miercuri, 19 septembrie 2012

Rock Your SEO with Structured Social Sharing - #MozCon Presentation

Rock Your SEO with Structured Social Sharing - #MozCon Presentation


Rock Your SEO with Structured Social Sharing - #MozCon Presentation

Posted: 18 Sep 2012 07:59 PM PDT

Posted by Dana Lookadoo

During my MozCon 2012 talk, attendees learned about the Structured Social Sharing Formula (SSSF) - 10 steps to optimize and track social share snippets on Facebook, Google Plus, and Twitter. The formula includes use of microdata and best practices for controlling the snippet that displays on Facebook and Google+ as well as how to automatically tag URLs with campaign variables for analytics.

PRO TIP: This structured markup makes a difference for SEO! 

I'm sharing the process, my MozCon presentation, and a free worksheet with you below. Oh! La! La!

You can also view my Whiteboard Friday on SSSF where I give a bird's-eye view of through the process.

Why are social snippets important?

You put your heart and soul into creating a piece of great content or a killer blog post. It looks good, reads well, is attractive, and maybe even authoritative. You're hoping for links and social engagement. Then you share it online... OUCH! The wrong image displays, or worse, maybe no image displays. Your share doesn't look as good as you hoped and fizzles.

If you don't optimize your page with the right code, your dreams of going viral may flop. That killer content most likely won't get as many reshares, likes, or retweets as you thought it would.

Example: Great content without structured markup

Rand Fishkin put together an absolutely stellar Whiteboard Friday: 8 Rules for Exceptional Slide Presentations

The video rocked! He included a SlideShare presentation along with transcripts. There were some fantastic images in the presntation and nice visuals in Rand's video.

However, when shared on Facebook and Google+, the share snippet image didn't work in both cases:

Social Share Snippet - Directives

Facebook grabbed Rand's avatar for the post image correctly, but Google+ found no image on the page large enough to pull.

Publishers beware: Most CMS are not set up to allow an editor to control the <head> where the structured markup to control a share snippet needs to be placed. (There are a couple references below for WordPress users.) Amazingly, major news publishers such as the Reuters and the LA Times don't even have it right. Often, a sponsor's ad on the page is the default image that displays. OOPS!

Anatomy of a Share Snippet

Let's review the elements of a share snippet before we get to the SSSF and steps. Every share snippet contains, at least, the following elements:

Anatomy of a Social Share Snippet

The code on your page controls how the share snippet displays:

  1. Share Blurb - your explanation about the content.
  2. Title - page Title
  3. Description - brief description of the page
  4. Image -  a thumbnail image
  5. URL - links the Title to the page

When you don't use microdata to specify what to display for these elements, Facebook and Google+ determine it for you. You can make your social snippets look good and know if your social media engagement is working for you by implementing the steps below! 

Formula for Optimized Social Engagement

Here's the all-in-one Structured Social Sharing Formula to optimize your social engagement:

Structured Social Sharing Formula - 10 Steps

Five of the 10 steps include placing additional <meta> in the <head> of each Web page using Open Graph Protocol (OG).

PRO TIP:
You don’t have to create two sets of tags - Open Graph and Schema.org. OG works for both Google and Facebook for social sharing! (Save Schema for other microdata markup.)

10 Steps With Microdata & Analytics

Four of the five Open Graph tags are required, marked with an asterisk (*) below. Let's break each step down:

  1. OG: Title*
    <meta property="og:title" content="
    Share Snippet Title Goes Here" />
    The title becomes anchor text to the page. Follow best practices for writing OG titles the same way you would write captivating and explanatory text for your meta title tag. (OG title overrides meta title tag.)

    Size? You're not limited by 60 or 70 characters as with the meta title tag. I've seen up to 134 characters in a Google+ snippet title, but that's just too long. (Personally, long titles are not preferred, and they are not quickly readable.)
     
  2. OG: Description
    <meta property="og:description" content="Your descriptive content goes here, probably similar to your meta description." />
    This markup acts like a meta description, but you are not so limited by the number of characters as with the equivalent meta. I recommend up to 188 characters for your text to display without the ellipsis. (OG description overrides meta description tag.)

    Best practice is to write it like an ad, summarizing the first paragraph of the page copy and/or include benefit statements. 

