commentopia What the World Is Saying A SERVICE BRINGING YOU THE BEST READERS' COMMENTS FROM TOP NEWS SOURCES ON THE WEB
BUSINESS WEEKLY COMMENTS JULY 2009 -— SEPTEMBER 2009 [RETURN TO commentopia HOME PAGE]
SEPTEMBER 28, 2009 - OCTOBER 4, 2009 BUSINESS
I work at a Saturn Dealership in Tempe, Arizona and I thank those of you who support us. This is a huge blow to one of the greatest brands ever designed. Many people never understood what GM designed Saturn for. We were made to compete against the overseas brands. We were never designed to be a money maker like everyone keeps crying. We were to keep one more American family in an American car to have the chance for them to grow into other GM brands. Our cars if you take the time to look have identical feature and options as the Toyota, Honda and Nissan. GM's mistake is to believe Saturn owners are just going to find another GM brand. That customer that we saved from buying the other brand for years and years will be buying the other 3 brands now. They didn't buy into the belief of GM they bought into the belief of Saturn. Read the article CNN MONEY/GM kills Saturn after Penske ends deal
<> I think its funny that Saturn was never "Profitable" for GM. First off,they were the only car GM made that people were actually happy with (Product and Service) and every time I drive down the road I see a ton of them! I have owned Saturns for over 16 years and I would never buy anything else. Unfortunately I will now buy a Honda because nothing else in Saturns price range is as dependable. Kind of ironic isn't it? GM kills off an American Brand and that forces me to buy Foreign. What a shame to lose such a great company! Read the article CNN MONEY/GM kills Saturn after Penske ends deal
EMPTY PROMISE OF A JOBLESS RECOVERY
"Jobless recovery" It's more than an oxymoron it's just a plain lie. They keep talking about how employment is a trailing indicator. Maybe that is true but unemploy-ment is also an indicator of actual commerce throughput just like tracking transportation or the Baltic index. How can a company be growing when they are shuttering labor? Somehow Wall Street rewards these companies but to me it's a major red flag. Read the article MARKETWATCH/The jobless recovery <> Both employers and the government should recognize that their well being depends on people earning money.
The only way to expand would have been if they kept the western workers and paid enough for workers in developing countries to be able to buy the products they make. Now we are in a downward spiral and nothing will stop this. There is no such thing as a jobless recovery. Greed is always a poor adviser. Read the article GLOBE AND MAIL, TORONTO/The perils of a jobless recovery <> I wish I could be positive on the job market, but you have to be blind not to see what's killing the American worker for the last 15-20 years, 1. NAFTA, 2. Outsourcing, 3. New American plants opening on foreign soil, 4. Manufacturing almost nil, 5. Specialized Industries gone. etc etc
Read the article MARKETWATCH/The jobless recovery
TWITTER -- A BILLION-DOLLAR BIRDIE FEATHERS ITS NEST
Although a 100M financing round is certainly high for a company like Twitter, I’m interested to see what justified these valuations. Most of you act like you actually have any idea what Twitter is planning and that these investors are stupid. I’m sure these is some sort of significant revenue model in the works - while not necessarily unemotional, these investors are shrewd, and the same ones who have invested in profitable companies such as Netflix and TiVo (Institutional VP), Newegg.com (Insight VP), among others. This is not saying I actually like Twitter, because I don’t, or that these valuations aren’t derived by some coked-up redbull-spazzing 2nd year IB analyst at 3 AM on a Saturday morning, because hey they probably are (!). But I’m also betting there’s definitely something planned out which requires the capital, and it probably has something to do with harnessing their considerable traffic to create a real revenue model. Let’s see what happens before we pass judgment Read the article NEW YORK TIMES/Twitter's latest valuation: $1 Billion <> Wake up people, it's not about the medium, it's about the users ! It's about the content, that's worth the money ! They create an infrastructure to communicate, investors want to be part of that deal, the top of the food chain, believing in what twitter already means to the community participating, it's role in the worlds' economy, the power of open, authentic communication. Read the article MASHABLE/Wow Twitter to raise $100 million in new funding.
NET NEUTRALITY: FUTURE PROOFING A FREE AND OPEN INTERNET
I’m not sure we all understand just what net-neutrality is. Say you have just gotten Comcast to be your ISP, and you get on your browser and attempt to go to http://wsj.com , but Comcast redirects you to http://www.comcast.net/news/ , because Comcast gets advertising revenue from their own new page. You find that no matter what you do, you end up on Comcast’s page instead of where you want to go. Or you find that whenever you try to download a new Linux distro using BitTorrent, part way through the transfer, Comcast re-set the link and you have to start over, never to get the distro. So you change to Verizon FIOS as your ISP, because it is supposed to have blazing fast speeds — of course you couldn’t sign up on-line because Comcast blocks the Verizon web site. You get FIOS and find similar behavior, they block the Fox News web sites, because they think that Fox is biased, they block Google, because Verizon has it’s own search engine from which they want to get Ad revenue. And there aren’t any other ISPs available in your area, sorry. Net Neutrality is simply a rule that says that they, Comcast and Verizon for instance, cannot do that. These are extreme examples, the likelihood would be that they wouldn’t block traffic from specific sites, but that they would cripple the throughput of those sites, and prioritize their own traffic over those others at all times. Net Neutrality stops that behavior. Read the article WALL STREET JOURNAL/ Net neutrality in the spotlight. <> Net Neutrality is wonderful, right? Not so much. As much as we'd all love to have free and clear Internet access at little or no cost, the fact of the matter is that this service costs. The only way to make it "worth" the providers' effort is to allow them to run it as a business. That means they have to make the hard decisions to remain profitable. The more profitable, the more interest they'll have in developing and NOT the other way around. I'd love for the carriers to open up everything to everyone and make it darn near free, but that's just not reality. Heck, maybe that Porsche I've been looking at will cost me the same as a Scion. They're both cars, right? Read the article PC WORLD/FCC "net Neutrality" rules are a win consumers. <> While I'm generally in favor of net neutrality, I can understand why ISP's would want to limit some access. Read the article USA TODAY/FCC moving to require net "neutrality' by providers.
