vineri, 19 iulie 2013

Heart to Heart About Link Building - Whiteboard Friday

Heart to Heart About Link Building - Whiteboard Friday


Heart to Heart About Link Building - Whiteboard Friday

Posted: 18 Jul 2013 06:27 PM PDT

Posted by iPullRank

With best practices for link building continuously changing, it can be difficult to keep track of which work well and which should be removed from our repertoire. In today's Whiteboard Friday, Michael King (a.k.a. @iPullRank) makes a case for dropping some tactics in favor of others.


For reference, here is a still image of this week's whiteboard:

Video Transcription

Greetings and salutations, SEOmoz fans. My name is Michael King, a.k.a. iPullRank. I'm the Director of Inbound Marketing at iAcquire. It's been a minute, but I'm back.

So today I really want to have a heart to heart about link building with everyone in the viewing viewership. Here's the thing, guys. I've been telling you about tactics that I employ that I have a lot of success with, and it's not that you're not doing them. It's that the ones that you are doing, you're continuing to just run into the ground.

Now, let's talk about that for a second. So these are emails that I get all the time where people are like, "Hey, I write guest posts. Do you want one?" They'll send me a really generic guest post about SEO. I'm like, "Did you read my site?"

Now, I don't react too kindly to that but real webmasters, like the guys who have blogs and they're trying to live off of this, when they see emails like that, they're going to get pissed at you. So stop doing that. Stop it. Stop it. I'm tired of those things.

Now, a lot of times you guys are outsourcing all this writing to just random people. You're using WriterAccess, or there's another one that just gives you really low quality stuff. Stop it. Use Contently. It's actually really awesome. They have some subject matter experts. They have people that write for Mashable, things of that nature. So if you want to get some high quality content that's actually going to stick, you're going to have to pay some money for it. Quality needs to be a main KPI here, because if you're doing these garbage guest posts, it's just not going to work.

Now, infographics, everybody's doing infographics now too because you're like, "Okay, well, the guest posting isn't really working for me. What else can we do?" Here's the thing, we're actually doing an infographic study right now where we're analyzing thousands of infographics, trying to get a sense of what works and what doesn't. What we've noticed is bad infographics are three times as likely to have links. Excuse me, not three times as likely, but they are linked to three times as much.

Now, we've also noticed that the quality of them is kind of indicative of what you can get from an SEO company. Now, I don't have a Ph.D., nor is Raleigh who worked on this. He also doesn't have a Ph.D. The people at Google, they all have Ph.D.'s. So if I can figure that out, they're probably going to figure that out pretty soon too. So please stop doing that.

Now, a good pro tip about infographics, we noticed during this study that if you have the scrolling share bar on the left, you're 45% more likely to get shares. I think I said that wrong again, but those infographics have 45% more shares than the ones that don't have them there. Got it? Got it.

Now, back to the guest posting for a second. A lot of you guys out there are just putting your links in the author box. Not a good idea for two reasons. One, it's clearly spammy. Two, you're creating an easily findable footprint. I can take your author box profile, throw it into Google, and I see 560 guest posts that you did. Now I can easily recreate that. Stop doing that. What you should do instead is do environmental linking, because that way, one, it's harder to figure out exactly what you're trying to link to, and you're not creating that same type of footprint.

So environmental linking looks like this. You have three links scattered throughout the copy, and they're all to disparate sources so it's harder to tell which link you were going after. Now if you have a really specific page for your actual link, make sure you don't just put like NFL.com for the other link. You need to make sure that this environmental linking makes sense, so that way you don't create an easy to find footprint. But again, guest posting, if you have to, go for it, but I would rather you guys stop running that into the ground.

Okay. Now some stuff that you should do. Have real conversations with webmasters. I always say this, but one of the easiest ways to have a compelling conversation with somebody is to put their site in the Social Crawlytics and see what is the most shared post on their site. The reason why that works is because so many people are sharing this content, they're expecting that other people are going to reach out to them and talk to them about it. So it's not as much of a cold call as when you're like, "Hey, I write guest posts. Do you want one?" No, you're having a contextual conversation. So go with that. That's probably the best tip I can give you at all about link building.

