness, mood swings, divers neuropathic diseases, loss of retentive memory, lowered resistance, and neurostemic and senile dementia. All these symptoms reflect the decline of the nervous systems functioning. To supply calcium at this time is not only helpful to recovery, but can also improve the intelligence quotient and functioning of the brain. Therefore, the use of a calcium supplements is very important, both in the prevention and cure of nervous system disorders.

The heart carries the burden of life. The heart is only as big as a closed fist, but it continuously pumps blood to every cell of the human body. It is totally dependent on the contraction and expansion of the cardiac muscle, and to do this the cardiac muscle must store and use energy. It cannot do this without calcium. When the heart constricts calcium ions control its rhythm. Let's look inside the cardiac muscle cell. You will see that when calcium enters the inside of the cell, it activates a protein to cause the action of the cardiac muscle, so it makes the cardiac muscle contract and expand again and again to keep us alive. A lack of calcium weakens the ability of the cardiac muscle to contract and expand, and causes various heart diseases. Tests show that if we introduce calcium ions into the weakened cardiac muscle the heart
gradually regains power, so it is quite clear that the role of calcium is very important to a healthy heart beat.

Arteriosclerosis is a non-inflammatory, pathological change of the artery, which causes the vessels to thicken and harden, and then to lose elasticity, thus decreasing the flow of blood. It is caused by fatty substance accumulating and blocking the blood vessels and increasing fibrous matter. When the body seriously lacks calcium, and the calcium in the blood is low, the parathyroid sends an order, which causes bone calcium to enter the blood. The calcium dissolved from bone causes a problem in blood vessels, it arrests fat there, causing the vessels to thicken and harden, and lose elasticity.

Arteriosclerosis, the primary reason for hypertension, and coronary and cerebral vascular disease, seriously threatens our health. Recent research shows that people should always use calcium supplements when they are dealing with arteriosclerosis. A calcium supplement not only prevents arteriosclerosis and hypertension, but also possesses the capacity to reduce fatty
substances in the blood.

Finally, let us look at the digestive system. In the complex process of the human body ingesting nutrition, the calcium ion plays an important role. In the digestive system, calcium ions not only maintain and control the activity of the smooth muscle in the alimentary canal, but also participate in the functions of excretion and activation of digestive enzymes. The upper part of the small intestine absorbs calcium, the duodenum absorbs calcium most quickly, and the ileum, the lowest division of the small intestine, because of its greater length, absorbs the greater quantity of it.
The absorption of calcium is mostly through the intestinal mucous membranes. It is the most important means of maintaining a
normal level of calcium in the body. A long period of chronic bellyache or diarrhea can block the absorption of calcium by the intestines, so it reduces the amount of calcium in the blood. This stimulates the parathyroid, increases the concentration of calcium in the intestines, and induces convulsions of the smooth muscles of the stomach and intestines. So supplying calcium to the sufferers makes up for the decrease of calcium in the blood, caused by absorption being obstruction in the bowels, and also helps to alleviate the symptom of diarrhea.

Ulcers are chronic cankers of the stomach and duodenum induced by stomach acid and stomach protein enzymes that cause the
stomach mucous membrane to digest itself. An increase in excretion of stomach acid, whether caused by unhealthy diet, surplus bile, or a nervous condition, is an important cause of ulcers. When the body lacks calcium, acid stomach easily occurs, along with an exorbitant increase of pepsins and of stomach protein enzymes, which induce alimentary canal ulcers, which if serious, can be life threatening. So as part of the general cure we should pay attention to supplying enough calcium.

Lack of calcium can cause numerous diseases. Calcium deficiency is a long term and hidden condition, which destroys human health, and brings on divers diseases. Experts in biology and physics have demonstrated that calcium deficiency is at the root of many diseases. Lack of calcium in young people may be glossed over by their youth. But for elderly people, women, and children, it is comparatively serious. We have paid a great toll of health and life to gain our present knowledge regarding calcium deficiency.

Now we want to answer a question that people often ask. Can we supply the calcium that our bodies lack by eating a more balanced diet? Though the amount of calcium elements on the earth is not small, the content of calcium in the human diet is not great. Generally speaking, the notion that calcium deficiency can be avoided by eating properly is a prevalent mistake. Many factors influence the absorption of calcium, such as the proportion of calcium to phosphorus, temperature at which food is cooked, eating habits, lifestyle, health situation, and digestive mechanism.
So we should understand the complexity and limits of calcium absorption, and pay more attention to supplying calcium and
preparing our nutrition accordingly.

Given the importance of calcium supplements, we have to pay attention to their quality. They should have:
1. A high content of calcium, easy absorption, and a high rate of body utilization in proper proportions.
2. No side effects, and convenience of carrying and taking.
3. Good content of nutrients, such as multivitamins and trace elements.

Now we are at the dawn of a new century. People are gaining new knowledge about the relation between calcium and life, and
calcium and disease. People will eventually know the importance of calcium supplementation, and calcium as a life source helping them to live more healthy and fulfilled lives.

How much Calcium is needed,and what the best source?
According to scientific research, you could get enough calcium for your daily needs from:

2 gallons of milk

23 pounds of spinach, plus 17 pounds of broccoli

approximately 23 pounds of cabbage,

"OR"

You could supplement your diet with calcium capsules.