PUTTING THE REINS ON EXCESSIVE BANKERS' PAY
I fully understand why this is being done, and I am even okay with it to a certain degree. If certain institutions are so big that their downfall would cause so much havoc and cause tax money to be pumped in to keep them afloat then I can see the government, through the Fed, having some say in limiting their risky practices. But I will admit it makes me a tad uncomfortable to see any government agency cutting into a private company this far. I'll be more comfortable with it if they very, very clearly define exactly what they mean by "excessive risk" and "appropriate incentives." The more subjectivity and discretion is given the more I will fear this being a major step down a very dangerous path. Read the article HUFFINGTON POST/Fed planning sweeping curbs on banker's pay <> Any time you pay someone based on production the quality of the last units in falls as the person tries to overreach. This is true in all pay per unit scenarios not just banking. In a perfect world your scenario is valid, however I think it is obvious someone was asleep at the wheel. Read the article WALL STREET JOURNAL/Bankers face sweeping curbs on pay
<> Clearly there are many lesson to be learned form the past year. Regulations need to be refined and enforced to better address risks to the system. However, this proposal by the Fed is clearly a step in the wrong direction, and does not demonstrate a clear understanding of the big picture. Read the article WALL STREET JOURNAL/Bankers face sweeping curbs on pay SEPTEMBER 2, 2009 - SEPTEMBER 27, 2009 BUSINESS PEW SURVEY — IN MEDIA, WE [DON'T] TRUST
As a (retired) news professional, none of this surprises me. Still, I am dismayed that these surveys continue to miss the real point. Today's market puts great value on the latest photos of Brittany, the romances of Beyonce, and the tantrums of Serena. [HUFFINGTON POST/More Americans think media is biased, inaccurate] <> There are no follow up questions. There is no calling guests on the blatant lies they say. Stories are simply "he said, he said" and no clarification or anything. I worked for Cronkite. Today's journalists are NO Cronkites. [HUFFINGTON POST/More Americans think media is biased, inaccurate]
<> There are professional, good journalist who take their work seriously. They risk their lives and some have given their lives in the belief that facts and good journalism matter. Then you have the pseudo journalists. The Rush Limbaughs, the bloggers and the tweeters who portray themselves as having the correct news. What separates the two is the pseudo journalist are expressing their own personal viewpoint as news. It is not however factual. But that doesn't stop people who lean toward a similar belief that is true. That's because they want to believe it is true rather than face the idea that the information is inaccurate. It has muddied the water to the point that people don't care if it is true or not. It has turned into a mob mind set. Look at the recent protest in Washington. There were crackpots there with conspiracy placards, abortion issues, fear fanatics, a zany hate filled distortion of everything they are against or for. What does the world think of us? We look and sound like zombie idiots following one fanatic or another. And here we are, telling the Middle East how they should behave. What a joke. [LIVE SCIENCE/Survey: Media Accuracy at New Low.] WALL STREET — LESSONS LEARNED ONE YEAR AFTER THE FALL
The lesson learned is that you don't need to worry about risk because the Federal Government and Federal Reserve will take care of any losses for you. The actions taken by government have simply entrenched this belief and idea. Until the people who make the bets are able to suffer from any resulting losses, the actions of the people in charge are not going to change. This is true for the players on Wall Street and true for the political class. Since neither of these groups suffer losses as a result of their poor decision making and actions, don’t expect anything to change any time soon. They will keep making high risk bets to maximize their profit since there is no consequence to them for doing so. [WALL STREET JOURNAL/Obama urges Wall street not to ignore lessons of crisis.] <> As a historian, I know that capitalism has a major recession or depression every 30-40 years, and seems to be operating on some type of generational cycle, as American politics does. [DAILY BEAST/The unnecessary meltdown] <> End the wild speculation that destroys wealth. Encourage productive investment in factories, products, equipment and new businesses that creates wealth. [WASHINGTON POST/Obama heads to Wall Street] <> What's going on is not like a casino. It's not gambling or anything like it. As many have noted, the banks (e. g., Goldman Sachs) are in the position, "Heads we win, tails you lose." But even this perverse facsimile of gambling is inaccurate since it describes an alternative. But there are no alternative. The banksters/Wall Streeters are not permitting this to happen. What's going on is plundering, plundering disguised as loaning and as trading. The banks have a stranglehold on the government. Why and how this is is not fully clear. But it goes beyond the familiar concept of bribery or donations to politicians. Serwer's metaphor implies the government is the house rigging the system. But the government isn't rigging the system--the banks are dictating the system. The banks are both the house which is like an overlord behind the scenes and also like gamblers in public view seeming to be gambling. But the bankers are the only ones in the game. This is an absolutism one never would have thought would have been allowed to come about. But the banksters/Wall Streeters are extraordinarily cunning, not to mention limitlessly greedy. I've seen this in my investigative journalism into crime and corruption in Fairfield County, CT. Apparently, President Obama is still under the impression that he can fool Americans with lofty rhetoric. If he were sincere, why did he select Bernanke and Geithner to formulate rules to regulate the financial industry? Weren't these the guys who sat on their hands while Wall Street feasted on dubious debt instruments? If past is prologue, Wall Street itself is writing the regulations, rife with loopholes, that are supposed to reign them in. The foxes remain firmly in charge of the hen house. [NEW YORK TIMES/On Wall Street, Obama pushes stricter financial rules.] SEPTEMBER 14, 2009 - SEPTEMBER 20, 2009 BUSINESS HARVARD, YALE "IVY-LEAGUE" LOSSES
