These Three Firms Own Corporate America

Jan Fichtner, University of Amsterdam; Eelke Heemskerk, University of Amsterdam, and Javier Garcia-Bernardo, University of Amsterdam

A fundamental change is underway in stock market investing, and the spin-off effects are poised to dramatically impact corporate America.

In the past, individuals and large institutions mostly invested in actively managed mutual funds, such as Fidelity, in which fund managers pick stocks with the aim of beating the market. But since the financial crisis of 2008, investors have shifted to index funds, which replicate established stock indices, such as the S&P 500.

The magnitude of the change is astounding: from 2007 to 2016, actively managed funds have recorded outflows of roughly US$1,200 billion, while index funds had inflows of over US$1,400 billion.

In the first quarter of 2017, index funds brought in more than US$200 billion – the highest quarterly value on record.

Democratising the market?

This shift, arguably the biggest investment swing in history, is due in large part to index funds’ much lower costs.

Actively managed funds analyse the market, and their managers are well paid for their labour. But the vast majority are not able to consistently beat the index.

So why pay 1% to 2% in fees every year for active funds when index funds cost a tenth of that and deliver the same performance?

Some observers have lauded this development as the “democratisation of investing”, because it has significantly lowered investor expenses.

But other impacts of this seismic shift are far from democratising. One crucial difference between the active fund and the index fund industries is that the former is fragmented, consisting of hundreds of different asset managers both small and large.

The fast-growing index sector, on the other hand, is highly concentrated. It is dominated by just three giant American asset managers: BlackRock, Vanguard and State Street – what we call the Big Three.

Lower fees aside, the rise of index funds has entailed a massive concentration of corporate ownership. Together, BlackRock, Vanguard and State Street have nearly US$11 trillion in assets under management. That’s more than all sovereign wealth funds combined and over three times the global hedge fund industry.

In a recently published paper, our CORPNET research project comprehensively mapped the ownership of the Big Three. We found that the Big Three, taken together, have become the largest shareholder in 40% of all publicly listed firms in the United States.

Figure 1: Network of ownership by the Big Three in listed US firms. (See our paper for explanation of colours).

Fichtner, Heemskerk & Garcia-Bernardo (2017)

In 2015, these 1,600 American firms had combined revenues of about US$9.1 trillion, a market capitalisation of more than US$17 trillion, and employed more than 23.5 million people.

In the S&P 500 – the benchmark index of America’s largest corporations – the situation is even more extreme. Together, the Big Three are the largest single shareholder in almost 90% of S&P 500 firms, including Apple, Microsoft, ExxonMobil, General Electric and Coca-Cola. This is the index in which most people invest.

Figure 2: Statistics about the ownership of the Big Three in listed US firms.

Fichtner, Heemskerk & Garcia-Bernardo (2017)

The power of passive investors

With corporate ownership comes shareholder power. BlackRock recently argued that legally it was not the “owner” of the shares it holds but rather acts as a kind of custodian for their investors.

That’s a technicality for lawyers to sort. What is undeniable is that the Big Three do exert the voting rights attached to these shares. Therefore, they have to be perceived as de facto owners by corporate executives.

These companies have, in fact, publicly declared that they seek to exert influence. William McNabb, chairman and CEO of Vanguard, said in 2015 that, “In the past, some have mistakenly assumed that our predominantly passive management style suggests a passive attitude with respect to corporate governance. Nothing could be further from the truth.”

When we analysed the voting behaviour of the Big Three, we found that they coordinate it through centralised corporate governance departments. This requires significant efforts because technically the shares are held by many different individual funds.

Hence, just three companies wield an enormous potential power over corporate America. Interestingly, though, we found that the Big Three vote for management in about 90% of all votes at annual general meetings, while mostly voting against proposals sponsored by shareholders (such as calls for independent board chairmen).

One interpretation is that BlackRock, Vanguard and State Street are reluctant to exert their power over corporate America. Others question whether the Big Three really want this voting power, as they primarily seek to minimise costs.

Corporate American monopoly

What are the future consequences of the Big Three’s unprecedented common ownership position?

Research is still nascent, but some economists are already arguing that this concentration of shareholder power could have negative effects on competition.

Over the past decade, numerous US industries have become dominated by only a handful of companies, from aviation to banking. The Big Three – seen together – are virtually always the largest shareholder in the few competitors that remain in these sectors.

This is the case for American Airlines, Delta, and United Continental, as it is for the banks JPMorgan Chase, Wells Fargo, Bank of America, and Citigroup. All of these corporations are part of the S&P 500, the index in which most people invest.

Their CEOs are likely well aware that the Big Three are their firm’s dominant shareholder and would take that into account when making decisions. So, arguably, airlines have less incentive to lower prices because doing so would reduce overall returns for the Big Three, their common owner.

In this way, the Big Three may be exerting a kind of emergent “structural power” over much of corporate America.

Whether or not they sought to, the Big Three have accumulated extraordinary shareholder power, and they continue to do so. Index funds are a business of scale, which means that at this point competitors will find it very difficult to gain market shares.

In many respects, the index fund boom is turning BlackRock, Vanguard and State Street into something resembling low-cost public utilities with a quasi-monopolistic position. Facing such a concentration of ownership and thus potential power, we can expect demands for increased regulatory scrutiny of corporate America’s new “de facto permanent governing board” to increase in coming years.

Jan Fichtner, Postdoctoral Researcher in Political Science, University of Amsterdam; Eelke Heemskerk, Associate Professor Political Science , University of Amsterdam, and Javier Garcia-Bernardo, PhD Candidate, University of Amsterdam

This article was originally published on The Conversation. Read the original article.

The 23 Ugliest Skyscrapers In The World

For Architectural Digest, by Nick Mafi.

Designing anything, let alone a massive building, is not a simple task. It requires pragmatic decision-making coupled with bold creativity. As with any form of art, the designer ultimately strives to make something striking and original. Sometimes this effort pays off in the form of a lasting structure — a work that transcends time and place. While other times, well, not so much. Of course, it’s not always the architect’s fault. In some instances, like Tour Montparnasse in Paris, the designers are a bit unlucky. Had they erected their work in any other location other than the City of Light, maybe it wouldn’t stick out like a sore thumb. But, alas, architecture, like all creative endeavors, is a cruel venture. As such, AD rounds up the 23 ugliest skyscrapers from around the world, ones that began with high intentions but eventually didn’t quite meet the mark.

Located in Bangkok, the Elephant Building was completed in 1997 by architect Sumet Jumsai. While playful in design, the structure does little to push the integrity of Thai architecture.

When the Žižkov Television Tower was completed in 1992, Prague's skyline forever changed. The project, designed by Václav Aulický, took seven years of construction, stretching some 708 feet in the air.

Located in central Hong Kong, the Lippo Center is a twin-tower skyscraper completed in 1988 by American architect Paul Rudolph.

The Tianzi Hotel, in China’s Hebei province, is a series of colorful building depicts Fu, Lu, and Shou, the Chinese gods of good fortune, prosperity, and longevity. Guinness World Records named the hotel the world’s "biggest image building."

Another structure located in Bangkok designed by architect Sumet Jumsai, the Robot Building was completed in 1986 for roughly $10 million.

More: 10 Hotels with Unbelievably High-End Amenities

Completed in 1997 and located in Newark, Ohio, Longaberger's former headquarters building, modeled on a Longaberger Medium Market Basket, was designed by American architecture firm NBBJ.

No matter that North Korea's Ryugyong Hotel is, after three decades, still under construction, we can already tell this skyscraper won't be the most beautiful on the planet. Designed by Baikdoosan Architects & Engineers, the 1,083-foot-tall structure has continuously remained vacant.

Located in Abu Dhabi, UAE, and designed by the Lebanese-based firm MZ Architects, the Aldar headquarters building was opened in 2010.

The Fangyuan Mansion, which was completed in 2001, was designed by C.Y. Lee & Partners. Located in Shenyang, China, the structure cost nearly $500 million to build.

New York City's Verizon Building, which was designed by Rose, Beaton & Rose and completed in 1975, is not only aesthetically displeasing but it's located in downtown Manhattan, near the Brooklyn Bridge and East River. Which is to say, it's wasting a great opportunity in a prime New York real estate space.

More: The 10 Best New Luxury Cruises

Located in London and completed in 2010 for roughly $146 million, the Strata SE1 (which is also referred to as the "Razor" or "Electric Razor") was designed by the U.K.-based firm BFLS.

Although the National Library of Belarus was founded in 1922, the current structure, which houses all its books, wasn't completed until 2006. The building was designed by architects Mihail Vinogradov and Viktor Kramarenko.

Designed by Dennis Lau & Ng Chun Man, the Grand Lisboa Hotel in Macau was built in 2008, nearly one decade after the region was no longer a Portuguese territory.

The Slovak Radio Building in Bratislava was completed in 1983, after 16 years of construction. The structure, which looks like an inverted pyramid, was designed by Štefan Svetko, Štefan Ďurkovič, and Barnabáš Kissling.

Designed by the Dutch-based firm MVRDV, the Mirador Building in Madrid is a collection of different neighborhoods stacked vertically around a public sky-plaza. The structure was completed in 2005, after four years of construction.

More: The World’s Best Oceanfront Hotels

The Liverpool Metropolitan Cathedral, which was designed by architects Frederick Gibberd and Edwin Lutyens, was completed in 1967.

Completed in 2012, the National Fisheries Development Board Building is located in Hyderabad, India, in the southcentral part of the country.

The Russian Embassy in Havan, which was designed by Soviet architect Aleksandr Rochegov, was completed in 1985.

The National Library of Kosovo was designed by Croatian architect Andrija Mutnjaković and completed in 1982.

It certainly doesn't help Tour Montparnasse's cause that it was built in one of the most architecturally significant cities in the world. But the structure, which was completed in 1969, is currently the third-tallest building in Paris, and possibly the ugliest.