About Calcium

2008-06-01T15:48:00.000-07:00

The discovery of the relationship between calcium and life activity and diseases is one of the most remarkable achievements in health product research in the last twenty-five years of this century. Human beings cannot exist without calcium. Calcium ions play an important roll in the whole process of continuing life.

Just look at the relationship between calcium and life. Calcium is the source of human life; it plays an important roll physiologically in every stage of human growth, from conception to old age. Calcium is an essential and indispensable element needed to preserve the health of the body and to promote longevity.

From the angle of ordinary physical capability, a man and a woman can undoubtedly create a new life, but from the angle of nutritional balances within the body, we see that without a proper balance of calcium new life cannot take place.
Basic medical research and clinical experience demonstrates that the calcium ion plays an influential role in this aspects of begetting life. In the process of conception, the male sperm moves toward the female egg with the energy provided by calcium. To scientistÌs surprise, they found that there is a calcium component on the top front part of sperm. It's this calcium component that helps the sperm to pierce and penetrate the inner membrane of the egg cell. When the sperm reaches the ovum cell fertilization is about to take place. Meanwhile, undulating substances composed of calcium surround the ovum cell,
creating what is called calcium vibration. Calcium vibration functions to stimulate the ovum, allowing it to gain the ability to be fertilized, thus creating a new life. We see from this that if calcium were lacking, it would directly affect the fertilizing vitality of the sperm, leading to infertility.

The important effect of calcium on life is so significant that in addition to choosing foods rich in calcium, we need to take an appropriate amount of calcium supplements. Newborn infants usually gain twenty to thirty grams of weight each day. Zero to six years is the most accelerated period of calcium metabolism during the entire life cycle.
The calcium needed at that time is over twice that of the newborn period. Proper amounts of calcium at this time are the chief component of good dental health. Calcium deficiency in young people under eighteen years of age will have a seriously negative affect on their growth, and this period is also the last chance to cure any calcium deficiency in bones which would cause many bone diseases in adulthood.
From eighteen to thirty years of age people's bone quantity keeps increasing and reaches its peak somewhere around thirty-five. From thirty-five to fifty bone quantity is gradually lost. From fifty to seventy people experience their greatest bone loss. This long-term calcium loss in human life causes abnormal calcium distribution in the human
body.

Calcium deficiency in young people will affect both their energy in working and studying, and their psychological health, and cause early aging of the bones. Medium age and older people need to supplement calcium before its deficiency will lead to other diseases. So you can see that we need to be taking calcium supplements over the period of our entire life.

Lets discuss for a moment the influence of calcium specifically on women. From the third month of pregnancy a fetuses need for calcium increases greatly. At that time the mother supplies a large amount of calcium from her body, and besides that the quantity of her own blood circulation also increases, as a result of which the calcium content of her blood decreases, and displays a low blood calcium content. Low blood calcium content is likely to cause the mother to have hypertension, birthing difficulty, pelvic deformity, and loosening of teeth. It can cause the baby to be malformed. So pregnant women
need to be nourished with more calcium especially from the middle stage of their pregnancy.

During the nursing period women's need for calcium will increase because the mother gives up a lot of calcium to her baby through her milk. During this time, a large amount of calcium stored in the mother's body is consumed. If not nourished by additional calcium, in time the mother will suffer from aging, low immunity, and endocrine imbalances, and her body's health will be endangered.

Menopausal women experience a decreased functioning of the ovaries, and a decrease in estrogen. Ovaries participate in the
metabolism of the important organs in the human body. They have an especially close connection with bone metabolism, which will affect women's physiological and nervous system. With the decrease of ovary function, the calcium in women's bones is gradually lost and excreted through the urine. Thus the calcium content of women's bones will obviously be less. The low calcium absorbing ability of aged women's intestines causes their bodies to be seriously calcium deficient. Therefore we say that women especially need calcium supplements throughout their entire lives.

The stimulation of skeletal muscle is caused by the calcium ion,the density of which causes the contraction and expansion of the skeletal muscle. Like an army commander, calcium directs all the movements of the human body.

During the contraction of a muscle, when the nerve fiber is activated, calcium ions flow into the cells. The density of calcium is the basic standard controlling the contraction of the muscles.Calcium stored in the muscle is mainly in the myoplasm net of the skeletal muscle, and the myoplasm net is the most important transportation system for the transmission of the calcium ion. When muscle needs to contract, the skeletal muscle is exited, calcium flows from the myoplasm net and into the cells. Calcium ions in the cells flow out to help the muscle to expand. The whole process is very short.

If the balance in the muscle is destroyed for any reason, the smooth muscle and the heart muscle will be abnormal, which
causes people to lose the ability to control their bodies.

Calcium in the form of calcium salt gives hardness to the bones, which enables the skeleton to carry the whole body. When we
observe calcium deficiency in your bones, we will find that the metabolism of the bone cells is abnormal. This is called
osteoporosis, which causes the following symptoms. Bone pain, susceptibility to fractures, and bone abnormalities. The most
serious is that people break their bones frequently, even during normal activities. During the healing period, people need even more calcium to accelerate the bone connection. Clinical experience shows that calcium deficiency causes the fractures.