“Jane Mendillo, Harvard's endowment manager, noted that Harvard achieved an average annual return of 8.9% over 10 years, three times its peers'” Although it is fashionable to ridicule the endowments for their losses this year, Ms. Mendillo is right. Harvard, Yale and the other endowments were indeed better served by their investment strategy over the long term. A one year decline in the value of their endowment, even at the 30% level, although staggering is still a better outcome than strategies that would have resulted in 3% growth over the long term. [WALL STREET JOURNAL/Harvard, Yale Are Big Losers in "The Game" of Investing
Remember a few years ago, when activists got the University to replace their longtime fund managers because their management fees were slightly higher than others? The former manager had unsurpassed performance even after the "horrible" fees. When will people ever learn that the BOTTOM LINE is the important factor? Everyday, I see individual investors focus on the 12-b1 and internal mgt fees of a mutual fund, but ignore its Morningstar rating or in-category percentile return rankings. Penny wise and pound foolish. Harvard had to cave to the motivated activists who got them to jettison the outstanding manager and replace that team with a cheaper one. Folks, you get what you pay for. [BOSTON GLOBE/Harvard endowment posted 27 percent loss]
MICHAEL MOORE'S LOVE-HATE RELATIONSHIP WITH CAPITALISM
Why does no one challenge Moore's own hypocrisy? Capitalism is evil, except when used by him to make millions for his own fortune? Does he really think he could speak so freely, criticize so blatantly and fudge the facts so regularly in a socialistic country? If you answer that yes, consider that Lenin and his minions, Stalin, Quaddafi, Chavez and dozens of others all promised (at first) the socialism that Moore seems to want...fairness for all, all the time. Take a look at what those regimes became and are becoming. Capitalism/democracy are in fact the most cruel kind of economic systems and form of government ...except for all the rest. [HOLLYWOOD REPORTER/Capitalism: A love story.] <> Love it! Listen folks. Moore is playing the fool. Showing reality and the truth in our faces with humor. Just like the fools in the king's courts of yesteryear. He knows it too. That's his job. He's simply a mirror. The fools would act out the truth and bash the king right in front of him. Don't look for social change to come from a movie. For those who want to face the ugly truth, look at Moore...literally. ;) If not, shut up, shut out and watch Fantasy Land Disney or Fox News... same difference. I hate when people take him so literally or are threatened by him. He's THE FOOL! And every society need's its fools. He shows us the truth, and acts like an idiot. I don't see why people have a problem with him. If anything he's entertaining. [LOS ANGELES TIMES/Michael Moore declares all-out-war on capitalism.] <> Moore misses the main point: It wasn't communism/socialism that died when the Berlin Wall fell in 1989. It was capitalism as we knew it; an illusory answer to the promises of Soviet-style communism (that was moribund when it first came out of the gate). In contrast to communism, capitalism of the 20th century promised life-long jobs, health insurance, a good retirement and support for education (for some), as well as private enterprise. When the Wall fell so, to, did opposition that was predicated on the capitalism we once knew and loved but that hasn't existed for 20 years, now. So it died, only to be replaced with a more virulent amoral type of capitalism called plutocracy...power by wealth where nothing matters in industry but the bottom line. [LOS ANGELES TIMES/Michael Moore declares all-out-war on capitalism.] <> Moore's problem is his success. It's difficult to be lectured to by a multimillionaire about the evils of capitalism. It was kind of like listening to John Lennon singing out the joy of no possessions while living a 15 million dollar New York pad. Are there things that could work better and need to be fixed? You betcha. Absolutely. But the smug and self-satisfied are rarely the leaders for change. [LOS ANGELES TIMES/Michael Moore declares all-out-war on capitalism.] <> I am 74. I served in Korea (17 months on the line) and I am ashamed of the lack of humanity that this country exhibits.To read some of the posts on this and other venues is sickening.Once you call some one with whom you do not agree an as#%^^& you become one yourself. If capitalism is the answer how come so many people are out of work. Why is the Republican party (tax cuts for the rich) so against health care. Do they think that it is O.K. for people to die because they have no money? I see people losing their pensions, homes and savings because the capitalist system "worked". If you do not like socialism don't collect social security, don't use medicare and public schools and so on. Instead you attack Moore and Obama and everyone else that you haters hate. Meanwhile the banks are not lending anyone any money and millions of people are suffering because the Republicans think that it is good for people to suffer. All most people want is a fair shake for helping some CEO make millions every year.And not to keep on slaving for a GM who made lousy cars and now is crying the blues. Pay the people who make the stuff a living wage and make the workplace user friendly for the poor people who help make the things that help the CEO millions.And stop thinking that those people who you disagree with are as#$&% because it takes one to know one. [HOLLYWOOD REPORTER/Capitalism: A love story.]