More: 22 Incredible Indian Palaces (You Can Stay At)

With its 7,351 rooms, Malaysia's First World Hotel & Plaza, which was completed in 2008, is the world largest hotel. But for all it has in size, it certainly lacks in beauty.

The 1,535-foot-tall Oriental Pearl Tower is the second-tallest skyscraper in Shanghai. Designed by architects Jia Huan Cheng, Zhang Xiulin, and Lin Benlin, the structure was completed in 1994.

Not everything beautiful needs to flash like gold. The Trump Tower in Las Vegas is a perfect example of that. Completed in 2008, the 620-foot-tall structure is an eyesore even in a city filled with over-the-top architecture.

More from Architectural Digest:

See What's Inside Donald Trump's Former Superyacht

14 of the Most Luxurious Yacht Decks

10 Incredible Ski Resorts

Addicted To Ambition: 3 Ways Millennials Can Manage Their Stress

A version of this article was originally published on Forbes. Sign up for Caroline’s newsletter to get her writing sent straight to your inbox.

If you’re like me, accolades make you want more accolades. Though responsible for great success and progress, ambition can also cause feelings of worthlessness, mania and anxiety. Neuroscience now explains why, and offers insight on alleviating its adverse effects.

Motivation is a neural process that influences avoidance and desire. When dopamine is released to certain areas of the brain, it triggers feedback predicting whether something good or bad is about to happen. The prediction then prompts our motivation to either minimize the predicted threat or maximize the predicted reward.

This system applies to all kinds of stimuli and scenarios, from finding food, shelter and other survival means to pleasure-seeking behaviors such as drugs and romance. It also applies to ambition, whereby a relentless dopamine feedback loop predicts higher and higher rewards and motivates us with increasing stakes.

A 2012 study published in the Journal of Neuroscience found that “go-getters” who are willing to work hard for rewards had a higher release of dopamine in certain areas of the brain known for their role in reward and motivation than other participants.

Of course, ambition isn’t automatically bad. According to one study published in the Journal of Applied Psychology, ambition is correlated with educational attainment, occupation prestige and income. Children with above average educational aspirations generally obtain higher status and better paying jobs. Ambition is even positively, albeit weakly, linked to life satisfaction.

On the other hand, rates of mania are higher in countries whose cultures emphasize individualistic, as opposed to collective, striving. Ambition increases one's risk of bipolar disorder, narcissistic personality disorder and depression. Ambitious people die earlier.

At its worst, ambition mirrors the sick cycle of addiction.

The American Society of Addiction Medicine defines addiction as:

[an] inability to consistently abstain, impairment in behavioral control, craving, diminished recognition of significant problems with one’s behaviors and interpersonal relationships, and a dysfunctional emotional response.

Addiction alters “motivation hierarchies” and “supplant[s] healthy self-care”. It need not include alcohol or drugs.

As we build our careers and seek validation for our work, millennials are especially vulnerable to ambition addiction. Research suggests that millennials are, in fact, more professionally and academically ambitious than previous generations. According to a Pew Research Center survey from 2010, 57% of millennials say it’s not likely they’ll remain with their current employers for the rest of their career, compared to 36% of Gen Xers. U.S. college attendance by 18- to 24-year-olds recently hit an all-time high, and a full third of college graduates plan to also attend graduate or professional school. Unsurprisingly, 20 to 39 year olds are the fastest growing population segment for stimulant prescriptions.

Today’s 20-somethings enter the workforce in an era of intense competition, where public health experts call stress an epidemic. And stress starts earlier in life, with some data suggesting that today’s average high schooler is as anxious as the average 1950s psychiatric patient.

It’s a bad combination: two of the greatest risk factors for addiction are stress and youth. With the wrong steps, we jeopardize our wellbeing to what David Hume called the “incurable passion” of ambition.

Here are some psychology-backed solutions to keep our heads on straight without sacrificing success:

1. Set the right kind of goals

Psychologists agree that ambition is typically centered around attainment of outcomes. But studies overwhelmingly reveal that exclusively extrinsic goals sabotage our health. Research by Tim Kasser, a professor of psychology at Knox College, shows that pursuit of external values like money, possessions and social status leads to reduced wellbeing and increased distress. Similarly, disruption guru Clayton Christensen found that chasing short-term success sours relationships and seeds regret.

The solution?

Shift your plans, goals and resolutions to an intrinsic orientation. According to U.C. Berkeley psychologist Sheri Johnson, examples of intrinsic motivations include “I want to be very close to people”, “I want to feel like my life has meaning” and “I want to feel like I’m doing something good for the universe.” For contrast, some extrinsic motivations are “I want to make sure that I’m wealthier than other people” and “I want to be viewed by others as having influence and power.”

One helpful exercise is constructing goals around how, specifically, you want to feel at a given time or add value to your company, relationships or the world.

2. Forfeit perfectionism

Perfectionism is setting unyielding, unrealistic expectations. While healthy high standards can motivate us to accomplish great things, perfectionism feeds addiction and makes us unhappy. FORBES contributor and psychologist Todd Essig observes, “Somehow we have lost an appreciation for the fact that a biological ‘good enough’ really is good enough.”

Research shows that people who value extrinsic goals and then don’t achieve them are at high risk for anxiety and depression. We can see this neurologically: if our expectations aren’t met, dopamine activity and the pleasure associated with it drops off. Furthermore, despite our biochemical conviction that the more we achieve the happier we’ll be, addiction produces tolerance mechanisms within the brain that, ironically, cause a stimulus’ feel-good effect to diminish with repeated use.

The solution?

Set achievable goals and embrace surprise if you surpass them. According to Stanford science writer Bruce Goldman, research exposes that “what really gets the reward circuitry jazzed up isn’t so much the good vibes as it is the extent to which the goodness of the vibes exceed expectations.”

3. Connect

Besides stress and youth, another risk factor for addiction is poor social networks. Conversely, research confirms the cliche that the happiest people are those with the strongest social connections. One 75-year Harvard study revealed that the most important component to a satisfied life is love and belonging. If you feel an empty craving, more accomplishments are not what you need.

The solution?

Find people who care about you and can help you manage your stress. Nurture those relationships. In his article “3 Warning Signs You’re Too Busy to Succeed”, Dale Partridge recommends regularly asking, “Are you too busy to catch up with people? Are you investing into friends and family? Or are you just checking in when it’s convenient for you?”

With self-awareness and loved ones to hold us accountable, we can balance ambition for a more fulfilling—yet equally rewarding—life.

If you liked this article, sign up for Caroline’s newsletter to receive more like it!

4 Business Mistakes I'll Never Make Again

It goes without saying that the first time ― for anything ― rarely ever reaches perfection. I am the classic ride-the-train-for-as-long-as-possible “first” kind of person. In college, when a professor spoke about anything beyond the syllabus on the first day of school, it was like I’d been wronged. Did they not get the memo? It’s the FIRST day of school!

So when I embarked on my first year of business, I went in giving myself a little bit of grace, knowing perfection wouldn’t be in the cards anytime soon (or ever, for that matter). I’m a creature of having to make the mistakes to actually learn from them.

And boy, learn from them, I did.

Sunday dance parties > Sunday scaries. 💃🏼💃🏼💃🏼 Last few hours to snag 15% off newbies with code HEYGIRL. Hop, skip and jump to it, #prettyfunthing! 🎉 // 📸: @ironandhoney

A post shared by Alice & Wonder (@aliceandwonder) on Mar 26, 2017 at 7:09pm PDT

1. Thoughtfully decide when to “go big.”

Making your business stand out is what will make you thrive. But test before you invest. If your ideal customer is someone like you, or people you might know, or people in a specific market, ask them their real thoughts on what you’re planning to offer.

I’m not saying spend money on focus groups or even hours reading industry books (which, side note, can’t hurt). I’m talking walk out your front door and ask people what they like. What they need. What will they actually spend money on.

This winter, our store made a holiday doormat, the first product that we solely created, and it was downright exciting. After convincing myself this was the best thing ever, I immediately jumped to, “How many should we make? 500? 350? 200?” This was going to be BIG.

After chatting with friends, friends of friends, and my husband (who was crossing his fingers this silly doormat would work), I quickly went from 500 in production to 70, ensuring all factors were met in order to make it sellable. The design had to be right, the product had to be quality, and the price had to be fair.

Had I jumped the gun at first glance and placed an order for 500, this post may have been titled, “Why You Should Buy A Holiday Doormat In February.” But really, while our costs to produce 70 were higher than what they would have been to produce 500, the experience allowed us to test a new product and see its selling potential. This in turn will allow us to leap a little farther on our next go around.

Whatever your business may be, find a way to test your market ahead of time and thoughtfully decide when the “go big” time strikes. It may take longer in the beginning, but whatever you’re offering will benefit in the end. This is your marathon ― not sprint ― moment.

Friday par-tay starts NOW! 🎉🙌🏻🌺 New arrivals are up and our office dancing has commenced! 💃🏼 Now through Monday, take 15% off your entire order with code SUNVIBES. ☀️ Happy shopping, #prettyfunthings! // 📸: @codyhunterphotography

A post shared by Alice & Wonder (@aliceandwonder) on Feb 17, 2017 at 7:27am PST

2. Do it for the “loves” and not the “likes.”

Starting an online business, I knew social media would be something I’d rely heavily upon to grow the company. Yet in a world so dependent on what each of us are individually doing on Instagram, Facebook, and Snapchat, it can be hard to carve out space to get customer attention. I typically pride myself on a positive outlook, but for some reason seeing other companies do social media well ― flawlessly, even ― used to be an instant intimidation factor.