    Caveat: I’m still testing character length. I saw 453 characters in a Google+ description. It was pulled from a page without markup, and that page had short one-sentence paragraphs. Google may have been testing how much they display for the description.
     
  3. OG: Image*
    <meta property="og:image" content="http://www.domain.com/images/image-file-name.png" />
    Enter the URL of the thumbnail image. If you don't have an image, Facebook and Google+ will look for another image on your page, e.g. avatars, images for related posts, and worst of all...sponsored ad graphics.

    150x150 square is the best size for both Facebook and Google+. The height must be at least 120px. (If the width is less than 100px, then the aspect ratio must be no greater than 3:1.) 

    Important: Size overrides code. Images that are too small or not square enough are not included in a Google+ snippet, even if the images are explicitly referenced by schema.org microdata or Open Graph markup.
     
  4. OG: Type*
    <meta property="og:type" content="website" />
    Specify the type of content (object) being shared. Any non-marked up webpage will be treated as og:type website. Other type values include article, book, profilevideo.movie, music.song.

    Read more about Open Graph Object Types.
     
  5. OG: URL*
    <meta property="og:url" content="http://www.domain.com/file-name" />
    Put in your canonical URL. Simple (period).

    OK! We're now done with the markup...
     
  6. UTM Variables
    Append tracking tags to end of your URL:
    ?utm_source=facebook&utm_medium=social&utm_campaign=conference

    URL tagging with UTM campaign variables gives you social referral data!

    All you need to do is identify your URL and the three required attributes:  the source (social network), the medium (how it is delivered), and the campaign (the category for how you want to track in Google Analytics).
     
  7. Share Content
    This is the textual blurb you want to put in the share box.
    Enter it in the boxes where it says, “Share what’s new” (Facebook) or “What’s on your mind?” (Google+).

    SEO tip: this share text become the title tag <title> of that share snippet when it becomes a SERP. So, if you are targeting Search Plus Your World (SPYW) personalized search, remember that your Google+ share blurb can rank. Think SEO and front load keywords – without being spammy. However, always think more about your message and audience engagement first.
     
  8. Hashtags
    Use #hashtags on Google+.
    When you type a # in the G+ share box, it auto-completes (auto-suggests) hashtags other people have used.

    Tip: Use hashtags to discover trends! Don't use hashtags on Facebook. (Facebook is not Twitter. Forget the hashtags.) Choose one hashtag for Twitter, and don't abuse that precious hash (#) sign!

    Tools: Discover hashtags on Twitter for your topic: Tagdef, Hashtags.org, Twubs
     
  9. Twitter/Retweetable
    Sharing on Twitter is a different beast, since the OG markup doesn't affect the tweet. Below are some tips to optimize and track your tweets.

    Steps:
    1.  Append your UTM campaign variables to end of each URL.
    2.  Create a bit.ly or custom (branded) short URL.
    3.  Choose a single #hashtag, if any.
    4.  Create a “retweetable” tweet. (See "Format" below.) 

    Size:
    To be retweetable, your tweet needs to be short enough that it doesn't get cut off. Here's the formula for determining the length:
    Max Characters = 140 – 5 – (LEN)@YourProfile

    Format:
    Put the post title first, followed by your short URL, the "by" you or your company's profile name. Add your #hashtag to the end.

    Latest Greatest SEO Post Title:
    bit.ly.Moz3Xlu by @YourProfile #hashtag

  10. Document  & Track
    Here's the fun part, err, the FREE part...


    Yo! Yo! SEO is making this process nearly error-free and easy for you. Download the Structured Social Sharing Worksheet to plan each page's Open Graph tags and social shares.

    Bonus: the Excel worksheet contains an automatic URL builder to tag your file names with UTM campaign variables!

    Download the Structured Social Sharing Worksheet - FREE

The last step after documenting everything in the worksheet is to cut and paste into each social network.

OK, we're almost done...

Analytics - URL Tagging

Let's delve a little into tagging those URLs. As mentioned, you can quickly and automatically create UTM variables to track the effectiveness of each social share, including Twitter. The worksheet does it for you through its automatic URL builder to tag URLs with UTM campaign variables. The required fields and a sample tagged URL are shown below:

URL Builder to Tag URLs with Campaign Variables

Why is tagging important?

