Credit cards – Welcome Echizenshi http://welcome-echizenshi.com/ Tue, 28 Jun 2022 15:46:28 +0000 en-US hourly 1 https://wordpress.org/?v=5.9.3 https://welcome-echizenshi.com/wp-content/uploads/2021/06/cropped-icon-32x32.png Credit cards – Welcome Echizenshi http://welcome-echizenshi.com/ 32 32 Get a loan to invest in crypto? Forget that https://welcome-echizenshi.com/get-a-loan-to-invest-in-crypto-forget-that/ Tue, 28 Jun 2022 15:46:28 +0000 https://welcome-echizenshi.com/get-a-loan-to-invest-in-crypto-forget-that/ US cryptocurrency investors are walking on thin ice on cryptocurrencies these days. The prices of high-level cryptos dropped significantly in the middle of the year. Bitcoin, for example, has lost around 50% of its value in the past two months, while Ethereum has done worse, falling from $4,800 in November 2021 to $1,000 in June […]]]>

US cryptocurrency investors are walking on thin ice on cryptocurrencies these days. The prices of high-level cryptos dropped significantly in the middle of the year.

Bitcoin, for example, has lost around 50% of its value in the past two months, while Ethereum has done worse, falling from $4,800 in November 2021 to $1,000 in June 2022.

You would think that falling crypto prices would be enough to prevent investors from taking excessive risks with cryptocurrencies. But if you thought so, think again, because a fifth of crypto investors have used a loan to buy more bitcoin, Ethereum, and other investable tokens.

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Amigo: this fintech is ready https://welcome-echizenshi.com/amigo-this-fintech-is-ready/ Sun, 26 Jun 2022 19:43:46 +0000 https://welcome-echizenshi.com/amigo-this-fintech-is-ready/ Founded in 2005, Amigo Holdings PLC (LSE: AMGO, Financial) is a fintech specializing in guarantor loans. These are the types of loans given to someone with bad credit who can call on a trusted friend or family member to back it up. Amigo has secured 80% of the UK collateral loan market. The company went […]]]>

Founded in 2005, Amigo Holdings PLC (LSE: AMGO, Financial) is a fintech specializing in guarantor loans. These are the types of loans given to someone with bad credit who can call on a trusted friend or family member to back it up.

Amigo has secured 80% of the UK collateral loan market. The company went public in 2018 on the London Stock Exchange at a valuation of 1.3 billion pounds ($1.6 billion). However, in November 2020 the business model was halted by regulators over a number of concerns and the company faced bankruptcy.

As a result, the share price has fallen more than 98% since 2019. However, a high court approved its new business model in May, so it should be able to continue operations very soon (subject to the regulatory approval). The stock jumped 15% in the past 48 hours on the news.

Let’s dive into the story so far, looking at financials and valuation to see if this damn stock is about to rebound.

The bad – discontinued business model

Amigo is the UK’s largest guarantor loan company. The idea is to offer loans of up to 10,000 pounds ($12,300) to people who are excluded from the financial system and cannot borrow due to a bad credit history. They can do this by asking a friend or family member to guarantee the loan. Their loans are classified as “mid-cost” loans with an annual percentage rate of 49.9% and no additional fees. That’s significantly higher than traditional banks, but cheaper than payday loans. However, in July 2020, Amigo received a series of complaints about the lack of accessibility controls and had to pay around £35m to fix them. Its activity was interrupted in November 2020 and the company was on the verge of bankruptcy.

The voucher – approval

In May, a high court approved the company’s new business model. As such, Amigo should be able to continue operations very soon if the Financial Conduct Authority also approves it.

Under the new scheme, Amigo’s total net new loans cannot exceed £35m and it must have at least £112m in the scheme. The idea is to make the new loans more user-friendly with interest-free annual payment holidays offered and methods for customers to lower monthly payments.

1540623344552976384.png

Source: Amigo presentation.

The villain – shareholder dilution

If the FCA approves the program, then the company will have to raise more money from investors. Amgo will need £15m raised from investors and £97m from its strong internal cash balance of £110m in unrestricted cash. By raising capital, the company will issue 19 new shares for every existing share, which will result in great dilution for existing shareholders. As a fallback, the company will end the business in bankruptcy.

