Home Blog Page 8

Is Deutsche Bank Doomed?

By
Phil Cannella
-
0
Deutsche Bank with dark clouds on the horizon

Is Deutsche Bank Doomed?

Germany’s Deutsche Bank is the world’s 15th largest bank by total assets. Headed by CEO Christian Sewing, it is Germany’s largest banking institution and is part of the German DAX stock market index. The DAX is made up of 30 blue-chip German companies trading on the Frankfurt Stock Exchange.

The bank is a very troubled entity with many underlying causes, such as low profits, unsuccessful turnaround plans, and senior-level staff exits. For example, plans broke down this year when the merger with competitor Commerzbank AG didn’t go through.

The following illustrates what went wrong to this pillar of Germany’s banking system and how CEO Sewing plans to fix the troubled bank, according to an article in the New York Post and company sources. 

As a side note, other European banks are facing difficulties thanks to Deutsche Bank’s troubles. And, as long as interest rates are near zero into 2020, revenue at retail banks will most likely remain down.

LOWER AND LESS

Deutsche Bank has experienced lower credit ratings and less return on investment – not to mention the 10 billion paid in settlements to the United States Justice Department for its role in the US financial housing debacle. Since then, Deutsche has exited the US housing market and is winding down its investment business.

Although it’s cutting costs to be more profitable, at the same time it’s losing business faster. The corporate investment banking unit responsible for “deal flow” and more than half of its total revenue lost market share to competitors who strengthened their balance sheets and improved governance standards faster than Deutsche post financial crisis.

TIME FOR A TURNAOURND

As part of CEO Sewing’s new turnaround strategy after his arrival in April 2018, Deutsche announced it’s cutting their workforce by 19,000 jobs. The United States will suffer the biggest hit on the investment banking side of the business. Instead of focusing on institutional clients, the CEO wants to help companies meet their trade finance and cash management needs.

Also, significant cuts will be made to equities and interest rates trading, which focuses on short-term lending markets and allows investors to gauge whether interest rates will go up or down.

A RETURN TO GREATNESS

The turnaround is from Business 101: Sewing’s strategy is to cut its losses with unprofitable businesses and use those funds for ones that he believes will grow.

The businesses Deutsche Bank plans to exit will leave it with billions of euros from assets it doesn’t want. It’s planning to create a dedicated unit to help sell or diminish those holdings, a solution sometimes referred to as a “bad bank.”

This separation will give a much-needed jolt to core operations results when it comes time for quarterly earnings reports. It will also give investors more confidence that the turnaround strategy is actually working, so in theory, its share price will rise.

Will the plan work?

Bank analysts are wary with good reason. They’ve heard these types of big plans from Deutsche Bank before, only to be disappointed by the outcome – the biggest concern being how Sewing plans to pay for massive restructuring costs.

However, when the cost-cutting and workforce reduction news became apparent, Deutsche Bank’s stock price rose a bit and its cost of credit insurance (the additional amount borrowed, that the borrower has to pay) went down.

That said, Sewing and Deutsche Bank have a big task ahead of them. At this point, it’s anyone’s guess.

Teaching Teens About Financial Responsibility

By
Phil Cannella
-
0
Group of financial managers looking for new data in the net

South Carolina State Senator Luke Rankin has pre-filed a bill that would require high school students to take at least one half-credit personal finance course and pass a test demonstrating their mastery of that knowledge.  Students failing to meet this requirement would fail to graduate.  While this bill is currently a long way from becoming law, Retirement Phase Expert Phil Cannella believes it’s about time our schools took some responsibility for teaching teens about their finances.

“The best time to learn about financial matters is when you’re young,” says Phil Cannella, “If we took more time to teach our kids about topics like personal finance and retirement planning, they would be more prepared for retirement when they grow older.”

Of course, teaching kids to be responsible with their money might be easier said than done, and our schools can’t get the job done on their own.  A financial education starts at home, so if you’re interested in teaching your kids about financial responsibility, here are a few tips from Phil Cannella and the team at Crash Proof Retirement on practical ways to impart your wisdom:

Have Them Get a Job

Learning about money starts with having money, and that means getting a job.  Your teen might not like it but getting a job will go a long way towards teaching them to be responsible and reliable in general, plus their first paycheck will be an opportunity for them to learn about a whole host of topics related to taxation.