You won’t get full social referral data in Google Analytics when you shared a post without campaign variables.

  • Google Analytics will automatically know if someone clicks on a link from Twitter Web to go to your page. Twitter will be shown as a referral.
  • However, referral data is not available when you use third-party clients like TweetDeck and HootSuite to post to social networks via an API.

Tag every URL you share for maximum "data" to know if and how each social media share is sending you traffic.

PRO TIP: You can add UTM variables via AddThis and ShareThis. But you cannot vary your campaigns for each post. Do make it easy to share by using these and other sharing plugins, but for your personal/company sharing, tag and share them manually. Your analytics gurus will be happy for the data.

Additional Social Sharing Tips & Resources

Below are a few more tips to enhance your social sharing (and SEO) experience:

1. Enhanced Google Site Search

A worthy by-product of  the "Structured Social Sharing Formula" is that it enhances results for Google's Search Appliance for in-site search results. So if your site uses Google's Site Search, you can control and add images to those search results using the same og:image code. The images will be scaled to a smaller size to fit your own personal in-site SERPs.

2. WordPress

There are a couple WordPress plug-ins that have received good ratings for accessing the <head> to enable you to insert OG code. Check out the following:

  • WordPress SEO by Yoast - Lots of <head> control
  • Like - Ads the Facebook Like button along with OG tag control (NOTE: The plugin is outdated.)

3. Structured Social Sharing - Rock Your SEO with Structured Social Sharing from Yo! Yo! SEO

This is the full presentation as given at MozCon 2012.

4. Best Practices for Structured Social Sharing on WebmasterRadio.FM

I joined Ross Dunn and John Carcutt, co-hosts of SEO 101 Podcast, on WebmasterRadio.FM.

While Ross and I were in Seattle for MozCon, we joined John to discuss best practices for optimizing social share snippets and how to track efforts. Listen to the podcast.

 

I want to give a personal thanks to the SEOmoz team who put together such a fantastic event! Thank you for allowing 4 community speakers take 10-15 minutes on stage. To the readers, please do share how you are controlling your social shares and any additional tips. I look forward to your ideas!


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Content Marketing - Think Campaigns Not Just Links, Your Guide to TOFU

Posted: 18 Sep 2012 02:32 AM PDT

Posted by searchbrat

Content Marketing is without doubt the most popular member of buzzword bingo at the moment. With updates like Panda and Penguin (easily track all this with SEOMoz's Algorithm Tracker) and the devaluation of low quality links, the role of content in SEO has never been greater. Many of the large SEO agencies are doubling down on their efforts to sell themselves as content strategists, not just SEO consultants, and where the big agencies go, usually everyone else follows. With the next Google Penguin update (dependent on when this post is published, it may have already been released) touted to be "jarring and jolting" for a lot of webmasters, we can expect content marketing's shine to get even greater.

Changing from "build" to "attract"

From an SEO viewpoint, the interest in great content is to attract links, where as a lot of what Google is looking to eliminate are examples of where content is used to build links: articles, spun articles spammed across thousands of directories, blog posts spun across networks, networks that dragged in content form places like Youtube, Yahoo Answers and article directories to create mashup posts, blog comments, spun blog comments using scrapebox so you can hit thousands of sites at a time, web2.0 link wheels made from spun content, reclaiming tumblr blogs with PR and adding posts with links to your site, buying up dropped domains and using archive.org to re-add the previous content so you can link to your site, finding squidoo len's to comment on, the list could go on and on and on. It's a lot easier to build links with subpar content, as you don't expect anyone to read it.

What's being sold as "Content Marketing" - is truly great content that people want to share and link to = hey presto ... you're #Number1inGoogleB*tches.