Then I did a Whiteboard Friday - it was actually my first one - about a year and a half ago, and I talked to you about how to build links using social media. You should probably check that one out again. But what we continue to notice is that having a first touch in social media is, again, way more effective than just sending out emails. So just jump into a conversation with a prospect. SEOmoz's Followerwonk is great for that. You just type in the keywords of the people that are relevant, and then you can just hop into a conversation with them. Do that. It works.

Blog contests, they work two ways. They work not only from the standpoint of getting links by having people post content on your site and then get them to promote it, and then they can win that contest based on the number of shares, whoever gets the highest shares. But they also work from a standpoint of getting people to place that content on their own sites and link back to you. So there are two ways you can go with that. You can use blog contests as ways to get content or ways to just get links. So they're really effective, and that way you can just give one prize and you get tons of links from tons of people. Go for it.

Now, using ads to build links is actually really effective as well. Carson Ward from Distilled wrote a post about this where he tried out using Reddit ads and Facebook ads, paid search ads, and he saw that it was really effective. So when you have a good piece of data visualization, that's a great way to kick that thing off using StumbleUpon paid discovery is a good way to get a lot of people that are interested in that vertical or that space to see it. If it's a good piece of content, you're going to see tons of shares, and you're going to see some links as well. So I wouldn't bet the farm on using ads for links, but it's a good way to supplement whatever you're doing. So go with that.

Thought leadership, obviously you come to SEOmoz. You know thought leadership works. It's what I'm doing right now. This post, regardless of how good it is, the one that you're looking at right now is probably going to get 300 links because of the fact that at least 300 sites scrape SEOmoz every time they put something up. So if you build up yourself or your brand as that thought leader, you're going to continue to get links just from hitting Publish, like Rand always says. So go for that.

Credit requests, so if you have a ton of high-res photos on your site, do a reverse image search and see who's stolen your photos. Ask for credit. It works really well. You can even also use this for your logo. If you're working with a pretty big business, throw their logo on a reverse image search. Tons of people are placing it all over the place. Ask for the credit or ask for the link. It works really well. It's easy. Some people actually also use the threatening legal action if they don't get credit. I don't go that far, but it works.

BuiltWith.com, so sites use a variety of vendors. So put their domain into BuiltWith.com, see what vendors they're using, what products they're using, and then reach out to those companies to do case studies. I actually just did this recently with a pretty large brand. We did a webinar for them. The reason why I'm saying that is you should make sure that these people will offer you a link. We got links out of it, but their company policy is don't pass equity with those links. So they do a pass through and a no follow. So make sure that if the link is the goal, that they will actually offer that link. But it's really effective as well.

Link begging, a ton of people think that doesn't work anymore. It works like magic. In fact, if you do persona-based link begging, it's a lot more effective because if you build a persona of the people that you're going to be reaching out to and you figure out what it is that they actually like, what they're into, you can craft a canned message that's going to resonate with them a lot more than just a, "Hey, I saw you mention this word. Can you link to my site?" So if you say something to the effect of, "Oh hey, I was watching the Discovery Channel the other day," because you know they like it, "and I saw this awesome thing, and in fact on my site I have something that's relevant to that too. I noticed that you were also into this. Why don't you link to this because I think your subscriber base might be really interested in it?" It actually works really well, and it still does in 2013. Try it.

Share monitoring, so if you have a piece of content that's doing really well on Twitter, yeah, Twitter mostly, throw it into Topsy.com and then you can see all the people that shared it. Then what you say is, "If you like it, then you should have put a link on it." I'll let you laugh at that right now.

Anyway, so you'll just quickly identify people that have shared your content, ask for a link because they already like the content, and it's real easy to figure out if these people are worthwhile because you can just pull down their Twitter profiles, again using Followerwonk, and figure out if they have sites or not. Then you can also use social authority and domain authority in context to figure out whether or not that's a worthwhile prospect. So share monitoring works awesome.

Mention monitoring, so you guys, I hope you know about the Fresh Web Explorer by now because it's a great tool. You can monitor mentions of your name. You can monitor mentions of anything. So you can quickly identify sites that have mentioned the keywords and then reach out to those sites and say, "Hey, can I get a link because you mentioned me," or whatever it is. Go for it. It's great for reputation management, especially if you're looking for names.

