Kivisild.net

Google is well known company, I believe even aliens are familiar with it. Google has given us great new improved possibilities, like search, mail, document management, advertisement and so on.  And I am using them as well as others.

But what is the price for all that ‘perfect’ services? Our privacy!

The search results are perfect to your taste . The advertisement is perfectly matching your interests? Isn’t that good? No!

We all know that Google is monitoring and saving our activities on the Web. It analyzes out habits, tastes, interests. Our personality is analyzed and used as information, what can be also used against us. For example Gmail. The advertisement depends on mail you write/ receive. This means Gmail is reading our mail. If there was information what you would not like to share?

Google Docs.  Sharing our documents. Remember some time ago when documents, what were not allowed to be viewed for users who were removed from the sharing list, were viewed by them? If those documents were important, like company plans for future? You could think that this is insane, who will share so important documents online? But it is true.

Google Maps, Google Earth. Now even simple citizens can easily find where military bases are, for example. It was quite interesting, viewing the Area- 51 from Google Earth, while it was told not to be existing…

Conclusion.

Google is doing a great job. But we must be aware also. Google knows what we are searching, what to we like, what we are posting, writing, sharing, viewing. You like Google reading your mail to create ads? No spot on the planet is not covered with Google satellite. And now Google is picturing the streets everywhere. You like to be accidentally pictured half- naked in your personal swimming pool? I think not.

I am not against Google at all. I just want to mark at my Google accaount ‘Do not save any information from this person’.

5 topics to make it clear

It is recommended not to use emotions at all, when dealing with money. Clear mind should be used. Unfortunately, quite high percent of investors and traders are still losing money. They invest more and more money, when the shares are growing and selling when shares are falling. This strategy is not quite correct.
I will try to explain some topics in how to invest a little bit more effectively and in bad times keep as much money ‘alive’.

1. Do not react on everyday news.

   It is useless to react on everyday news. There is not a better possibility just not to touch invested money into good company, and wait to see the it growing.

2. Do not ignore your investment strategy.

   Make a plan, and follow it. This fill definitely maximize your income and minimize loss. This is quite difficult, because of the simple human nature- fear, that you will loose everything. Emotions will make all your great plan for buying a yacht disappear at once. Take it easy.

3. Panic because of the stock market fluctuations.

   Use this possibility instead of being part of it. The price goes down- buy good companies shares for low price! Remember, when everybody is selling - buy, and sell when everybody is buying ( the selling is mainly for traders, investors could use the cheap price to enter the market).

4. Refusing to invest into shares when market is down.

   The most successful investors were buying shares when everybody else were selling them. This is not easy at all. But isn`t it crystal clear- you are buying shares for low price, meaning they will give you back later much more. Of course, only good companies do…

5. Keep adequate resource distribution.

   You should regularly check your resource distribution. Meaning all your money is correctly disturbed, depending on your strategy, whether in shares, cash or funds. When shares price is falling, for example, you could decrease shares percentage in you capital.

Bush plan to ‘help’ financial market has failed. The reaction was momental.

At the moment :

S&P 500: 1 117.85  Change: -7, 84%

NASDAQ: 1 983.73 Change: -9, 14%

Oil price has dropped around 10%. But the oil is not so big problem. The prices will be held up, because the oil production will be lowered. Anyway…

USA has lost their hope? It was planned to give Paulson an immediate $250 billion to buy bad loans. So the credit flow to U.S. would be restored. Unfortunately, now the banks are on their own, and writing off other billions- is not an option anymore. If Bush hoped the tax payers will save economics, now nobody will do that.

But if we will look from another angle? Will it be really enough to cover the loans and restore economics. I don`t think so. The main idea is in ‘keeping the banks operational’ with minimal expenses at minimal price.

This will certanly not be a solution…

World crisis
Even the World has problems

The economic world is very unstable now. Biggest problems are coming from USA. Yesterday biggest USA bank Lehman Brothers was declared bankrupt. AIG - biggest USA insurance company is near collapse. And I need not to mention, how many world companies depend on those organizations. And at the moment the market continues to fall…

Everything started with mortgage lending in USA. People had no money to pay for their real estate. Banks started to sell property, but nobody was able to buy. Here started the vicious circle. People can not pay, banks have no money, because nobody pays back loans and real estate is standing without owners. So the real estate value started to fall. People are not able to pay back loans. In the beginning billions of dollars were write off (around 400$ billion). But unfortunately, this was not enough. World was reacting on that situation, investors were selling the shares, bank loan percents started to grow. Now USA has a lot of economical problems, other bankrupt will be declared. This will continue until the real estate market will stop to fall. Government and banks are trying to stop the crisis, by investing more money, but it is already to late. And USA can not stop the problem for themselves, because of the depts.

Now let us look for the Europe and Russia. Europe can only react on world news and activities, because the biggest players are still USA, Russia, Asia. Europe can not do anything by itself, almost.

Russia. Few days also having big problems, and mainly, emotional. Russian share market was already forced to be closed two times, and the new opening time is not defined yet. Fall main reasons are: withdrawal of investments because of the war with Georgia, world crisis, oil price lowering, emotions. War in Georgia- this was a mark for investors that Russia is politically unstable, what is important point for investment(war influence is the worst one). World crisis- Russian funds, banks are connected with world banks also. Oil price- Russia last years economical grow was succeeded with high oil price, because it is exporting it. Emotions- mainly, there are not so much reasons why Russia market should fall. Major part of stock prices are undervalued, what can be proven by biggest banks target prices for shares . Of course, the world crisis is playing the biggest role.

World crisis has good name- it proves that World will suffer.

Sms- credit trouble in Estonia
This is a bad idea- pay one dept with another, bigger one…
Sms- credit is a fast money loan service, via the popular sms service in cell phones. The plan is simple. At first you register at the service webpage. After the registration you can send sms to your sms- loan service company, and few moments later you have the money on your bank account.

This is very fast way to get money. No paper job, no bank loans, etc. Sms, click- and here is the money. Now here is the main problem. The faster the money you get, the bigger problems you have. The bank loan percent is around 15% (simple money loan, no real estate), but the sms- service has 200% -300%! Imagine. It is very easy to get 50 000.- dept, when receiving a loan for 5 000.-

Unfortunately, many people do not care so much about their month budget, waiting for the next salary already in the middle of a month. Somehow the financial life should be helped, so the sms- credits are taken, what makes the situation worse. People start to paying for they flat loan by taking sms- credit, just not to loose the flat. But everything is understandable.

Survey what one of the sms- credit provider has taken had interesting results. Around one third of people, taking sms- credits own higher education. This means the problem is in financial education. Not everything is so bad, of course. The biggest part of ’sms- loaners’ are paying back loans, but why to take it at all?

Even the government started to pay attention to this problem. If in the beginning the loan interest rate was around 1000% and was only ‘one sms away’ ( you did not have to register, just sent account number, the sum, and here you go), now there is registration, and loan interest has fallen.

Never try to pay one dept with another one, never! Find another job, spend less, but never take a loan if you are not sure you can pay it back. Think about the future, and always look around the corner. The money does not just appear and disappear. When somebody is loosing money, the other one receives it.