Poor nutrient absorption and poor sunlight absorption can prevent calcium salt from penetrating to the appropriate site, and that causes rickets. The main symptoms of rickets are soft cranial bones, abnormal ribs, chicken breasts, and bowed or splayed legs.

A long period of calcium deficiency can bring on osteoporosis, which is a common and frequently occurring disease of aged
people, and whose prevalent symptoms are pain in the waist and while bending, and frequent, constrictive fractures of the breast and lumbar bones. Ninety-nine percent of the calcium in a normal personÌs body exists in the bones, only one percent being in the parenchyma and the blood. But in aged people who lack calcium, the amount of calcium in the bone is only sixty percent. The result of osteoporosis is degenerative transformation, so older people should enhance their nutrition and exercises, while at the same time they supplement their calcium intake, which can help them, regain their health.

Everything points to the fact that diseases of the bones need supplements of calcium. Tianshi High Absorption Calcium Powder
has special properties for improving bone density.

Now let's take a look at the diseases of the immune system caused by calcium deficiency. When a foreign germ, virus, toxin, or other disease attacks the body, the immune system acts as a guard to do battle with the invader, and reject foreign matter. But it is the calcium ions, which give the first alarm about the invasion, and give orders to the immune cells to act, to seize the enemy by taking different shapes to capture and destroy them. Therefore, we can see the importance of calcium in the functioning of the immune system. When people lack calcium, the immune function will be fouled up, and permit divers skin conditions, such as scabby skin, dermatitis, acne, and others, as well as rheumatism. Calcium supplement improves the functioning of the immune system, and has a curative effect on these diseases. In this regard, calcium also protects the skin, and improves its appearance.

Yin Yang and Chi Theory

2008-05-31T05:06:00.000-07:00

In traditional Chinese medical philosophy, health is described in terms of balance within the body, or yin and yang. Yin refers to blood and essence, while yang refers to vital warmth and Chi. Chi is energy, the life force that flows within us. It's probably best described as energy resulting from metabolic activity.

According to Chinese philosophy, there are two basic principles, and while they sometimes oppose, they are nevertheless, dependent upon each other. The two principles are yin and yang, and their characteristics may be summarized as follows:....

Yang : male, light, hot, strong, positive, active, sun, spring, summer.
Yin : female, dark, cold, weak, negative, passive, earth, autumn, winter.
Although yin and yang may at time be opposites, they are not hostile to each other, each has need of the other, for without one, the other could not exist, nor is one superior to the other.

Man is considered to be a microcosm of the universe, and subject to the same laws. The forces of yin and yang are expressed in the body through such things as contraction and dilation of the heart, inhaling and exhaling of the lungs, and the opposites of waking and sleeping.

Balanced blood and Chi open the door to our physical, emotional, and spiritual health. If the pathways of energy become blocked, disharmony and disease result. When the Chi is allowed to flow unobstructed through the energy meridians in our body, energy is again harmonized, and the blockages that cause disharmony and disease are removed. YouÌll feel better physically, emotionally, and spiritually, creating a renewed sense of well being, making you feel better equipped to handle life's many challenges.

One of the most important concepts that form yin and yang is that of wholeness. The basic idea is that any system of our body is inseparable from the others. When one organ becomes unhealthy, the others are disturbed as well. While treating one part of the body, one must pay attention to the other systems of the body, and take heed not to hurt the other organs. Diseases arise because of deficiency or imbalance of the vital energy in our organs, and their associated systems.

An example of this philosophy can be seen in how the Chinese deal with shortness of breath. When considering shortness of breath, Chinese Doctors say the spleen must also be strengthened so that it can support the lungs. So when dealing with this condition, rather than simply addressing the lungs, they also prescribe treating the spleen. This "whole systems" approach is what distinguishes Chinese herbal practices from Western medicine.

Just like an athlete who has competed in a race, and who's body needs time to recover from the effects of the race, so also our bodies internal systems expend energy performing their critical functions, and need their these energy reserves replenished regularly. Yin Tonics are said to replenish the body's resources, its blood and essence. Yang tonics are said to build the bodies ability to use those resources by converting them to energy, or Chi and warmth. Yin is
stored potential energy, and yang is active or metabolic energy generated during activity.

The kidneys are spoken of as the "Root of Life"; because they are the foundation upon which the body grows, develops, and reproduces. Generally speaking athletes are advised to take kidney yin tonics on days that they are practicing, kidney yang tonics on days they compete, and yin and yang tonics during the recuperation phase.

How to Choose A Great Lawyer

2008-05-27T06:02:00.000-07:00

Maybe you've been sued, or someone has harmed you and you want to sue. Maybe you've been arrested, or you know the government is investigating you or your business. Or maybe you need a divorce, a will, or a new corporation. Whatever the reason, you need a lawyer, and you need someone who is good and won't cost you a bundle. But there are so many lawyers. How do you get the right one?