When I started to create content of my own, my outlook for our business was based on the amount of engagement my most recent post had received. If a post did well, we were thriving. If a post did terribly, I wasn’t meant for this life, and I must not be able to hack it. It sounds a little crazy to say that. Whether I deemed myself successful in my own business or not was based on the amount of “likes” I got from total strangers!

Social media can and should be used to grow your business, but it shouldn’t be used to define what you do well. You could be a phenomenal stylist, designer, photographer, event planner or, heck, accountant. Creating a big following takes time and investment, just like any other aspect of your business. You might need to work on finding your target market, making more connections with your customers or participating in more (gasp!) in-person events to really make am impact on your followers online. But remember: Getting all the engagement in the world doesn’t do much if it’s not turning into sales.

At the end of the day, you’ve opened a business to generate revenue doing something you’re passionate about. Take your favorite online influencer, for instance. They are a model, a stylist, a chef, a fitness guru, a foodie, or maybe all the things. That is their craft that defines them. And while they’ve become amazing at showcasing their talents through brightly colored images and beautiful words, their business started at the root of the same thing yours and mine did: that one thing they were passionate about.

Social media can and should be used to grow your business, but it shouldn’t be used to define what you do well.

In your business, make sure whatever you’re doing is the absolutely best it can be instead of focusing so much on how it appears online. Marketing is incredibly important, but the needle doesn’t move without a quality product or offering behind it. In a world where quantity is king, be the business that knows the value of quality customers. The customers who are excited to watch you grow. The ones who dig what you do so much, they can’t help but tell their friends. The girl who loves you, which means she’ll come back to “like” you.

K I L L I N' I T. Boom, Wednesday. 👊🏻 (PS: it's 8:30pm in China and we're still chugging coffee. Because that's the American, addicted to caffeine, way. 🤗) #prettyfunthings // New arrivals hit the site next week! In the meantime, grab this guy ☝🏻 in the shop this weekend! 🎉 📸: @ironandhoney

A post shared by Alice & Wonder (@aliceandwonder) on May 3, 2017 at 5:42am PDT

3. Build a brand that’s bigger than you.

When asked who Alice & Wonder was and what we do, my initial reaction was to say, “Alice & Wonder is for girls like me, and we sell things girls like me would like.”

Convincing, catchy, draws you in ― right?

Nope.

My tone on social media was predicated by what I felt that day. The items I chose to carry were more about what my eye was drawn to than what we, as a brand, should carry. The more I moved forward, the more I figured our brand would formalize itself and customers would just “get it.” I knew who we were. The world would catch on.

It’s these thoughts that make me want to go back and say to myself, “Oh, girl. Stop right there. Do not pass go. Do not collect $200 (or any, because you may not have customers).” Being a brand doesn’t just “happen.” It’s established and built upon. I, the PR girl, knew this was true for my big clients but somehow had forgotten my Marketing 101 when it came to building my own small brand.

Being a brand doesn’t just 'happen.' It’s established and built upon.

Establishing the foundation of your brand doesn’t have to be as hard as it seems. Figure out a way to eloquently say who you, as a brand, are in one sentence. Then, define brand characteristics ― e.g., smart, quirky, elegant, passionate. These will give your brand a personality. And finally, give one sentence to who your customer is. Even if it’s someone like you, describe that person. Who is she? What does she value? Where does she spend her time? Create a voice that embodies that tone and those characteristics.

I had a hilarious manager back in my agency days who always told me our projects should be so buttoned up at all times that I could be hit by a bus the next day and another team member could step in and execute seamlessly.

Morbid? Yes. But the point being, there may come a day that you aren’t executing every move your company makes. A day where you will, dare I say, grow, and your company will become so much more than you. So when that day comes, make sure you’ve built a foundation that tells the world who you are, instead of just hoping the world catches on. 

Friday frills (our favorite kind 😍) #prettyfunthings //💁🏻: @mksportsanista 📸: @ironandhoney

A post shared by Alice & Wonder (@aliceandwonder) on Jan 20, 2017 at 5:43pm PST

4. Have absolutely no shame in your game.

I sat with girlfriends the other day, chatting about what makes an entrepreneur successful, and we came to this stunning, yet extremely obvious, conclusion: The people who will go far in business have literally no shame. They see an opportunity? They go for it. There’s a chance an idea could work? They take it. They get shot down 10 times? They ask 10 more. Something fails? They move on. Zero shames given (PG version of that phrase, I know).

I, on the other hand, have always landed myself somewhere between the area of “no shames” and “shame city.” I rarely walk into a networking event solo. I’m into talking about my business, but only quickly, for fear of being too self-promoting. After gathering the courage the ask someone for help, I’ve been known to quickly follow up with word vomit ― something like, “But it’s totally not a big deal if you don’t want to. I shouldn’t have asked. I mean, if you want to, that would be great, but seriously, NBD.”

Giving off that Monica vibe is my specialty. Breezy.

Over the last year, though, it’s been made clear to me that as a business owner, you’ll hear “no” a whole lot more than you’ll hear “yes.” And short of locking the office door and dwelling on all the rejection, a thick skin has to become second nature in order to survive.

When you start a new business, you’re constantly in the realm of asking people for things, which has always been an uneasy spot for me. When you start from scratch, it’s easy to feel like you’re always asking for things and rarely have something to offer back.

The trick I’ve discovered is an easy one: Give them a reason ― a good reason, in fact ― to say “yes.” Can you provide a service for free? Give them an experience they may not otherwise get? Allocate just a little budget to not pay them directly but pay for something they may need? Bring someone else into the offer that they might be interested in working with? The more creative the request, the more I find people appreciate the offer.

As aforementioned, I still receive my fair share of “no,” or worse, no response at all. But as a whole, I’ve been pleasantly surprised by the amount of people I’ve been fortunate enough to work with, learn from, and even create friendships with ― all because I didn’t give them a reason to say “no.” Maybe you land in the realm of 10 requests sent and only one offer accepted. But as along as you end up with zero shames given, you’ll be just fine.

Ali Reff is the owner of Chicago-based apparel and gifts shop Alice & Wonder. Nicknamed “Alice” by her family, Ali started Alice & Wonder in 2015 after leaving her job managing influencer relations and real-time engagement for McDonald’s. The inspiration to start a small business began after Ali moved to Chicago and quickly discovered the city lifestyle can come with a price tag, and budget-friendly style shouldn’t be so hard to find. Since the company’s inception, Ali began writing pieces on her small business journey in hopes of inspiring other strong female leaders to pursue their passions and share her learnings along the way. Ali lives with her husband in the Lincoln Park neighborhood of Chicago and can best be found over on Instagram @aliceandwonder or via email: ali@aliceandwonder.com.

Reflections On Mother's Day

About a month ago, I spoke at Lilly School of Philanthropy in Indianapolis about millennials ― people born roughly between 1980-2000 ― and their sizable impact on the social sector. Some stats I mentioned that day have stuck with me.

The first was this: an astounding 9 out of 10 millennials would switch brands to businesses associated with a good cause. (That translates to 91 percent of millennials vs. 85 percent of the general U.S. population).

The data for millennial moms was equally impressive. A whopping 94 percent of them were “very or somewhat likely” to switch brands based on the cause it supported, as reported in the 2015 Cone Communications Millennial CSR Study.

These findings give me hope in the many ways that this younger generation is changing our world for the better. Those of you working at nonprofits, foundations, or B-Corps might should tap into these powerful trends around consumer purchasing power, if you haven’t already.

A final stat warrants mention. A resounding 85 percent of females control their family’s shopping budget. This fact underscores the idea that women have substantial leverage to advocate for causes they strongly believe in.

Mother’s Day, May 13, is just around the corner. That day, millions of families across America will find themselves without enough food to eat. Why not honor your own mom by helping other mom whose families may be food insecure? You can donate to my organization, Feeding America, or volunteer at one of our member food banks across the nation. However you celebrate the day, remember the power of the purse strings. Next time you’re at the grocery store, take a few minutes to closely examine what you’re buying. Make this holiday a chance to support whatever good cause your mother believes in.

Follow me on Twitter at @diaviv.

Owners Of Giant Rabbit Found Dead On United Flight Seek Damages

LOS ANGELES, May 8 (Reuters) - The owners of a giant rabbit named Simon who was found dead after a United Airlines flight demanded on Monday that the airline pay damages, order an outside investigation and re-evaluate how it handles animals on flights.

Attorneys for Simon’s owners, who purchased him in hopes of winning the title of world’s largest rabbit at the Iowa State Fair this summer, said they would take legal action if United failed to respond within seven days.

The lawyers say it is possible the 3-foot-long (1-meter) hare died after being placed in a freezer for 16 hours upon landing in Chicago on a flight from London. They say the airline then destroyed his remains without permission.

“United Airlines can issue any statement they like but their company’s credibility is under question when they immediately cremate the giant rabbit Simon without anyone’s consent,” said Guy Cook, lead attorney for the three-person investment group that owned the rabbit. “They destroyed the proof.”

United Airlines spokesman Charles Hobart denied Simon died in a freezer. He said in a written statement the company was reviewing a letter outlining the claims, was saddened by Simon’s death and takes its responsibilities for transporting pets seriously. The statement did not say how much the owners were seeking in damages.  

EXCLUSIVE: Valuable giant rabbit dies on United Airlines plane https://t.co/CGQJKjnPCS pic.twitter.com/86Xa5EX32T

— The Sun (@TheSun) April 25, 2017

 

Hobart said the hare arrived in Chicago in apparent good condition and was seen moving around his kennel some 35 minutes later.

“Shortly thereafter, a kennel representative noticed Simon was motionless and that he had passed away,” Hobart said. He did not address the cremation allegations.

Cook said it would be difficult to establish a cause of death because the rabbit’s remains had been destroyed but, in the letter, demanded that United turn over all records of its investigation, including closed-circuit television footage.

The attorney also requested an independent investigation as well as compensatory and economic and punitive damages.