SEPTEMBER 7, 2009 - SEPTEMBER 13,2009 BUSINESS WARREN BUFFET IN A CAUTIONARY MOOD
Most people who have commented here are missing the point of what's really going on here. There is nothing wrong with Buffett's investing philosophy. Buy low, sell high depends on the QUALITY of information one receives from reputable sources. [NEW YORK TIMES/Closely watched Buffett recalculating his bets .] <> Buffett is a smart man and one of the savviest men in the world when it comes to money and economics. America continues to lose jobs to the populous nations of Brazil, India and China, as well as third world countries that do many jobs far cheaper and with far less disregard for the environment than the U.S.A. We need a new industrialized base that will create domestic jobs that can't be exported and will address the environmental issues. That has to be a great opportunity for renewable energy, be it wind turbines, solar panels or other non-polluting power sources. It also has to be in technology borne of education. [DAILY BEAST/Why Warren Buffett is worried.] UNEMPLOYMENT HITS 26-YEAR HIGH OF 9.7 PERCENT
The US economy will not get to its level of bottom and build again on solid ground until we look at real numbers when we talk about things like the "Unemployment rate". The number is calculated incorrectly. It does not include those who have exhausted their unemployment claims or those who have stopped seeking work because the job market is, well, non-existent.
[NPR/Unemployment hits 26-year high of 9.7 per cent] <> We are notoriously impatient as a people. We want instant gratification on everything. Of course, when you don't have a job, your need for change is real AND IMMEDIATE, no doubt about it, and our concern for the unemployed should be real as well. But that won't change the fact that improvement in unemployment rates has traditionally lagged behind the rest of the economy during upswings. Expect unemployment numbers to continue to get worse for a while yet. I would hope that folks on both sides of the political divide would take a breath, find things to do to help their neighbors who are hurting (many of whom, BTW, are helped by the portions of the stimulus package devoted to extending unemployment compensation), and generally refrain from the carping and "I-told-you-so"s." But I'm not holding my breath. Seems that we prefer to play the blame game (for the record, persons from both sides are guilty on this score).[CNN POLITICAL TICKER/Republicans quick to react to latest jobs report] U.S. STUDENT DEBT IS SKYROCKETING
i am not arguing that the debt has increased, but I will argue that its not as much of a burden as the article implies. [WALL STREET JOURNAL/Student debt grows dramatically] <> I'm sad to see that the gist of some of the comments so far seems to imply that students should pick their major based on what their future salary will be. I find this a disheartening way to plan the rest of your life. Financially speaking, yes, perhaps it is wise, but practically speaking, students should pick an area of study that interests them - they will spend a majority of the rest of their lives in that field. All fields should be valued and supported. Scholarships and grants aside, part of this support means providing loans to all students, no matter their major. Another part of this support means finding ways to help all students repay their debts - and whether that means generally lowering the price of college, arranging lower debt payments over longer periods of time, or providing debt forgiveness, well, that is a tricky task. There isn't a clear-cut approach to helping out all those in debt. But certainly basing it on the return rates leaves out absolutely vital, if less financially lucrative, parts of society. [WALL STREET JOURNAL/Student debt grows dramatically]
AUGUST 31 , 2009 - SEPTEMBER 6, 2009 BUSINESS
From a Bloomberg article: “The SEC received more than ample information in the form of detailed and substantive complaints over the years to warrant a thorough and comprehensive examination” of Bernard L. Madoff Investment Securities LLC, Inspector General H. David Kotz wrote in a summary of a report released today: Tips from a money manager, a “respected hedge-fund manager,” a firm that studied Madoff’s business and two anonymous informants failed to spur a complete probe.. They will manage to harm firms that are not guilty of any crime or impropriety, because now the SEC will need to get its pound of flesh, some scalps in its belt; so you can be sure if there is a file out of sequence, a firm will get fined or be required to pay some pennance. The public will not feel safer, but more businesses will have letters of admonition sent to them, and still the real villains will continue to steal. [WALL STREET JOURNAL/SEC botched inquiries into Madoff scheme] <> I read all 22 pages, and the conclusion is this do-nothing agency sat on its hands for eight years while Madoff ripped off thousands of investors. It had the evidence as early as 2000, but it did nothing. But what stunned me the most is the IG gave no explanation for this inactivity, other than Madoff's temper when questioned. To me, this all shows the SEC should be dismantled, the agency's employees scattered to the four winds, and its functions handed over to another agency. [NEW YORK TIMES/Report details how Madoff's web ensnared S.E.C.]