Open a Bank Account

Once your teen has their hands on some money, they’ll need to learn how to hang onto it.  Have them open a bank account; they’ll learn all sorts of interesting things about how banking works and they’ll have a place to start saving the money they’ve earned at work.  Your teen’s bank account will be the perfect prelude to their first big purchase: a car.

Let Them Buy Their Own Car

These days, many teens expect to get a car as their 16th birthday present.  While they may not appreciate the gesture right now, we suggest you break with expectations and let them buy their own car.  First and foremost, they will learn about setting a goal and saving money to achieve it.  When it’s time to actually buy the car, you’ll have a chance to teach them about the buying process, how auto loans work, and (depending on the price) what it’s like to live with a monthly payment.  As a bonus, making their monthly car payment on time will help your teen build a credit score, giving them better opportunities in the future.

Many Americans have already reached adulthood before they have to do any of the things listed above.  If you take these simple steps with your teen, they’ll be getting a major leg up on their peers.  By the time they’re ready to head out into the real world, they’ll already have a solid grounding on financial topics, giving them a better chance for success.  And remember that your financial education doesn’t stop when you become an adult.  Phil Cannella has long list of consumer tips and other information about retirement planning that could help you protect your nest egg from market crashes.  Sign up for the Crash Proof Retirement Educational Event nearest you!

Crash Proof Consumers Respond To NY Post Attack

By
Phil Cannella
-
0

*This post was updated on June 19th, 2019 by Phil Cannella

This past week on The Crash Proof Retirement Show, we addressed an unfounded attack against First Senior Financial Group and The Crash Proof Retirement System.

On February 15, New York Post columnist John Crudele attempted to assess the Crash Proof Retirement System through his “Dear John” column in the Sunday edition of the newspaper. He did this in response to a letter written by “M.B.” of Princeton, N.J., a regular listener to The Crash Proof Retirement Show.

Unfortunately, Crudele and his source, Jeffrey Golden of Circle Advisers failed to do adequate research into the system. This led to numerous misrepresentations and falsehoods in the resulting column.

By entrusting Mr. Golden’s limited experience and brief utilization of a search engine as the basis for his response, John Crudele inadvertently created further confusion for readers. As a Certified Financial Planner, Mr. Golden should know better than to make assumptions and present undocumented opinions as fact.

The Crash Proof Retirement System credits interest into the accounts of consumers who have the potential to reach double-digit gains. All consumers enjoy receiving returns without market risk to their principal, no exposure to market losses, and free of any upfront or ongoing sales costs or fees. 100% of the investment accounts within The Crash Proof Retirement System work for the consumers 100% of the time.

But none of this was covered in Mr. Crudele’s column, because he didn’t take the time to educate himself on the Crash Proof Retirement System’s investment accounts. You’d think that coming through two major market crashes—one in 2001 and another in 2008—unscathed, this system would be the talk of every major news media outlet in our country! Instead, writers like Mr. Crudele continue to steer investors away from these safe havens.

The assumptions put forth by Mr. Crudele and Mr. Golden could not be further from the truth. First Senior Financial Group does not recommend securities to anyone in or near retirement at any time. First Senior Financial Group is not licensed to sell securities, nor do they have any desire to be involved with an industry that is fleecing the American people.

After addressing my concerns with the column, I turned the rest of the show over to our Crash Proof consumers, so that Mr. Crudele could hear the truth directly from the source.

Savannah McHugh of Lansdale, Pa. has been a client of First Senior Financial Group since 2010. “We have not paid one cent to the Crash Proof Retirement System to manage our affairs,” Savannah clarified. “All of our money has been working for us 100 percent.”

“I’m looking at some of my statements here—one fund made 15.94 percent one year. We’ve had funds making nine percent, 11, 12 percent. We went into this because we had investments that were bleeding money—and we haven’t lost one cent since we’ve been in this program.”

“We’ve been in [the Crash Proof Retirement System] for five years now, and we’ve seen the market have its ups and downs,” added Manus McHugh, husband of Savannah. “I really don’t worry about it anymore.”

“Everything is blown out of proportion—a lot of what we read in the paper is not true,” said John Pisano of Morton, Pa. “And obviously, what they said about Crash Proof Retirement is not true.”

For proof, John didn’t need to look any further than a 2014 statement from one of his Crash Proof vehicles. “Last year, I made 13.5 percent,” he said. “If the market crashes, it won’t affect my money.”

