marți, 24 martie 2015

Damn Cool Pics

Damn Cool Pics


Parents Climb Up A Wall To Help Their Kids Cheat At School In India

Posted: 24 Mar 2015 12:09 PM PDT

In the eastern state of Bihar relatives of 10th-grade students recently climbed the wall of a school building in order to help their kids cheat. Police officers just stood by helplessly with no idea how to handle the situation.












35 Selfies Taken In Extreme Environments

Posted: 24 Mar 2015 11:36 AM PDT

If you thought your selfie was cool you better think again. These people know how to take selfies to the extreme.






















A Cool Collection Of Street Art Masterpieces

Posted: 24 Mar 2015 11:24 AM PDT

They may not be conventional, but street artists can create a masterpiece with the right environment. This is some of the most impressive street art from all over the world and it rivals anything you would see in a museum.






















Unforgettable 90s Movie Quotes

Posted: 24 Mar 2015 11:08 AM PDT

We still remember these 90s movie quotes.














11 Ways for Local Businesses to Get Links - Moz Blog


11 Ways for Local Businesses to Get Links

Posted on: Tuesday 24 March 2015 — 01:14

Posted by Casey_Meraz

Let's face it: Local link building is hard. Even if you have the budget and resources needed to earn or build links it will take time. Having a strong link profile is essential to your website's success in search engines. 

If you're new to link building and want to develop a more in-depth understanding, check out this great resource from MOZ on link building here

In this guide we will look at 11 practical ways you can start earning links for your local business, which will make an impact on your bottom line today. 

Who should care about local link building?

When I talk about local link building I don't mean that these links are for local businesses exclusively. If you're trying to boost the authority of your website, one good way is to get links from locally relevant sources. This guide is for all types of businesses who want to increase their site's link authority. 

Since local business types vary from fast food restaurants, to ski rental shops, to law firms, and everything in-between, the tactics below are applicable across the spectrum.  

About these links

Some of these links are harder to get than others. While it's easy to start with the low hanging fruit, you should put a plan together to go after the harder ones. These are the links your competitors won't get because they're just too darn lazy. This is how real businesses set themselves apart in the customer's eyes and the search engine's eyes and build a brand that's worth remembering. Aim for quality over quantity and don't settle for crummy links.

How do you define a good link?

I recently read an article by Eric Enge from  Stonetemple that summed up what type of links you should be looking for pretty nicely. In this article he mentioned three key points to help define the type of links you're looking for. They were:

  1. Links that will drive direct referral traffic
  2. Links that build visibility with your target audience for your brand
  3. Links that build your reputation

The link building methods I'll be covering today will achieve at least one of the goals each. I always think it's important to "think outside of the link" and the above three points make that practical. In addition to getting the link for an SEO benefit, will it actually drive relevant traffic? If so, that's a great link to chase. The same goes for links built that place you in front of your target audience and links that build your reputation. 

Keeping this in mind, lets build some links!


#1 Create controversy and get in the news

Creating a controversial story may seem hard at first glance, but it reminds me of this quote from Peter Marshall "If you don't stand for something you will fall for anything." If your clients don't have any controversy or a cause to believe in, then they aren't real people.

You can't agree with 100% of the people 100% of the time and you just have to find out what that is. Some companies like Spirit Airlines seem to do this quite often, but the little guys can do this too with minimal investment.

Using this method you can get links from places like:

The Wall Street Journal, The Denver Post and other local newspapers, Lexis Nexis

Actual case study

We were recently working with an attorney who was looking to earn links at a decent scale. We proposed a scholarship contest. While scholarship links from .edus are cool, we like The Wall Street Journal and high authority news site links even more. After speaking with this client, who is a DUI attorney, we discussed how everybody talks about how destructive driving drunk is, but rarely do people admit to the habit.

From this idea, we came up with the concept of Scholarship for Colorado students who admit to drinking and driving.

After the scholarship information was published on the site, we reached out to our local newspaper, The Denver Post, and informed them of the scholarship. From here, they went on to interview our client and write an article on the topic titled "Scholarship for Colorado students who admit to drinking and driving" that links to the scholarship page. 

Once the Denver Post article was published, it was easy to get other major publications to cover the story, including The Wall Street Journal:

 

How you can do this

Step 1: Develop an idea that strikes a chord with people. Think about issues that are universally familiar and tend to be polarizing in some way.

Step 2: Develop the on-page asset needed to support it. In this case we opted for the scholarship.

Step 3: Once the asset is created, pitch it to a local newspaper.