KIDS! -- BEN STEIN'S "COST-BENEFIT ANALYSIS" OF THEIR NET VALUE
Those that are appalled or were appalled read through this article again. He isn't saying NOT to have kids or that kids are horrible, what he is pointing out is the fact that middle class and higher families are not having children or as many children at least and gives reasons why not. Yes, he uses a lot of satire, but the point he is making is that kids are expensive, are a physical and mental drain, and for many people that cost does not exceed the benefit; benefits that no longer exist actually. That only leaves the question "what is/are the benefits of children?" left unanswered by the author... [CNN MONEY/FORTUNE/Assessing the net value of children.] <> As a new parent that wants to provide for my child, I actually agree with the message that I think Ben is trying to convey: there is a separation of the classes in terms of providing advantages in today’s society for your child and if you’re merely upper middle class rather than wealthy, you have to work your ass off to provide those advantages. One can rage that this disparity exists, but if you’re part of this class you have a very real choice to make about whether you will be noble and ignore it or be exhausted and provide it. Just a comment from someone who is faced with trying to determine if they want to play the game that is being presented to them. [REUTER'S BLOGS- FELIX SALMON/Ben Stein and the plight of the upper-middle class parent]
People seem to forget that DC are owned by Warner Brothers and that the creative staff of Marvel will have had nothing to say in regards to this buy-out. Without turning this into a DC v Marvel thing, I've been a Marvel reader for 20 years now and whilst the output has had it's ups and downs, I've stayed loyal and more often than not been paid for my loyalty with quality storylines. I've dipped into DC and been underwhelmed and confused. To say Marvel is convoluted to get into... have you tried reading a history of a DC character? With all the crises it is nigh impossible. Superman's origin has changed a half dozen times and might have to change again since DC lost the rights to his origin story. Disney won't go near the publishing side of Marvel. The focus will be on the other media – TV, films, video games along with merchandising. Hopefully, like with DC and Warner, the relationship between a comic book company and a powerful studio, will produce some interesting opportunities. Yes Marvel sold off a number of high profile characters to other studios who continue to make awful adaptations in order to keep the rights. Marvel Studios is currently releasing its films via Universal and has a slate marked up until 2012 with the release of the Avengers film. Iron Man was top quality as comic book films go and the Incredible Hulk was a vast improvement. Hopefully Thor and Captain America will continue along this route. [U.K. GUARDIAN/Walt Disney's marvel takeover may save superheros] <> This is a great fit for Disney. Disney doesn't have a business line for boys that are age of 9 to 15. This fits perfectly. Disney has outstanding distribution channels. Disney can product more bottom line then Marvel. Marvel was just learning how to product movie last year. Marvel doesn’t have a TV channel networks. Agree comic might have an unhealthy image that Disney needs to work on. Every business has it problem. [WALL STREET JOURNAL/Disney nabs Marvel heroes]
AUGUST 24 , 2009 - AUGUST 30, 2009 BUSINESS
Good move by President Obama. Thus far, Bernanke is the only thing good about our economy. Obama failed to stimulate the economy because he is a novice. He let Congress craft a bill in which almost no money is provided to business and provides no economic stimulus-only welfare through government agences. Bernanke, by keeping interest rates low, has been able to restimulate the stock market and make way for at least a very slow economic recovery that could be faster if Obama ever accepts some responsibility for past mistakes, cuts taxes, and gears any upcoming legislation toward creating new jobs. [WALL STREET JOURNAL/Obama reappoints Benanke as Fed Cheif .] <> I would like to add my personal thanks to Mr. Bernanke and the President for saving my job in the auto industry. Things looked beyond tenous there for a long minute, but thanks to "bold action" indeed, I no longer fear coming to work to find an 'out of business' sign plastered across the front door. In addition, the extended unemployment benefits helped my unemployed husband until the economy started to right itself and he was able to find employment in his field. Both my husband and I are college graduates who have NEVER taken a dime from the gov't. [CNN NEWS/Obama nominates Bernanke to a second term.] <> This endorsement says more about Paul Krugman than Bernanke. There is no mention of Bernanke’s failure to recognize the credit crisis - who else should be alert to things like credit crises? Krugman and others announced that the world would come to an end if banks were not bailed out. Bernanke bailed out the banks with taxpayer money and the world did not come to an end, therefore Bernanke is the new Maestro. This is another manifestation of the witchdoctor/sunrise symdrome which afflicts economists who believe that monetary policy is a magic bullet and that Fed chairmen by default are wizards who can do little wrong. What is the witchdoctor/sunrise syndrome? The witchdoctor convinces the village that the gods are angry, and unless he is paid to perform the appropriate ceremonies, the sun will not rise next day. He performs the ceremonies, the sun does rise, and he is thereafter indispensable, like Fed chairmen. [NEW YORK TIMES/On the reappointment of Ben Bernanke - Paul Krugman]
The question isn't if hazardous items are sold. They are, every year, in every facet of sales. So? We all lived to be adults, as will our children. We as parents need to be aware of what is going on, and pay attention to new information. We should not rely on the government to ensure our safety and wellbeing in every facet of our lives. Sure- regulation of big business is necessary. Regulation of retail sales is, also. Regulation of reselling? I say it's up to the buyer to beware on any resale, not the government's. Our Nanny State mentality is way too far gone, and we are much too dependent on others to tell us what is good for us and our children, instead of taking the time and making the effort to do so for ourselves. It isn't the government's job to ensure your or your children's well being- that is yours and yours alone. And I for one am not willing to give that responsibility to a federal government of any sort. [MCCLATCHY/Seller beware: feds cracking down on garage sales.]
MISSING AT THE MALL -- THE AMERICAN SHOPPER
It amazes me that anyone thinks the economy is coming back. People are still losing their jobs. A third of consumers didn't get a raise this year. People who were unemployed and got jobs are underemployed and companies are still sending jobs overseas and hiring people from India to come over here. The jobs leaving America go to people who save more because that country doesn't have a safety net like here, so they have to save for old age and health coverage. People in America won't buy things because of the behavior of businesses doing what I mentioned before. So companies can make things cheaper, with nobody to buy the lower priced products. That's what I call strategic planning from our leaders in industry. This is a cumulative effect of not looking at the long term and only thinking of the short term. You reap what you sow, bonuses and all. [WALL STREET JOURNAL/Reluctant shoppers hold back recovery.] <> Not all retailers suffer, look at TJX group - their stores report a healthy rise. [WALL STREET JOURNAL/Reluctant shoppers hold back recovery.] <> If the economy relies on consumer spending then cutting jobs, reducing salaries, and increasing credit card interest rates is not going to get the consumer back into the stores. If our economy truly relies on consumers spending money they don't have on products they don't need then we are doomed in the long run. We are nothing more than a Ponzi scheme [DAILY BEAST/Are Shoppers holding back the recovery?] AUGUST 17 , 2009 - AUGUST 23, 2009 BUSINESS THE CONDENSED WORLD OF READER'S DIGEST
It’s disappointing to see such a storied brand being tarnished with financial engineering that in hindsight seems to have benefited the deal makers the most. Reader’s Digest seemed to be making some smart operational moves this year in terms of integrating their various web properties to more efficiently capture a younger demographic while cutting back slightly on the print products, but not so much as to disrupt their core boomer demographic. Those efforts haven’t borne too much fruit yet but I wouldn’t count RD out yet. [NEW YORK TIMES/Reader's Digest plans Chapter 11 filing.] <> Reader's Digest abandoned its core audience several years ago by featuring Martin Sheen, Susan Sarandon and other left wing liberals on its cover. Just like the Dixie Chicks learned, you can't insult your core followers and expect to remain successful, so finally has Reader's Digest learned the same lesson. Its demise is not caused by its failure to change, but because it changed and in the process, lost its soul [FORBES/Will Reader's Digest surivive bankruptcy?]