As you would for any major purchase, do a little research and save yourself from costly mistakes. Narrow your search to attorneys who practice in the area in which you need services. Look at the attorneys experience and background. Ask for information about fees and payment arrangements. Interview attorneys by phone or in person to see if you would feel comfortable working with them. Here s how :

What type of lawyer do you need? Just as you wouldn't go to a dermatologist for a heart ailment, you wouldn't go to a domestic relations lawyer if you had been charged with a federal crime. While not every attorney specializes in a particular type of law, most do practice in one or two specific areas. Finding an attorney who has experience with your type of legal matter not only means you are likely to get better advice, but also means you are likely to pay lower fees because you won t be paying for the attorney to learn a new area of the law. Attorneys who specialize in your area are also likely to work more quickly because they will have on hand the applicable law and form documents. If you look at the areas of practice listed on this site, you will get a good idea of typical areas of specialty.

How do you find out an attorney s specialty? You can find an attorney s specialty or area of practice in several ways. A good starting point is to look at listings at this site. You can also look in the yellow pages, read advertisements in the paper, call your local bar association or legal referral service, or look up attorneys web sites. In addition, public libraries often have listings of attorneys by geographic region and describes their practices.

Where can you get information about an attorney s background? The listings in the libraries may contain background information about the attorneys listed, including age, law school, bar admissions, papers written, law association positions held, and reported cases handled by the attorney. Similar information might also be provided by an attorney s web site. Your local bar association can tell you when an attorney was admitted to practice in your state, and confirm that the attorney is a member of the bar in your state, but usually will not give out more information. If the bar association has a referral service, the service should be able to provide you with additional information. Many attorneys have brochures about their practices that you can call and request, and they will also tell you their qualifications if you ask.

How should you interview attorneys? Once you have the names of a few attorneys who practice the type of law you need, interview them to see if you feel they would do a good job for you. Call the attorneys and explain what legal services you need, and ask for a meeting. Most attorneys will give you an "initial consultation" of fifteen or twenty minutes at no charge. Note, however, that you probably will not get specific legal advice during this initial meeting because the attorney will need to have detailed information from you before providing advice. Instead, use this time to ask the attorney about his or her background and experience, how he or she would handle your legal matter, how much he or she charges, and what fee arrangements are available. In evaluating the attorney s responses, look for a personality that you would be comfortable working with, experience handling matters similar to yours, a confident manner, and forthright answers.

Are women attorneys better? Some people look for women lawyers for a variety of reasons. They think women listen better, work harder, are more sympathetic, or are more likely to resolve matters without litigation. They may also think that a woman attorney might have a favorable impact on juries, particularly if the woman is defending a man accused of harming a woman in some way. Of course, all such thoughts are based on stereotypes and will not necessarily be true. Male attorneys can be just as hard working and sympathetic as female attorneys, and female attorneys can be just as aggressive and bull-headed as male attorneys. Your best course is to choose an attorney, male or female, with the qualifications and qualities that you think will best serve your needs.

Source: www.womenlawyers.com By Cynthia Thomas Calvert

Why should I buy life insurance?

2008-05-24T06:43:00.000-07:00

Many financial experts consider life insurance to be the cornerstone of sound financial planning. It can be an important tool in the following situations:

Replace income for dependents

If people depend on your income, life insurance can replace that income for them if you die. The most commonly recognized case of this is parents with young children. However, it can also apply to couples in which the survivor would be financially stricken by the income lost through the death of a partner, and to dependent adults, such as parents, siblings or adult children who continue to rely on you financially. Insurance to replace your income can be especially useful if the government- or employer-sponsored benefits of your surviving spouse or domestic partner will be reduced after your death.

Pay final expenses

Life insurance can pay your funeral and burial costs, probate and other estate administration costs, debts and medical expenses not covered by health insurance.

Create an inheritance for your heirs

Even if you have no other assets to pass to your heirs, you can create an inheritance by buying a life insurance policy and naming them as beneficiaries.

Pay federal “death” taxes and state “death” taxes

Life insurance benefits can pay estate taxes so that your heirs will not have to liquidate other assets or take a smaller inheritance. Changes in the federal “death” tax rules between now and January 1, 2011 will likely lessen the impact of this tax on some people, but some states are offsetting those federal decreases with increases in their state-level “death” taxes.

Make significant charitable contributions

By making a charity the beneficiary of your life insurance, you can make a much larger contribution than if you donated the cash equivalent of the policy’s premiums.

Create a source of savings

Some types of life insurance create a cash value that, if not paid out as a death benefit, can be borrowed or withdrawn on the owner’s request. Since most people make paying their life insurance policy premiums a high priority, buying a cash-value type policy can create a kind of “forced” savings plan. Furthermore, the interest credited is tax deferred (and tax exempt if the money is paid as a death claim).

Source : www.iii.org

How Pre-Settlement Lawsuit Funding Works

2008-05-22T00:28:00.000-07:00

An injured person contacts a company that offers pre-settlement lawsuit funding, sometimes at the suggestion of an attorney. The finance company contacts the lawyer who is handling the case, and obtains information about the case. Based upon that information provided, the loan company estimates the value of the likely eventual settlement or verdict, and offers a cash advance to the injured person based upon that estimate. The fee may be a flat fee, or a monthly fee that accrues each month the loan is outstanding. When the case settles, or the defendant pays after losing in court, the loan and associated fees are paid to the finance company.