Linkstant, so it's a product by Rob Ousbey and Tom Critchlow, formerly of Distilled. Rob is still at Distilled. What it does is it basically lets you know when somebody's about to link to you or they have just linked to you. The way it works, you put a piece of JavaScript code on your site and then you create an account, not in that order, on Linkstant.com, and whenever a new link comes in, you get an email. Then a big use case of that is a lot of times when people are on WordPress and they put in their links, they double check to make sure the link works and then you'll know while they're still writing so you'll get that email. You can email them right back like, "Hey, saw you were about to link to me. Can you link to this thing instead," or so on and so forth. So that way you can make sure that you're getting the right anchor text that you want and it's still a natural thing and you're building that relationship with somebody that you didn't know. Go for it.

Broken resource recreation, everybody talks about broken link building. I don't know how much they talk about recreating something that used to exist on the web that's no longer there. We actually built the BrokenLinkIndex.com just for that purpose. So you can search by keywords to identify things that no longer exist on the web and then go to the Wayback Machine to see what it used to be and then create a better version of it. Then what you do is you look at that original resource in Open Site Explorer to see how many links it has, reach out to all those people that are still linking to it, say, "Hey, this is gone, but I have a new version that's even better. Why don't you link to that?" Incredibly effective.

Video outreach, something I came up with myself. There's a tool called Vsnap.com, and what it allows you to do is send a one minute video to anybody for any reason. The thing that's awesome about it is you get a view count as well, so you'll know when they've watched your video. So use that for link building. Again, start with checking out somebody's site and having a conversation. Send a short video to them. They see that you're real. They see that you're not some random guy in India. No disrespect to the people in India. But they see that you're a real person that's actually out here, putting together good content. You can quickly build a relationship with them, and you can see whether or not they actually got your email.

Have rebuttals. Rebuttals are something I never really thought about in link building. I just always assumed that if they said no, whatever, keep it moving. But our team in Arizona has actually developed a really strong system of rebuttals. So in the case when somebody will say, "Oh, we only put up links for payment" or something to that effect or, "We only put up articles for payment," we really focus our messaging or our response or our rebuttal to say, "We don't pay publishers for this, but we do really focus on content strategy. We also focus on promoting the content once you place it." So make sure you have rebuttals that show why the content that you're placing with these people is valuable and how you can continue to add value to their site.

A lot of people that you reach out to, especially for guest posting, they have pretty dormant sites they haven't updated it in a year. You can focus on the freshness that you're bringing to their site and how it's going to continue to bring traffic back.

My whole point here is that make sure you have a good system of rebuttals because you might lose out on opportunities that could have easily been shifted into opportunities that you might have thought weren't.

So to close this off, I actually thought to do this because I'm in the middle of doing a really big analysis of all the link building we've done in the last year, also this infographic study, so look out for those things because there's going to be even more insights in there for you.

That's all I've got for today. I'll catch you guys on the next one. I'm sure I'll be back on the blog soon. We've been doing a lot of cool research. Can't wait to share it for you guys. All right, guys.

Video transcription by Speechpad.com


Sign up for The Moz Top 10, a semimonthly mailer updating you on the top ten hottest pieces of SEO news, tips, and rad links uncovered by the Moz team. Think of it as your exclusive digest of stuff you don't have time to hunt down but want to read!

9 Experts and a Summary: What Makes an Ideal SEO Employee?

Posted: 18 Jul 2013 05:02 AM PDT

Posted by aaj_14

In 2012, the SEO industry in the UK was worth over £500 million annually, growing 18% from 2011 figures. The US SEO industry is even bigger, topping $16 billion in 2010. In a time of general malaise about the economy, this industry is growing rapidly, and the good times look set to continue.

This is great news for any SEO business looking to expand along with companies' search marketing budgets, as there is plenty of work to be done. There is so much, in fact, that most SEO departments, consultancies and agencies are looking to hire new employees to keep up with the demand. This does raise the question, however, of what to look for when hiring new SEOs.

So what do the best and brightest SEOs in the US and the UK look for when they are hiring? Read on to find out. Take note: Their answers may surprise you.

Eric Ward â€" EricWard.com

EricWard.com

What makes the ideal SEO employee?

Not joking. A bit OCD, a bit ADD, and experience in marketing, public relations, and library science. When presented with a long page of source code, do they faint or confidently explain the good, bad, and ugly in it without having to see the page in a browser? Do they spend time online when they are not working? Do they have their own individual presence established online? If they saw Matt Cutts at a conference, would they hide?

Bruce Clay â€" Bruce Clay.com

Bruce Clay - Global Internet Marketing

What makes the ideal SEO employee?