Fragile finances

At the end of December 2021, the company announced a strong unrestricted cash position of over £110 million excluding debt. Amigo has a net loan book of £180.7m, down 56.2% year-on-year. The number of its customers in arrears (struggling to repay their loans) increased its impairment coverage ratio to 22.4% from 18% in the third quarter of 2021. It has a large provision for claims of 347.5 million pounds. Amigo’s pre-tax profit was £1.6 million, compared to a huge loss of £81.3 million in the third quarter. Positive profitability is a good sign because the company is ruthlessly cutting costs.

1540622436213530624.png

Evaluation

In terms of valuation, the stock has a market cap of just £25m, making it truly a small cap stock. However, the £110m of unrestricted net cash means it is in a strong cash position. If we exclude the £97m for the new regime, we are left with £13m, which means the company is currently trading at around twice its future cash position. But remember that this doesn’t take into account future dilution, which could skew the numbers even further.

The company is trading at a price-to-sales ratio of 0.21, which is well below historical levels of 6.

1540619065519841280.png

The GF value line indicates that the stock is slightly undervalued relative to historical multiples, past financial performance and future earnings projections.

1540620087340376064.png

Final Thoughts

Amigo is a battered and bloody fintech, which recently received a silver lining after the positive ruling. Its brand and in-house office team seem to have a fun, friendly “borrow from your Amigo” style, but the current situation is still shaky.

The company’s new regimen awaits regulatory approval, after which it should be ready to bounce back. The future shareholder dilution adds another element of danger to the investment and makes it difficult to value. So, I think the stock is likely to bounce back, but an investment today would definitely be a speculative bet and it would be one of those trades where I assume any investment has the ability to go zero. Thus, an assessment of the risk-reward ratio must be made.

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PleaseLoan eliminates endless loan lines with its online platform that makes the borrowing process easier https://welcome-echizenshi.com/pleaseloan-eliminates-endless-loan-lines-with-its-online-platform-that-makes-the-borrowing-process-easier/ Fri, 24 Jun 2022 20:57:30 +0000 https://welcome-echizenshi.com/pleaseloan-eliminates-endless-loan-lines-with-its-online-platform-that-makes-the-borrowing-process-easier/ The loan company provides loan services to government and private employees to help them with additional resources that can help their financial difficulties Award Loans are unsecured, fixed, low-interest loans specifically designed for federal employees. These loans are easily accessible even for employees who have bad credit because the loans are paid by deduction from […]]]>

The loan company provides loan services to government and private employees to help them with additional resources that can help their financial difficulties

Award Loans are unsecured, fixed, low-interest loans specifically designed for federal employees. These loans are easily accessible even for employees who have bad credit because the loans are paid by deduction from the employee’s monthly salary. Award loans are essential to the well-being of federal employees to float them through uncertain financial tides, as well as to act as a lifeline in an emergency. It is important that the task of accessing such a loan is handled by a reputable lending company and PleaseLoan is the ideal company for this service.

PleaseLoan is an online platform designed to connect consumers with handpicked lenders across the country, based on an exclusive team of professionals who are focused on the customer’s needs and are positioned to improve their financial situation in the best way. possible. The process for allotment loans with PleaseLoan is seamless as the customer simply has to submit their application, wait for a response, and electronically sign the loan agreement, all within a single business day.

Additionally, PleaseLoan is a safe and confidential platform as the customer’s credit is not checked and the customer does not need to disclose their intentions for the loan. Borrowers have access to more of the company’s loan services, including providing installment loans for people with bad credit, emergency loans and payday loans. Loans for federal employees through PleaseLoan are up to $5,000, which is approved regardless of credit score and deposited directly into the customer’s account.

For more information, please visit https://www.Pleaseloans.com/

About loans please

Please Loans is owned by financial expert and finance enthusiast, Alex Ostapovich.

Media Contact
Company Name: Please lend
Contact person: Alex Ostapovich
E-mail: Send an email
Call: (866) 336-3850
Country: United States
Website: https://www.Pleaseloans.com/

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Amy wanted to get rid of 34HH boobs until she found OnlyFans and made £40,000 in a month https://welcome-echizenshi.com/amy-wanted-to-get-rid-of-34hh-boobs-until-she-found-onlyfans-and-made-40000-in-a-month/ Sun, 19 Jun 2022 13:23:27 +0000 https://welcome-echizenshi.com/amy-wanted-to-get-rid-of-34hh-boobs-until-she-found-onlyfans-and-made-40000-in-a-month/ A woman who wanted a cut to stop people staring at her 34HH boobs is now earning £40,000 a month on OnlyFans and has paid off her family’s total debt of £130,000. Amy Sophia, 27, from Leeds, was so insecure about her ‘huge boobs’ that she used to try to hide her figure in baggy […]]]>

A woman who wanted a cut to stop people staring at her 34HH boobs is now earning £40,000 a month on OnlyFans and has paid off her family’s total debt of £130,000. Amy Sophia, 27, from Leeds, was so insecure about her ‘huge boobs’ that she used to try to hide her figure in baggy jumpers or tight clothes that would ‘crush’ her chest.