Step 4: If the story is picked up by a newspaper you can then pitch it to other major publications like The Wall Street Journal. Many websites have contact forms and areas to submit a tip. Something simple like "Hey I thought you guys might find this funny" with a link to the news publication article will do the trick since it adds credibility. 

Step 5: Share it on social media with groups that might be interested in the topic.

Step 6: Consider paying for some exposure on Outbrain to widen the audience. 

PRO tip: Don't skimp on the content, graphics, or any step in this process. This will be fruitful if done right but will fall flat on your face if you try to take shortcuts. 


#2 Easily get contest nomination links

Almost every city whether big or small has some type of local business awards. The awards might be run by a small local newspaper with a website, the chamber of commerce, or even another organization. In addition to these "Best Of" type awards, there are also awards based on age like Top 40 Under 40 or by type of business including Best Restaurant or Best Law Firm.

The trick is to find the opportunities that are a good fit for your business and get listed. Sometimes you have to win to get mentioned and other times you just need to get nominated.  

Get links from places like:

Chamber of commerce, news publications, and major publications if you're good enough :)

Getting a link from the Chamber of Commerce like the example above is very relevant as it only serves businesses within that city. It's also a plus for informed local shoppers. 

How you can do it

The best way to find these potentially lucrative links is to do a Google Search. You need to start by coming up with a list of potential sources. Since these are generally city or state specific, it's a good idea to use one of these search strings:

Here are some ideas to get the wheels turning in your brain:

  • "Nominate a business"+"STATE NAME" (Example: "Nominate a business"+"Colorado")
  • "City Name"+"Nominate a business" (Example: "Los Angeles"+"Nominate a business")
  • "best of STATE or CITY"+"nominate" (Example: "best of Colorado"+"nominate")
  • "best BUSINESS TYPE"+"nominate"+"city" (Example: "best restaurant"+"nominate"+"denver")
  • "AGE under AGE"+"GEO MODIFIER" (Example: "30 under 30"+"Denver")
  • "nominate"+"young entrepreneur" (Example: "nominate"+"young entrepreneur)

Once you have curated a list of awards you want to try to apply for you can then send your pitch to each of these websites directly. Typically they have nomination forms that you would fill out or a certain procedure. If you can't find out how, don't be afraid to ask!


#3 Get eco-friendly links

Is your business green? Does it operate according to low energy standards or are you at least on track to be green? Why not help out the environment and get a link out of it as well? Now while you probably won't show up on Newsweek's America's Greenest Companies 2014 for doing this, there are a lot of offline benefits to being green as well. I already mentioned saving the environment, but did you realize there are eco-friendly shoppers? Some shoppers do the majority of their business with companies that are eco-friendly and I suspect this will just continue to soar.

Get links from places like:

Mostly business directories and local news organizations who promote green businesses.   

How you can do it

With this industry there are some low hanging fruits, but just like all link building, you should be smart about your approach. While it might be tempting to go out and get a link on a directory, I would personally spend time scrutinizing it to make sure it's a strong website that's human-edited and controlled. If you don't find it reputable, nobody else will (including Google). That's why it's best to focus on local opportunities such as your local newspaper or community directory.

Make sure to familiarize yourself with the Green Terminology  here. Once you have a good idea of what you're looking for, you can conduct some easy searches such as the ones below to find directories. Again, please be sure to scrutinize them.

Search for directories by using search phrases like:

  • Eco-friendly business directory
  • Green business directories


#4 Sponsor a meetup group

An example of a meetup group sponsorship link

While of course we're talking about links here, I always like to see the other side of a link and the actual benefit it will give you. Did you know you can sponsor meetup groups and get a link as well as get in front of your potential customers?

Meetup.com is a powerhouse website that connects like minded groups of people together through events they call meetups. If you have a good grasp of your target audience and you know where they hang out, you can get in front of them more easily.

For example, let's say that you're a bike store. Would it make sense to sponsor a local meetup biking club? Yes! 

How you can do it

Sponsoring a meetup group does require the group owner to accept your sponsorship and terms. Your goal however is to get your business name, logo, discount, and link in the ad as shown in the example. If you're ambitious and a local store you could ask to have your NAP displayed as well for Local SEO purposes. 
 

Step 1: Start by determining what type of groups might appeal to your audience. I have included some tricky examples below:

  • Attorneys - Maybe sponsoring a cycling- or driving-based meetup with the safety approach
  • Doctors - Sponsor a healthy living meetup
  • Airsoft or Paintball Store - Sponsor a singles group by offering an event
  • Construction - Sponsor a charity group or a new homeowners' group

That's enough to get the wheels turning. Write these ideas down and proceed to the next step. 