The problem with a lot of SEO's evolution into "Content Marketing" is they are really just thinking about links/shares - it's a blackbox approach, with content going in and links and social shares coming out:

There is more to Content than Links

The reality is true content marketing isn't just about links and shares. In the words of copyblogger:

"Content Marketing means creating and sharing valuable free content to attract and convert prospects into customers, and customers into repeat buyers. The type of content you share is closely related to what you sell; in other words, you’re educating people so that they know, like, and trust you enough to do business with you.” CopyBlogger

Content Marketing is so much more than getting links. It's the glue that holds your funnel together. It's the reason a prospect visits your site, it's the reason they choose to move further down the purchase path, buy a product and return to your site time and again. Real content marketing is complex; it's not just building a great infographic and notifying some bloggers about it. If you are purchasing a "Content Marketing" strategy from an SEO agency where the sole objective is to acquire links - you are going to waste money in the long run. Sure links can be a metric, but real content marketing is expensive, as a link building strategy - it's very difficult to make a decent return on.

If you are investing in content marketing, why not put together campaigns that drive goals across your funnel and have links and shares as a metric, but not the sole objective. Let's start with TOFU (Top of Funnel) content marketing campaigns ....

Top of Funnel - Joining the Dots

Your approach to content marketing will differ slightly dependent on where the campaign resides within the funnel. For example, the following is a snapshot of what may be involved in a TOFU (Top of Funnel) campaign.

# Objective

Anything successful in life starts with a clear and concise objective/goal. For example, a goal could be structured as:

Core Objective: Our content campaign is aimed at people who love to camp and are looking for the latest pair of hiking boots from brand X. We want to attract X amount of new visits, rank for keyword “X” on first page of Google, attract 15 links from PR2+ sites and drive X% of these new visits into our product page (which converts at X%) - of course that X% can be improved upon by MOFU (Mid of Funnel Campaigns) via A/B Testing etc

Secondary Goal: We want X amount of these new visits to turn into Facebook Fans and X to turn into new Twitter Followers

The more specific you can be about the goal of your content campaign the better. When asked to explain what you are doing to a VP of marketing, having a well-structured campaign mapped against core business goals will get you a far bigger budget than "I'm trying to get links".

Your Twitter Highlight: Your Content Marketing Strategy Should be aligned to Business Goals

I have purposely left out revenue in the above goal as I am splitting campaigns into Top of Funnel and Mid of Funnel to show the importance of content throughout the purchase path. If you're running a content campaign across the funnel - you should have revenue as a metric. You will need to quantify your own metrics to establish the ROI on your campaign e.g. how do you value Cost Per Link.

1. Persona Development

Persona development is a crucial part of any successful content marketing strategy. There are a number of ways to develop personas:

  • Using your Analytics
  • Social listening (this is hard, I’ve done it)
  • Interviews with prospects
  • Interviews with customers
  • Interviews with people you want to become customers
  • Customer surveys (if you have a big enough Email DB)
  • Google consumer surveys (http://www.google.com/insights/consumersurveys/home)
  • Even running an internal workshop with different teams provides great insights. You would be amazed how much valuable information is stored within the customer support team, example of a previous one I ran with the help of iqcontent.com

Something that’s really important to keep in mind is your content campaign may touch multiple personas. For example, in the objectives mapped out above, the persona we are targeting for new visits isn’t necessary the same persona who is going to link to you. Unlike online marketing, where most people have blogs, it’s highly likely in other industries the people who you can get links from and potential customers are not the same person.

Your Twitter Highlight: If Links are your core goal; you need to target the personas who actually have the power to link to you.

2. Strategy

Once you have personas in place, you can build out your content campaign framework. This should be broken into what I call The VP Strategy and The Actual Strategy.

But What's my VP Strategy?

This is for that moment in a meeting when you are asked, "Hey what are you spending my 100k on?" They don’t need your life story, just an overview that makes sense.

We are building an interactive map of the globe where users can click around and learn about the best camping destinations in the world + what camp gear they should bring for each hike.

We are doing 10 posts on our own blog to promote it. We are doing an outreach program with 20 experts on outdoor pursuits; these experts helped us develop the content for the map.

We are doing PR with 10 online camping magazines about our Facebook competition where you can win a holiday to one of the destinations on the map. The clues to this are being given away on our Twitter feed; you have to follow to get them, as they are time sensitive

We are also running paid campaign via remarketing, content network and third-party placements to support our initial launch

The above may not be great, but you get the point :)

The Actual Strategy is your project plan. I usually start everything with a flow diagram (creately is awesome for this) – I am a visual thinker so this helps a lot - how you plan content could be totally different. But you need to plan .... :

Your Twitter Highlight: Divide your content campaign into a VP Strategy and Actual Strategy

3. Resources

Most content campaigns will fail because they have no clear objective and they haven’t considered what resources they require (often not having the correct resources to implement the campaign). You need to define:

  • How much will this cost in total? This includes any piece of activity related to the campaign, regardless if its coming from your budget or some other department’s e.g. if you are feeding Facebook/Twitter with great content – maybe you have a social media budget that you can steal take from :)
  • What internal resources do you have?
  • What external resources will you be using?