When she went clubbing with friends, she says strangers made comments and looks that depressed her. “Usually when I went to clubs or out in public it was the women who would tell me to ‘put it away’ because their boyfriends were staring at me,” Amy said.

“I usually ignore it, but I once got kicked out of a nightclub for flashing this girl who told me to cover up. I was just sick of it. I have such bad posture from the way I was always leaning forward to hide my boobs because when I kept my back straight it made them even more prominent and I hated that attention.

“Now the looks and comments don’t bother me anymore. I know they’re just jealous or they have body issues, they’re obviously not happy in their own skin.

Amy was working five days a week as a spa therapist earning £8.50 an hour when she decided to set up an OnlyFans page in October 2019. She says the site gave her confidence and helped her embrace her curvy figure.

When she joined she was saddled with debts of £30,000 from payday loans. Amy said: “I’ve always wanted a champagne lifestyle on a Coca Cola budget. I went on vacation abroad and always bought new clothes.

“Because of the high interest rates on payday loans, I was stuck in a vicious circle. Then there was a buzz around this new site, OnlyFans, and something just told me to do it. for money.

“I knew my boobs were getting attention, so I decided to use them to my advantage instead of hiding. In my first month I made £7000 which was insane.

“Every month it was increasing – my best month of income was £150,000, but I average around £40,000 now.”

As well as paying off her own debt of £30,000, Amy was also able to help her parents pay off a combined debt of nearly £100,000. She said: “Helping my family out of debt was the first thing I did with the money.

“It took me about four or five months before I started winning big before I could do it. Mom was so grateful. She’s fully supportive of what I’m doing and always has been from the start.

“The people who are important to me in my family have supported me and that’s all that matters. I’m so lucky to have such an understanding family behind me. I love them so much.”

As a teenager, the model’s figure “changed overnight” as she struggled to embrace her curvy new figure. She said: “I woke up one day when I was about 15 and it’s almost like my boobs just grew overnight, they were huge.



Amy Sophia (Press Jam)

“I slowly started to dislike them as they got bigger and bigger. I felt like I had a hard time hiding them and people looked at me a lot. I avoided certain exercises at the gym and I had trouble buying clothes because they didn’t suit me or I was worried that everything would look too slutty.

At 23, she went to see a doctor about breast reduction, but the details of the operation were so daunting that Amy took longer to think about it. She said: “I was sick of the attention, of the men watching.

“I couldn’t enjoy shopping and buying nice clothes. I also felt like my big chest made me look fat because it hid my shape in the clothes.

“I learned how serious a reduction is, so I took my time to think about it. But during that time of reflection, I discovered Only Fans.

“That’s when I started kissing them. The positive attention has really changed my mindset.



Amy Sophia (Press Jam)
Amy Sophia (Press Jam)

“I realized that a lot of guys there love my boobs and now they are my sources of money.”

Amy likes to spend her earnings on clothes, fine dining and luxury travel – and has been to Mexico, the Maldives, Rome, Thailand, Las Vegas and all over Europe. She also had a Brazilian butt lift to further enhance her figure.

The model added, “I’ve always wanted beautiful things and to do the beautiful things in life. Now I can live the life I always dreamed of and wanted so badly.

“I do what I do for the money, which gives me freedom and freedom is everything to me.”

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What are the other names of Juneteenth? The United States betrays the spirit of the “Jubilee” https://welcome-echizenshi.com/what-are-the-other-names-of-juneteenth-the-united-states-betrays-the-spirit-of-the-jubilee/ Fri, 17 Jun 2022 17:50:23 +0000 https://welcome-echizenshi.com/what-are-the-other-names-of-juneteenth-the-united-states-betrays-the-spirit-of-the-jubilee/ This story was supported by the Economic Hardship Report Draft non-profit journalism. Dating back millennia, the Jubilee was a momentous celebration, a year when the land was to be returned, debts canceled and enslaved people were to be set free. Announced by the strong breath of a ram’s horn, biblical notethe year of the Jubilee […]]]>

This story was supported by the Economic Hardship Report Draft non-profit journalism.