Joann Small, CEO of First Senior Financial Group, made a direct recommendation to John Crudele. “I invite Mr. Crudele to call our Crash Proof consumers, and talk to them himself,” she challenged, “because they are talking from true experience with the Crash Proof Retirement System.”

The Crash Proof Retirement Show was honored by the presence of Mr. Jim Loftus, Vice President of CBS Radio Philadelphia. “In the 6+ years that I’ve had the pleasure of working with your show, I’ve gotten to know the people who are part of The Crash Proof Retirement System,” said Mr. Loftus. “In that time, I have not received one complaint from a consumer or regulatory group.”

“I think the emphasis is misplaced,” added political insider Dick Morris. “The point isn’t whether or not the system gets double-digit returns—which it obviously does—but whether or not it’s Crash Proof. If [Crudele] had a long list of people claiming to have lost money during a market crash, that would be something. But he doesn’t! The market’s crashed twice in the past 15 years, and the System was indeed Crash Proof!”

Jack Gunning of Blue Bell, Pa., was also surprised that the article didn’t focus on the guarantees within the Crash Proof Retirement System. He and his wife Janice have been with Crash Proof Retirement since 2011.

“To me, it’s amazing that people can write this information, and not do their homework,” said Mr. Gunning. “We’ve been [with the Crash Proof Retirement System] for four years, and we’ve done two years over double digits. And this guy didn’t even mention how much you keep! In four years, we’ve made 37%, and we’re keeping all of that!”

Marianne Layng of Wilmington, Del. has a unique perspective on the Crash Proof Retirement System. Not only was she with the System before the market crash of 2008; her late husband Don Criscuolo became an educator at First Senior Financial Group after realizing how consumer-driven the System really is! “We came in on a whim to see if there was any truth to this,” Marianne remembered.

Not long after Don and Marianne joined Crash Proof Retirement, they made it safely through the Crash of 2008. Since that time, their accounts have averaged around 9% annually—and that’s including those years during the market crash. Marianne has first-hand experience with making it through a market crash with the Crash Proof Retirement System.

“You will not lose money if something big happens,” she emphasized.

Staff members who are integral to the process of building individual Crash Proof Retirement plans joined the show as well. Ross Phillips, Lead Analyst at First Senior Financial Group, offered John Crudele a personal education on the System.

“I sign my name to every presentation that we produce,” said Mr. Phillips. “It’s my responsibility to make sure that everything we say on the radio or at the educational events is the truth. And the truth is that not a single consumer has lost a dime in the Crash Proof Retirement System.”

Mr. Phillips also explained the importance of operating under a fiduciary duty—an obligation to act in the best interest of the consumer, without regard for professional or personal gain.

“People have come through our process and say it seems too good to be true—no market risk, no upfront cost and no fees—but after going through our educational process, they become believers. They’re able to protect their retirements.”

Finally, we were joined by Daniel Barram, the Chief Operating Officer of First Senior Financial Group. Mr. Barram has had the opportunity to work with clients coming through the Crash Proof Retirement process for the first time, as well as those who return for their free annual reviews.

“I’ve seen so many clients who feel safe and secure in these Crash Proof vehicles,” said Mr. Barram. “I’ve also looked at hundreds of clients’ statements. The stats speak for themselves, as does the joy you see on the faces of these people, who know they can sleep well at night.

It was an empowering, validating hour of radio. On behalf of my courageous co-host, Joann Small, I’d like to thank everyone who took the time to call in and share their experiences with The Crash Proof Retirement System.

And to Mr. John Crudele of the New York Post—the offer still stands. You are welcome to join us on the air and hear for yourself from Crash Proof consumers about everything the System has done for them. No market risk, no fees—and above all, no lies. Mr. Crudele, come learn the truth.

Phil Cannella is part of the National Ethics Association, Phillip Cannella‘s profile can be found on ethics.net. Phil Cannella catches Florida wealth manager lying to save an account. You can watch this video testimonial on YouTube.

To read more about Phil Cannella and what his team is doing, visit Phil Cannella on Facebook! Want to connect with Phil Cannella professionally visit his LinkedIn profile.

Former Fed Chairman Issues Warning

By
Phil Cannella
-
0

There are varying opinions of former Fed Chairman Alan Greenspan. Greenspan is the former Chairman of the Federal Reserve and a world renowned economist who served as chairman of the Fed from 1987 to 2006. He’s noted for many accomplishments over his illustrious career including helping to prevent the 1987 stock-market crash from becoming far worse, but after a strong economic period in the 90’s came the mortgage crisis and Greenspan’s detractors blame his hatred of financial regulation as a big reason for it.