For our campaign we probably need:

  • Project coordinator
  • Content strategist
  • Outreach consultant (to get bloggers onboard)
  • Developer (for interactive map)
  • External agency for design
  • PR manager (for pitching of the competition)

Resources should be part of your project plan doc.

Your Twitter Highlight: Your Content Marketing will #fail if you don't have the right resources

4. Content Types

What content types will you be using in your campaign:

  • Blog posts
  • Guest posts
  • PR pitches
  • Video
  • etc

Your Twitter Highlight: Map out every asset your content campaign will include over the whole lifecycle of the project

5. Mediums

What mediums are going to be used to promote your content? For our example we are going to use:

  • Google (organic): Once our piece lifts off, we expect to acquire traffic for informational key phrases around “camping destinations”. Yes, not all these are going to purchase our product. But some may share it, like our Facebook page, follow us on Twitter, join our email list or help us amplify the content. Think both macro and micro conversions.
  • Facebook: Let’s assume we already have an audience on Facebook we can promote it to. We can also use this as a way to acquire new fans via paid ads – but how effective it is to pay for fans is open for debate.
  • Twitter to promote time sensitive clues for our competition
  • Email Marketing: Yes, building an email database should still be part of your marketing strategy. Guess what Email Marketing is NOT DEAD. Leveraging it for content campaigns is a great reason why. Just make sure you are doing it right.
  • Remarketing: We are going to build a list of anyone who has visited our product pages on camping gear. Instead of advertising another product to them – we are going to take them back up the funnel a little and show them this great interactive map. Maybe they won't buy, but the might help amplify our message.
  • Display: We are going to run a small display campaign across a select number of outdoors activity sites advertising the interactive map. Google content network campaigns advertising free content tend to perform quite well.
  • Guest posts: Once live we are going to ping the experts who helped us put the map together. There is no requirement for them to post, but we hope they will :). Dependent on your brand, this step is really easy or really hard. The great thing about content marketing is, the better you get, the easier this step becomes.

Your Twitter Highlight: Even the most remarkable Content will #fail without a solid promotion plan

6. Metrics

Doing content for "Brand Awareness" or "Thought Leadership" is easy, as most companies do not put anything measurable against these goals. Putting metrics against what you are doing and reporting to senior execs is a lot more difficult. You will get asked what did I get in return for my spend? Having an answer to this will put on you a par with every other exec (mostly in Sales), who can easily answer that question.

a. Goals

Defining goals for content marketing campaigns is not easy, just as defining goals for whitehat link building campaigns is near impossible (unless you are just doing guest posting). How do you put a number against how many links a piece of content will deliver naturally? But it's critical you have specific goals for any campaign you put live. These will be defined in your objectives:

  • X Number of Visits
  • Improved Keyword Rank (To First Page)
  • Attracted X Number of Links
  • X Number of Visits into Product Page
  • Increase X Number of Facebook Fans
  • Increase X Number of Twitter Followers

Most TOFU (Top of Funnel) campaigns core goal is not Sales(B2C)/Qualified Leads(B2B), but thinking in terms of Macro and Micro conversions will help put dollar/euro values against each goal. For example, you can get the number of sales generated by your product page (either when it's the landing page or when it's some part of the journey), using this you can put a dollar/euro metric against each visit generated to that product page as part of this campaign. It's then up to your MOFU campaign to split test the hell out of the page and turn these into sales.

b. ROI

ROI isn't going to be a straightforward calculation. How valuable is each new visit? (Google Analytics Mutli Funnels help a lot). How valuable is your improved visibility on Google? How valuable are visits to your product page? How valuable are your Facebook Fans/Twitter followers? In most cases, it might not be possible to answer all these questions, but if you want executive buy in for large content campaigns - have some type of ROI forecast you can give them.

c. Links/Shares

Yes, links and shares are good metrics to have. Trying to put a monetary value against these are a lot more difficult. You are better of measuring what links and shares should bring e.g. new visits from both google and social media.