Dating back millennia, the Jubilee was a momentous celebration, a year when the land was to be returned, debts canceled and enslaved people were to be set free. Announced by the strong breath of a ram’s horn, biblical notethe year of the Jubilee was anchored in the idea of ​​freedom, orchestrating an economic, cultural and moral dynamic. company reorganization. It is therefore normal that Juneteenth is often called Jubilee Day.

In January 1863, the Emancipation Proclamation abolished property slavery, to declare “all persons held in slavery” must be “free forever”. But it wasn’t until two years later, on June 19, 1865, that news of the liberation finally reached the slaves of Galveston, Texas. Juneteenth, sometimes called Black Independence Day or Freedom Day, honors this real end of slavery.

In a way, the Emancipation Proclamation functioned as the first and only Black American Jubilee—in fact, “Jubilee” is what once enslaved people. called the phase that followed the Civil War. Abolition put an end to an entire exploited labor economy that builds the modern capitalist world. But the Emancipation Proclamation went further than requiring the Confederate States to simply recognize the abolition of slavery – it educated the United States government to “maintain” the freedom of formerly enslaved people and to do “no act or deed to suppress such people” or any “effort they might make for their actual freedom”. Today, contrary to the instructions of President Abraham Lincoln, the government still sanctions and facilitates the oppression of black people.

Sharecropping, convict tenancy, medical racism, mass incarceration, policing and other racist institutions have trapped black Americans in cycles of debt bondage, indentured servitude and suffering. Forced to debt-finance public goods and their own incarceration, black people bear the brunt of students, medical, and criminal legal debt. For-profit colleges, hospitals, police departments and the prison industrial complex are all (literally) betting on their schemes to put black communities in debt. Just ten years ago, in the wake of the 2008 financial crisis, racist housing practices and job losses erased more than half black wealth.

As a result, the current gap between blacks and whites in home ownership is wider than over 50 years ago. From the Three-Fifths Compromise to jail and racial gerrymandering, politicians have repeatedly dismantled black political power, returning the right to vote weaker for black Americans than they were in 1965, when the Voting Rights Act was first passed. The scourge of gun violence and the school-to-jail pipeline have stolen the future of black children. black girls are vanish at an unreasonable rate and black trans women have a life expectancy around the age required to be president: 35 years. If you are black, your chances of being incarcerated increase almost quintupled. If you’re a black woman in New York, your likelihood of dying in childbirth increases eightfold. Unfortunately, black Americans represent 13% of the American population and 40% of the inhabitants of death corridor.

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Close to retirement? Here’s how to get rid of your debt before you leave work. https://welcome-echizenshi.com/close-to-retirement-heres-how-to-get-rid-of-your-debt-before-you-leave-work/ Tue, 14 Jun 2022 12:00:55 +0000 https://welcome-echizenshi.com/close-to-retirement-heres-how-to-get-rid-of-your-debt-before-you-leave-work/ Almost everyone gets into debt from time to time, and it’s not always a big deal. But as you approach retirement, you want to get as much out of debt as possible. With fewer payments to worry about, you can further expand your existing savings. But getting rid of debt, especially high-interest debt, is easier […]]]>
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Personal loan ads on social networks https://welcome-echizenshi.com/personal-loan-ads-on-social-networks/ Sun, 12 Jun 2022 00:07:08 +0000 https://welcome-echizenshi.com/personal-loan-ads-on-social-networks/ The past few years have been difficult for many Americans. Unfortunately, trying to stretch every dollar to buy basic necessities has become the norm. Some might consider a second or third job to pay the bills. This is precisely the type of person that payday loans target. Promising quick cash without telling the full story […]]]>

The past few years have been difficult for many Americans. Unfortunately, trying to stretch every dollar to buy basic necessities has become the norm. Some might consider a second or third job to pay the bills.

This is precisely the type of person that payday loans target. Promising quick cash without telling the full story of loan costs, these ads have been popping up on social media platforms like TikTok.

Read on to find out how these companies are bending the rules and why taking a payday loan is bad.

