Online Banks » Economy and Politics http://www.onlinebanksblog.com Latest Online Banks News, Savings Accounts Rates, Certificate of Deposit Rates Fri, 10 Feb 2012 11:00:25 +0000 en hourly 1 http://wordpress.org/?v=3.0.1 How an AAA Rating Affects the Online Banking Services http://www.onlinebanksblog.com/how-an-aaa-rating-affects-the-online-banking-services/ http://www.onlinebanksblog.com/how-an-aaa-rating-affects-the-online-banking-services/#comments Thu, 19 Jan 2012 11:00:17 +0000 Douglas http://www.onlinebanksblog.com/?p=1973 How an AAA rating affects the Online Banking services has many different facets to it. Just like what all consumers know when applying for credit, their personal credit rating will determine just how low of an interest rate they will be offered by the bank. The online banks and their brick and mortar partners are also judged on this same type of system.

Unlike the individual consumer, most banks borrow money on a daily basis, depending on their needs. They are given an overnight rate by the central bank of their nation. This can be for investing money or paying off debts. The higher risk these establishments are rated at, the more interest they are charged. This then gets passed down to their customers as higher bank rates.

The term AAA actual is defined as extremely strong capacity to meet financial commitments. This is the highest possible rating any bank or nation can obtain.

The best rating is the AA. It is defined as very strong capacity to meet financial commitments. This can be translated as they should be able to pay their bills, but there is also some doubt.

The next rating is A. This is defined as they have a strong capacity to meet financial commitments, but this ability to pay their debts could be effected in adverse economic conditions and changes in circumstances. This really means they are prone to failing if conditions are not perfect for them.

If a country gets downgraded, it could affect their economy. When a bank gets downgraded it means they just charge their customers higher bank rates.

What really needs to be understood is that this credit rating system produces just a guess by a third party. The Lehman’s Brothers Bank had an AAA rating just before their collapse that started the financial crisis. So how really accurate are the guesses?

For additional resources involving financial help, please view European Nations downgrade and its effect on US Online Banking on this website.

We strive to bring you the latest and most accurate data possible from the home sites of the financial institutions we name.  Always remember, the bigger the risk, the larger the reward or loss. Invest with caution.

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]]> http://www.onlinebanksblog.com/how-an-aaa-rating-affects-the-online-banking-services/feed/ 0 European Banks Downgrade and its effect on US Online Banking http://www.onlinebanksblog.com/european-banks-downgrade-and-its-effect-on-us-online-banking/ http://www.onlinebanksblog.com/european-banks-downgrade-and-its-effect-on-us-online-banking/#comments Wed, 18 Jan 2012 11:00:21 +0000 Douglas http://www.onlinebanksblog.com/?p=1971 European banks downgrade and its effect on US Online Banking will be seen in the near future. Just as the US banking system has seen many failures in the past several years, so is the banking sector of Europe. If you are investing your money with any of the European online banks the FDIC will not be covering your deposits.

Many now believe the financial crisis in Europe has crested and the money crunch at the European banks will begin to get easier. Unfortunately not all the numbers pertaining to the economy say the same thing. This rhetoric is the same thing the Americans have been hearing from the Obama administration for years. It is like having cheerleaders making statements on how they would wish things to be with a very optimistic outlook rather than the reality of the situation.

What has become apparent is that an American can make an investment in European bonds, both from financial institutions and nations and receive a decent interest rate. The rates are much higher than they can receive with any US Government bond or even the CDs being offered by the US Banks. Unfortunately with these higher rates comes an increase in risk that the nations or the banks will default on their debt and the money will be lost.

The Euro is near an all time low against the dollar so now is the time for an American to make this risky investment for the best possible return on their investment. With money becoming tight in Europe, the outcome will take time to sort itself out. But with no risk comes there is no gain.

For additional resources involving financial help, please view European Nations downgrade and its effect on US Online Banking on this website.

We strive to bring you the latest and most accurate data possible from the home sites of the financial institutions we name.  Always remember, the bigger the risk, the larger the reward or loss. Invest with caution.

