Most people know the traditional banking model, if only from George Bailey in It’s A Wonderful Life.
In simplified form: A bank takes deposits from savers, and pays them a low interest rate. Then it lends that money out to borrowers at a higher interest rate. The bank’s profits come from the difference between the rates.
Charming…but far from the truth for the modern bank. An article from NPR’s Planet Money looked into JPMorgan Chase, the largest bank in America, and found they do much more than that.
The two most important ‘extra’ activities are charging fees and the outright investing of their own money. Here is how it breaks down:
- $48 billion – interest from loans
- $35 billion – fees
- $11.5 billion – trading
A little less than half of the bank’s revenue comes from non-traditional banking activities (fees, trading). Not so bad, especially with trading accounting for so little. Remember, one of the root causes of the financial crisis was all the big banks exploding their trading. When the market collapsed so did they, but were “too big to fail” and we had to bail them out.
Suffice it to say that banking with deposits and loans is very hard (George Bailey nearly went under), add in too much trading and banks become very unstable.
There’s no pay from the IOC (International Olympic Committee) when they win a medal. But many countries Olympic committees pay their athletes for winning medals. Among them, The U.S., Russia, Canada, China & Italy and many more countries.
$20K-$50K per gold medal is typical in bigger countries. The smaller countries actually tend to pay more, $50K-$100K, since a single gold is more important to their country. Some athletes receive cars, houses and promise of jobs when they retire.
Source: Yahoo! Answers
In the U.S., our athletes receive, from the U.S. Olympic Committee, $25,000 for gold, $15,000 for silver, and $10,000 for bronze.
Swimmers, receive even more thanks to an organization called USA Swimming, who chips in an additional $75,000 for gold, as has been highly publicized for Missy Franklin.
It’s official, all the social networking sites have started adding “promoted” tweets/posts/places to your news feed. It’s no surprise considering that Twitter, with its “promoted tweets,” recently said it has a “truckload of money in the bank”.
Today Foursquare is launching its version of search ads, Promoted Updates.
Promoted Updates operate like Google’s promoted listings or Twitter’s promoted tweets. They are pay-per-action ad placements that only appear when a user is searching for a venue in Foursquare’s Explore tab.
Foursquare determines a user’s current location and check-in history before displaying a Promoted Update. The ads are powered by the same recommendation engine as its Explore feature. All of the paid placements will be clearly labeled at the top of the feed; they can include a store’s recent news, photos or specials.
Foursquare has partnered with about 20 merchants, from small mom and pop shops to national chains like Best Buy, to launch the pilot program. In the next few months, Foursquare hopes to turn Promoted Updates into a self-service tool merchants of all sizes can use on its platform.
Keep reading: Business Insider - Foursquare Launches Promoted Updates, Its Newest Effort To Generate Revenue
With the announcement of Amazon’s new Cloud Player iPhone app, the Universal Music Catalog is one step closer. For years I have dreamed of this Star Trek-like device, where I can find any song I want and listen to it, from anywhere. Preferably this will be an app on a device I already own (smartphone), rather than a new iPod or something.
Though, I would buy an iPod that had the Universal Music Catalog on it.
You may be skeptical but let’s work through this.
First, all three major online music retailers, Apple/Amazon/Google, give you the ability to upload thousands of songs to their cloud for free or at nominal costs. Which means that each of them has the most massive music catalog you can possibly imagine. They also highly promote the “matching” ability of these mega-drives, which means that they probably already have the song you’re uploading so don’t worry, you can just use their copy.
But, if they don’t have your song then they will store a copy on their drive, a brilliant way to continue growing their catalog.
Second, the details here are awesome. Amazon just announced that if you pay $20/year you have unlimited storage space for music. Google offers space for 20,000 songs for free and Apple is charging $25/year for storage of 25,000 songs. This even includes those mixtapes you’ve been carrying around, rare CD’s, and even live recordings.
Yeah, the piracy debate is dead in the water here. Theoretically, one person could pirate 20,000 songs and then upload them to Google for free, with forever storage.
Ah, Switzerland. The land of chocolate, cow-bells, skiing and prices that make you want to cry. A place that has built a global brand on providing a safe, risk-free haven for other people’s money and not being disruptive or belligerent. Clean, orderly and wonderfully peaceful — yes, the clichés are true.
Not then, you might think, a country especially suited to launching a startup — but you’d be wrong. Long a hub for high-tech and medical sciences, Switzerland now boasts an ecosystem of Internet entrepreneurs that’s blossoming as fast as the proverbial Edelweiss in spring.
“I don’t know any other country on Earth that is so good at seed funding,” enthuses Johannes Reck, co-founder and CEO of GetYourGuide. His story is illuminating — after founding GetYourGuide in 2008, his team was approached by a local bank with a seed funding offer, an out of the blue reversal of roles that typifies what’s happening here.
“In literally every other country in the world I’ve been to, entrepreneurs struggle so hard to get their first seed funding,” he says. “In Switzerland you have a lot of institutions who provide money, literally for free, very early on.”
via TNW Europe
Read about start-ups scenes in L.A. and Berlin:
And, some beautiful photos of Switzerland:
California is hoping for another Google-effect like the one that happened in 2005, after the company’s IPO. From 2004 to 2005 the revenue from capital gains taxes in California shot up $14 billion.
Mark Zuckerberg, whose initial public stock offering in two weeks could value the company at $96 billion, will cut in the state for an estimated $189 million in cash, according to calculations from PrivCo, which researches private companies.
The federal government will be in the money too, collecting an estimated $714 million in federal income tax from Zuckerberg.
And that’s just the payout from Zuckerberg. The windfall for California from the rest of the IPO could net California hundreds of millions more.
…the IPO could pump nearly $2.5 billion into state coffers over the next five years.
via LA Times
// Photo - Håkan Dahlström
The most extensive listing of free online education I have ever seen. Bookmarking for later.
12 dozen places to education yourself online for free
All education is self-education. Period. It doesn’t matter if you’re sitting in a college classroom or a coffee shop. We don’t learn anything we don’t want to learn.
Broken down by subject and/or category, here are several top-notch self-education resources I have bookmarked online over the past few years.
- History/World Culture
- Computer Science/Engineering
- Foreign/Sign Languages
- Multiple Subjects/Miscellaneous
- Free Books/Reading Recommendations
- Educational Mainstream Broadcast Media
- Online Archives
- Directories of Open Education
Click to start browsing
// Photo – Ed Yourdon