Here is the backstory

All social media platforms have advertising as it is the main way to generate profit. But some sites are not as strict about ad content as others. For example, TikTok claims to have a policy against “exaggerated performance or promises”.

Yet, there are many payday loan messages that target vulnerable users. According to Media Matters for Americathree companies systematically violate TikTok’s advertising policies by promoting payday loans.

Promising instant cash, posts by Earnin, Brigit and Albert target those in need of quick cash with phrasing such as “living paycheck to paycheck” or always being “broke”. It is unclear how advertising is allowed to be on the platform.

TikTok Payday Loans
Credit: Media Matters for America

But Earnin is no stranger to controversy. The company settled a $12.5 million lawsuit three years ago for deceptive lending practices. Brigit and Albert are also not registered with the Better Business Bureau (BBB), as some users claimed there were unexpected charges or missing deposits.

What can you do about it

It may seem like a lucrative opportunity to get some quick cash in your wallet, but there will always be a catch. The interest rate will be exorbitant, and they don’t call it often. Some advertisements will use words such as “fee” or “tip” without mentioning the interest rate.

According to the Consumer Financial Protection Bureau, a two-week payday loan with a $15 fee to borrow $100 gives you an annual percentage rate of 400%. That’s way more than the typical 30% for a high-interest credit card.

It may leave you in a cycle of debt, but according to the BBBthere are safer alternatives to payday loans:

  • Build a budget with an emergency fund. Create a budget so you know how much money you receive and how much you need to pay your bills. This will help avoid needing a loan in the first place. Then set aside money each month to build an emergency fund. You will be covered even if an unexpected expense or emergency occurs.
  • Get credit advice. Get credit counseling if you find yourself unable to pay your bills or caught in a cycle of debt due to a high-interest loan. The US Department of Justice has a list of agencies for people looking for debt reduction help. Also see BBB’s advice on credit counseling for more resources.
  • Shop for loans. Compare interest rates, fees and late fees by reading the fine print before choosing a lender. Pay close attention to interest rates and loan rollover fees. Credit unions are a great place to get a small loan with reasonable interest rates. Even credit card cash advances, which typically have double-digit interest rates, likely have lower interest rates than those offered by a payday lender.
  • Contact your creditors if you cannot pay on time. If you realize you won’t be able to make a payment on time, don’t panic. Contact the creditor directly. Many creditors are willing to work with you to design a payment plan you can afford.

keep reading

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UK’s credit spread will widen in this cost of living crisis https://welcome-echizenshi.com/uks-credit-spread-will-widen-in-this-cost-of-living-crisis/ Fri, 10 Jun 2022 03:00:11 +0000 https://welcome-echizenshi.com/uks-credit-spread-will-widen-in-this-cost-of-living-crisis/ This article is the last part of the FT’s Financial Education and Inclusion Campaign Just a year ago, the financial regulator seemed confident that tighter regulation of high-cost loans has failed to drive those in need toward loan sharks and illegal lenders. The proof was that people either went without or turned to friends and […]]]>

This article is the last part of the FT’s Financial Education and Inclusion Campaign

Just a year ago, the financial regulator seemed confident that tighter regulation of high-cost loans has failed to drive those in need toward loan sharks and illegal lenders. The proof was that people either went without or turned to friends and family for help.

You wonder if the Financial Conduct Authority is just as sure now. Leave aside the fact that seemingly benign borrowings from friends and family, who indeed have skipped since 2017, may turn out to be anything but. Against the backdrop of the greatest pressure on living standards in generations, the gap left by the multitude of exits from the subprime loan market last year should be felt.

But the pressure, which saw home-based lender Provident Financial exit the market and others like Amigo stop lending, was followed by no proper assessment of what was to come. Indeed, analysis of what happened to people who once relied on the sector is patchy at best.

What we do know is that the number of loans issued in the short-term credit and high-cost mortgage sectors fell by more than 3.2 million in 2021 compared to 2019 (after the disappearance of the lender Wonga payday), or around £1 billion. And that the number of people who find themselves excluded from mainstream provision, already estimated at 11 million, is almost certainly up, not down.

The biggest banks, which already refuse to serve the poorest in society, will pull the credit drawbridge further in a downturn. Meanwhile, rising energy and food bills, as well as other expenses, could easily add £120-150 per calendar month to expenses on an affordability check, an expert notes. Around a fifth of UK adults have less than £100 in savings.