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]]> http://www.onlinebanksblog.com/european-banks-downgrade-and-its-effect-on-us-online-banking/feed/ 0 European Nations downgrade and its effect on US Online Banking http://www.onlinebanksblog.com/european-nations-downgrade-and-its-effect-on-us-online-banking/ http://www.onlinebanksblog.com/european-nations-downgrade-and-its-effect-on-us-online-banking/#comments Tue, 17 Jan 2012 11:00:58 +0000 Douglas http://www.onlinebanksblog.com/?p=1969 European Nations downgrade and its effect on US Online Banking is something all Americans need to know about. The reason for concern is the effects the new downgrades will have on the US economy and our currency. Before the countries being downgraded were the ones who were in financial trouble with their budgets, Greece.

The effect of the downgrade is not so heavily when you are investing your money in America, but the purchasing power of the USD. With France and Austria both being downgraded to the same AAA standings as America and Japan, the strength of the Euro is left with only one country with a AAA+ rating. This is Germany.

The bank rates from the online banks and the bonds now being offered from Europe are starting to have an effect on the strength of the Euro. This can be translated to it being more expensive to sell US goods overseas. While it will be better for the American consumer in the short run when purchasing European goods, the loss of jobs in America will then hurt consumer spending as a whole.

On the bright side S&P warned back in December that 15 countries were on the watch list for being downgraded. By only 9 of them actually having a reduction in their ratings become a reality, there is hope that parts of Europe is becoming stable.

S&P has also warned that 17 of the counties in the Euro Zone could see future downgrades in the next two years if they do not improve on how they manage their money. This type of warning has to be taken with a grain of salt. Since the credit agencies did not see the collapse of the financial sector just a few years ago, they are still overreacting on speculation instead of facts.

Most are now thinking the credit agencies need to have their policies reviewed and updated with more regulation on them so they do not interfere with the financial system so mistakes they have made in the past will not affect a healthy economy of a country.

For additional resources involving financial help, please view Online Banking on a Holiday on this website.

We strive to bring you the latest and most accurate data possible from the home sites of the financial institutions we name.  Always remember, the bigger the risk, the larger the reward or loss. Invest with caution.

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]]> http://www.onlinebanksblog.com/european-nations-downgrade-and-its-effect-on-us-online-banking/feed/ 0 Will the Price of Gold Affect Online Banking for December 2011 http://www.onlinebanksblog.com/will-the-price-of-gold-affect-online-banking-for-december-2011/ http://www.onlinebanksblog.com/will-the-price-of-gold-affect-online-banking-for-december-2011/#comments Tue, 20 Dec 2011 14:49:52 +0000 Douglas http://www.onlinebanksblog.com/?p=1906 Will the price of Gold affect Online Banking for December, 2011?  The predictions from the experts is no. You will have to wait until the New Year for the price of gold to begin its downward drop. This is what Reuters News Agency is reporting.

This prediction is from a survey done that included 20 economists, hedge fund managers and traders. The problem with these professionals is they have no stake in the investing of your money other than making money from when you make money, but if you lose money they still get paid.

The prediction by over half of those involved with this survey think that the spot price of gold will drop below $1,500 an ounce within the first three months of the year with three of them actually going as far as saying it will go below $1,400.

As of December 20, 2011, the spot price of gold was at $1593.70 when the bell rang in New York. The price of gold has not been below the $1,500 mark since June of last year. Since then the price has risen to over $1,900and now down to just below$1,600, so the predictions are possible, but unlikely.

Those that work on Wall Street want to see the price of gold to drop so because it is a sign that investors are returning to stocks with their investment money. Believing in someone that has a vested interest in their prediction coming true is not a wise investment philosophy. Wait for the price of gold to drop before returning to the rollercoaster they call stocks for your investment dollars.

The bank rates with the online banks will also begin to rise just before the stock market is safe for your money. Be wise and do not always listen to the experts that need to earn a living with your money.

For additional resources involving financial help, please view Mutual Funds with Online Banking for December 2011 on this website.