Step 2: Turn to Google to make your search easier! Use the search strings below to only search the meetup.com website with the keywords you're looking for:

site:meetup.com state+keyword  or  site:meetup.com city+keyword

Step 3: Click through the results and find a meetup group that seems to fit the bill. 

Step 4: Show up to the next scheduled local meetup group. Network. Meet the group owner and see if they're seeking sponsorship's. 

Step 5: Negotiate and get your site up! 


#5 Host a community event

If you want to do event link building check out my local event link building post here or Kane Jamison's event link post here. While those posts go more into how you can really promote an event and build some awesome local links, I want to talk specifically about how you can get listed on your city's website by hosting a community event. The thing I like most about events is that you get to give back to your community and help people. Not even a link feels as good as that. 

The only real requirements for this one is that you host an event where the entire community is invited and get a blessing from the town. In the example below you can see how a church in my town of Parker, Colorado was able to get a link by hosting an Easter Egg Hunt.

So not only are they getting exposure from people in their town (their target audience), they're getting the link and mentions here too. If the event was hosted at your office or business location, then you can get the added superior benefit of your NAP listed on their website!

If it's a county-wide event, you can get listed on the county website and if the event is public safety you might be able to get the Fire Department and Police Departments on board as well. Plus this can come with the added benefit of news coverage. 

Get links from places like:

Your city's website and major community news sources

How you can do it

The first thing you need to do is figure out what type of event you want to host. Depending on the size of your town and the size of the event, it can be a big deal. I'm a bit of a event fanatic so for me it comes easy. Don't be afraid to start small though as long as you're creating and providing a productive resource for your community. 

Some potential ideas include: 

  • Trash Pickup Day - Host a trash pickup day where the meeting place is your business or you sponsor the bags.
  • Toy Drop off for Needy Kids - Host a toy drive or drop off for kids in need.
  • Seminar - Host a seminar in your area of expertise that will be the most beneficial to residents. If you like this idea then also try starting a meetup group (see #4 above). 

Step 1: Figure out the event type.

Step 2: Get the town on board with the idea and schedule a date at least 60 days out. 

Step 3: Create the details page on your website with all pertinent event details. 

Step 4: Make sure it goes up on the town's website with your company event page linked.

Step 5: Promote the heck out of it using the event promotion guide here

Pro tip 1: Invite local press to your event to cover it. Be sure to meet and greet them and get to know them. More on this later.

Pro tip 2: Invite the local Boy Scouts or other community organizations as well. If their name is attached to the event, you might get more exposure and more link opportunities. 


#6 Sponsor or donate to a local club or organization

Sponsorship links can be a slippery slope, but there's also a place for them. Over the years I have given back to a number of causes I support and have been an active member in charities and nonprofit organizations. Chances are you or someone you know is a part of one right now. 

There are a lot of clubs in almost any community. Have you ever heard of the Rotary Club, Kiwanis, Lions Club, etc. These are commonly found in many communities and they typically have state, district, or chapter websites. 

Below is a quick example I pulled from the Los Angeles Rotary Club sponsors webpage:

But don't stop there. While the major clubs are popular, there are also a lot of other potential sponsorship causes and organizations. This is commonly touched on so I'm not going to go into too much detail, but here are some easy search stings you can use to find some opportunities. 

  • "city inurl:sponsors" (Example: Los Angeles inurl:sponsors)
  • "city inurl:sponsor" (Example: Los Angeles inurl:sponsor)
  • "city intitle:sponsors" (Example: Los Angeles intitle:sponsors)
  • keyword donations (Example: Safety donations)

After you have explored these opportunities simply reach out to the organizers and see what type of commitment they're looking for. 

Pro tip: Don't be afraid to promote your sponsorship. If you're giving to a good cause, let the community know! 


#7 Student, teacher, and alumni discounts 

If you've done link building research you may have heard of the university discount link building where you can offer a discount to the students and faculty of a university. That has a place and it might be a good place for local links if you have a university nearby. But did you realize there are other student discount opportunities as well?

Typically when I look for opportunities locally I open my eyes a little wider and look for other opportunities like:

  1. K-12 Schools. These can be goldmines and aren't really talked about much.
  2. Organization discounts. Organizations have students too. Take the Colorado Symphony for example. 
  3. Alumni discounts. Sometimes these organizations also offer alumni listings for free. 