These advances are offered as non-recourse funding, which means that an injured person has no obligation to repay if the lawsuit is lost. Similarly, if the ultimate settlement or verdict is smaller than anticipated, the amount that must be repaid never exceeds the amount of the injured person's share of that verdict or settlement. For legal reasons, these advances are not characterized as loans.
Amounts available vary significantly, depending upon the nature of the case and the company involved. Many companies offer pre-settlement funding amounts between $500 and $25,000. A few offer amounts up to $100,000. Fees also vary depending upon the company and the type of case. Some companies will fix the fee for the advance up front. Others will charge a monthly fee for each month between the time the funding is issued and when it is repaid, sometimes as high as 15% per month.
When Is Pre-Settlement Funding Appropriate?Litigation can take a very long time. Sometimes, cases drag on for years. While cases are pending, even where an injured person's attorney is paying all of the legal expenses associated with the litigation, the injured person has to have enough money to get by. If the injured person is unable to work, has reduced income, or has expenses associated with care or disability, it may not be possible to wait until the end of the lawsuit before obtaining funds.
Given the fees involved in pre-settlement funding, it is important for injured people to consider any available alternatives. This type of financing should ordinarily be the last resort. The fees are premised upon the risk to the lender associated with non-recourse lending, but keep in mind that these companies choose their cases carefully in order to minimize risks, and if they offer you an advance they believe that you will receive money from your lawsuit. If you decide to obtain pre-settlement funding you should check with several companies, in order to obtain the most favorable terms.
Ethical IssuesA question that perhaps seems obvious is, why can't injured people simply borrow money from their lawyers? The answer is that state bar associations recognize that when a lawyer becomes a creditor to a client, a conflict of interest is created that may interfere with the attorney-client relationship.
Sometimes an attorney won't want to sign any contract with a settlement financing company, and some states prohibit lawyers from signing onto liens of the type necessary to secure this type of funding. As a result, typically companies require that the injured person sign the contract, and that the attorney sign an acknowledgement of the client's instruction that the loan and associated fees be repaid from any eventual verdict or settlement.
At least one state (Florida) prohibits lawyers from participating in the settlement funding company's evalaution process. Absent lawyer invovlement, it is unlikely that a finance company would be able to obtain enough information about a case to risk issuing non-recourse funding.
Legal IssuesIn order to avoid usury laws (laws against charging excessive rates of interest), the funds you receive from a pre-settlement funding company will not be described as a "loan". For example, the advance might be described as a "cash advance", 'investment", or as "venture capital". Technically, as the contract is not to repay the amount received but is instead a promise to pay a portion of any eventual verdict or settlement (which may never occur), these amounts are not loans. No matter what happens, a person who receives pre-settlement funding keeps the full amount of the advance.
A Michigan court recently held invalid a lawsuit funding contract where the defendant's liability had been established, holding that as the plaintiff was certain to recover some amount of money the funding company's advance was no longer contingent, and thus that the plaintiff only had to repay the principal (without interest) under Michigan's usury laws. While other states may draw different conclusions from similar facts, it remains necessary that the amount be in some manner contingent - otherwise, it is a high interest loan.
An Ohio court similarly discharged a plaintiff's obligation under a lawsuit funding contract on the basis of a common law doctrine called "champertry" - a prohibition against the sale of a party's interest in a lawsuit. The court's rationale was that lawsuit funding company sought to profit from the injured woman's case, that lawsuit funding could create a disincentive to settle a case, where the plaintiff would have to pay the entire amount of the settlement to the finance company. A response to the first argument is that if it is acceptable for an attorney to profit from an injured person's case, why should it not be permissible for a finance company? A response to the second argument is that had the woman not received the funding, she may have been forced to settle the case for far less than its value.
Another concern might be that lawsuit funding might encourage plaintiffs to file frivolous lawsuits. This, however, does not consider the fact that lawsuit funding companies want to be repaid, and thus aren't likely to offer funds to plaintiffs who don't have strong cases justifying substantial awards. Similarly, it will often be in the strongest cases that a plaintiff is most in need of money before the conclusion of a lawsuit, and the absence of sources of funding can force premature and inadequate settlements.
ConclusionPre-settlement lawsuit funding should be considered as a last resort, after all other funding options are exhausted. Due to the high cost of this type of funding, any decision to accept an advance should be made very carefully. When seeking pre-settlement funding, it makes sense to check with several companies, to obtain the lowest possible feeS.

Source : Aaron Larson (http://www.a2lawyer.com)

About Cancer

2008-05-21T00:16:00.000-07:00

What is cancer?

Cancer is not a single disease, but more than 100 different diseases. It is caused by the abnormal growth of cells in the body.

The body is made up of billions of cells. These cells reproduce by dividing. Through this process the body grows and repairs itself. Sometimes, a cell begins dividing abnormally and tumors form. Tumors may be benign or malignant. Malignant tumors (cancers) can spread to other tissues or organs nearby or to other parts of the body. This is called metastasis. Cancers grow at different speeds. Some grow very quickly; others may grow slowly over many years.

Some cancers are easily cured; others are more difficult to treat. This depends largely on the place in the body where the cancer cells grow, how large the tumor is when it is first found, and if it has spread. Doctors usually consider tumors that start in different parts of the body (not those that spread, but new tumors) to be different diseases. Generally, each type of cancer has its own symptoms, outlook for cure, and methods for treatment.
What causes cancer?