Cook said that Simon, a Continental rabbit whose father is considered the world’s largest hare, was expected to exceed his father’s size to claim that title and that his owners should be compensated for their potential economic losses from exhibiting him.

The investment group purchased Simon from a breeder in England and was flying him to the United States, where he would have been displayed at the Iowa State Fair in August and ultimately crowned world’s largest rabbit, Cook said.

(Reporting by Dan Whitcomb; Editing by Bill Trott)

Emotional Literacy Is As Simple As Reading The Room

What’s wrong?

This two-word question can summarily improve a brand. Think about it: the inquiry shows an interest in how someone is feeling while also demonstrating concern about his or her feelings. It is easy for businesses, thousands of employees strong, to disregard how emotions are integrated in its nature. Brands, however, like governments and institutions, are at their core made of people. Every type of organization, faceless or warm and fuzzy, is at its core a human enterprise. With people inhabiting brands, emotions are woven into the very fabric.

Studies show employees are 12 percent more productive when they feel valued at work. Having a sense of the emotional literacy of a brand and its relationship with its consumer is invaluable. Sometimes, knowing that you cared can rectify a variety of problems. Brands leaders can follow some steps to elevate their emotional literacy.

Think: Why?

When an obstacle is presented to brands there will most likely be a process in place to resolve it. The sheer volume of problems or complaints can sometimes be lost in the ether.

United recently was beleaguered by negative press and criticism on social media following a brand crisis. The now-infamous video of a passenger being dragged off a plane went viral and the incident created an emotional response on a national scale. When the CEO released an apology that only addressed the problems of the incident, the statement was received as callous and inauthentic. This incident is a perfect example of how thinking of why the response was so severe could have helped their problem.

It is important when facing an emotional problem to consider the “why” of the situation. Put aside how this problem affects your business and understand why this problem is being presented. This will allow for the problem to be understood in its entirety and find the best solution. It is likely to be solved more quickly and with both sides walking away satisfied.

Stay Vigilant

As we’ve discussed before, one of the reasons American Apparel went bankrupt was its failure to listen to its employee complaints and the changing demand of its consumer. It is critical for a brand to understand in our ever-changing world it needs to respond accordingly.

Now, it is not enough to be responsive but proactive. Proactivity can entail expending more effort to take a pulse of your brand. How are customers responding to their experience? How satisfied are employees in their workplace? How can you improve your brand through its interactions?

A brand must take an emotional pulse of how its relationships are being maintained. This can be done through social listening, surveys or leadership-led conferences. Whichever way is decided, it is important to have these periodically. Staying on top of these questions can prevent your brand from being swept away.

Be a Public Figure

In this era of globalization, brands have been thrust onto the front pages and scrutinized for everything it does, fairly or not. As such, business leaders from Wall Street to Silicon Valley have gained more notoriety than ever before. Some leaders blanch under this spotlight. Many insulate themselves with subordinates to face the public; others eschew all media and outside attention, preferring to focus on what’s happening inside the organization.

Whatever a brand leader’s inclination, it is important to connect on a deep and profound level with two key audiences: employees and consumers. If a brand leader can forge a strong bond, based on mutual emotional understanding, other public-facing perceptions will fall in lockstep.

A business is no longer simply the provider of a product or service. In our culture, with its new expectations and consumption habits, they have become role models, scapegoats and aspirational examples. To truly embrace your consumers, be the leader that you would want to see and follow. Embrace the vaguely cliché inspirational poster quote, “be the change you want to see.”

The most important factor in any emotional equation is honesty. Transparency is a necessary component of your public face and can be one way you earn buy-in agenda. It can save you from unwanted moments of crisis and communicate to your consumers you consider them in your decisions. Honesty—with your workforce and your customers—will foment trust and a following. Ultimately, only when emotional literacy is wholly embraced will your brand transcend, maybe even to a human level.

Should India's Skilled Workers Worry About New US Visa Policies?

Eviane Cheng Leidig, University of Oslo

In his latest border-closing move, US President Donald Trump issued an April 18 executive order to review the H1-B visa program, which enables educated migrants with specific skills to work temporarily in the US.

Silicon Valley was critical of Trump’s move, saying that there is a shortage of qualified Americans working in the industry. US companies, especially those in the technology sector, often employ H1-B visa holders to fill positions that are difficult to recruit for within the country.

Beyond hurting American tech companies, the executive order would disproportionately impact one international ally: India. Over 70 percent of all H1-B visas issued each year are given to Indians, and 85 percent of H1-B visas in the technology sector go to Indians.

India-based outsourcing companies Tata Consultancy Services and Wipro processed 7,149 and 4,022 H1-B visas, respectively, for American firms in 2014, according to the New York Times.

Trump’s executive order follows through on his campaign pledge to “buy American, hire American.” The H1-B review is intended to tackle “fraud and abuse” in the system and may impose greater regulation, such as raising salary thresholds and only awarding visas to the most highly-educated and skilled applicants among those who qualify.

Are techies from India over-represented?

India-founded firms have an important presence in the US, and many CEOs of Indian origin, including Sunder Pichai from Google, have expressed disappointment with Trump’s policy review.

They claim that the Trump administration statement about H1-B visa holders being “cheap labour” that “displace[s] American workers” is inaccurate.

And in what seemed to be a response to the executive order, the Bangalore-based Indian technology company Infosys announced on May 2 that it would hire 10,000 American workers in the next two years.

Infosys currently employs some 200,000 people in several offices worldwide and plans to open four new hubs in the US “focusing on cutting-edge technology areas, including artificial intelligence, machine learning, user experience, emerging digital technologies, cloud, and big data,” according to a recent press release.

The first hub is set to open in the state of Indiana in August 2017.

A video portrays the ‘father of USB’ Ajay Bhatt.

New Delhi watches silently

Trump’s executive order sends a strong signal to New Delhi, which is a strategic ally for the new US administration. Trump has called India a “true friend” to the US.

Though Prime Minister Narendra Modi has refrained from discussing the issue publicly, Indian officials have expressed disappointment, saying that US companies based in India will be affected. Members of the prime minister’s cabinet have also voiced concerns.

Indian professionals in the US are strong contributors to the American economy, they note, and thus to the global economy.

The result of the move, it is hinted, could be a trade war between the countries.

The Indian middle class has witnessed a surge of growth and is set to dramatically increase in the near future, nearly a decade after the state’s official adoption of neoliberalism and privatisation.

The rise of multinational Indian tech firms such as Infosys, Tata, Cognizant, and Wipro (leading the IT outsourcing Indian industry valued at US$150 billion) have employed a generation of well-educated workers.

Other Indian IT professionals migrated to the US, filling, among other positions, a large labour gap in that country’s surging technology market. Indian Americans now represent the second largest diaspora in the US, totalling two million citizens.

Indeed, Indian Americans have been depicted as the newest “model minority,” with high levels of education compared to other groups of Americans and above average annual household incomes.

A pro-Trump “model minority”

A majority of these Indian American citizens identify as Democrats but during the 2016 presidential election, a small and highly visible minority of Republicans emerged.

The grassroots initiative “Hindus for Trump” and the policy-oriented Republican Hindu Coalition (RHC) both openly endorsed Trump’s candidacy in the 2016 election. The RHC acts as an advocacy organisation to be the “bridge between the Hindu-American community and Republican policymakers and leaders” on issues pertinent to the US and India, such as trade and political relations, as well as security cooperation on Islamic extremist terrorism.

A campaign by the RHC shows Donald Trump speaking in Hindi, echoing Narendra Modi’s election campaign of 2014.

Chicago-based industrialist and billionaire Shalabh Kumar, who has been dubbed “Trump’s favourite Hindu,” is the co-founder of the RHC along with the Republican Newt Gingrich, a former congressional leader and presidential hopeful. Kumar, a prominent Trump booster, donated $US1 million to Trump’s campaign in 2016.

Recently, Kumar was named by the weekly India Today as one of the top 20 “global Indians,” and has an ear in the White House as part of the Asian Pacific American Advisory Committee and the National Committee of Asian American Republicans.

At a February 2017 press conference, Kumar assured reporters that there would be no executive order on H1-B visas and that, to the contrary, the number of migrant workers would increase. He has yet to make a public statement about the Trump administration’s recent decision.

This situation highlights the tension Trump has faced at many moments in his young administration: in appealing to his nativist American base, he alienates other key demographics. The H1-B order may turn off wealthy Indian American Republicans, who are potential political and business allies.

It could also hurt the US economy. The Hindustan Times says that a significant number of Indians living in the US may now be looking for a job “back home.”

Donald Trump has invited Narendra Modi to visit the US later this year. It remains to be seen whether a trip (to, presumably, Mar-a-Lago) will help smooth the H1-B waters between these two “true friends.”

Eviane Cheng Leidig, PhD candidate, Center for Research on Extremism, University of Oslo

This article was originally published on The Conversation. Read the original article.

Sinclair Broadcast Nears Deal For Tribune Media

(Reuters) - Sinclair Broadcast Group Inc is nearing a deal to acquire Tribune Media Co for close to $4 billion after prevailing in an auction for one of the largest U.S. television station operators, according to people familiar with the matter.

A potential deal for Tribune, first reported by Reuters, could come as soon as Monday, just weeks after the U.S. Federal Communications Commission voted to reverse a 2016 decision that limits the number of television stations some broadcasters can buy.

FCC Chairman Ajit Pai, named by President Donald Trump in January, is planning to take a new look at the current overall limit on companies owning stations serving no more than 39 percent of U.S. television households.

Still, a combined Tribune and Sinclair could surpass this cap and face some regulatory challenges which could result in divestitures, analysts said.

The combination of Sinclair and Tribune would be a competitive blow to Fox because the added scale would give Sinclair more leverage in negotiations to carry Twenty-First Century Fox Inc’s local networks. Together the companies would own a large chunk of Fox broadcast affiliates around the country.