Get links from places like:

Organizations, schools, K-12 schools, educational websites

How you can do it

This is another scenario where we will turn to Google and seek opportunities:

  • site:.org "student discounts" -  Looks for organizations that offer student discounts
  • site:.org "high school"+"student Discount" - Checks for offers available to high school students
  • site:.edu "staff discounts" - Searches .edu domains for staff discounts (colleges and universities) 
  • site:.edu "student discounts" - Searches .edu domains for student discounts (colleges and universities)

Pro tip: Don't be afraid to add geo modifiers. Remember that anything in "" will search exactly so plurals should be searched separately. 


#8 Create and promote a local resource

So you want to send good local link signals and showcase you're the expert of a local area? What better way than to create a community resource page on your website? Not only will it attract potential links with the proper marketing, it's also going to show that you're the expert in your area. 

The good thing about creating a local resource is that you or the local operator running that location probably already has a good idea about the city in general. Even if they're not the most familiar with the area, some research can solve that.

Get links from places like:

Hotels, travel websites, news organizations

How you can do it

Start by coming up with a list of ideas. Locally-based ideas can vary greatly. Here are a few to helps the mice turn the wheel:

  • Best of Local Guides - Best restaurants in the city or county, top bars, top microbreweries (I like beer, OK), top city attractions, top things for singles, top things for families, a perfect day trip for families, etc. 
  • Local Calendar Creation - Create a local calendar of popular events by topic. High school football calendars, movie premiere dates, HOA meetings, and more. 

Once you have the idea, you can move onto the creation of the asset. Notice my use of the word asset. If I'm going to spend the time to create this piece, I want to make sure it's a linkable asset. That means that it should be substantial and also look great. If the content is weak, you're going to get a weak appeal. 

Once you have built your guide, the real key is promoting it and getting the exposure you need. Make sure to share it with relevant audiences such as Facebook and Google Plus groups. If there are town groups such as "You know you grew up in CITY, when..." those might be a good place to promote your resource. 

Figure out where your community members hang out and post it there. Sometimes even city or town run pages will be willing to post or promote your piece. This is just another reason why you need to create a quality piece of content and not just do the bare minimum. 


#9 Get manufacturer and wholesaler links

This is an easy one that is often overlooked by small businesses. If you operate a retail business or sell a product that somebody else manufactures, then you have a link opportunity. Many product manufacturers want to show their customers where to buy their products. This might be a store locator or it could just be an authorized reseller list. Either way you need to take advantage of it. This is an opportunity that even local businesses can take advantage of quickly. 

One of the reasons we have extensive client intake forms is to address this issue. A lot of times clients will say that they're listed without actually knowing. It's best to find out for yourself by getting a complete list of all manufacturers they represent. If they have a website you can get a link. 

Get links from places like:

Larger manufacturing companies

How you can do it

Even small stores might represent products from 100+ different manufacturers. Even if they don't buy manufacturer direct they can still get a link from the manufacturer just by asking. 

Step 1: Create a list of all of the brands the client carries and whether they buy direct or from a wholesaler.

Step 2: Visit each manufacturer and distributor website. Find out if they have a store locator or somewhere where they list where you can buy their products.

Step 3: Reach out to those that do from a company email address including all pertinent information (include NAP!) and the link to your website or store location.

Step 4: For those who don't list this information, outreach to them and ask them if they are willing to set it up. After all it will only help you both sell more products. 

Pro tip: Some websites will only display your Name, Address, Phone Number. But if they don't link to you don't be afraid to ask. A lot of times they can make the change and add your link. 


#10 Build relationships with local influencers

If you want to earn links that will really set you apart from the rest of the herd, you need to start thinking about  building actual relationships with influencers. Finding influencers and getting connected can be hard; you have to be real while doing it. These people can range from your local competition, to politicians, to journalists. Finding and connecting with them requires some work, but it's worth the payoff. 

Get links from places like:

Niche publications, your competition's website, local news media, government websites

How you can do it

The reality is, while some of this research and networking can be done online, at some point, you're going to have to get out of your office and interact with real humans!

For our example, let's look at how we might go about forming a relationship with a member of the local media. First off you will want to find a list of press associations in your area. This might be city based or state based. The easiest way to look for these is just to search for them in Google by typing in your state name + press association or press organization.

Once you have the list of the organization(s) you want to work with, check out their membership fees but more importantly their events and conferences. These are the real goldmines. Many of these organizations have an annual conference or event that you can attend. This is where you can usually expect to meet the people with the most connections. It's important to speak with them in person, exchange contact information, and express your willingness to contribute. If you have an intriguing idea for a specific writer, for example, someone who always writes about tech news, you may be able to pitch a problem you see in your industry that exposes consumers. Your job is to figure out what interests them and offer to help in any way. 


#11 Leverage business relationships

In many cases small businesses may already have complementary businesses that might be willing to give a link to your website. In fact, it might make sense from a referral standpoint too. If you use or refer your business to another type of business this is a great opportunity. 