No one knows for sure why a normal cell becomes a cancer cell. Many causes of cancer have been identified. Sometimes there is a family history of cancer. Scientists agree that people can get cancer through repeated long-term contact with carcinogens. These include tobacco, sunlight, x-rays, and certain chemicals that may be found in the air, water, food, drugs and workplace. Our personal habits and lifestyle may contribute to most cancers. It is believed that about 30% of cancer deaths are due to tobacco. As many as 30% of cancer deaths may also be due to inadequate physical activity, obesity and an unhealthy diet.
How soon after exposure to a carcinogen does cancer appear?

Most cancers develop slowly in people. They usually appear five to 40 years after exposure to a carcinogen. For example, cancer of the lung may not occur until 30 years after a person starts smoking. This long latency period is one of the reasons it is difficult to determine what causes cancer in humans.
Who gets cancer?

Cancer is a very common disease. One of every two men, and one of every three women, will be diagnosed with cancer at some time in their life. In New York, nearly one in four deaths is due to cancer.

Cancer occurs at all ages, but most often in middle-aged and older people. The number of people diagnosed with cancer has increased over the past 40 years. Most of this is due to an increase in the population and because people are living longer.

The most common cancers diagnosed among men, besides skin, are prostate, lung and colon. Among women, they are cancers of the breast, lung and colon.

Source :health.state.ny.us

The Blog as a Business

2008-05-17T16:56:00.000-07:00

Most blogs are small potatoes. The vast majority are online journals where teenagers
talk about their lives to a readership made up of their closest friends. A growing
minority, however, are businesses in and of themselves. They balance costs and
income; they purposely seek out content providers, advertisers, and paying customers.
They make a profit. They are, in fact, Blog Empires, ruling over a reader-defined section
of the blogosphere as the go-to site for millions who come to get the news, buy
promotional merchandise, and donate money to keep their favorite bloggers fed and
happy.

Blogs can draw millions of readers, because what You have to
say is important. You can accumulate advertisers, because they will pay to reach your
readers. A Business Blog, like any other business, is made up of three major components: a
supplier, buyers, and the products for sale. But a blog in many cases differs from the
average business because you are bringing together two sets of customers and
delivering two sets of products. And you’re not even selling the main item you produce.

The first component is a supplier. That’s you. It is your words, your opinion, your
research, and your art which can bring thousands or even millions of readers to your
blog. You will be the attraction, the broker, and the Emperor of your Blog Empire. If it weren’t for you, the blog wouldn’t exist. Because of who you are, what you know, and
what you do, it can thrive.

The second component is a buyer, a customer. While the vast majority of your
customers will be your readers, other customers will include companies that pay you to
feature their links and advertisements on your blog. “Traffic” (those millions of readers
out there who care about what you say) is the lifeline of your site: you’ve got to find
them and bring them in. Once they are there, your advertising customers will pay for
access to your reading customers, and your reading customers will pay for your
information and merchandise.

The final component is a product. Like all businesses, yours can’t exist without a
product to sell. But what do you sell when you’re giving your opinion away for free on a
blog?

The first product you sell is yourself: your opinions and your expertise. Without selling
yourself to your readers, you will have no customers. They may not always pay you
directly (though we’ll see that in many cases, they will) but if they don’t buy what you’re
saying, they will not buy anything else.

The second product you sell is your space. You lease it to advertisers who will pay you
to put information in front of your millions and millions of readers. Whether text links or flashing popup banner ads, your advertisers will pay you for a small part of your
readers’ attention.

The final product you sell is your merchandise. With a properly-branded name and a
reputation for excellence, your readers will purchase coffee mugs, t-shirts, bumper
stickers…anything you can imagine.

In your Blog Empire, your reader is a customer and a product, and the more customers
you have, the more products you can sell and the more profit you can pocket. You can
turn your labor of love into a digital cash cow by building a Blog Empire that brings
customers and buyers together.

How does nitrous oxide help an engine perform better?

2008-05-11T20:02:00.001-07:00

This Question of the Day talks about how sodium chlorate acts as a way to store oxygen. You release the oxygen in sodium chlorate by heating it. It turns out that nitrous oxide (N20) works exactly the same way. When you heat nitrous oxide to about 570 degrees F (~300 C), it splits into oxygen and nitrogen. So the injection of nitrous oxide into an engine means that more oxygen is available during combustion. Because you have more oxygen, you can also inject more fuel, allowing the same engine to produce more power. Nitrous oxide is one of the simplest ways to provide a significant horsepower boost to any gasoline engine.

Nitrous oxide has another effect that improves performance even more. When it vaporizes, nitrous oxide provides a significant cooling effect on the intake air. When you reduce the intake air temperature, you increase the air's density, and this provides even more oxygen inside the cylinder.

The only problem with nitrous oxide is that it is fairly bulky, and the engine needs a lot of it. Like any gas, it takes up a fair amount of space even when compressed into a liquid. A 5-liter engine running at 4,000 rotations per minute (rpm) consumes about 10,000 liters of air every minute (compared to about 0.2 liters of gasoline), so it would take a tremendous amount of nitrous oxide to run a car continuously. Therefore, a car normally carries only a few minutes of nitrous oxide, and the driver uses it very selectively by pushing a button.

Source:Howstuffworks

What's Forex?