Fox Networks Group Chairman Peter Rice said at the Milken Institute Global Conference last week that Fox was looking to buy Tribune Media because “having more scale and more control of distribution is important.”

Twenty-First Century Fox was in talks with Blackstone Group LP last week about submitting an offer to buy Tribune Media, sources said at the time. Nexstar Media Group Inc also considered an acquisition of Tribune Media, sources have previously said.

Fox never submitted a bid, according to a source familiar with the matter.

Representatives for Fox and Blackstone both declined to comment.

Sinclair’s offer values Tribune Media at around $44 per share, the sources said on Sunday. That would represent a premium of close to 30 percent of the price of Tribune Media shares on Feb. 28, the day before Reuters broke the news that Sinclair had approached Tribune Media to discuss an acquisition.

Tribune Media shares ended trading on Friday at $40.29, giving it a market capitalization of $3.5 billion.

Negotiations between Sinclair and Tribune Media have not yet been finalized, and there is still a possibility the deal will not be reached, the sources cautioned.

The sources asked not to be identified because the deliberations are confidential. Tribune Media declined to comment. Sinclair did not respond for comment.

Tribune Media has 42 owned or operated broadcast stations, as well as cable network WGN America, Tribune Studios and WGN-Radio. Sinclair, which has a market capitalization of $3.36 billion, owns, operates or provides services to 173 television stations in 81 markets.

Sinclair branched out into cable networks last year when it bought the Tennis Channel for $350 million.

Tribune Media said last year it was working with financial advisers Moelis & Co and Guggenheim Securities on a strategic review. It subsequently sold its media data unit Gracenote to Nielsen Holdings Plc for $560 million.

Activist investor Starboard Value LP, led by Jeffrey Smith, cut its stake in March to 4.4 percent from 6.6 percent.

Tribune CEO Peter Liguori, who joined Tribune in 2013, stepped down in March and a permanent replacement has not yet been named.

(Reporting by Liana B. Baker in San Francisco and Jessica Toonkel in New York; Additional reporting by Olivia Oran in New York; Editing by Phil Berlowitz and Sandra Maler)

Why I Don’t Do Things For Free And You Shouldn’t Either

 

If you listened to my podcast or have been following my social media accounts this week then you know I’ve been talking a lot this week about the importance and value of investing in yourself. Whether you’re climbing the corporate ladder or are an entrepreneur the more you invest in yourself, your skills, and your knowledge base the more marketable you make yourself.

If you work in corporate America and are working your way up to success then you are already aware that at the very least you need some sort of college degree just to get your foot in the door. If you want to be an executive or lead an organization then you definitely have to invest in a post graduate degree and you have to have years of experience under your belt. No matter which way you look at it, education is the key to that corporate gateway which is why post-secondary education is such big business.

I, for one, have spent tens of thousands of dollars to work at a corporation that neither motivates me or speaks to the things I am most passionate about. To date, I have amassed almost $90,000 dollars in student loan debt to work at a job that is not aligned with my dreams and passions. Yet and still, when I was unclear about my future and the direction I wanted my life to take, I invested in my education. Why? Because even though at the time I did not know what my purpose in life was I knew I wanted a “good” job

Fast forward some years later, I am now in my late 30s and I am very clear about what my future looks like. I am no longer wasting time or money on things that are not directly aligned with my dreams and passions. I live in my purpose every single day and I’m very aware of the things I am investing in. I am very intentional on what I spend my money on and am now investing in workshops, residencies, classes, books, and conferences that will not only increase my knowledge base and improve my skills, but also allow me to network with individuals doing the same things. Putting myself in the same room with those who are doing what I’m doing or are interested in hiring people with my skills and knowledge, is key to growing my business and it should be what you’re doing too.

Many entrepreneurs, small business owners, and freelancers/consultants don’t invest in themselves as much as they should. We all have our reasons as to why we don’t. Sometimes we have competing priorities (I talk about that also in my podcast) that won’t allow us to invest in ourselves, and I know when you’re first starting out and haven’t made a profit from your business it may hinder your ability to invest in yourself.

However, never allow not having something stop you from getting what you know you need. There are many creative and inexpensive ways that you can invest in yourself (listen to my podcast here for inexpensive self-investment options). When you invest in yourself, especially if you’re a freelancer/consultant like myself, you’re not only gaining knowledge you’re also setting the value of your services. Not only are you now more marketable, but you also show potential clients/customers why they should purchase your services versus that person doing the same thing who may not have the same level of expertise.

Far too many people out here are either giving away their services for free or undervaluing themselves. Don’t short change yourself because you think people aren’t willing to pay. They are and they will if they see that you’re worth it. I very rarely do things for free because I know what I bring as far as expertise, years of experience, and knowledge. I am constantly investing in myself so that I can give my customers the absolute best. Additionally, time is money. So if I’m taking time from my busy schedule that could be better spent with my family, or on another activity that is valuable to me, I expect to be paid.

Don’t get me wrong, there are occasions where I’ll donate my time if I truly believe the project or event’s purpose is community based and is aligned with my own personal commitment of giving back, but that’s the exception, not the rule. The thing about charging for your services is that people will respect your time more if they have to pay for it. They won’t waste your time if they’ve had to dig in their pockets. Remember that. People don’t respect free work that’s why you have to charge them. In the infamous words of Birdman, “Make ’em put some respek on your name”.

The point I’m trying to make is if you are in business for yourself then you have to start acting like it. Nothing of real value is free and that includes your time, expertise, and knowledge. Below are some tips to make sure you are getting paid and not getting played!

Have a services/product price list.

Be prepared to show potential clients/customers your price list as soon as they inquire about your services. Be transparent and include all fees so that your potential client/customer isn’t surprised later on in the transaction process. If you don’t have a price list, create one. NOW! Let potential customers know exactly what they’re paying for (show them your credentials if you have to). Your price should consider not only your time, but also everything you’ve invested into making you the right person for the job.

Collect deposits.

Start charging deposits in order to secure the date and time. This one is so important because if you block out a date for someone and they end up canceling the event or deciding they don’t want to hire you, you now have potentially lost income for any other events you could have booked that day and didn’t. The non-refundable deposit at least offsets some of the potential income that has been lost.

Always remain professional.

Your reputation is what’s going to make or break your brand and how you present yourself is crucial to creating a great business relationship with your customers. Some things to consider that will add value to your business is:

• · Having clients sign a contract that clearly outlines the services they are paying for. This ensures that there is no miscommunication by either party.
• · Always do what you say you’re going to do. Be a person who stands by their word.
• · Establish a cancellation/refund policy and inform the customer (even if it’s a no refund policy) let the customer know what they’re getting themselves into.

Navigating the world of entrepreneurship can be tricky and overwhelming, but if you’re well prepared it doesn’t have to be. As long as you stay committed to your mission and your vision, know what you bring to the table, and don’t undervalue yourself you will always come out on top.

Now That Bitcoins Are Worth More Than Their Weight In Gold, Is It Time For Central Banks To Make Their Own?

Nafis Alam, Sunway University and Graham Kendall, University of Nottingham

The history of gold trading can be traced back hundreds of years while bitcoin, a digital currency that uses encryption and works independently of central banks, has been around for less than ten.

But the cryptocurrency is now starting to challenge gold as the investment of choice. Its meteoric rise is such that on March 3, 2017, bitcoin overtook gold for the first time, trading at US$1,290 compared to US$1,228 for an ounce of gold.

All the gold that has ever been mined would easily fit under the legs of the Eiffel Tower – in fact, multiple times. Gold’s scarcity is one reason for its value. Another reason is that it’s a very nonreactive metal so it doesn’t tarnish, which is important if you’ve invested millions and don’t want it to slowly deteriorate.

Most governments keep some of their funds in gold (as the video below explains). But although gold is seen as a safe haven in times of crisis, it is still subject to the usual market fluctuations of any commodity. Once the bitcoin reaches its full potential (all bitcoins are mined) the value will be much more stable.

What is bitcoin?

Bitcoin is a virtual currency used for electronic purchases and transfers. It has recently been gaining popularity and a growing number of businesses, including WordPress, Overstock.com, and Reddit, now accept it as a form of payment. Microsoft already accepts bitcoin payments through its Windows 10 and Windows 10 Mobile platforms, while those shopping online at Shopify may use bitcoin as payment.

Bitcoin is also moving outside the virtual space; what may be the world’s first bitcoin store, House of Nakamoto, opened early this year in Vienna. There, people can buy bitcoins for euros, and vice versa, from a dedicated bitcoin ATM. Drinkers in Cambridge can pay for beers at a pub called The Haymakers.

The number of bitcoins is capped at 21 million. As of March 2017, there were almost 16.2 million circulating. The supply of coins grows steadily because of the way bitcoin is programmed. Each “miner” (“mining” is lingo for the discovery of new bitcoins – anyone with computer knowledge and access to blockchain software can act as a miner) introduces new coins to the supply at a rate of around 12.5 coins every ten minutes.

Mining is the process of adding transaction records to bitcoin’s public ledger of past transactions (blockchain). The blockchain confirms transactions as having taken place to the rest of the network.

Even as far back as 2013, bitcoin was worth almost as much as gold. And, at the end of 2016, the total value of bitcoins in circulation was US$14bn.

A good investment opportunity?

Investment in digital currencies, such as bitcoin, has emerged as an alternative to traditional forms of money and created a niche that’s driving major innovations in the financial sector, such as peer-to-peer lending, and digital wallets. As traders gain confidence in alternative forms of money and payment mechanisms, bitcoin is seen as a possible investment alternative.

In fact, bitcoin exhibits similar features to gold – limited global supply, maintaining value and hedging against global market volatility. Such is the exuberance in bitcoin investment that it actually outperforms the precious metal, generating an annual return of 155% compared to gold’s annual loss of 6% during the same time period.

