About Me 0086: Money Making

That’s just showing off.

The Fed released its preliminary 2010 results on Monday and they show a hum-dinging whopper of a “profit”. From the release:

The Federal Reserve Board on Monday announced preliminary unaudited results indicating that the Reserve Banks provided for payments of approximately $78.4 billion of their estimated 2010 net income of $80.9 billion to the U.S. Treasury. This represents a $31.0 billion increase in payments to the U.S. Treasury over 2009 ($47.4 billion of $53.4 billion of net income). The increase was due primarily to increased interest income earned on securities holdings during 2010.

These are the fruits of the Fed’s open market operation labours, which netted it $76.1 billion in income through securities transactions. Here are some examples; Hank Greenberg might want to look away now:

$7.1 billion in net income from consolidated limited liability companies (LLCs), which were created in response to the financial crisis; $2.1 billion in interest income from credit extended to American International Group, Inc.; $1.3 billion of dividends on preferred interests in AIA Aurora LLC and ALICO Holdings LLC; and $0.8 billion in interest income on loans extended under the Term Asset-Backed Securities Loan Facility (TALF) and loans to depository institutions.

Now, the Fed turning a healthy dime ain’t anything new, and this income will make but a dent in the deficit, but as you can see from this chart, 2010 was a record year:

Makes you wonder why analysts are struggling to see above-average returns from financials in 2011.

Related link:

The increasing frequency of the Fed’s POMOs – FT Alphaville

This entry was posted by John McDermott on Monday, January 10th, 2011 at 19:07 and is filed under Capital markets. Tagged with federal reserve, Open market operations.
Edit this entry.

Chatroulette found itself with a surplus of naked men, so founder Andrey Ternovskiy figured out how to get rid of them while turning a profit.

TechCrunch crunched the numbers and found that 89% of Chatroulette users are male, and 1 in 8 chats on the site contain material that would be at least rated R (read: naked people). That might account for the site's sharp drop in traffic. 18 year old founder Andrey Ternovskiy turned naked men into money, telling Fast Company, "Everyday, about 50,000 new men are trying to get naked. What we're doing is selling the naked men to a couple of websites."

Here's how it works. Users on Chatroulette can now control the content they receive by flagging chat partners as displaying inappropriate content. Once a user receives a certain amount of flags, they're banned from the site for forty minutes. Instead of just kicking the offending user off the site, Chatroulette redirects them to an adult website; the adult site, in turn, pays Chatroulette for the referral.

When Chatroulette first came on the scene, Ternovskiy was besieged with offers to buy the innovative site, and turned them all down. The offers dropped off with the drop in traffic, but the content control system has already yielded positive results. The rerouting of naked men has also made Chatroulette about $100,000 a month.

Source: Fast Company, via Geek

bench craft company reviews bench craft company reviews

Monday, January 24, 2011

Money Making

No comments:

Post a Comment