Your Twitter Highlight: Content Marketing Campaign without metrics is like p*ssing in the dark. Spraying everywhere and just maybe hitting the target


So you are now thinking Top of Funnel Content Marketing Campaigns !! and well on the way to being a ......

#TOFUContentMarketingNinja

But what about the Mid of Funnel (MOFU) Campaigns ... that's going to need a whole other post !! Hope you can hold on for part two !!


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What Are 400 Athletes Doing at the White House?

The White House Your Daily Snapshot for
Wednesday, Sept. 19, 2012
 
What Are 400 Athletes Doing at the White House?

Last Friday, more than 400 Olympians and Paralympians were on hand at the White House for an event to celebrate their success in this year's London Games.

This new video lets you go behind the scenes and hear from the athletes as they describe their visit.

Check out the athletes' stories from their Olympic visit: 

Watch the behind-the-scenes video

In Case You Missed It

Here are some of the top stories from the White House blog:

Celebrating the 2011 WNBA Champions
President Obama welcomes the Minnesota Lynx to the White House.

You're Invited: Join the White House Fall Garden Tour
White House followers on Twitter, Facebook and Google+ are invited to attend a special preview of the White House Fall Garden Tour and share their experience through social media. Learn how you can join us.

Small Business Google Hangout on Wednesday, Sept. 19
Today NASA Administrator Charles Bolden and SBA Administrator Karen Mills hosted a Google+ Hangout with ATA Engineering, one of the small businesses that made the Mars Science Laboratory mission landing a success.

Today's Schedule

All times are Eastern Daylight Time (EDT).

12:00 AM: The President arrives Joint Base Andrews

12:15 AM: The President arrives the White House

10:30 AM: The President and the Vice President receive the Presidential Daily Briefing

11:15 AM: Briefing by Press Secretary Jay Carney WhiteHouse.gov/live

11:30 AM: The President and the Vice President meet with Secretary of State Clinton

12:00 PM: The President participates in an Ambassador Credentialing Ceremony

12:30 PM: The President and the Vice President meet for lunch

6:00 PM: The Vice President and Dr. Jill Biden host a reception with emerging young leaders of the Lesbian, Gay, Bisexual, and Transgender community

WhiteHouse.gov/live Indicates that the event will be live-streamed on WhiteHouse.gov/Live

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Seth's Blog : The simple power of one a day

The simple power of one a day

There are at least 200 working days a year. If you commit to doing a simple marketing item just once each day, at the end of the year you've built a mountain. Here are some things you might try (don't do them all, just one of these once a day would change things for you):

  • Send a handwritten and personal thank you note to a customer
  • Write a blog post about how someone is using your product or service
  • Research and post a short article about how something in your industry works
  • Introduce one colleague to another in a significant way that benefits both of them
  • Read the first three chapters of a business or other how-to book
  • Record a video that teaches your customers how to do something
  • Teach at least one of your employees a new skill
  • Go for a ten minute walk and come back with at least five written ideas on how to improve what you offer the world
  • Change something on your website and record how it changes interactions
  • Help a non-profit in a signficant way (make a fundraising call, do outreach)
  • Write or substiantially edit a Wikipedia article
  • Find out something you didn't know about one of your employees or customers or co-workers

Enough molehills is all you need to have a mountain.



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marți, 18 septembrie 2012

Mish's Global Economic Trend Analysis

Mish's Global Economic Trend Analysis


Government Debt Held by Spanish Banks Doubles in Seven Months; Deleverage? What Deleverage?

Posted: 18 Sep 2012 09:51 PM PDT

One of the goals of ECB president Mario Draghi's LTRO plan was to get banks to deleverage. Instead it concentrated the risks.

For a case in point, please consider Europe Banks Fail to Cut as Draghi Loans Defer Deleverage.
Lenders in the euro area increased assets by 7 percent to 34.4 trillion euros ($45 trillion) in the year ended July 31, according to data compiled by the European Central Bank. BNP Paribas SA (BNP), Banco Santander (SAN) SA, and UniCredit (UCG) SpA, the biggest banks in France, Spain and Italy, all expanded their balance sheets in the 12 months through the end of June.