Most notably, however Greenspan is remembered for his phrase: “irrational exuberance” which he coined in 1996 during a speech in which he warned about inflated, over-blown asset prices in the equities market, specifically in technology stocks. Those comments came right before the dot-com bubble. When the dot-com bubble exploded in the early 2000’s many technology companies collapsed and disappeared. The combined market values of 280 stocks fell by nearly $2 trillion dollars when the dot-com bubble burst. That’s why Greenspan’s most recent comments about the bond bubble about to break because of “abnormally low” interest rates have gotten so much attention by investors.

Greenspan’s bold warning came during a recent interview on CNBC’s “Squawk Box.” He said:

• “The bond market is on the verge of a collapse that also will threaten stock prices. The prolonged period of low interest rates is about to end and, with it, a bull market in fixed income that has lasted more than three decades.”

Watch and listen to more of former Fed Chairman Alan Greenspan’s warning (re: the bond market) on CNBC’s Squawk Box, below.

Alan Greenspan: Interest rates on government bonds have never been lower from CNBC.

During the interview with CNBC Greenspan did not take shots at current Fed Chair Janet Yellen or any of the Fed’s monetary policies, but he did say that he believed:

• “Low interest rates cannot stick around forever, and once rates start shooting up again, the consequences will be severe, and that the downturn will be quick and will take the market by surprise.”
CNBC analyst Art Cashin of UBS, who’s a veteran of Wall Street’s trading floor, found Greenspan’s comments compelling. Watch below.

Cashin: Alan Greenspan’s massive bond bubble comment intriguing from CNBC.

Survey: Bull Market to End Next Year

By
Phil Cannella
-
0

Investopedia defines a stock market bull market as:

“A financial market of a group of securities in which prices are rising or are expected to rise. Bull markets are characterized by optimism, investor confidence and expectations that strong results should continue.”

The current bull market on Wall Street is now over 8 years old. The winning streak began for the S&P 500 back in 2009 when the great recession was at its worst. Since those dark days on Wall Street, the S&P has grown by over 250%. The U.S economy has experienced eleven bull markets since 1956. The biggest one (prior to our current streak) ran from 1990 to 2000 when the S&P gained 417%. No bull market however has ever made it to its 10th birthday.

Of course after the bull-run of 1990-2000, came the crash of the Dot Com bubble, and then market crash following the terrorist attacks of September 11, 2001. During that time the NY Stock Exchange suspended trading for four sessions which led to the market downturn of 2002. This crash resulted in the loss of $5 trillion in the market value of companies from March 2000 to October 2002.

What investors, fund managers, and other financial experts & economists are trying to predict now is when will the current bull market nosedive into a “bear market” (a market in which prices fall and continue to fall, thus encouraging the selling of stocks and other securities). As one would expect, it is very hard to try and figure out when the trends in the market might change.

But now according to a new survey of thirty of the world’s top fund managers and financial strategists, we may be zeroing in on when the next “bear market” will occur. Almost unanimously, the financial experts surveyed believe that the next U.S. recession will happen in 2019, and that the current bull market will end next year- entering into the first bear market since the global crisis. Back in 2002 the bear market in U.S. stocks wiped out more than $7 trillion dollars of value.

The poll was conducted by Bloomberg News and led by reporter Dani Berger. Watch below as Berger explains the results of the survey and why fund managers are pessimistic about the short term future of the economy and the stock market.

Some other results that came from the Bloomberg News survey of thirty of the globe’s top fund managers and strategists:

• Bonds are what investors are worrying about the most, but only a few of the fund mangers interviewed said they would reduce the amount of investments in bond funds and fixed-income holdings.

• Some of those interviewed said they were concerned about inflation picking up with a tightening labor markets in many major economies, and that they would purchase inflation protection to protect their client’s interests.

• There was also worry that policymakers with Federal Reserve and U.S. Central Bank might abandon its stimulus efforts prematurely, thus hurting the economy along with corporate profits.

There are other signs, from several independent sources that the U.S. stock market could be facing a major downturn. According to the outplacement firm Challenger, the number of job cuts this past May was 71% higher than it was in May 2016. This past May also saw U.S. manufacturing drop to an 8 month low and the third worst drop in U.S. construction spending in the last six years. Research shows that 39% of all millionaires plan to avoid investing in the coming months. And according to the Los Angeles Times, it is being projected that 25% of all shopping malls in the United States may close within the next five years.