It seems likely that the explosive growth of the unregulated buy-now-pay-later BNPL market has filled some of the void, potentially substituting a low-cost or no-cost source of credit for what used to be very expensive. A community finance organisation, a sector which tends to serve a similar demographic to high-cost moneylenders (and indeed loan sharks) in terms of high proportions of benefit recipients and incomes under £20,000, said that BNPL had become by far the main form of credit with their customers since 2020.

This echoes concerns about ‘stacked’ BNPL loans, the use of these facilities to meet basic needs such as energy costs, and some suggestions that those dependent on the sector use more expensive loans, such as credit cards to track payments. As default rates likely worsen and providers act ahead of tougher regulation, this source of credit could also become harder to access.

Meanwhile, illegal money lending seems to be on the rise. The links between the refusal of regulated credit and the illegal provision are not well followed. But research this year by the Center for Social Justice estimated that more than a million people could borrow from a loan shark, up 700,000 from the last major survey in 2010. Well more than half of the respondents said they initially considered the loan shark a friend.

What hasn’t happened is a really concerted effort by the government to grow the community lending industry, which is limited in capacity and remains tiny with loans of around £34m a year.

There is not yet much evidence of the emergence of a “compliant, responsible high-cost trade credit sector,” in the words of the regulator, which it says should be able to meet some of the growing demand. Amigo, which recently won court approval for its past customer complaint resolution program, is seeking approval to restart lending with a new product that includes the option to reduce the rate paid over time. Other companies are also considering new models.

The question is what contribution they might make in the near future. The gap in the UK credit market will become harder to ignore this winter.

helen.thomas@ft.com
@helentbiz

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The World Bank predicts that global growth will fall to 2.9% in 2022 https://welcome-echizenshi.com/the-world-bank-predicts-that-global-growth-will-fall-to-2-9-in-2022/ Wed, 08 Jun 2022 13:32:07 +0000 https://welcome-echizenshi.com/the-world-bank-predicts-that-global-growth-will-fall-to-2-9-in-2022/ Outlook: Today is as slow a day of data as possible – weekly MBA mortgage applications, final April wholesaler inventories and Department of Energy oil inventories. Watch for fabricated outrages. The Atlanta Fed’s GDPNow was a disappointing 0.9% for the second quarter, down from 1.3% on June 1, again due to deteriorating consumer spending and […]]]>

Outlook: Today is as slow a day of data as possible – weekly MBA mortgage applications, final April wholesaler inventories and Department of Energy oil inventories. Watch for fabricated outrages.

The Atlanta Fed’s GDPNow was a disappointing 0.9% for the second quarter, down from 1.3% on June 1, again due to deteriorating consumer spending and private investment. This points to a recession, while the financial press has turned its back on stagflation, according to a WSJ headline. That’s probably because TreasSec Yellen has admitted (again) that it missed the rise in inflation and yes, that may linger longer than we think. The United States will increase its forecast from 4.7% to something higher now that we have seen the whites of the eye of 8%.

Meanwhile, as noted above, the World Bank is still focused on the recession. The World Bank forecasts global growth to slump to 2.9% in 2022, from 5.7% in 2021, significantly lower than 4.1% in January. The United States will slow to 2.5% in 2022, down 1.2% from previous forecasts. “New U.S. inflation data, to be released on Friday, is expected to show the annual rate holding steady at 8.3% in May, near a 40-year high.”

The other data of note yesterday was consumer credit, touted by some at catastrophic levels. A report indicates that it has increased by 20%, which shows that consumers are using cards to support current consumption. But this is not the case. The revolving credit balance is just $1.04 trillion in April, up 2.6% from April 2019. You should cut out non-revolving credits and beware of single-month annualization . Year after year it’s much better and year after year it’s even better.

When you see much larger numbers, consider the exact nature of the liability named. Revolving credit (excluding mortgages) includes credit cards and personal loans, and as Wolf Street points out, “Since 2019, consumer spending has grown 19% and revolving credit has grown only 2.9%. %, both unadjusted for inflation of 13% over the period. In other words, revolving credit growth has been significantly below inflation and massively below consumer spending growth. This shows that consumers rely less on revolving credit.