Get links from places like:

Other business websites 

How you can do this

Getting these opportunities are as easy as curating the list and doing the outreach. Here are some examples for different business types:

  • Attorneys can get links from: Process servers, investigators, and other services they refer business to
  • Mortgage Brokers can link to recommended realtors and vice-versa
  • Doctors can get links from schools (emergency clinic references), insurance companies, and other doctors.

Another way to go about this is to approach like-minded companies that offer services you don't and you don't plan on offering. For example if you're a greeting card store you might be able to get links from gift stores.


Conclusion

Although good link building takes time, thought, and a good amount of effort, it's easy enough that anyone can do it. With so many different options and ways you can earn links, this is just a small sample that you can use to start gaining new ones today.

Please feel free to share your favorite link building tips. The more the better!


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Seth's Blog : Of course it's difficult...

Of course it's difficult...

Students choose to attend expensive colleges but don't major in engineering because the courses are killer.

Doing more than the customary amount of customer service is expensive, time-consuming and hard to sustain.

Raising money for short-term urgent projects is easier than finding support for the long, difficult work of changing the culture and the infrastructure.

Finding a new path up the mountain is far more difficult than hiring a sherpa and following the tried and true path. Of course it is. That's precisely why it's scarce and valuable. 

The word economy comes from the Greek word for scarcity. The only things that are scarce in the world of connection and services and the net are the things that are difficult, and the only things that are valuable are the things that are scarce. When we intentionally seek out the difficult tasks, we're much more likely to actually create value.

       

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luni, 23 martie 2015

Mish's Global Economic Trend Analysis

Mish's Global Economic Trend Analysis


Oligarchs and their "Pocket Armies" Take Over Oil Company in Kiev; Ukraine Begs for More Money; Three-Way Civil War?

Posted: 23 Mar 2015 01:39 PM PDT

Ukraine Begs for More Money

The IMF foolishly agreed to give Ukraine a four-year $40 billion bailout on March 12. Already, Ukraine's Finance Minister Begs for More Money.
Natalie Jaresko told the Financial Times in an interview that a four-year, $40bn, IMF-led bailout finalised this month — including restructuring $15bn of debt — was enough to stabilise the financial and banking system. But that was a "first step". 

Ukraine needed billions more to restart growth, rebuild shattered infrastructure, and deal with the effects of the eastern conflict that has killed at least 6,000 people, wounded 15,000 and displaced more than a million.

"I believe strongly that the G7, and frankly speaking the broader G20, has a responsibility now to support Ukraine in a much bigger way financially," Ms Jaresko said.
Interesting Debate

"I end up hearing this burden-sharing argument between different parties. The Americans say the Europeans should do more, the Europeans say the Americans should do more. That's an interesting debate, but no one's paying a greater cost than the Ukrainian people," said Jaresko.

Yes, it is an interesting debate. But missing from the debate is a Ukraine civil war that is still ongoing. Money to rebuild shattered infrastructure will do no such thing. Instead it will go for more war-mongering.

Money will also go straight into the pockets of the corrupt officials running the country and the corrupt oligarchs battling to take over the country.

Oligarch Takes Over Oil Company in Kiev

The battle over what's left of Ukraine has now reached Kiev with the takeover of oil company Ukrnafta by oligarch Igor Kolomoisky and his private army.

Please consider Poroshenko Warns Rival Over 'Pocket Army'.
Ukraine's President Petro Poroshenko warned on Monday that no regional governor would be allowed a "pocket army", after armed men took up positions around an oil company in which Igor Kolomoisky, the billionaire oligarch and governor, is battling to retain control.

The stand-off threatened to escalate into a full-blown clash between the country's wealthy president and a rival oligarch who has long been one of Ukraine's richest men but since last year's Ukrainian revolution has also developed a political power base.

Mr Kolomoisky accepted the role of governor of the central Dnipropetrovsk region last year as Ukraine's new government tried to stabilise the country after the president at the time, Viktor Yanukovich, was toppled by anti-government protests. He has also funded volunteer militias fighting Russian-backed separatists in Ukraine's east.

The billionaire has long exercised management control over Ukrnafta, an oil producer, despite owning only 42 per cent. But a law passed by Kiev's parliament has attempted to enable the state, which owns 50 per cent of the company plus 1 share, to retake full control.

In an unusual scene, camouflage-clad guards in full military gear, some armed with assault rifles, surrounded Ukrnafta's headquarters in central Kiev on Sunday.