Recently, Yahoo Finance reported that JP Morgan financial strategist Marko Kolanovic tracked a recent decline in stock correlations and he noticed that it directly mimicked what investors did before the big stock sell-offs and market downturns in 1994 and 2001.

In a letter to his clients Kolanovic wrote:

“Over the past year, correlation of stocks and sectors declined at an unprecedented speed and magnitude. A similar de-correlation occurred on only two other occasions over the last 30 years: in 1993 and 2000. Both of those episodes led to subsequent market weakness and an increase in volatility (in 1994, and 2001). The current decline in market correlations started following the US elections and was largely driven by macro (rather than stock specific) forces.”

A de-correlation in stocks means that stocks start moving in different directions, almost indiscriminately at different times, rather than in the same direction at the same time. Typically, a correlation in stock movement rises when investor worry increases; when panic starts, investors tend to just get rid of everything and sell- with no logic or reason.

All of this information adds up to a very tentative and volatile economy, and more sleepless nights for American retirees who are worried about their retirement investments being at risk on the stock market.

The “American Dream” is Being Prolonged Due to Economic Reasons

By
Phil Cannella
-
0

For most of us the “American Dream” is still a very real and critically important aspect of our lives and it involves several key components:

  • Retiring in our mid 60’s
  • Having enough money saved in our retirement nest-eggs so that we can continue living the lives in which we’re accustomed.
  • Being physically and mentally healthy enough to spend as much time as possible with our family and close friends.

Our hope is that the “dream” only has to last for about 40 or 50 working years before we can head into the twilight of retirement, and really enjoy the last 20 or 30 years of our lives. However, according to the latest figures, more and more of us are working well over the age of 65 to ensure that we’ll have the kind of savings we’ll need to retire.

The latest data recently released by the government shows that in April of 2017, 19% of Americans age 65 and over were still working. That’s the highest rate since 1962.  That figure was just 10% in 1985, but over the past 32 years, the number has steadily increased. As America grows older and as life expectancy gets longer, some people keep working because they like working and want to stay active.  But the sad reality is that an increasingly growing number of older Americans must continue to work because they cannot afford not to.

The Employee Benefit Research Institute, (whose mission is to contribute, encourage, and enhance the development of sound employee benefit programs and sound public policy through objective research and education) reports in its most recent retirement confidence survey that over 25% of workers age 55 or older say they have less than $10,000 in savings and investments.  Close to one third of workers in that age group say they expect to work until at least the age of 70, if they retire at all.

According to the survey

  • Two in three workers (66%) report feeling very or somewhat confident about being able to afford basic expenses in retirement, including 26% who feel very confident.
  • Workers’ confidence in their ability to afford basic expenses is higher than the confidence they report regarding their ability to pay for medical expenses in retirement.
  • 45% of workers are not too or not at all confident they will have enough money for medical expenses in retirement.
  • An even greater share is not too or not at all confident in their ability to pay for long-term care expenses: nearly 6 in 10 (57%) do not feel confident about having enough money for long-term care in retirement

In the retirement survey, many older Americans say they would like to work and need to work but can’t find a job.  The cold, stark fact for the elderly in America is that the unemployment rate for workers age 65 and over was 3.7% in April, and that’s higher than it’s ever been over the last 30 years.  Experts say they expect those figures to continue to rise.

Pres. Trump’s Accomplishments in First 100 Days

By
Phil Cannella
-
0

President Donald Trump has had a number of very significant accomplishments during his first one hundred days in office. However, many of his biggest achievements might not have gotten the attention they deserved because of the main stream media’s liberal slant and bias, or by a continued effort from the media to be completely negative, or simply ignore the positive changes that Pres. Trump has made so far. It certainly is worth itemizing the long list of successes so far of the nation’s 45th President.