“Credit cards and some types of personal loans, such as payday loans, are the most expensive form of credit, and they often come with usurious interest rates. Credit card rates can exceed 30%. And the Americans have understood this. If they need to finance purchases, many consumers resort to cheaper loans, including cash refinancing of their mortgages. And many, many consumers use their credit cards as means of payment, and they pay them off every month. This is what these relatively low balances show.

Wolf also complains about the series’ seasonal adjustments and while he’s right, that’s not the main event that the American consumer may be greedy, but he’s not stupid, and we we don’t see a drunken sailor bingeing as some versions of the data seem to show. Here we have the case of two semi-maverick analysts, both deeply skeptical of the government and all its data and minions, but with great mapping ability and this time, differing views. Overall Wolf is less politically biased and we say that helps.

Next up is the ECB policy meeting and possibly a crisis in the UK, where Boris wants to tinker with the Northern Ireland Protocol and kick out the European Court. He could get away with it and it’s not a death knell for his political career as some hope, but it’s probably very, very bad for the British economy, depending on the retaliation from the Europeans. On the face of it, the Euro’s resilience against a USD semi-recovery yesterday will strengthen against the Pound today and in the future. We see the fate of sterling.

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The technological crash is here. Rejoice! https://welcome-echizenshi.com/the-technological-crash-is-here-rejoice/ Mon, 06 Jun 2022 10:00:00 +0000 https://welcome-echizenshi.com/the-technological-crash-is-here-rejoice/ Which affects both good and bad. Fundamentally sound companies, those with real revenue and prospects, like Microsoft, are also seeing their value plummet, and Musk’s own companies are no exception to the depreciation. Tesla’s price crash has jeopardized its ambition to acquire Twitter, and last weekend it was forced to scrap plans to cut 10% […]]]>

Which affects both good and bad. Fundamentally sound companies, those with real revenue and prospects, like Microsoft, are also seeing their value plummet, and Musk’s own companies are no exception to the depreciation. Tesla’s price crash has jeopardized its ambition to acquire Twitter, and last weekend it was forced to scrap plans to cut 10% of the electric carmaker’s staff. Furthermore, the future earnings of a cheeky big bet such as its Starlink business – obscuring the world in satellite internet connectivity – also look much worse on a DCF analysis, now that interest rates have risen.

During these two decades, the word “tech” itself has become devalued: it hasn’t referred to technology or a technology company for some time. As recently as the 1990s, it was easy to identify what a tech startup was. This would be a new company seen as well positioned to take advantage of an innovation with great future market potential. For example, when Nvidia went public, it was one of three companies to go public in a 30-plus funding round, with investors betting that the winner could bring CGI to the masses, in PCs and game consoles.

This required technical knowledge and marketing skills. A bet like Nvidia was risky, as it should be, as incumbents usually won. But now ‘technology’ has become so degraded that another phrase has been coined – ‘deep tech’ – to refer to anything really related to engineering or computing. In WeCrashed’s most exquisite sequence, Apple TV’s frantic dramatization of WeWork’s history, founder Adam Neumann outrageously rebrands his office sublease business as a “tech company” only to woo Softbank’s Masayoshi Son. , which is looking for a “disruptive” platform. That works.

Another of Son’s big bets, Klarna, now looks like the biggest potential victim of the crash. For critics, it’s little more than a payday loan operation, one tapping into a market of borrowers that the credit market has rejected, for the very good reason that they’re doing more bad debtors: the impulsive Gen Z. Klarna rushes to an IPO as its valuation plummets.

Klarna, which announced layoffs last month, was valued at $45.6 billion a year ago, but recent reports indicate that new financing plans would reduce the valuation to around $30 billion. All in all, other fast fashion “tech” ersatz companies are collapsing. I expect food delivery businesses to explode next, with consequences for commercial TV advertising revenue and the electric scooter market.

One of Silicon Valley’s oldest venture capital firms, Sequoia Capital, has now released a grim 52-page prospectus for its startups with a name reminiscent of those Cold War nuclear fallout advice pamphlets, like Protect and Survive. In Adapting to Endure, the firm warns: “We don’t think this is going to be another steep correction followed by an equally rapid V-shaped recovery as we saw at the start of the pandemic.”

That might sound a bit rich from the company that once backed Google’s spooky spy wearables, Glass, and recently auctioned an NFT. But we’re all better off when the fool money stops flowing, and to be honest, better off without the fools paying fools money, like Sequoia.


Andrew Orlowski is on Twitter @andreworlowski

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