They have Mario Draghi to thank. The ECB president's decision nine months ago to provide more than 1 trillion euros of three-year loans to banks eased the pressure to sell assets at depressed prices. The infusion, designed to encourage firms to lend, succeeded in averting a short-term credit crunch by reducing their reliance on markets for funding. It also may be making European lenders dependent on more central-bank aid.

"Deleveraging isn't taking place, especially in Spain and Italy," said Simon Maughan, a bank analyst at Olivetree Securities Ltd. in London. "The fact that we haven't got on with it, or very slowly, suggests that when the time comes we'll need another ECB injection to roll over the first one, just to keep the balance sheets of Italian banks in business."

LTRO Lift

The ECB's longer-term refinancing operation, or LTRO, changed the timetable. The Frankfurt-based central bank extended 489 billion euros of three-year loans to European banks in December in the first phase of the program. Two months later, it loaned 530 billion euros to 800 firms.
Deleverage? What Deleverage?

"Thanks to Draghi, the massive shrinkage that was looming six months ago across Europe isn't happening -- at least not yet," said Nikolaos Panigirtzoglou, an analyst at JPMorgan Chase & Co. in London. "That's what the economy needed on the short term."

Actually, it's not what the economy "needed" at all. It's what the financial markets needed.

The European markets rallied since LTRO because German and French banks were able unload Spanish sovereign debt garbage on to Spanish banks.

Unfortunately, the economy certainly did not need more concentration of risk in banks that have failed or are about to fail. Nor did Spain specifically.

Government Debt Held by Spanish Banks Doubles in Seven Months

Via Google translate from El Economista, please consider Government Debt Held by Spanish Banks Doubles in Seven Months
Spanish debt changes hands. The extraordinary monetary policy of the European Central Bank (ECB) and the distrust generated by the crisis are the main catalysts of the drastic change that are having this market in 2012.

In his slipstream, two opposing trends. On the one hand, the increasing role of national banks that hoard and almost one in three volume euros in circulation, almost double that in late 2011, and secondly, the withdrawal of foreign investors, who have reduced their exposure to Spanish debt significantly pending clarification that the outlook for public finances.
As central banks attempt to counteract forces of deleveraging (deflation) systemic risk of the largest lenders grows by leaps and bounds. The "success" of the LTRO was nothing more than offloading risky assets back into countries such as Spain that cannot afford more losses (yet are on the verge of getting them).

Mike "Mish" Shedlock
http://globaleconomicanalysis.blogspot.com
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Reflections on Social Media and Demographics

Posted: 18 Sep 2012 12:29 PM PDT

For about two weeks I have been involved with a Facebook campaign sponsored by JPMorgan Chase who is giving away $5 million to charity. All one has to do is vote. Voting can be via Facebook or by Chase cardholders logging in and voting.

I have about 45,000 email subscribers but could only ring up about 1450 votes. A few days in the campaign we had perhaps 500 votes and were in 32nd place, good enough for a nice $50,000.

Yet, I was surprised by such a feeble showing in relation to the number of subscribers of this blog.

I contacted Calculated Risk, and he was not surprised at all. He related that he once did something via Facebook and only got 100 responses, and his email list is way bigger than mine.

I talked to John Mauldin and got the same story. Very few of his million subscribers use Facebook.

Calculated Risk said I would be shocked at how viral this campaign would get towards the end from those actively using Facebook. He was correct. The leader now has 78,000 votes but had less than a thousand when I talked to him.

I had misread the rules when I first posted. I thought one had to be a Chase account holder to vote. You don't. Worse yet, those voting from their account only get one vote. Those voting on Facebook get two votes (but cannot be for the same place) with a chance for an extra vote (used anywhere).

The result is only those campaigns populated with younger demographics had any realistic chance of winning a top prize.

Clearly JPMorgan has instituted its campaign this way on purpose, hoping news about Chase will go viral, and it did. Yet, I wonder how many of those votes are from those in grade school who will not have an account for a decade or longer. Will it even influence where they open accounts?