Mr Kolomoisky said the men were from a private security company summoned by the company's management, not by him. He also said they did not come from one of the volunteer military battalions that he supports.
Private "Security" Company

Here a picture of what a private security company in Ukraine looks like.



Anecdotes from Ukraine

Reader "Ellen" Writes ...
Hello Mish,

Western media seldom talks about Ukraine's inner problems. In my country, wealth divided between several groups of ultra-rich oligarchs. Some control the bank system, others the power system, and another the oil companies. Recently the battles between them have escalated. We now have armed fighters on streets of Kiev guarding national oil companies.

I don't care which oligarch wins because I know that the people of Ukraine will lose in any case. The situation now looks like Feudal Europe in early Middle Ages. Each wealthy baron strives to be a king and have own army and own land with serves.

Porochenko has support of America and EU but zero respect in Ukraine. Powerful oligarchs battle for pieces. Some think that Ukraine oil was taken under control by USA, though Porochenko. This seems logical to me.

Best regards

Ellen
Desperation Increases

Reader John whose sister lives in Lviv, Ukraine writes ...
Hello Mish

There is a lot of political wrangling going on, with the oligarchs starting to go at one another. It looks to be shaping up as Poroshenko vs Kolomoisky. Stay tuned on this as we head towards the beginning of April.

The following is from my sister.

"Right now, everyone here is worrying about the tax and utility hikes coming in April. It's gonna be devastating. I don't like beating up the government in this state of war, but they're digging themselves an even bigger hole."

"They are taxing poor working pensioners which will bring in a paltry million or so, raising utilities by almost 300% in April, and inflation up to 30% and rising. People leave (especially youngsters) as fast as possible. The OSCE is as blind as ever, as is the World Bank and IMF. I have nothing positive to report, but the war continues, with people dying and maimed every day."

[John continues] This is the absolute first time that I have ever seen or heard my sister say anything negative about the current regime or junta as we call them. What this means is the average Ukrainian is up against the wall financially and there is nothing more that the government can take from them.

Events are a recipe for yet another disaster. I do not like to speculate, but I expect that the Junta will try and pull off something to distract the masses, but by now, the people are too wise for this nonsense, and oligarchs want their say.

John
Carpetbaggers vs. Oligarchs

On December 3, I wrote Enter the Carpetbaggers: Ukraine's New Finance Minister a US Citizen, New Economy Minister from Lithuania

"Now that Ukraine's gold has been sold off, the only thing left to complete the plundering is to send in the carpetbaggers. That process is now underway. Ukraine's just-named "Finance Minister" is a US citizen, and Ukraine's new "Economy Minister" is from Lithuania. To get around legal issues associated with having foreigners in top level government positions, Ukraine made the appointees Ukrainian citizens.

Three-Way Civil War?

Kiev was happy with the oligarchs and their private armies (Igor Kolomoisky is rumored to have 10,000), as long as they were battling the separatists.

Now it seems the oligarchs have turned on their masters in Kiev. Another overthrow, this time by an oligarch, could easily be in the works.

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

Idle (and Extremely Late) Threat of the Day by Fed's Bullard: Raise Rates or Face ‘Devastating’ Bubbles

Posted: 23 Mar 2015 11:08 AM PDT

The laugh of today comes from Fed non-voting member James Bullard who says Raise Rates or Face 'Devastating' Bubbles.
The US risks inflating asset price bubbles with "devastating consequences" if it leaves interest rates at zero, according to a senior Federal Reserve official.

James Bullard, head of the Reserve Bank of St Louis, told the Financial Times on Monday the Fed "should get on with normalisation" as soon as possible so that it does not have to raise rates more aggressively later causing significant market volatility.

The unemployment rate dipped to 5.5 per cent in February, its lowest rate since 2008, and was poised to go below 5 per cent by the third quarter of the year, Mr Bullard said.

Recalling the tech bubble in the 1990s and the housing bubble of the 2000s, he said: "Zero [interest rates] is too low in that kind of environment. I wouldn't be comfortable with that. A zero rate would feed into an asset price bubble".

"When asset bubbles start, they keep going until they blow up out of control with devastating consequences."

The policy maker dismissed the softer US economic data that has emerged so far this year as temporary and said that the current low inflation was caused by cheap energy prices and would move up once the oil market stabilised.

He said that the dollar was unlikely to soar much higher when the Fed raised rates as markets had already priced this move into the exchange rate.

Growth, he added, was likely to be running about 1 percentage point above its long-run trend and this would continue to push unemployment down towards the 3.8 per cent low of the 1990s and the 4.2 per cent low of the 2000s.
How Many Ways Can One Person Be Wrong?