This car will not be manufactured in the US or sold in the US. As an emerging market car it will be successful in India and parts of Africa. The demand for a car like this will be off the charts in countries that have little options for inexpensive cars. IMO, the big issue will be durability. In most emerging markets the roads are inferior, cars that are not well built are just trashed and fall apart quickly. In sub-Sahara Africa, Toyota is a vehicle of choice due to durability. GM will need to be very careful to offer a well built, solidly constructed car or it will be a disaster. [WALL STREET JOURNAL/GM plans a compact for $4,000.]
UBS SETTLEMENT: TAXING TIME FOR SWISS BANK SECRECY
I am thankful to be in the highest tax bracket and fully pay all of my taxes. These uber-rich cheaters who feel like gaming the system with "tax avoidance" schemes like those utilized by UBS and their ilk should be required to pay 100% of back taxes and 100% of all interest and penalties. Please, no sweetheart deals by the IRS. These entitled people already have gotten away with enough! [NEW YORK TIMES/Under agreement, UBS to give up over 4000 names.] <> The government does not care how many actual tax evaders they catch from this investigation at UBS. What they are trying to do is flush out the evaders through the amnesty program and deter future tax evasion via Swiss Bank Accounts.The action is also causing smaller Swiss banks to discontinue their offshore banking by not accepting American based clients, effectively shutting the door. It is all about scaring the offshore account holders into "coughing it up", voluntarily. [WALL STREET JOURNAL/ UBS, U.S.,Swiss complete tax-evasion settlement] <> I agree, as a Swiss, UBS did fail to follow US laws. I also agree, some Swiss laws indeed financially destabilize foreign countries. That's not OK and, as a Swiss, I'm sorry. [NEW YORK TIMES/UBS and U.S. treasury report deal in tax inquiry.]
AUGUST 10 , 2009 - AUGUST 16, 2009 BUSINESS BANKS TO REAP $38 BILLION OVERDRAFT FEE BONANZA
I pine for the good old days. That's when we had small community banks who knew their customers and they were treated like individuals. An overdraft fee was 50 cents and a return item was $1.00. You knew who to return and who to overdraw based on their banking habits. The percentage of profit for a bank was quite small compared to today's profit. You were in business to serve the community, not the bloated salaries of today's banks. It seems to me that part of the problem today, not only in the banking industry, but in all private sectors, rests with the boards of directors. I think that collecting their fees and paying lip service to the heads of banks is the most important thing to them. Most of them are too busy running their own businesses to perform meaningful service to the banks and the community. The fees today are no different than the fees the Mafia charged their clients. I see it as usury, and the banking committee in Congress needs to address this. [DAILY BEAST/Banks haul record overdraft fees] <> Interestingly, three of the "big four" banks in Australia have now agreed to dump overdraft fees. "Evil bank fees" have been a staple of current affairs shows and talking heads here for years, but the government has been making noises about doing something about bank fees so they've clearly decided to pre-empt it (with the benefit of some good publicity, particularly for the first bank to move). Money for nothing, overdraft fees, atm usage fees, all that jazz. The Australian personal banking market is a cartel, so there's no competition that doesn't have the fees... should have been slapped down as anti-competitive years ago. [GAWKER/Banks getting back in black with ridiculous overdraft fees] CASH FOR CLUNKERS IN HIGH GEAR
The whole intent of the program (inspirational, misguided or otherwise) is to encourage sales in an otherwise dead market. With hundreds of dealerships reporting single-digit sales on a monthly basis, you need a catalyst, an incentive to buy. The idea is to provide a conduit from the store to the consumer, which this program does, with future returns in spending more money downstream. You can't infuse an economy with rebates on lawn mowers and packaged underwear. You can, however, put confidence back into the minds of the qualified consumer by providing large monetary incentives. In this case, the cars turn the wheels.
<> So cutting taxes for the 2% that get 90% of the income is good, but a stimulus program that's available to EVERYONE is bad. Give me a break. If you want to comment on macro economics, learn something about it other then sound bites that have been thrown around for 30 years. This spending goes right to the GNP, and releases built up demand. Where would the tax cut go? What well positioned person would spend during these economic times? This is like a direct transfusion. [CNN Political Ticker/$2billion cash for clunkers deal] AUGUST 3 , 2009 - AUGUST 9, 2009 BUSINESS PAUL KRUGMAN: WHERE THE BIG BUCKS GO
Why be so coy, Paul?