In his first hundred days in office President Trump has:

  • Initiated the process of reducing taxes
  • Started pulling back on government regulations
  • Begun the process of overhauling government-run health care
  • Restored consumer and business confidence with strong and effective pro-growth policies
  • Has overseen the biggest stock market increase in the first one hundred days of any U.S. President before him
  • Restored the Keystone Pipeline which will employ thousands of Americans
  • Renewed efforts to revive the once dead coal industry.
  • Signed 11 Congressional Review Act bills to stop Obama era regulations.
  • Ordered that for any new government regulations, two old ones be eliminated.
  • Reduced the number of illegal immigrants from Mexico by 64% in March, compared to the same month in 2016
  • Extended access for military veterans to private-sector medicine.
  • Stopped forcing states to send federal money to Planned Parenthood and other clinics that perform abortions.
  • Proposed radical tax-reform proposal of 15% tax rates for corporations and small businesses, doubling of the standard deduction, elimination of the Death Tax and the Alternative Minimum Tax.
  • Pushed through his Supreme Court nominee- Neil Gorsuch
  • Regenerated America’s military power overseas through sending U.S. cruise missiles into Syria and dropping the “Mother of All Bombs” on ISIS terrorists in Afghanistan.

In addition to the large number a important accomplishments President Trump has initiated a stance against former President Obama’s march towards socialism, which comprises various economic and political theories that support collective or governmental ownership and administration of the means of production and distribution of goods. The idea under socialism is that everyone pays taxes and the government, in an equal way, provides its citizens with the things that they need. Socialism takes away the freedom to decide how you wish to spend your money; it assumes you are not smart enough to decide what you need, so the government will give to you, what it thinks you need.

The official website for the White House has detailed a complete and extensive lsit of President Trump’s list of accomplishments in his first hundred days. View the entire list here.

Report Shows Govt. was Aware of Problems at Wells Fargo

By
Phil Cannella
-
0

Last year in a stunning and revolting revelation, it was discovered that Wells Fargo, one of the world’s biggest banks, had instructed (and gave incentives) to employees to use aggressive sales techniques to set up 2 million fake accounts on behalf of thousands of unsuspecting Wells Fargo customers. As a result of the scandal, 5,300 Wells Fargo employees were fired, and the banking giant was ordered to pay a $185 million settlement.  The issue was investigated by the Office of the Comptroller of the Currency (The O.C.C. is a division of the US Treasury Department) which is the country’s top federal banking regulator and the agency that was supposed to identify when fraud was occurring. However in a report filed last week, an internal review published by the Office of the Comptroller of the Currency found that the OCC failed to act on numerous “red flags” at Wells Fargo, that could have stopped the fake account scandal years earlier.

According to the report, one warning that went ignored was in January 2010, when the regulator was aware of “700 cases of whistleblower complaints” about Wells Fargo’s sales tactics. The report found that”

• The regulator didn’t live up to its responsibilities.
• Oversight of Wells Fargo was “untimely and ineffective”
• Federal examiners overseeing the bank “missed” several opportunities to uncover the problems that led to the creation of millions of fake accounts

Read the entire report from the Office of the Comptroller of the Currency here.

The review showed that the Office of the Comptroller of the Currency made big mistakes and failed to notice what should have been obvious problems at Wells Fargo, prior to the scandal breaking in 2016. In a recent interview with CNN,  Wells Fargo CEO-Tim Sloan said that in order for the bank to gain back people’s trust, they have to address everything they did wrong. See the interview with Wells Fargo CEO Tim Sloan with CNN here.

Philadelphia Inquirer Sued by Crash Proof Retirement

By
Phil Cannella
-
0

phil-cannella-sprague

PHILADELPHIA – Phil Cannella and Crash Proof Retirement announced that Philadelphia icon Richard Sprague has decided to represent them as plaintiffs against the Philadelphia Inquirer.

Mr. Sprague is well known for taking and winning cases that involve defamation against good, quality businesses.

Among many others, Mr. Sprague has represented famed trial lawyer F. Lee Bailey, former Philadelphia 76ers guard Allen Iverson, and ironically two co-owners of the Philadelphia Inquirer: the late Lewis Katz, and Gerry Lenfest.

Historically, Mr. Sprague has a great track record for cases against the Inquirer.

Retirement Media, Inc. will be reporting updates as they happen, however, at this time, all questions and comments should be directed to Sprague and Sprague.

 

Google and Facebook Take On Fake News

By
Phil Cannella
-
0

SOURCE: Technologyreview.com

The battle against fake news continues—but new features from Google and Facebook designed to help fight misinformation still firmly distance the companies from the thorny issue of choosing between real and fake content.

In the wake of the presidential election, Facebook came under heavy criticism for the proliferation of fake news in its users’ feeds. Despite attempts to fix the problem, using third-party fact-checkers to flag potentially incorrect news, it remains an issue for the social network. And more recently Google also found itself criticized for allowing its search algorithms to happily serve up misinformation.