I agree with Bullard that asset bubble blowups have enormous consequences. The problem is that Bullard apparently does not realize we are already in one of the biggest asset bubbles in history.

The asset bubble has already been fed.

As far as growth running above trend, Bullard is in outright Fantasyland.

Whereas Bullard says the current weakness is "temporary", I confidently predict a recession. It would not surprise me in the least if the US is already in one.

Powder Keg

Bullard said he was not especially concerned about the high prices already in bond markets because central banks had the tools and the communication abilities to soothe concerns in these areas.

"Bond markets already have very high prices and low yields. You could wonder whether that's a powder keg ready to explode, but central banks conduct policy so we can mitigate these concerns."

Just like the Fed mitigated the dot-com bust and the housing bust? Do central banks conduct policy to mitigate bubbles or cause them?

Squirrels and Blind Nuts

Proving that even a blind nut is not always squirrely, Bullard did say something I agree with: Bullard said that the dollar was unlikely to soar much higher when the Fed raised rates as markets had already priced this move into the exchange rate.

On second thought, Bullard is likely to be right about the dollar primarily because the Fed is not going to get in as many rate hikes as the market has priced in.

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

Plotting the Trust (or Lack Thereof) in Greek Banks; Greece Capital Flight in Pictures

Posted: 23 Mar 2015 09:33 AM PDT

Greece Capital Flight in Pictures

Using Target2 Imbalances as a measure of capital flight and trust that Greeks have in their banks, here are two charts that pretty much tell the full story.

Greece Target2 Imbalance January 2014 to February 2015



Between October 2014 and February 2015, over 52 billion euros have fled Greek banks. Go back to June when things appeared to be healing and capita flight is about 60 billion euros.

Greece Target2 Imbalance Every February Since 2008



Charts created with data from Euro Crisis Monitor.

Target2 Discussion

For a discussion of Target2, what it means and how it works, along with a discussion of who is really to blame for the crisis in Europe, please see From ZIRP to NIRP: Virtues of Germany vs. the Vices of Greece; What About "Speece" and Gold?

The record Target2 deficit for Greece was 109.315 billion euros in November of 2011. The Greek Target2 deficit exceeded 100 billion euros for 14 of 15 months between September of 2011 and November of 2012.

On July 26, 2012 ECB President Mario Draghi said the ECB was "ready to do whatever it takes" to preserve the single currency. "Believe me, it will be enough," said Draghi.

Confidence in the euro resumed. With a bit of a lag, confidence in Greek banks also returned.  Between February of 2012 and June of 2014 nearly 77 billion euros flowed back into Greek banks.

Confidence in Greek banks waned with the rise of Syriza, accelerated ahead of the January 2015 Greek national election, then continued its decline following the election.

Runs on Greek Banks

The above charts nicely depict capital flight and the run on Greek banks.

On January 9, I commented Another Run on Greek Banks Begins; Get Out While You Still Can; Buy Gold

On January 25, 2015 I reported Syriza Trounces New Democracy; Greeks Stop Paying Taxes; Run on Greek Banks Escalates; Get Out!

Greeks held back paying taxes because they figured Syriza Alexis Tsipras would work out a new deal with the Troika and for Greek taxpayers. A new deal never happened, and the run on the banks continued.

In spite of the fact that Greek banks are in need of cash, the ECB has been very reluctant to provide it. See ECB Revokes Greek Bonds as Collateral; ECB vs. Novices; Brass Knuckles.

Greece Warns Merkel of 'Impossible' Debt Payments

Today the Financial Times reports Greece's Leader Warns Merkel of 'Impossible' Debt Payments.
Alexis Tsipras, the Greek prime minister, has warned Angela Merkel that it will be "impossible" for Athens to service debt obligations due in the coming weeks if the EU fails to distribute any short-term financial assistance to the country.

The warning, contained in a letter sent by Mr Tsipras to the German chancellor and obtained by the Financial Times, comes as concerns mount that Athens will struggle to make pension and wage payments at the end of this month and could run out of cash before the end of April.

"Given that Greece has no access to money markets, and also in view of the 'spikes' in our debt repayment obligations during the spring and summer . . . it ought to be clear that the ECB's special restrictions when combined with disbursement delays would make it impossible for any government to service its debt," Mr Tsipras wrote.

He said servicing the debts would lead to a "sharp deterioration in the already depressed Greek social economy — a prospect that I will not countenance".