Someone that has not learned bad habits, and that will be a leader on their projects. They must be a great written and spoken communicator, they need to know what they do not know and endeavor to fix that, and they have to be excited about problem solving. They need to stick to the methodology while seeing opportunities to surpass the competition. Our ideal candidate is fantastic at time management and organization, is service focused, and lives for internet marketing. Their technical background should be (entry-level) basic, and they need to be a quick and accurate student. At a senior level they need a solid foundation across many markets and technologies, without the baggage of learned spam techniques. They should be able to teach, lead, and communicate as the expert on a complex project. Historically we have found great success in training our employees from an intern to expert level (10 years with our firm). And, yes, we have many technical staff that have been with us that long.

Paddy Moogan â€" Distilled

Distilled - Smarter online marketing

What makes the ideal SEO employee?

There are two things we look for in all hires at Distilled: smart and gets stuff done. Other stuff is a bonus but if they have these two qualities, we can often teach them the rest! Personally, I also look for someone who actively learns new stuff in their spare time and seems to have a genuine passion for something. For example, I like SEOs who may have set up their own blog or website and have spent a bit of time knowing how it feels to get it ranking and the challenges that can present. It shows initiative and a passion that is hard to teach.

Julie Joyce - Link Fish Media

Link Fish Media - link building company

What makes the ideal SEO employee?

The ideal SEO employee is someone without a huge ego who realizes that he or she is never done learning, will often be wrong, and isn't afraid to try something new and forego old methods that no longer work. It's someone with a brain that's logical and creative, someone with the communication skills to write well or come up with amazing ideas. It's also someone with an obvious passion for the work, as if you don't give a damn about what you're doing, I doubt you'll ever be brilliant at it.

Dave Peiris â€" SharkSEO

SharkSEO

What makes the ideal SEO employee?

This is actually quite a tough question because there's a lot of different types of people who could all be incredible SEOs. SEOs that are analytical often produce great work, especially if they enjoy digging into the data and focus on the story rather than just the numbers to work out why things are how they are. Some of the best SEOs I've ever worked with have been highly technical. They've got a great understanding for how to structure sites so they're ideally suited for search as well as users, and knowing how to code helps them talk to developers better. Having said that, there are other skill sets outside of coding that can lead to an excellent SEO employee, like being able to build relationships with site owners with ease. A great SEO employee is also a good communicator, and can easily explain complex technical issues in ways that non-technical people can understand. But overall I think the best SEOs are the ones who are naturally curious and, when they find a problem, can't help but try to solve it.

Wil Reynolds â€" Seer Interactive

Seer Interactive

What makes the ideal SEO employee?

Curiosity, competitiveness, and compassion. Curious because I want to work with people who have that curiosity of "how does this work" to always be there, the desire to seek out answers is key too. Competitiveness because I want to work with people who push me to get better, who want to win, and when they lose it stings!! Those are the folks who leave when the job is done, and it personally messes up their day when something goes bad. Compassion means that they don't let their competitiveness overrun their ability to have compassion for others and to have empathy for other folks.

Oliver Archibald - SEOGadget

SEOGadget

What makes the ideal SEO employee?

For any calibre of SEO, whether junior or senior, there couldn't be a better way to learn about this industry than by maintaining your own site. It's all very well reading about SEO (and that's certainly a good thing), but actually doing it enables you to fully understand what you're recommending to clients or your team. This brings me on to my next point, which is creativity and initiative. These attributes in the ideal candidate shouldn't just be applied to cool content ideas, but also to how they handle the technical side of SEO. As many of us know, every site is different, and the correct solution to one site's problem might be vastly different from a similar issue on another site.

Patrick Altoft â€" Branded3

Branded3

What makes the ideal SEO employee?

We don't subscribe to the theory that SEO employees have to be good all-rounders because it's actually very useful to have specialist technical people and specialist creative people working on the account. How many great creative people also have great technical skills? Very few. We are a 50-person agency, so we have the resources to have specialist teams working on the individual campaign components rather than trying to have generalists who don't have the detailed skills. We use experienced strategists to run our clients' accounts, and they are the primary point of contact, so they need great SEO skills and great account management skills. Those are probably the key criteria we look at for this role.

Kelvin Newman â€" Sitevisibility

Site Visability - Think beyond the click

What makes the ideal SEO employee?