Ode to Politicians (and Banksters)
Probably getting overlooked in this brouhaha is that these bonuses are being paid with what is essentially taxpayers' money. If the companies can afford to give bonuses with their own money, they don't need government bailout money. It is difficult for reasonable people to understand how the captain of the ship gets a bonus while the ship is sinking. To those who argue that "productive departments" deserve bonuses and "unproductive departments" do not, that would amount to giving the purser and the steward bonuses, withholding bonuses from the engine crew and captain, and tipping the band while the ship sinks. That may make a modicum of sense if only the "ship's" money is at stake, but not the public's taxes. Actors, football players and electricians making decisions with their own money isn't the issue. At least not for "sane people." [NPR]
<> Why is everyone outraged over the government telling public company executives that their companies need to be profitable before doling out large bonuses? I've owned stock in many companies and have never had an opportunity to vote on salaries. We only get to vote for hand picked board of directors. We could just let them continue to police themselves and hope that they use their enormous talent to create jobs and make us shareholders happy. The talking heads on the news cable stations love them and think we are becoming socialists to allow this to happen. They don't seem to have a problem with the auto workers having their salary and benefits cut however. I believe the people we elect to govern could succeed in this if we don't allow all the misinformation to drown out the facts. If this compensation really needs to be this high to attract the best talent than why has it only attracted those that have enriched themselves at the expense of us shareholders? [ABC NEWS]
BEN BERNANKE - HOLDING HIS NOSE?
While Bernanke was holding his nose, he and his cohorts were grabbing our wallets to bail out his Wall Street buddies. Not only did the Fed fail on this round, but he actually propped up the people now making BILLIONS in bonuses off of the US Taxpayer. The same people who brought you this recession are now profiting off of it, with many buying the very homes foreclosed by their firms. I believe the French Revolution became very robust due to the King's poor monetary policies. Pay attention Wall Street and good pals Bernanke/Obama {NPR] <> It may well be that Bernanke really did fear a second Great Depression. However, the man is fixated. While such an event was remotely possible, it was always extremely unlikely. <> If there is public education to be accomplished, it is in informing the public how the Federal Reserve system works. Television stations would provide a much greater public service by airing an educational video on our monetary system. The average American is ignorant of the fact that almost all money represents debt.
JULY 27, 2009 - AUGUST 2, 2009 BUSINESS
I think it's fair to state that those who are against raising the minimum wage are not the people working in jobs which pay at or slightly above minimum wage. <> I'm old enough now to remember at least two increases in the minimum wage and you heard the same "the world is coming to an end" hysterics then. I own a "small" business and pay $9.00 to $9.50 an hour because it would be an embarrassment to pay less. If your business cannot pay at least $7.25 an hour than you don't have a viable business or need to stop buying Caddy Escalades and start driving a Ford. <> Raising the minimum wage isn’t going to fix anything. It will raise the cost for customers and clients. It will raise the cost of living throughout the country. It will generate more Income Tax Revenue and inflation. It will NOT improve the lives of those on minimum wage. Minimum wage jobs aren’t exactly career endeavors and these jobs were never intended to provide a livelihood. These jobs have high turn over rates, because they usually require little to no skill to perform them and there is always another minimum wage job down the road. We are talking about jobs where anyone can be pulled off the street and trained to perform in a week or so. Raising minimum wage is just going to cause our economy to shift again. Prices will go up to absorb the raise in income. Remember that in our economy there is no ceiling to the amount of money a person can earn. There is however a very concrete floor established by minimum wage. It may be better if laws were passed that state that after so many work hours, a year’s worth for example, employers must give their min wage employees a substantial raise of a certain %. This would minimize the loss of money used to train employees in high turnover minimum wage jobs (McD’s), reward workers who are willing to stick with the job and keep prices down. No matter how you beat it or bang it, the standard of living and the quality of life of a minimum wage worker will never increase. The only other benefit would be if minimum wage was raised, but the poverty level for receiving welfare and other government provided benefits was kept at its current level. [WASHINGTON WIRE - WSJ]
TIME OUT FOR DRUG COMMERCIALS?
It's about time. When drug companies were first allowed to broadcast commercials, the intent was to inform that public, so they could DISCUSS certain drugs and their benefits with physicians. Like most well intentioned plans this backfired. People too often demanded the newest drug on the market regardless of possible risk to themselves. Too many doctors went along as the drug companies reward physicians who prescribed their products.
JULY 20, 2009 - JULY 26, 2009 BUSINESS
There's one thing that both sides in this debate should get straight, finger pointing and assessing blame is doing nothing but raising your blood pressure. In real world terms, it's doing nothing to fix the problem or prepare yourself to deal with it.
CALIFORNIA HIGH - POT STIMULUS
Let's see... first, we can tax the pot smokers - you'll need to buy a special permit in order to legally purchase legal weed. Then you sell permits to stores that want to sell the weed to permit holding smokers. Once the store purchases a permit, you slap a special weed tax on the sale of each doobie. You could also require taxes and permits for rolling papers, roach clips, pipes and bongs. Then you would sell permits to the growers.... that is, after they pay the special property tax that would be placed on each weed growing plot of land. Then they would also be charged a harvest tax, after they buy a harvest permit, of course. Then you got transportation! Each marijuana truck could be charged for special inspections, special drivers licenses and more permits and taxes! <> For those of you who believe that there would be no tax incentive to legalizing pot, I say you are clearly all fools. We can legally home grow everything you find in the produce section of a grocery store but how many of us actually do this to the point where we never have to buy from a producer? How is it that the produce industry is what it is today when we can grow veggies at home? Same goes for home brewing beer... People who like pot will gladly pay to be able to buy over the counter, mass produced, consistently good pot from Marlboro or whatever companies would emerge. Lots of professionals smoke pot behind closed doors and would not instantly become pot farmers just b/c it would be legal. Now, of course, some people will grow their own just like my mother grows her own tomatoes and peppers, but the percentage will be small compared to the masses that would prefer buy a professionally produced product. People, this is all about truth and freedom and breaking away from the lies and distortions that government tells in order to protect the legal drug maker's interest. [BREITBART]
Goldman was a key player in creating the subprime mess and the related over leveraged and dysfunctional financial system that now has to be bailed out. Search on Bloomberg to find the dud CMBSs and RMBSs that they produced and reflect that your pension money and insurance premiums went to pay for them. Yet at the same time they were selling these bonds Goldman's were betting against them to profit further from the crisis that they helped create. <> It always amazes me that we as a society celebrate Madonna, Alex Rodriquez and Tom Cruise for making millions at their craft and then chastise Goldman Sachs, and those for being successful at theirs.