Even though Bitcoin seems a profitable investment tool, its value can be as volatile as the value of the gold, depending on the perceived risk of owning bitcoin as a commodity. Bitcoins are encrypted for security purposes, but while the coding identifies the currency itself, it does not identify its owner. If someone hacks the miner system and gets a secret bitcoin code they will eventually become the rightful owner.

Even though Bitcoin seems a profitable investment tool, its value can be as volatile as the value of the gold, depending on the perceived risk of owning bitcoin as a commodity.

What, then, is pushing the investment value of bitcoin? One driver is increasing demand from developing countries, especially Brazil, Russia, India, China, and South Africa. These countries are experiencing economic distress and weakening currencies, making their local currencies unpredictable and volatile. As a result, it’s becoming increasingly popular to use bitcoin as a natural hedge against paper currency.

Another contributing factor to the rise of bitcoin is the possibility of a trade war between US and China. US President Donald Trump has indicated that he may impose 45% tariff on Chinese imports. This may lead to a weakening yuan, and capital outflow from China as investors will resort to more stable currencies such as euros.

The hike in bitcoin’s price during financial troubles is also a testament to its increasing attraction as a hedging tool.

When Cyprus’s economy crashed in 2013, the price of bitcoins spiked as people resorted to other forms of payment than the national currency. In 2015, when the Chinese currency was in free fall, people in the country turned to bitcoin alongside gold.

And after the Brexit vote in the UK, when global currencies and stock markets tanked, bitcoin’s value rose more than US$100 compared to the previous day. This was mainly due to some of the speculative money flowing out of the pound and yuan making its way to bitcoin.

Increased government support

Bitcoin is not just getting increased interest from tech-savvy individuals and banks such as Barclays, BBVA, Commonwealth Bank of Australia, Credit Suisse, JP Morgan, State Street, Royal Bank of Scotland and UBS. Governments are also lending support to the cryptocurrency.

The Australian government plans to reduce tax on bitcoin transactions. Current treatment of the digital currency under the goods and services tax (GST) law means that consumers are “double taxed” when using it to buy anything already subject to GST. The government plans to change this.

Meanwhile, the UK’s chief scientific adviser has said that governments should use bitcoin’s underlying technology – blockchains – to help with taxes, benefits and passports.

Taking its cue from bitcoin, the US government is planning to launch a legalized cryptocurrency called Fedcoin, which can be exchanged for a physical dollar. Bitcoin is not considered legal tender because it is not backed by any government.

What we can say with certainty is that we cannot use gold to buy bitcoin directly but bitcoin can be used to buy gold.

Bitcoin pricing is also motivating the much-anticipated establishment of the first bitcoin exchange-traded fund (ETF) in the United States. An ETF is an investment company that has no restrictions on the amount of shares it can issue.

The approval of a bitcoin ETF would make the cryptocurrency more attractive to risk-averse institutional investors as it would allow an easier way to gain access to bitcoin than buying it directly.

Such is the dominance of bitcoin that the Bank of England issued a white paper on the subject, investigating the possibility of central banks minting their own cryptocurrencies.

Bitcoin’s appeal, compared to gold, comes from two factors. First, it can be used as an easy medium for payments (for a limited but growing number of transactions), which gold cannot replicate. And with their limited supply of 21 million, bitcoins are likely to attract higher demand compared to gold.

The debate over the supremacy of gold versus bitcoin will continue. What we can say with certainty is that we cannot use gold to buy bitcoin directly but bitcoin can be used to buy gold. You can decide which you prefer.

Nafis Alam, Professor of Finance, Sunway University and Graham Kendall, Professor of Computer Science and Provost/CEO/PVC, University of Nottingham

This article was originally published on The Conversation. Read the original article.

Electronics Store RadioShack Files For Bankruptcy Again

U.S. electronics chain RadioShack Corp filed for bankruptcy on Wednesday for the second time in a little over two years, faced with a challenging retail environment and an unsatisfying partnership with wireless provider Sprint Corp.

The Chapter 11 filing comes after RadioShack, owned by General Wireless Operations Inc, tried to revitalize its business by co-branding stores with the wireless carrier in an effort to compete against their largest rivals.

General Wireless, which acquired the RadioShack brand in 2015, listed assets and liabilities in the range of $100 million to $500 million in the U.S. bankruptcy court for the Delaware district.

RadioShack will close approximately 200 stores and will evaluate options on the remaining 1,300, the company said in a statement.

Sprint will convert several hundred locations into Sprint corporate-owned stores, the wireless provider said in a separate statement. 

RadioShack’s bankruptcy filing and subsequent store closings are not material to Sprint’s overall sales results, Sprint added.

RadioShack, a nearly 100-year-old chain that captured the heart of electronics enthusiasts for its specialty products such as “walkie talkies,” first filed for bankruptcy in 2015 after the rise of mobile phones caught it off-guard and customers abandoned its stores for big box competitors including Best Buy Co Inc and Amazon.com Inc.

In an attempt to keep the doors open on 1,740 stores, RadioShack struck a partnership with Sprint during its bankruptcy, inviting the mobile carrier to co-brand with the company and set up smaller stores within its own. At the time, Sprint viewed RadioShack’s retail footprint as a way to quickly scale up its own business.

But, in the years since RadioShack has emerged, both Sprint and RadioShack have been challenged.

Sprint, whose network is viewed as inferior to the country’s largest carriers, Verizon Communications Inc and AT&T Inc, has been forced to offer heavy discounts to grow its business.

RadioShack meanwhile has struggled to compete against internet behemoth Amazon.com Inc and for the attention of shoppers who increasingly wait for deep discounts before making a purchase.

The influx of cheaper copycat consumer products manufactured abroad has also hurt the business.

Still, in the years since its first bankruptcy, RadioShack has focused on expanding its private label offerings, which include drones, radios and adapters, and now makes up the majority of its business.

The shift away from selling other retailers’ products to its own has helped it reduce operating expenses and increase gross profit.

 

China Moves To Approve At Least 35 Trump Trademarks

SHANGHAI/WASHINGTON, March 9 (Reuters) - China has granted preliminary approval for at least 35 trademarks linked to Donald Trump, documents on China’s state trademark office show, giving the U.S. President and his family protection were they to develop the “Trump” brand in the market.

The trademarks, all variations in English and Chinese on the name “Donald Trump,” were given preliminary approval in two lists published on the Trademark Office of the State Administration for Industry and Commerce on Feb. 27 and Monday.

The approvals underline the complexities and potential concerns over conflicts of interest facing President Trump, who has a sprawling business empire from hotels to apparel using the Trump name around the world.

Trump, a wealthy real estate developer, has previously said he has handed over his business interests to a trust overseen by one of his sons and a Trump Organization executive. He can, however, revoke the trust at will and, as its sole beneficiary, remains linked to it financially.

The new trademark approvals cover such businesses as branded spas, massage parlors, golf clubs, hotels, insurance, finance and real estate companies, retail shops, restaurants, bars and bodyguard and escort services.

The 35 trademarks, which Trump’s lawyers applied for in April last year, are registered to “Donald J. Trump” and listed to the address of Trump Tower on Fifth Avenue in New York.

The Associated Press earlier reported the approvals of the trademarks, which it said also included three further trademarks not directly registered in the President’s name. These related to Scion, a hotel brand Trump’s sons want to expand in the United States. Reuters could not immediately confirm the three further approvals.

Representatives for the Trump Organization did not immediately respond to a request for comment.

Trump’s personal ties between politics and business have prompted concern from politicians and rights groups who say the President could face potential conflicts of interest related to the extensive business affairs of his family.

Democratic Senator Ben Cardin, the ranking member on the U.S. Senate Foreign Relations Committee, called for the Departments of State, Commerce and Justice to brief Congress on the Chinese trademark approvals and on “the potential constitutional dangers that they present.”

“This is an astonishing development ... It’s clear to me that officials in Beijing have come to appreciate the potential return on investments for China in having a positive, personal business relationship with the President of the United States,” Cardin said in a statement.

Cardin has previously introduced a resolution demanding Trump cut his ties with the Trump Organization or risk violating the Emoluments Clause of the Constitution, which bars public servants from accepting anything of value from foreign governments unless approved by Congress.

The preliminary approvals are open to be challenged for around a 90-day period from the date of approval. If no objections they will be formally registered in late May and early June respectively.

Trump received a single trademark approval last month in China for Trump-branded construction services, following a 10-year legal battle. (Reporting by Adam Jourdan in SHANGHAI and Eric Walsh in WASHINGTON; Editing by James Dalgleish and Lincoln Feast)

The New Rules Of The Music Industry

As a kid growing up in the ‘90s, all I wanted was to be a rockstar, have my music played on the radio, and make killer music videos for MTV.

That’s what the music industry promised to provide the lucky artists and bands who got signed. My how things have changed.

If you’re an artist or band trying to get your music out to the world (or even make a living) then you need to play by the new rules.

Gone are the old days of the music industry where you would hope to get signed to a label and then become a star (i.e. everything would be done for you).

Today you need to view yourself (and your music) through the lens of three very important truths. I call them the new rules of the music industry, and those who play by them will succeed.

Rule #1 - You Are A Brand

No longer are you simply a musician or artist. You are a brand. Knowing this distinction is critical to gaining traction and growing your fanbase.

The word “brand” can come with a negative connotation for all the creatives and artists reading this but it doesn’t have to be that way.

Being a brand as an artist simply means that you need to learn the art of promotion and entrepreneurship. You basically have to become a business person.

Because music is still a business. Always has been. Always will be.

It’s just that in the “old days” the business was handled for you by other people. Namely your label and their team.

Someone still has to promote your music - these days that someone is you!

Rule #2 - You Are A Content Creator

The key to good promotion is to remember that we live in an age of content consumption.