We strive to bring you the latest and most accurate data possible from the home sites of the financial institutions we name.  Always remember, the bigger the risk, the larger the reward or loss. Invest with caution.

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]]> http://www.onlinebanksblog.com/will-the-price-of-gold-affect-online-banking-for-december-2011/feed/ 1 Do Credit Rating Downgrades affect Online Banking http://www.onlinebanksblog.com/do-credit-rating-downgrades-affect-online-banking/ http://www.onlinebanksblog.com/do-credit-rating-downgrades-affect-online-banking/#comments Wed, 30 Nov 2011 11:00:24 +0000 Douglas http://www.onlinebanksblog.com/?p=1877 Do credit rating downgrades affect Online Banking, we are about to find out this week. With over 39 banks around the world being downgraded by S&P along with the possibility of France losing its AAA rating within 10 days has the markets and the world’s consumers on notice that the financial crisis is not over yet.

These downgrades include the big five from America including Bank of America, Citigroup, Goldman Sachs, Morgan Stanley and Wells Fargo. The reason for these downgrades has been explained by accurately evaluating the ways these institutions were investing in the mortgage backed securities in the past and now more accurately reflect the real risks associated with these banks. Nearly all of the bank’s shares on the stock market have dropped by 1% or more after the announcement.

To make matters worse, the government of France might also be downgraded by the same S&P rating agency. These new downgrades are the simple response to criticism towards the credit rating agency industry on how they failed to predict the financial housing bubble crisis. Some might think they are now swinging to being too cautious, but only time will tell.

What is known is that France is the second largest backer of the European Financial Stability Facility which is already being stretched to its limits. If France gets downgraded so will this fund that is designed to stop any future financial crisis in Europe. There is no way this can be any good for your money or the economy of the world as a whole.

The news from the US Federal Reserve on this issue and the economy in general is they plan to be more open on how they make their decisions, or open up better communications. At least it is something since lowering interest rates cannot be done since they are already near zero. Because of this, do not expect the online banks to change their bank rates any time soon.

For additional resources involving financial help, please view Is a Yearend Market Rally Realistic on this website.

We strive to bring you the latest and most accurate data possible from the home sites of the financial institutions we name.  Always remember, the bigger the risk, the larger the reward or loss. Invest with caution.

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]]> http://www.onlinebanksblog.com/do-credit-rating-downgrades-affect-online-banking/feed/ 1 Black Friday’s and the use of Online Banking http://www.onlinebanksblog.com/black-friday%e2%80%99s-and-the-use-of-online-banking/ http://www.onlinebanksblog.com/black-friday%e2%80%99s-and-the-use-of-online-banking/#comments Mon, 28 Nov 2011 11:00:39 +0000 Douglas http://www.onlinebanksblog.com/?p=1873 Black Friday’s and the use of Online Banking is a good sign with an increase in both the number of shoppers going to the stores and the amount each one spent as compared to a year ago.  There was an estimated $11.5 billion spent by the American consumer on Friday. This is up 6.6% from last year. The number of shoppers had also increased by 5.1% to 226 million.

This is the largest increase since 2007 when most of Americans still had jobs and money. Were these increases due to better investing of money or signs the economy, only time will tell. What is now fact is that Americans want to enjoy this Christmas with the giving of gifts.

Online sales also grew by 24.3% to make this the best post recession session so far. With the bank rates steady, near record lows, maybe it is the American consumer once again that will save the economy and not the government. This has also helped the online banks with all the business in handling the debt charges.

It is too early to know if this will trigger better things across the economy with more placing of business hiring, but there is a chance if this trend continues for the next month. This will give the retailers to plan for a better future which just might cause an increase in orders from the factories.

This might sound like a pipe dream, but it is a possibility. America will not stay in a recession forever and every little positive thing will make a contribution to our recovery. The resilience of the American public will shine thru and help us regain our economic footing.

For additional resources involving financial help, please view The US Debt’s Affect on Online Banking November 2011 on this website.