A while back I wrote a free book about Link Building called "How to Become a Clockwork Pirate," and while a lot of that advice was pre-Penguin, there's one area I think I was on the right page: The ideal SEO has two different skills sets, the creative and the methodical. People are going to sit at different places on the spectrum, but the most successful SEOs I've worked with sit somewhere in the middle. They're people prepared to come up with good ideas but accept that a great idea without hard work is useless. Equally, they understand sometimes it's about putting in the hours and follow-up; that's the difference between success and failure. I think Seth Godin summed it up really well: "Real Artists Ship."

Image credit Wordle.net

Conclusion

Each expert answered a single question â€" What makes the ideal SEO employee? â€" in incredibly different ways. Some wanted specialists, and some preferred all-rounders. Some liked to build the new employee's knowledge almost from scratch, while others were looking for people with solid knowledge of the industry. Still, time and again the same qualities popped up.

The ideal SEO employee should:

  • Be smart.
  • Be motivated to learn â€" even off the clock.
  • Be a problem solver.
  • Maintain their own site in their off-time.
  • Be both logical and creative.
  • Be an excellent communicator who is able to build relationships.
  • Have a passion for technology and the internet.
  • Be willing to try new things.
  • Constantly push to improve themselves, their approach to SEO problems, and others.

At the end of the day, few of these qualities have much to do with HTML or information architecture. Instead, they seem to focus on personality traits like leadership, tenacity, curiosity, and self-motivation.

The next time you find yourself searching for the ideal SEO employee, just remember that the ideal SEO employee is someone with the right personality. The technical know-how can be taught.


Sign up for The Moz Top 10, a semimonthly mailer updating you on the top ten hottest pieces of SEO news, tips, and rad links uncovered by the Moz team. Think of it as your exclusive digest of stuff you don't have time to hunt down but want to read!

Seth's Blog : The sweet smell of success

 

The sweet smell of success

No one talks about what color the success is, just how it smells.

When Amanda Palmer was busking on the streets of Harvard Square, she made enough to pay her rent. She supported herself, she made it work. She didn't plan on busking, think about busking or get ready to busk. She did it and she succeeded. One person, ten people in the crowd... Didn't matter, she was working, she was a pro.

I sold my first book project (I owned half of it) for $5,000. I didn't worry about how big the advance was, I celebrated that I had a publisher. I followed that up a (very long) year later with another book (I owned half of that one, too) which I sold for even less. But now I had TWO publishers, and stories to go with each.

You will be labeled, like it or not. If you earn the label of, "person who builds things, ships them and sells them to someone who values them..." you're way ahead of the pack. You're going to be doing this for a long time. When you have the chance, engage with the market, declare victory, make the sale.

More chocolate chip cookies don't smell that much better than just a few.

       

More Recent Articles

[You're getting this note because you subscribed to Seth Godin's blog.]

Don't want to get this email anymore? Click the link below to unsubscribe.




Your requested content delivery powered by FeedBlitz, LLC, 9 Thoreau Way, Sudbury, MA 01776, USA. +1.978.776.9498

 

joi, 18 iulie 2013

Mish's Global Economic Trend Analysis

Mish's Global Economic Trend Analysis


Detroit Files Chapter 9 Bankruptcy; Oakland, LA, Others on Deck; Pension Promises vs. Bondholders in Spotlight; The Bright Side

Posted: 18 Jul 2013 06:19 PM PDT

In an inevitable, anticlimactic decision today, Detroit files for bankruptcy.
Detroit became the largest US city to ever file for bankruptcy on Thursday, seeking protection from its creditors as it restructures more than $18bn in debt.

Richard Snyder, Michigan's Republican governor, said in a letter included in the filing.

"Detroit simply cannot raise enough revenue to meet its current obligations and that is a situation that is only projected to get worse absent a bankruptcy filing.

Kevyn Orr, who Mr Snyder appointed in March to serve as Detroit's emergency manager, has stirred controversy by putting the claims of holders of general obligation bonds – which are backed by taxes – on the same footing as those of pension funds and retirees.

Holders of the general obligation bonds argue that they should be paid before other unsecured claimants. Pension funds maintain that their rights are constitutionally protected and should have priority.