2008-05-11T19:44:00.000-07:00

"Forex" stands for foreign exchange; it's also known as FX. In a forex trade, you buy one currency while simultaneously selling another - that is, you're exchanging the sold currency for the one you're buying. The foreign exchange market is an over-the-counter market.

Currencies trade in pairs, like the Euro-US Dollar (EUR/USD) or US Dollar / Japanese Yen (USD/JPY). Unlike stocks or futures, there's no centralized exchange for forex. All transactions happen via phone or electronic network.

Who trades currencies, and why?

Daily turnover in the world's currencies comes from two sources:
Foreign trade (5%). Companies buy and sell products in foreign countries, plus convert profits from foreign sales into domestic currency.

Speculation for profit (95%).
Most traders focus on the biggest, most liquid currency pairs. "The Majors" include US Dollar, Japanese Yen, Euro, British Pound, Swiss Franc, Canadian Dollar and Australian Dollar. In fact, more than 85% of daily forex trading happens in the major currency pairs.

The world's most traded market, trading 24 hours a day

With average daily turnover of US$3.2 trillion, forex is the most traded market in the world.
A true 24-hour market from Sunday 5 PM ET to Friday 5 PM ET, forex trading begins in Sydney, and moves around the globe as the business day begins, first to Tokyo, London, and New York.

Unlike other financial markets, investors can respond immediately to currency fluctuations, whenever they occur - day or night.

Can Facebook make me rich?

2008-05-11T19:30:00.000-07:00

If you're a software developer with a little ambition and a good idea, then Facebook may be the company that makes you a very wealthy person. The social networking site that began in 2004 as a way for college students to keep in touch has expanded to allow everyone to create their own Facebook page. Since then, Facebook has carved a niche for itself in the tech world as a company that is willing to break through the traditional barriers of business.

Image courtesy Facebook
In 2007, Facebook opened its platform, allowing undiscovered software developers to create applications for the Web site.

In May 2007, the company opened its platform, allowing software developers to add their programs to the Facebook site. This in turn allowed the site's users to choose from a wide variety of programs and add them to their personal Facebook pages. To show that its platform is truly open, the company held f8, an eight-hour-long competition where developers created their own programs for Facebook's interface. Eighty-five new programs -- ranging from video sharing to a Scrabble offshoot -- were added to Facebook as a result of f8.

Now, the company is taking its cultivation of new applications even further. In September 2007, Facebook founder Mark Zuckerberg announced the company has a $10 million pile of cash waiting for software developers who want to share their programs with Facebook. The company calls it the fbFund.

The grants range from $25,000 to $250,000, and a good idea could fatten a developer's bank account. The company hasn't announced any restrictions on the number of applications each developer can contribute, so potentially one developer could make a lot of money with a few applications. And while $250,000 isn't anything to sneeze at, the fbFund grants are actually just the tip of the iceberg.

As it turns out, the company is interested in providing more than grants -- it wants to serve as venture capitalists for the right application. Developers receiving grants from Facebook will not only get the initial cash, they will also maintain ownership of their programs. Facebook just wants first crack at providing the money needed to take the software and turn it into a viable start-up business.

It's a basement software developer's dream come true, and it's no coincidence that the offer comes from a former basement software developer. Zuckerberg seems like Willy Wonka, having sent out the gold-wrapped candy bars and waiting patiently in his chocolate factory for the arrival of someone like Charlie.

Of course, Zuckerberg is probably not secretly planning on handing over the keys to Facebook's front door. But with the fbFund, he has thrown out the traditional, frustrating search between venture capital and good ideas and simply put out notice of where the money can be found.

Facebook has attached only one stipulation to its fbFund: The company won't consider applications from any developer or company that has already accepted venture capital from another source. This satisfies two dilemmas. It spreads venture capital around to those who have been overlooked -- an example of infracaninophilia, or love for the underdog. The stipulation also keeps Facebook out of any sticky potential legal battles over who actually owns the software backed by Facebook's capital.

For unknown developers with good ideas and drive, Facebook's fbFund offer could prove to be a cash cow. But fbFund isn't the only way to make money online. Read the next page to find out some of the ways to earn a living on the Web.

Source:www.Howstuffwork.com

Intel, Samsung, TSMC Reach Agreement for 450mm Wafer Manufacturing Transition

2008-05-05T18:21:00.001-07:00

Intel Corporation, Samsung Electronics and TSMC have reached agreement on the need for industry-wide collaboration to target a transition to larger, 450mm-sized wafers starting in 2012. The transition to larger wafers will enable continued growth of the semiconductor industry and helps maintain a reasonable cost structure for future integrated circuit manufacturing and applications.

The companies will cooperate with the semiconductor industry to help ensure that all of the required components, infrastructure and capability are developed and tested for a pilot line by this target date.

Historically, manufacturing with larger wafers helps increase the ability to produce semiconductors at a lower cost. The total silicon surface area of a 450mm wafer and the number of printed die (individual computer chips, for example) is more than twice that of a 300mm wafer. The bigger wafers help lower the production cost per chip. Additionally, through more efficient use of energy, water and other resources, bigger wafers can help diminish overall use of resources per chip. For example, the conversion from 200mm wafers to 300mm wafers helped reduce aggregate emissions per chip of air pollution, global warming gasses and water, and further reduction is expected with a transition to 450mm wafers.