We strive to bring you the latest and most accurate data possible from the home sites of the financial institutions we name.  Always remember, the bigger the risk, the larger the reward or loss. Invest with caution.

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]]> http://www.onlinebanksblog.com/black-friday%e2%80%99s-and-the-use-of-online-banking/feed/ 1 The US Debt’s Affect on Online Banking November 2011 http://www.onlinebanksblog.com/the-us-debt%e2%80%99s-affect-on-online-banking-november-2011/ http://www.onlinebanksblog.com/the-us-debt%e2%80%99s-affect-on-online-banking-november-2011/#comments Fri, 25 Nov 2011 11:00:22 +0000 Douglas http://www.onlinebanksblog.com/?p=1869 The US debt’s affect on Online Banking November 2011 might still play a part of the rates you can earn when investing your money. It is still unclear since this week’s debacle by the Super Committee‘s failure to reach an agreement on budget cuts. This has triggered the automatic cuts to take affect starting next year.

S&P has already stated they will not further downgrade the US Government’s credit rating as they did back in August 2011, but other agencies have not yet committed to this course of action or inaction. What has been made clear is that if the automatic cuts do not take effect in January of 2013, S&P will again downgrade the US credit rating.

Financial experts from Merrill Lynch have made a statement into this scenario by suggesting the either Moody’s or Fitch credit reporting agencies will now downgrade the US credit ratings. This has not yet occurred, but it could. Moody’s has already given it a negative outlook for the near future and worries on the effect to the US economy with another downgrade are real.

In the past the US Government could spend to help bring the US economy out of a recession. They have failed to do so since the financial crises just a few years ago. Instead the government decided to shore up the financial sector of business and leave the remaining business sectors to fend for themselves. With these automatic spending cuts in place, they will no longer have that option and the economy across America could get even worse.

As for the bank rates from the online banks across America, they are already at all time lows. This is great for those looking to borrow, but terrible for those looking to save their funds. What is in store for America and its citizens is still uncertain. No one in Washington is doing their job to correct the situation. The effect of the US debt crisis will now be played out for history to record.

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]]> http://www.onlinebanksblog.com/the-us-debt%e2%80%99s-affect-on-online-banking-november-2011/feed/ 1 Will the OWM affect your Online Banking Service http://www.onlinebanksblog.com/will-the-owm-affect-your-online-banking-service/ http://www.onlinebanksblog.com/will-the-owm-affect-your-online-banking-service/#comments Thu, 24 Nov 2011 11:00:00 +0000 Douglas http://www.onlinebanksblog.com/?p=1867 Will the OWM affect your Online Banking Service, not if the American Bankers Association has anything to say about it. They have already formed and funded a political lobbying group to convince the US Government of the harm and dangers this movement is causing the US economy. Many Republicans have also voiced their objection to the movement and what they stand for.

This is direct evidence that the current establishments, both private and public are worried about where this movement might lead to. To make matters worse for the OWM, they have had to establish a relationship with the Nicaraguan group called the AFGJ because of their non-profit status. This is a solidarity activists movement that has been around since the 1970’s.

The money that has been donated before this association was made, is in part being held by the credit card companies for the reason they expect these charges are fraudulent. Now we reach October 2011 and the site WEPAY is accepting payments for those that wish to financially support the OWM. They have now received over $500,000 in donations. This money is from people investing in the future of this movement.

What has been noticed is that with each arrest and subsequences clearing of the parks where the protesters were located, the size and number of donation have increased from the many online banks people are using. This is not a movement that will go broke anytime soon nor will they just fade away.

We all want better bank rates and to be allowed to keep more of the money we earn, but it has always been the American way to allow those that can manipulate the system to get rich, be allowed to do so. Right or wrong, it has been going on for over 200 years. It is just now the government is helping the rich with tax payers money, which is wrong.