"To treat holders of general obligation bonds backed by the full faith and credit of a sovereign entity as unsecured and impaired has implications for the municipal market," said Peter Hayes, head of municipal bonds at BlackRock, which owns $25m of Detroit's debt.

Mr Orr said the city's total debt was at least $18bn and could be as much as $20bn – $11bn of which is unsecured. The remaining $9bn that is secured will probably be paid back at 100 cents on the dollar.
Welcome to Chapter 9, Detroit

FT Alphaville says Welcome to Chapter 9, Detroit
Beyond the list of derelict buildings and brownfield sites owned by the city — you'll want to read the approval letter by Michigan Governor Rick Snyder, in Exhibit A.

 

Here is a link to Detroit's Bankruptcy Filing

Amusing Flashback of the Day

The amusing flashback of the day with a hat tip to ZeroHedge goes to a CBS news headline from  October 13, 2012 Obama: I "refused to let Detroit go bankrupt".

Gut Kick

Bloomberg says Detroit 'Gut Kick' Poses New Test for Long Suffering City
The move was inevitable, said Steven Rattner, a New York financier who headed President Barack Obama's auto-industry task force in 2009 that put the predecessors of General Motors Co. and Chrysler Group LLC into bankruptcy reorganizations.

"This will be much messier than the auto companies," he said. "This will go on for a long time."

"You're going to have much bigger haircuts for the workers and that's going to mean much more pain than the workers for the auto companies were asked to bear," Rattner said.

Michel Soucisse, manager of Mudgie's Deli on Porter Street, shares her concern.

"I really fear that Detroit will be cut apart by its creditors and some of our assets will start to be sold off willy-nilly," he said in an interview. "I really hope it means that we get to keep our assets and get help at the same time."
10 Pages of Bankruptcy References on This Blog 

I have 10 pages of Detroit Bankruptcy References on this blog. The earliest is in regards to GM and is from 2005.

Here are a few examples:


Clearly this is not a surprise. Nor did the stock market treat it like a surprise.

What's going to be a surprise (but not to Mish readers) is when Oakland, LA, Houston, Baltimore, and numerous other cities declare bankruptcy to escape untenable pension and health-care promises.

The Bright Side

Taxpayers should be fed up with ever-escalating property taxes, sales taxes, and fees to pay ridiculous retirement plans for unappreciative public union employees, especially police, fire, and teachers' unions.

So, look on the bright side.

The Detroit bankruptcy is a good thing, and it will be even better when numerous other cities, bankrupted by public union greed, do exactly the same thing.

If you are desperate for yield and holding questionable municipal bonds, especially long-term municipal bonds, you may wish to reconsider.

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

Survey on Impact of Obamacare on Corporate Hiring; Businesses Far More Pessimistic vs. March

Posted: 18 Jul 2013 03:10 PM PDT

SageWorks conducted an interesting survey on corporate hiring plans of private businesses in March and again recently.

Let's start with a look at results from the June 25 to July 16 survey, collecting responses from 300 accountants.

Sageworks surveyed 300 accounting professionals who work closely with [privately held] firms and found that 66 percent expect the new health care changes will make it less likely that businesses will add new employees in the next year. Sixteen percent said it would have "no impact," and 14 percent of respondents said they were "unsure" about the ultimate impact. Only 2 percent said the Act makes it "more likely" that businesses will add new employees.

Impact of Obamacare on Hiring Plans



"Private companies are performing well, but they're simply not hiring with the same volume and consistency that we'd expect from them at this point in the economic recovery," noted Sageworks Chairman Brian Hamilton. He continued, "The recent delay in the implementation of the Affordable Care Act, and the uncertainty that accompanies such a delay, won't help the employment situation. Private businesses are trying to map out their hiring and investment plans for the next twelve months, and a last minute delay like this will increase the likelihood that companies remain on the fence about hiring."

Businesses More Pessimistic than in March

Let's Compare the Current Survey to March

Current Survey



March Survey



March vs. July

  • In March, 20.29% of privately held companies expected to increase employees.
  • By July, only 13% expected to increase employees
  • In March, only 6.52% of privately held companies expected to reduce employees.
  • By July, 12% privately held companies expected to reduce employees.

These survey results are not unexpected (by Mish readers), but the results likely are unexpected by economists and mainstream media writers.
 