Whether it’s binge watching on Netflix or reading blog after blog, people these days want to consume content and they want lots of it.

Your job as an artist is to give your fans a steady diet of content related to you and your brand.

What could this content be?

For starters, your music. This is the obvious one. Share your latest single or music video. Great.

But there is so much more you can do.

Why not share videos of you in the songwriting process? Or in the studio recording your latest album? Or snap some footage from your phone on stage?

Do live Q&As with your fans. Talk about what you do for fun OTHER than music.

Whatever it is, share something about you, your music, and your life. Your fans will love it and appreciate it.

And here’s the key - to stay relevant in today’s world you must stay top of mind. You do this by creating regular bits of content - rather than only releasing an album or EP once a year or every other year.

View yourself as a content creator and not just a musician and you’ll be in good shape.

Rule #3 - Don’t Try To Be Perfect

When I was growing up, all the bands I loved had perfect everything. Perfect-sounding albums, perfect-looking music videos, and perfect writeups in magazines.

They were always presented as polished and untouchable.

The problem with perfect though is that it holds many artists back from simply finishing new music or sharing a piece of content. This is a big no-no.

Granted we don’t want to share crap - not at all. We simply want to be authentic and real, sharing our best stuff as best as we can.

There’s a point at which your recordings as an artist will only be but so good. They won’t be perfect. Release them anyway and move on to the next project.

Ironically this is how you improve as an artist!

The age of glossy perfection is coming to an end for most artists. My generation (the millennials) prefer the raw, authentic you - so give it to them!

Will You Play By The Rules?

I still love the idea of becoming a rockstar and being able to focus purely on the art and craft of my music while other people do all the hard work of promoting me and growing my fan base.

Who doesn’t?

But the old rules don’t apply anymore. It’s a brave new world and those who play be these new rules will be the ones who build longevity and be rewarded with the chance to continue to make the music they love

Are you an artist or musician looking to make your music sound as good as the stuff you hear on the radio? Check out all the free resources here to take the quality of your recordings up a few notches!

5 Bold Steps For Aid Workers This International Women’s Day

On this, International Women’s Day, I want to give some insight into the day-to-day lives of women working in the humanitarian aid sector by sharing some of the murmurs I overhear from many women working in some of the toughest places in the world.

I prefer working with men – said more women than I can count.

I’m pregnant, they’re not going to renew my contract – said one woman about a month before her contract was, in fact, not renewed.

I don’t think I should ask for a promotion. I don’t want to seem too pushy. – said more women than I can count.

And then there are the harmful things that women say to and about each other.

She’s so bossy. She thinks she knows everything – said a woman on a team managed by another woman.

You’re so ambitious – said malignly by a female manager to a female staff.

What did you do? - asked a female supervisor to a recently assaulted female staff member, minutes after the attack.

If we don’t see these words as poison, as the vitriol choking our advancement, then we are lost. Listening to such things over the years, I’m reminded of three elements of Buddhism’s eight-fold path: right thoughts, rights words, right actions. Our actions begin with our thoughts that then turn into words that then become the manifestation of our ideas into the material world. If we keep hearing negative things about each other and thinking negative thoughts about ourselves, what will naturally follow from our actions towards women will be negative. And that is exactly what the Humanitarian Women’s Network survey shows about our status in the humanitarian aid sector: systemic discrimination, and harassment and assault of women in the humanitarian workspace. Wrong thoughts, wrong words, wrong actions.

This year’s theme for International Women’s Day is #BeBoldForChange. I challenge every woman and man reading this article to take 5 bold steps today towards right thoughts, right words, and right actions.

1. Think Positively: Start your day with a positive thought about one woman that you work with. Pick a new woman everyday. Think of one good quality about her and try to remember that she is someone’s sister, mother, daughter, and friend.

2. Stop Gossiping about each Other: Ladies, this has got to stop. Before you trash talk about that female colleague, before you speak disparagingly about a woman who you know or don’t know or heard of, stop yourself. Women gossiping about each other is one of the most dangerous forms of subversion that has us kept us from claiming our throne as the majority sex at 51% of the world’s population. Stop talking badly about one another immediately.

3. Be a Mentor or a Mentee to a Woman Today: The Humanitarian Women’s Network is setting up a roster of senior mentors in the aid industry for willing mentees. We believe that by networking women at the top with women who are just getting into the field, we can help women navigate our profession to build strong and healthy careers. To sign up as a mentor or request a mentor, contact us as womeninaidwork@gmail.com.

4. Hire Women: If HR comes back and says that the only person in the entire universe qualified to fill a particular role is a man, kindly request that they try harder in their search to bring about a more ‘diverse’ candidate pool. I strongly encourage women to start hiring more among their ranks and support one another’s career progress.

5. If You See Something, Say Something: if you hear any negative thoughts or see any negative actions towards a fellow woman, don’t let it slide. Interrupt someone saying negative things about women— even if they’re speaking negatively about themselves—and repeat after me: right thoughts, right words, right action.

These simple steps, when done at scale, will prompt serious cultural shifts in favor of women in the humanitarian aid sector― because we will be collectively embodying the change we want to see in the world. On this International Women’s Day let’s #BeBoldForChange by making the boldest change: the one within.

Be part of the movement: to learn more about the Humanitarian Women’s Network, visit www.humanitarianwomensnetwork.org. To set up your own HWN network in your area, contact us at womeninaidwork@gmail.com

5 Success Strategies For Women Entrepreneurs

Here’s a fun exercise: Type “top entrepreneurs” into Google and watch which names show up on your screen. Any guesses? You probably won’t be surprised to see Mark Zuckerberg, Sergey Brin, Jeff Bezos and Larry Page atop the list. All, of course, are savvy, well-known entrepreneurs. But you have to scroll a long way down before the first women — maybe Vera Wang and Sara Blakely — appear.

Why is this?

It’s certainly not because women are in any way less smart or capable than men. But in addition to the standard challenges of growing a business, women are often faced with stereotypes, discrimination and their own self-doubts. As Salesforce’s vice president of SMB marketing, I’ve had the opportunity to work with hundreds of startups and growing businesses, plus meet hundreds of successful female entrepreneurs along the way. It’s always interesting to share our wins and failures.

So, in honor of Women’s Day, I’d like to offer some of the strategies that have worked for me and the women I’ve met.

Fail fast and often. It’s a fact of life: women are more risk-averse than men. According to the Harvard Business Review, when faced with a risky decision, men will think more about the strategic implications of a choice, while women will think more about the people affected by the outcome of the choice — which makes them less likely to take the risky decision. While it’s true that at any business you can’t just wait around for someone else to come up with the next big idea, this is especially true at small companies with limited resources and a small customer base. When you have an idea, don’t wait for permission. Run with it! If you don’t risk failing, you’ll never have the opportunity for success. It’s an oft-heard Silicon Valley mantra, but we also use it for our team at Salesforce: “Fail fast and often.”

Embrace your inner bulldog. A senior executive at our company recently told me that although he doesn’t always agree with me, he always trusts me. He said, “That’s because you’re not afraid to be a bulldog about the things you care about.” I wondered to myself, “Is that a good thing?” Ultimately, I’ve decided that it’s a good thing to have strong opinions and stick with them. My coworkers know that I’ll do whatever it takes to get the job done. Many women worry about being perceived as being too pushy or too aggressive. But the reality is that if you don’t stand up for yourself, no one else will. To be successful at a business of any size — but especially a small one with limited resources — you need to have a clear point of view and be laser-focused on getting there.

Make your own “boy’s club.” The days of doing business over a three-martini lunch and a round of golf are mostly gone, but you can still reap the benefits of being in a “club” of like-minded people. For me, this happened organically when I was invited into a program designed to help high-potential women develop the skills they needed to move up at Salesforce. As it turned out, the most important things that I got out of the program were the relationships I built with the other attendees. It wasn’t just learning that there were other women facing the same problems I face; rather, it was building a mini-community of people I can trust to give me honest advice when I need it. You don’t have to work at a big company like Salesforce to create this kind of trust circle. In fact, it may work best when your “club” includes people from other companies. Visit the SBA website to find local groups for women entrepreneurs that can give you the support you need along the way.

Make work fit your schedule. For as long as women have been in the workplace, they’ve been challenged to balance their work and home lives. Many have struggled with the myth of “having it all,” but today it’s easier than ever to be fully engaged in both. Many businesses do their work in the cloud, so you have the flexibility to access mission-critical applications from almost anywhere. And tools like Google Hangouts make it easy to keep the lines of communication open. But being totally connected doesn’t mean that you should be working 24-hours-a-day. It means that you can intermingle your work and professional lives in ways that let you hit all the important moments. I can spend the morning working at my daughter’s school, and the afternoon running a team meeting from my laptop. (And at night I can take a spin class from my Pelaton bike). This lets me focus on the activities that matter — both personally and professionally — and not just the ones that fit in my schedule.

Don’t sweat the small stuff. Most parents — especially moms — will tell you that they don’t have enough hours in their day. Many learn to be terrific jugglers, but from time to time they’ll drop the ball on something important. Not having enough time is also one of the top things that keeps small business owners up at night. It’s no wonder, because they and their employees are often stuck doing menial, repetitive tasks — like paperwork — that take them away from more strategic, customer-oriented work. New automation and artificial intelligence tools are now available that let every business — even small ones — automate repetitive tasks and work smarter than ever. Focusing on what moves the needle is also a helpful philosophy in your home life.

Try out these tips and see if they can help you be more successful, not just on Women’s Day but all year long. Please let me know how it goes, or if there are other tips that work for you.

Bike Culture Is Thriving In New Orleans

The City of New Orleans is launching a new bike-sharing program this coming fall, according to the Uptown Messenger. The Brooklyn-based Social Bicycles will run the new public transportation program, which is currently set to launch in October 2017. The bike-sharing program will operate out of 70 stations located throughout the city.