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]]> http://www.onlinebanksblog.com/will-the-owm-affect-your-online-banking-service/feed/ 0 The Effects of Failed Deficit Deal with Online Banking November 2011 http://www.onlinebanksblog.com/the-effects-of-failed-deficit-deal-with-online-banking-november-2011/ http://www.onlinebanksblog.com/the-effects-of-failed-deficit-deal-with-online-banking-november-2011/#comments Wed, 23 Nov 2011 11:00:17 +0000 Douglas http://www.onlinebanksblog.com/?p=1865 The effects of failed deficit deal with Online Banking November 2011 have now become a reality and the automatic cut mandates will now take place. This has occurred because the so called “Super Committee” has already conceded they will not be able to agree on a combination of spending cuts and tax hikes. This means $1.2 trillion in automatic spending cuts will take effect across the board on the American Governments spending.

How will this affect the Economy and your investing strategy with your money is already become clear if you are in the stock exchange. On just the announcement of this failure by the political committee that cannot do their job, the DOW has dropped 250 points.

Fortunately of THE cuts, the first $216 billion is interest on new loans the government will not have to pay because they will not be borrowing the money. The remainder will be $55 billion each year over the course of the next 9 years starting in 2013. These cuts will be in both defense and domestic spending that will have far reaching effects.

Right now the political parties are claiming this will not affect the elderly, but no one believes them. The claim that Medicare will only see a 2% cut is hard to believe. These cuts are also only going to be in payments to doctors and hospitals. Also exempt is unemployment insurance, Medicaid, food stamps and veteran benefits.

The bank rates from online banks are already at near record lows, and the financial institutions are not making many loans so the economy of America will stagnate. To prevent this there is already a bill moving thru congress to stop these automatic cuts. If it passes, then what good was this bill doing in there in the first place. It sounds like Washington is spending more time covering their rears than doing their jobs. Until politics are removed from the government, the American system will continue to faultier with the America people paying the price.

For additional resources involving financial help, please view The US housing market with Online Banking November 2011 on this website.

We strive to bring you the latest and most accurate data possible from the home sites of the financial institutions we name.  Always remember, the bigger the risk, the larger the reward or loss. Invest with caution.

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]]> http://www.onlinebanksblog.com/the-effects-of-failed-deficit-deal-with-online-banking-november-2011/feed/ 1 The Crisis in Europe and their Debt Problem http://www.onlinebanksblog.com/the-crisis-in-europe-and-their-debt-problem/ http://www.onlinebanksblog.com/the-crisis-in-europe-and-their-debt-problem/#comments Thu, 27 Oct 2011 11:00:43 +0000 Douglas http://www.onlinebanksblog.com/?p=1821 The crisis in Europe and their debt problem has many Americans wondering if they should be worried about what effect it might have on their Online Banking rates or how they can be investing their money for a maximum return.

Just so all Americans know, not only are the online banks worried but so is the US Congress. They already have a subcommittee in international monetary policy and trade to discuss the ramifications of bank failures in Europe and how it will affect our financial system and the economy.

The reason for concern was America has had 80 bank failures so far this year with 2 months still remaining before it ends. The month of October has seen 10 banks being taken over by the FDIC alone with more to follow before the year ends. While the bank rates and deposits have not changed for most of the consumers living in America, this trend of banks continuing to fail due to mismanagement by the financial industry is worrisome.

The problem in Europe is a little different than what caused the collapse in America. There the nations of the EuroZone are to heavily in debt to pay their bills. Because of this they have had financial problems that have caused them to institute austerity measures. This is simple terms means they are raising taxes and lowering the pay of the governmental workers.

Now the Euro leaders are talking about writing off much of the bad debt from member counties like Greece. If the example of what happened in America is to follow there then the banks will raise their bank rates and come up with strange new fees to maintain their enormous profits.

Will this crisis pour over onto the shores of America, probable some of it. America is exposed to $2.7 trillion in loans and commitments to Europe. Which means the American people could end up paying for the problems of Europe again.

For additional resources involving financial help, please view Double Dip Recession for the US on this website.

We strive to bring you the latest and most accurate data possible from the home sites of the financial institutions we name.  Always remember, the bigger the risk, the larger the reward or loss. Invest with caution.

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