Nonetheless, something will go to the charity of my choice, Les Turner. However, we are right on the bubble. This is a moving target, but as of this morning we need about 50 more votes to move up one notch to get an extra $10,000 ($20,000 instead of $10,000).

So for one final time (the campaign ends September 19) ...

Facebook Users, I Have a Favor to Ask

Chase is giving away $5 million to charity.

The charity with the most votes will receive $250,000!
The next 10 charities will receive $100,000 each.
The next 35 charities will receive $50,000 each.
There are 150 additional awards as per contest rules.

Please click on Chase Community Giving to vote for your favorite charity.
The above link points to Facebook and comes preloaded pointing to Les Turner ALS Foundation.

You will need to approve Chase Community Giving on Facebook. One click is all it takes.

Why Les Turner?

In case you missed it my wife of 27 years, Joanne, passed away on May 16, 2012 from ALS, better known as Lou Gehrig's Disease. Here is my story: My Wife Joanne Has Passed Away; Stop and Smell the Lilacs.

In July, I submitted the Les Turner ALS foundation to the Chase Community Giving program and it was approved.

Mish Request

I kindly ask those with Chase Credit Card or Chase accounts of any kind, to please login to your chase account and vote.

Please do so.
Thanks.

Mike "Mish" Shedlock


Rehypothecated "Ghost" Steel Pledged as Assets in China, Nowhere to be Found; Did it Ever Exist?

Posted: 18 Sep 2012 09:45 AM PDT

In the wake of a global crash on the the price of steel, led by falling demand, banks in China have gone to warehouses to seize assets of companies in default. However, commodities pledged as assets for loans, simply are not there.

Please consider Ghost warehouse stocks haunt China's steel sector
Chinese banks and companies looking to seize steel pledged as collateral by firms that have defaulted on loans are making an uncomfortable discovery: the metal was never in the warehouses in the first place.

China's demand has faltered with the slowing economy, pushing steel prices to a three-year low and making it tough for mills and traders to keep up with payments on the $400 billion of debt they racked up during years of double-digit growth.

As defaults have risen in the world's largest steel consumer, lenders have found that warehouse receipts for metal pledged as collateral do not always lead them to stacks of stored metal. Chinese authorities are investigating a number of cases in which steel documented in receipts was either not there, belonged to another company or had been pledged as collateral to multiple lenders, industry sources said.

Ghost inventories are exacerbating the wider ailments of the sector in China, which produces around 45 percent of the world's steel and has over 200 million metric tons (220.5 million tons) of excess production capacity. Steel is another drag on a financial system struggling with bad loans from the property sector and local governments.

"What we have seen so far is just the tip of the iceberg," said a trader from a steel firm in Shanghai who declined to be identified as he was not authorized to speak to the media. "The situation will get worse as poor demand, slumping prices and tight credit from banks create a domino effect on the industry."
Miracle GDP or Sham Accounting?

ZeroHedge had some choice comments today about the impact on GDP and China's miracle growth ...
And just like that the Chinese growth "miracle" goes poof... as does its steel first, and soon all other commodities (coughcoppercough) that served as the basis of "secured" liability creation.

If the above makes readers queasy, it should: after all rehypothecation of questionable assets is precisely what serves as the backbone of that critical component of the shadow banking system: the repo market, where anything goes, and where those who want, can create money virtually out of thin air with impunity as long as nobody checks if the assets used for liability creation are actually in the system.

We will soon discover that all other assets: stocks, bonds, commodities (including gold and silver) and finally cash (think deposits) have been comparably rehypothecated and criminally commingled.
I fully expect stockpiles of copper to be missing as well. I am not aware of gold and silver being pledged as assets for loans.

For certain, at least in the US, stocks and bonds are under different rules than commodities. Furthermore, while I do not know what every US equity and bonds brokerage house does, many institutions require 100% full cash collateral on securities they lend out.

Is cash collateral widespread in China? I highly doubt it. So at least in terms of China, a discovery that multiple asset classes were criminally commingled to a significant degree would not be surprising at all.

The big question is not whether it happened, but to what degree. Let's just no go overboard thinking rehypothecation is a widespread practice in every asset class around the globe, even if it's likely this is the tip of the iceberg in China.

Mike "Mish" Shedlock
http://globaleconomicanalysis.blogspot.com
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