Today, both companies have rolled out tools that they hope will ease the problem. Google has taken a page out of Facebook’s, er, book, adding a “Fact Check” tag to snippets of articles that appear under the News tab of its search results. Like Facebook, it uses analysis by fact-checking organizations to alert users to content that appears to be inaccurate.

Ultimately, though, the system leaves the user to decide whether to believe the content or not. “These fact checks are not Google’s and are presented so people can make more informed judgments,” explain Google’s Justin Kosslyn and Cong Yu in a blog post describing the feature. “Even though differing conclusions may be presented, we think it’s still helpful for people to understand the degree of consensus around a particular claim and have clear information on which sources agree.”

Meanwhile, Facebook’s new initiative also puts the onus on the user. Today, millions of users’ news feeds in 14 countries, including the U.S. and the U.K., will be splashed with banners that encourage people to learn “how to spot fake news.” The tips, which were developed by the U.K. fact-checking organization Full Fact, include sensible advice—from checking URLs, date stamps, and formatting, to questioning headlines and inspecting photographs. Facebook’s is only a temporary experiment, though, meant to last just “a few days.” Presumably if it’s successful the trial may be widened out—though what counts as success here is up for debate.

Indeed, both Google and Facebook are painfully aware that this is an incredibly hard problem to solve. As we’ve pointed out in the past, deciding between what’s true and false can be incredibly difficult: there are murky lines between disagreeable opinions, bad information, and outright lies. Picking them apart is understandably something that both Internet giants are afraid to do.

For his part, Mark Zuckerberg has stated that the issue is “complex, both technically and philosophically,” and that he wants the social network to “be extremely cautious about becoming arbiters of truth.” For now, then, that role falls to you.

1...789...54Page 8 of 54

Recent Posts

The Impact of Repealing the Glass-Steagall Act

In the leadup to the “Black Tuesday” Stock Market Crash of 1929, and Banking Collapse of 1933, lax financial regulations created an...
retirees returning to work

Study: 40% of Retirees Plan to Return to the Workforce in 2024

In today's society, a significant amount of retirees are finding themselves living at or below the poverty level. This phenomenon is largely...

THIS WILL CHANGE EVERYTHING

Crash Proof Retirement has announced that they have taken a bold step in 2024 by recording and...
The Investment Gender Gap: Women Feel Ignored by Financial Advisors

The Investment Gender Gap: Women Feel Ignored by Financial Advisors

In March, we observe Women’s History Month to recognize and celebrate the vital role that women have played in shaping American history....

Adjusting Your Investment Strategy as You Age

There are three phases that every investor goes through as they make investment decisions during their life. While it would seem logical...

Most Popular

The Impact of Repealing the Glass-Steagall Act

In the leadup to the “Black Tuesday” Stock Market Crash of 1929, and Banking Collapse of 1933, lax financial regulations created an...
retirees returning to work

Study: 40% of Retirees Plan to Return to the Workforce in 2024

In today's society, a significant amount of retirees are finding themselves living at or below the poverty level. This phenomenon is largely...

THIS WILL CHANGE EVERYTHING

Crash Proof Retirement has announced that they have taken a bold step in 2024 by recording and...
The Investment Gender Gap: Women Feel Ignored by Financial Advisors

The Investment Gender Gap: Women Feel Ignored by Financial Advisors

In March, we observe Women’s History Month to recognize and celebrate the vital role that women have played in shaping American history....

Adjusting Your Investment Strategy as You Age

There are three phases that every investor goes through as they make investment decisions during their life. While it would seem logical...
Retirement Media Inc
Retirement Media provides relevant and timely reporting on important financial retirement issues our readers care about most.
Contact us: info@retirementmediainc.com

This website is strictly for educational purposes and is not intended to provide specific legal, financial, or tax advice. Phil Cannella and Joann Small are licensed professionals in the insurance industry. Crash Proof Retirement®, LLC. and Retirement Media, Inc ®. do not recommend or sell securities to anyone at any time. Any interviews conducted by Retirement Media, Inc ®. published on this website are not to be considered endorsements. Crash Proof Retirement®, Crash Proof Retirement® Show, and Retirement Media, Inc. ®, and all related uses, are federally trademarked with the United States Patent and Trademark Office. Any company or individual found violating these federal trademarks will be vigorously pursued through all available legal avenues and penalized to the fullest extent of the law. © 2024 Retirement Media, Inc ®., All Rights Reserved.