Mike "Mish" Shedlock
http://globaleconomicanalysis.blogspot.com

Loosen This Tighten That

Posted: 18 Jul 2013 10:55 AM PDT

It's hard not to laugh at the ECB's latest attempt to stimulate lending to small and medium-sized entities (SMEs).

Please consider ECB Changes Collateral Rules as It Seeks to Boost Lending.
The Frankfurt-based ECB will reduce the risk premium, or haircut, applicable to asset-backed securities to 10 percent from 16 percent, according to an e-mailed statement today. It'll also lower the quality threshold for six ABS classes that are subject to loan-level reporting requirements to two A- ratings from two AAA ratings. At the same time, the central bank will tighten rules for retained covered bonds so the total effect on eligible collateral will be "overall neutral," it said.

Policy makers will "continue to investigate how to catalyze recent initiatives by European institutions to improve funding conditions" for SMEs, according to today's statement, which marks a biennial review of the bank's risk-control framework. The focus will be on "the possible acceptance of SME-linked ABS guaranteed mezzanine tranches as Eurosystem collateral in line with established guarantee policies," it said.

The central bank also changed the haircuts it applies to sovereign bonds pledged as collateral in refinancing operations. While it reduced the risk premium on most securities rated at least A-, it raised haircuts on bonds rated from BBB+ to BBB-, the lowest three investment grades. That shift will affect banks that use government bonds issued in countries including Italy and Spain. 
For starters, I rather doubt that the ECB has a clue as to what is really AAA. Next I point out the absurd assumption that sovereign bonds will not default when there have already been defaults and writedowns in Greece and Cyprus.

I happen to think Spain and Portugal are next, with Italy not too far behind.

Here's the key question: What is the point of lending to SMEs when the main problem is not funding but lack of customers? It seems to me that more lending is a sure path to more bank losses.

And the banks are capital impaired (which  of course is precisely why banks are not  lending more in the first place).  The only reason banks do not appear to be capital impaired is they do not have to mark all their assets to market.

Finally, even if it made sense to stimulate lending to SMEs, is a mere reduction in collateral from 16% to 10% enough? If it is, I suggest it will expose the ECB to losses on its collateral.

"Loosen This Tighten That" as a strategy to stimulate SME lending is ridiculous.

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

European Car Sales Plunge to 20-Year low

Posted: 18 Jul 2013 02:00 AM PDT

Amidst all the happy talk that Europe is on the verge of some sort of recovery, here is yet another counterpoint: European Car Sales Plunge to 20-Year Low
Despite hopes that the European market might have finally bottomed out, car sales for the first half of 2013 plunged to a 20-year low, according to industry data, with little sign that the downturn is about to reverse itself.

According to new data from the European Automobile Manufacturers Association, or ACEA, new vehicle registrations continued to slip with a decline of 6.3% in June, bringing total sales for the first six months of the year to just 6.44 million, a 6.7% drop.

Among the five largest markets, only the U.K. was up, a countervailing 13%, while the other regional powerhouses, Germany and France were down 4.7% and 8.4%, respectively.  The United Kingdom, in fact, has been running counter to the downward slide all year, so far gaining 10%.

Among smaller markets, sales plunged 42.7% in Cypress, the latest European country to receive a bailout aimed at helping restructure its lopsided sovereign debt load.

Even the traditionally strongest manufacturers have been struggling this year, Volkswagen AG declining 4.4%, with its high-line Audi brand down 8.8%, according to industry figures. Italy Fiat SpA was off 10% for the first half, with France's Peugeot off 13.3%, one of the worst declines of any major brand and a further worry for a company desperate to reverse mounting, multi-billion dollar losses. Honda was the rare winner among mainstream brands, with a sale gain of 6.4%.

Only a handful of luxury brands bucked the industry downturn, Mercedes up 3.5%, Land Rover rising 10.2%, and Jaguar gaining 15.5%. But BMW was down 7.7%.
As I said yesterday ....

Expect the recovery to be "weaker than expected". Indeed, expect no recovery at all. Rather, expect Germany to contribute in a major way to the pending "unexpected" non-recovery, unless by some miracle European exports to Mars suddenly take off.

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

Damn Cool Pics

Damn Cool Pics


Angelica Kenova the Human Barbie Doll

Posted: 18 Jul 2013 06:21 PM PDT

This is Angelica Kenova from Moscow. She is a child psychologist and model. And she had one dream since her childhood to become a barbie doll. Hey, if you can dream it you can do it.