The bike-sharing program partners New Orleans’ Transportation Department with Social Bicycles, a company that uses mobile and wireless technology to make renting bikes easy and accessible. The partnership is part of Mayor Landrieu’s efforts to make NOLA public and alternative transportation options more reliable and accessible.

According to an American Community Survey, New Orleans boasts the 10th highest percentage of residents who cycle to work each day. In the last decade alone, New Orleans has paved more than 100 miles of bike lanes throughout the city. Social bike tours, bike parades, and bicycle valets are now common events in city programming. With so many bike commuters, NOLA is developing its own culture around biking.

Let’s take a closer look at New Orleans’ burgeoning bike community:

Dashing Bicycles & Accessories

Dashing Bicycles & Accessories strives to foster and empower women and families to be part of NOLA’s active bicycle network. Follow Dashing Bicycles on social media to stay apprised of local bike news and events.

Marin Tockman, Owner of Dashing Bicycles & Accessories. [Photo via goinvade.com]

Gerken’s

Gerken’s on St. Claude in Bywater offers full-service bike repairs and rentals. Their friendly and knowledgeable staff can recommend great places in the city to explore on your bike.

Buzz NOLA

Buzz Nola Rentals & Tours has a large fleet of cruisers available to rent. Buzz Nola also offers bike tours which are popular among New Orleanians who enjoy connecting with fellow riders.

Bike Easy

Bike Easy, a local advocacy group for cycling enthusiasts, hosts a variety of community events which aim to make biking in New Orleans easier and safer.

This article was originally posted on Naveen Kailas’ website http://naveenkailas.com

For more New Orleans updates and news, follow Naveen Kailas on Twitter at https://twitter.com/NaveenKailas

Snap Shares Tumble As Short Sellers Move In

Snap Inc’s shares tumbled 11 percent on Tuesday and traders raced to position themselves to cash in on further declines after analysts gave the company a lukewarm reception following its red-hot market debut.

Snap’s $3.4 billion public listing on Thursday was the hottest technology offering in three years, but its lofty valuation and slowing user growth have raised eyebrows on Wall Street and attracted traders who expect its shares to fall.

Institutional traders were paying annualized interest rates between 20 percent and 40 percent to be among the first to short-sell the stock, according to S3 Partners, a financial analytics firm.

The owner of messaging app Snapchat is not profitable and has warned it may never be.

Much of last week’s frenetic trading in Snap has yet to settle, making it difficult for brokers to estimate how many shares are available to lend to short sellers.

But early data suggests brokers are facing a “chaotic” lending environment, with early short interest approaching $200 million, said S3 Partners Managing Director of Research Ihor Dusaniwsky.

“This is the first couple of days of shorting data to show up, so I’m sure this is going to get bigger quickly,” Dusaniwsky said.

Short-sellers borrow and then sell stocks they think will fall in value, hoping to profit by buying the stock back more cheaply later on and then returning it to its owner.

The interest rates brokers charged for Snap shares on Tuesday suggest demand is extremely high and that those borrowing the stock expect its price to fall steeply.

By comparison, brokers lend out shares of Facebook Inc at an annualized rate of less than 1 percent, reflecting an ample supply available for lending and low demand from short sellers, according to data from Astec Analytics.

In its market debut Snap surged 44 percent from its $17 initial public offering price to close at $24.48. Since then it has fallen 22 percent.

At mid-day on Tuesday Snap was down 10.8 percent at $21.20.

Snap has been heavily traded since its market debut, rolling over the number of shares sold in the IPO more than twice.

Options trading in Snap is expected to start on Friday, once regulatory requirements are met.

At about $27 billion, Snap’s market capitalization remains a little larger than Kellogg Co and slightly smaller than HP Inc.

So far, no analysts have initiated the stock with a “buy” rating.

Of six analysts who have launched coverage of Snap, four recommend selling and two have neutral ratings, according to Thomson Reuters data.

Globally, shares of most of the 25 largest tech IPOs have languished in their first year on the public market, with 16 notching a hefty decline from their debut day closing price, according to a Reuters analysis of market performance.

(Additional reporting by Narottam Medhora in Bengaluru; Editing by Meredith Mazzilli)

How To Fight The Coming Wave of Credit Card Junk Fees

When William Livingstone booked a recent airline ticket from Warsaw to Madrid, he found something unusual on his bill: a $15 "credit card fee" with no explanation. It appeared his credit card was just helping itself to some of his money because it could.

Why? Perhaps it was a currency exchange fee, the result of converting dollars into zlotys. Then again, it just could be a money grab by his airline. Hard to say.

Livingstone, who runs a business in Helena, Mont., is one of many bewildered credit card customers who have encountered mysterious fees on their statements. These fees should have quietly vanished after passage of the Credit Card Accountability Responsibility and Disclosure (CARD) Act of 2009, a law that clamped down on nuisance fees. But with a new, pro-business administration in power, industry watchers expect a surge in junk fees as the shackles of federal regulation are carelessly unlocked.

Livingstone, who believes he was overcharged for his airline tickets, tried to find the reason behind the fees and other charges, and contacted me for help. "This is fraud," he said.

Yes, it sure feels that way. And it's happening on such a breathtaking scale that makes it so much worse. It's institutionalized, sanctioned fraud that represents a colossal regulatory failure. If you don't want to become the victim of a junk fee, there's really only one person who can help: you.

Fees are still here

"Credit card companies are masters at making money," says Jake Serfas, a lead financial strategist at O’Dell, Winkfield, Roseman and Shipp, a Washington, D.C., retirement planning firm. "They convince the public that everything they want is only a swipe away. But what is that swipe really costing the consumers?"

A lot. More credit card companies are charging a range of fees for everything from card replacements, reward redemption, foreign currency conversion, over the limit, duplicate statement, balance transfer and account closure. Many of these are "junk" fees, meaning they effectively cost the company nothing to provide and are almost pure profit -- in other words, they charge them simply because they can.

"Most of these are small, ranging from $1 to $12 per fee," explains Serfas. "And although it may not seem like a lot to a consumer, spread out over millions of credit card users and they are making hundreds of millions of dollars in small charges."

Why isn't the government doing more? Well, the CARD Act, which was designed to protect consumers from hidden and unreasonable fees, eliminated some charges. But hidden fees remain a key revenue source for credit card companies and for merchants.

"Hidden fees are still part of the business," says Roseman.

They charge for that?

What to look for? Actually, it's more a question of what not to look for. If you're not reading your credit card statement at least once a month, chances are you're missing something.

Here are just three particularly egregious examples:

The reordered transaction trick. If you have overdraft protection on your account, watch for this little trick: Your bank will reorder your transactions throughout a day to maximize the number of times that you pay overdraft fees. "Consider this example," says Nick Clements, who runs a site called MagnifyMoney that publishes transparency scores for financial institutions. "You start the day with $50 in your account. You then make three withdrawals throughout the day, the first at 10 a.m. for $20, the second at 1 p.m. for $20 and the third at 7 p.m. for $40. In this particular scenario, you should have only overdrawn on your account at the third transaction, right? The trick happens when your bank reorders your withdrawals so that the $40 happens first, then a $20 and then the final $20. In this case you would have actually overdrawn twice." Legal? Yes. Unfair? Without a doubt.

The balance transfer fee. Say you’re carrying a balance and want to transfer the amount to another card with a lower interest rate. Watch out! Your card may charge a "balance transfer fee" of 3% or $5 -- whichever is higher -- to do it. "It's in the small print," says Adam Jusko, the CEO of the credit card website Credit Card Catalog. This is particularly nefarious because it's often part of a "Zero percent" initial rate. "The card issuer is essentially using the balance transfer offer as a marketing ploy to lure customers away from competitors, but instead of just taking it as a marketing cost, they can’t curb their natural tendency to squeeze a buck out wherever they can," he says. The card company makes money on both ends of the deal.

Cash advance fees. “You’re in enough of a pinch that you’re turning to your credit card company for a cash loan," says Kerri Moriarty, the head of development for Cinch Financial, an optimization service for personal finances. "Now you’re not only subject to a much higher interest rate – nearly 5 percent higher than your regular purchase rate – but also a fee in the form of 4 percent of the advance amount,” She advises exhausting all other possible options first, like withdrawing from a retirement account or using a home equity line of credit or even just asking a family member or friend for a short-term loan, all of which will cost you less in the long run.

Of course, this is just a small cross section of possible credit card fees. Banks, credit card companies and merchants are creative. Just when you think you've seen it all, along comes another surprise fee.

How to avoid them

Experts say you can escape from these fees with three proven strategies: behavior modification, early detection and resistance. First, know what kinds of activities can trigger a junk fee. Those include large charges, transfers, late payments and making purchases in a foreign country. Avoid doing those things, and if you can't, at least ask your credit card company how much it will cost and request a waiver, if possible.

Next, monitor your credit card statement very carefully. If you see anything that appears out of place, notify your bank or merchant immediately.

The final strategy is resistance: fight the fees. Banks know these are junk fees and are likely to roll over when you challenge them. "You could also use some leverage and threaten to cancel a card and switch to another credit company for reduced charges," adds Serfas, the financial strategist. "This could even be a great time to ask for a lower interest rate."

Don't be too quick to pin a junk fee on a bank, though. As Livingstone found out, his $15 fee was added by Ryanair, the discount airline he'd booked his tickets through. It charges a flat two percent fee on all credit card transactions.

Why? Why not?

One thing seems clear: These junk fees are poised to expand in the current laissez-faire regulatory environment. The only person who can save you is the one staring at you in the mirror.

Yes, gorgeous. I'm looking at you.

Christopher Elliott specializes in solving seemingly unsolvable consumer problems. Contact him with your questions on his advocacy website. You can also follow him on Twitter, Facebook and Google or sign up for his newsletter.