"There is a long history of innovation and problem solving in our industry that has delivered wafer transitions resulting in lower costs per area of silicon processed and overall industry growth." said Bob Bruck, vice president and general manager, Technology Manufacturing Engineering in Intel's Technology and Manufacturing Group. "We, along with Samsung and TSMC, agree that the transition to 450mm wafers will follow the same pattern of delivering increased value to our customers."

Intel, Samsung and TSMC indicate that the semiconductor industry can improve its return on investment and substantially reduce 450mm research and development costs by applying aligned standards, rationalizing changes from 300mm infrastructure and automation, and working toward a common timeline. The companies also agree that a cooperative approach will help minimize risk and transition costs.

"The transition to 450mm wafers will benefit the entire ecosystem of the IC industry, and Intel, Samsung, TSMC will work together with suppliers and other semiconductor manufacturers to actively develop 450mm capability," said Cheong-Woo Byun, senior vice president, Memory Manufacturing Operation Center, Samsung Electronics.

In the past, migration to the next larger wafer size traditionally began every 10 years after the last transition. For example, the industry began the transition to 300mm wafers in 2001, a decade after the initial 200mm manufacturing facilities (also known as "fabs") were introduced in 1991.

Keeping in line with the historical pace of growth, Intel, Samsung and TSMC agree that 2012 is an appropriate target to begin the 450mm transition. Given the complexity of integrating all of the components for a transition of this size, the companies recognize that consistent evaluation of the target timeline will be critical to ensure industry-wide readiness.

"Increasing cost due to the complexity of advanced technology is a concern for the future," said Mark Liu, TSMC's senior vice president of Advanced Technology Business. "Intel, Samsung, and TSMC believe the transition to 450mm wafers is a potential solution to maintain a reasonable cost structure for the industry."

The three companies will continue to work with International Sematech (ISMI), as it plays a critical role in coordinating industry efforts on 450mm wafer supply, standards setting and developing equipment test bed capabilities.

Source: Intel

Dell Will Fix Faulty Vostro 1310 and 1510 Laptop Keyboards

2008-05-05T18:17:00.000-07:00

Dell Will Fix Faulty Vostro 1310 and 1510 Laptop Keyboards
Dell on Friday said it has suspended shipment of the two Vostro 1310 and 1510 laptops in Europe after first owners alarmed that these laptops are shipping to Europe with incorrect European keyboard layout. Jennifer Davis, a Dell spokeswoman commented on the story. She pointed out that only a limited number of Vostro 1310 and 1510 laptops with the wrong keyboard layout were shipped in Europe in the middle of April. Fortunately, Dell has stopped further shipments of the laptop models until the problem is fixed. All "lucky" owners of the faulty keyboard laptops will be offered a replacement. "Customers will be given a choice to receive the keyboard kit or have a tech [representative] come on-site, ... The new keyboard is easy to install," Davis said. Laptops shipped outside Europe aren't affected by the glitch.

Source: Yahoo! News

MSI's Ultra Portable Notebook

2008-04-29T19:45:00.000-07:00

MSI is entering the Eee PC champion league with some tricked out Wind notebook. While you won't be blown away by performance or by the looks of it, Wind U100 will be MSIÂ’s first major fighter against Eee that is claimed to beat it in 6 out of 9 design specification. Shipping in mid to late May, the U100 will get its power from an Intel Atom 1.6GHz processor based on a Intel 945GM motherboard, up to 2GB DDR2 667MHz memory, 80GB 2.5-inch SATA hard drive and a 10-inch WSVGA LCD with 1024x600 wide resolution, that MSI claims is much better for web surfing compared to Eee PC. Also included is a 4-in-1 card reader, three USB 2.0 ports, GB network port, 802.11B/G wireless and Bluetooth V2.0 EDR. Multimedia features will get you HD audio through integrated stereo speakers and video from a 1.3MP camera. The MSI Wind will ship with either Windows XP or Linux OS. Also MSI promises two battiry options: 3 cell and 6 cell. With the 3 cell battery installed, the whole system will weigh less than a kilo and measure 260x180x19-31.5mm. See some more pictures at TweakTown.

Source: TweakTown

Windows XP Service Pack 3 Release to Web Delayed

2008-04-29T19:38:00.000-07:00

Windows XP Service Pack 3 was supposed to land today for mass download, but I'm afraid this won't happen. Microsoft today explained what's the main reason behind this last moment delay:
In the last few days, we have uncovered a compatibility issue between Microsoft Dynamics Retail Management System (RMS) and both Windows XP SP3 and Windows Vista Service Pack 1 (SP1). In order to make sure customers have the best possible experience, we have decided to delay releasing Windows XP Service Pack 3 (SP3) to the web. To help protect customers, we plan to put filtering in place shortly to prevent Windows Update from offering both service packs to systems running Microsoft Dynamics RMS. Once filtering is in place, we expect to release Windows XP SP3 to the web.
I suppose many of you already know about the leaked Windows XP SP3 download link, but I prefer to post only legit links here. Microsoft is working on fixing the problem and should release Windows XP SP3 to web very soon.

Source: Microsoft TechNet Forums