Mr Tsipras was rebuffed in efforts to secure quick financing from either the ECB or eurozone lenders at Thursday's Brussels meeting with Ms Merkel and a small group of other EU leaders — including French president François Hollande and ECB chief Mario Draghi.
No Cash for Greek banks

Adding fat to the Greece fire, Spain says No Cash for Athens Until Reforms in Place.
Greece's cash-starved government will not receive any money from the eurozone rescue fund until all its proposed reforms have been implemented, the Spanish economy minister has said.

"We will see whether the list of reforms is comprehensive enough or not. [But] there will not be any disbursement before there is a real test that the reforms have been approved and implemented. That is the approach," Luis de Guindos said in an interview with the Financial Times, dashing Greek hopes that the presentation of a new reform list alone could unlock fresh funds for Athens.
Politics Triumphs Over Rational Thinking

Spain could benefit from a rule change itself but fearing the rise of the Spanish anti-euro party Podemos, does not want to appease Greece in any way.

Recall that Podemos "Economic Manifesto" Calls for Debt Restructuring, Spain to Abandon the "Euro Trap"

For further discussion, please see Greecification of Spanish Politics and the Lies of Spain's Ministers.

I believe this foolish move will backfire in a big way in the Spanish national elections later this year.

Get Out While You Can!

If you have money in Greek banks, get it out now! I have been saying that for months, and the smart money is doing just that.

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

Spanish Anti-Euro Party Podemos Wins 15 Seats in Regional Election

Posted: 23 Mar 2015 12:57 AM PDT

Spain has a largely 2-party system, but unlike France, there is no round two if a single political party fails to get a majority.

Instead, political parties must form a coalition. And that is precisely what happened in Spanish regional elections over the weekend.

Podemos Wins 15 Seats

The Guardian reports Spanish Anti-Austerity Party Podemos Wins 15 Seats in Andalusia.
Podemos, the Spanish anti-austerity party, will be a prominent force in Andalusia's regional parliament after it won 15 seats in the party's first election since its ally Syriza triumphed in Greece.

The Socialists, who have held power in Andalusia for more than three decades, will continue to govern the region. Lead by Susana Díaz, they won 35% percent of the vote, earning them 47 seats, shy of an outright majority.

"Andalusians have made their voices heard through the ballot box," Díaz, 40, said on Sunday as the results came in.

The election held up Spain's two-party system, albeit in a weakened state. The People's party came in second with 27% of the vote, or 33 seats, but the party of prime minister Mariano Rajoy was the biggest loser on the day as the result was a steep drop from the 50 seats it won in the 2012 elections.

The Andalusian election generated considerable interest far outside the region's boundaries. Spain this year will see municipal, regional and general elections across the country and many saw the Andalusian race as a crucial window into electoral sentiment.

The race was also Podemos's first test since Syriza's win in the Greek elections. With Andalusia's unemployment rate sitting at 34% – the highest in Spain – and the Socialists entangled in allegations of misusing hundreds of millions of euros in public funds, the election was widely seen as one of Podemos's first runs at turning discontent into votes.

On Sunday, the party touted their results as the first step in a change sweeping Spain. "The change has begun and will continue," Podemos candidate Teresa Rodríguez said.

Podemos's supporters had previously downplayed their chances in Andalusia, pointing to voters' unwavering support of the regional Socialist party. But in one corner of Spain, Podemos exceeded all expectations: Cádiz. Home to Rodríguez and where the unemployment rate exceeds that of Greece, Podemos placed first in this city, earning 29% of the vote.

Podemos's 15 seats could put them in a prime position of influence over the Socialists, who came eight seats short of a majority. With the Socialists on the hunt for coalition partners, be it formal or on an ad-hoc basis, Podemos now faces a unique dilemma.

Any alliance with the Socialists could dilute Podemos's message of change, while an outright refusal to forge alliances could destabilise the regional parliament and lend credibility to opposition claims that a vote for Podemos is a vote for instability. "It's going to be tough for them to show that they're in the opposition but to show that they're not a threat to the system," said Torreblanca.

The real test for Spain's bipartisan system will come as the Andalusian parliament begins with Podemos and Ciudadanos thrown into the mix, said Torreblanca. "With these results they're not powerful enough to overthrow the system, but they're powerful enough to change the system. They're going to introduce a new sort of dynamism, more accountability and more transparency."
Political Reality

Podemos is not just anti-austerity. Podemos is also anti-euro (see Podemos "Economic Manifesto" Calls for Debt Restructuring, Spain to Abandon the "Euro Trap".

"Podemos is now part of Spain's official political reality" quipped my friend Bran who lives in Spain.

Political reality is also in play in France over the weekend. See Hollande's Party (PS) Trounced by Sarkaozy (UMP) and Le Pen (FN) in French Local Elections.

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