What is LIBOR and the Scandal that Rocked It?

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If you’re a faithful news follower, you’ve likely heard about the recent LIBOR scandal but like many, you might not know anything about LIBOR or the why the scandal is big enough to make international news.

What is LIBOR?

LIBOR is an acronym for the London InterBank Offered Rate.

Here’s how it works: Banks, just like other businesses, sometimes need extra money.  Let’s say that Bank A wants to make a large commercial loan but to lend the money would put them below certain capital requirements but only until other payments and deposits come in.

Bank B happens to have an excess of cash on their books and as any good banker knows, cash sitting around doesn’t make any money so they’re eager to lend some of their cash.  Bank A and Bank B come together and work out the terms of a short term loan, but how do they agree on an interest rate?
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Why You Need a Small Business Credit Card

Many of us with small and home businesses don’t think a lot about getting a credit card.

After all, what do we need with a business credit card, when everything is so…small?

However, a small business credit card can be a good move for just about any small business — even if you don’t think that you need one. There are advantages to having a credit card in the name of your small business.

Here are some of the advantages of having a small business credit card:

Build Credit for Your Business

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Money Market Account VS Savings Account – What’s the Difference?

There are many different savings vehicles to choose from, but two of the most common are money market accounts and savings accounts.

There are similarities between the two—both pay interest, have fixed balances, and are pretty easy to deposit money into or withdraw it out.  Either account type could accomplish your savings goals.

But there are significant differences between them, and those differences could help you decide when one is more appropriate as a savings vehicle than the other.

Money Market Accounts VS Savings Accounts

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The History of College Student Loans

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Every other week, it seems, we hear dire warnings about how much debt our college students are burdened with when they graduate.

Indeed, more than ½ of college students take out student loans, and the average student loan tab for a graduating senior is just over $25,000.  Coupled with a rough economy and a general lack of financial knowledge, recent college graduates are struggling financially like never before.

Yet, it hasn’t always been this way.

Many of us just grew up knowing that student loans have, and will be, available, but that hasn’t always been the case.

A Brief History of College Student Loans

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ShareBuilder $50 New Account Bonus Code

You know I love ING Direct products.

I have both the Orange savings account for online savings and their Electric Orange checking account.  What I also have is a brokerage account with ShareBuilder (owned by ING Direct).  This is where I buy stocks outside of my IRA accounts.

ShareBuilder is offering a promotion where new customers get a $50 bonus code for opening a new ShareBuilder account. 

The offer is in effect until 9/30/12.  In order to receive the bonus you need to fund your account with $2,000.  And most important – make sure to enter the code 50LSQ3 when you sign up to make sure your account gets credited with the $50 bonus!

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The Myth of Get Rich Quick

There are some myths that never die no matter how many times they’re disproved and no matter how many people get burned chasing them down.

Get rich quick is one of those myths.

In our minds, we know get rich quick isn’t legitimate, and we’ve been told as much again and again by parents, teachers, friends and coworkers.

Then why does it seem that there’s some part of us that might believe that get rich quick is possible?

Because sometimes rich looks like get rich quick—to us

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6 Steps to Take in a Financial Emergency

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Every now and then, financial catastrophe strikes.

You never know when you will run into a financial emergency.  Sometimes, things are simply out of your control.

When a financial emergency arrives, though, it’s important to take control as quickly as possible.

While you can’t control what happens in terms of an unexpected financial setback, you can control your reaction to it.  When you find yourself dealing with a financial emergency, here are 6 steps you can take to get back on track as soon as possible:

1. Take a Deep Breath, and Evaluate the Situation

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