I have personally seen the Stimulus package working and have had family members who got jobs off of it. As stated in the article the money has to be monitored and handed out slowly. My wife works for the Metro Health Department in Louisville KY. They received several million to restore the facility and open up areas for new employees. Since they were given their stimulus money my wife's nice was able to get a job along with 29 other people. Talking with my wife in more detail they were given xxx amount for now and if they perform and provide proof that the money is being used as intended than they will get xxx amount 2 years from now. Why does everyone feel that they should be receiving the money and expect immediate gratification? It takes years to properly budget 787 billion dollars to provide a long term fix instead of a quick fix like a drug that once it wears off you are right back where you started. [BUSINESS WEEK] <> In the past 80 years, extended recessions usually have ended with a new war (WWII), tax cuts (Reagan) or both (GWB). Both FDR and LBJ enacted huge social programs that extended a bear market (FDR) or originated a bear market (LBJ). <> They say that 52.9% of Americans have some intelligence, and 45.7% are clueless... anyone who thinks that a massive government spending program to stimulate the economy is going to work, after only 5 months, is apparently clueless about the nation's economic history, and is in the 45.7%. So, let's look back at another time in our history when unemployment was at it's worst, during the Carter/Reagan years. Reagan took over the White House from Carter and unemployment was at 7.5% (Jan '81). For the next 22 months (that's 1 year and 10 months for those of you in the 45.7% clueless category), UNEMPLOYMENT CONTINUED TO RISE UNTIL IT REACHED 10.8% in November and December of 1982. It finally started falling again in Jan 1983 (10.4%), and, for President Reagan, it never went under the rate that Carter left it at (7.5%) until May of 1984 when it reached 7.4% (Reagan was happy)...and how did Reagan finally turn unemployment around? ANSWER: By MASSIVE federal government spending into the Defense Department, to end the Cold War... So, the first moral of the story is...(1) If you think the stimulus is going to have an effect on the economy after only being in place for 5/6 months, you haven't looked at history, and you're in that 45.7% category I mentioned above...(2) Massive government spending does stimulate the economy, but, as in the case with Ronald Reagan who did the same thing with spending for the Department of Defense... it's going to take at least 1 year before we start feeling it in the economy. It's going to get worse before it gets better.[ABC NEWS]
JULY 13, 2009 - JULY 19, 2009 BUSINESS
In a depression like this one, survival is a great success, and at least the government saved some of those jobs for the time being. We have not yet lost the US auto industry completely to countries that pay $1,00 a day, although we have given up most of our manufacturing over the past 30 years. <> Can I make a suggestion to "The New GM?" Find better designers. You pretty much have the quality thing working, but, to my eye, American cars still look, well, American.
Though an airline for animals is a great idea, Some of the names for the new airline could be Easypet, Gibon Airlines, Guinee Pig Airlines and my favourite: Lufthamster [U.K. DAILY MAIL] JULY 6, 2009 - JULY 12, 2009 BUSINESS Many of those piling on about the jobs report are the same ones that were loudly telling (correctly) the doubters to "give the surge time to work" in Iraq. The stimulus money has been flowing for not quite three months, if that, and not all of it is "on the ground", so I think it's a bit premature to be claiming the stimulus package isn't working. Let's remind ourselves that the free-fall has been largely halted (for now, anyway) and the patient has been stabilized. Demanding that the economy leap back to life and start growing again is simply foolish or pandering, take your pick. It's not a good thing for an economy the size of the United States' to change rapidly, up or down.[CNN] The Crash of '29 did not turn into the Depression for another 3 years, 1932. All these predictions are proved wrong before they come out. Bernanke said in April of '08 he didn't see a recession coming in '08, 4 months after the recession started.
With all the predictions flying out of Washington I think I will wait for another 2 years to see what actually does happen. I learned years ago not to trust the words coming out of the side of a politicians neck. Will Rogers, an actor from early films said, "A man that runs for public office isn't fit for honest work again." [FOX NEWS]
And this time next year, no aeroplanes at all! You pay Ryanair £1 for runway permission, flap your arms, and off you go (the luggage arrangements would need finalising...) [DAILY MAIL]
JUNE 29, 2009 - JULY 6, 2009 BUSINESS
To all those asking "where's the money?" It's a ponzi scheme. It never existed. The money one person paid in went to the next person to open an account. <> Two yachts, an apartment in Paris, a house in the South of France,a house in Palm Beach, great wine, fast cars, gourmet food, more money then you could ever spend in a lifetime - - - fast forward to a cinderblock, max security jail cell, with no view, incredibly bad food, the stench of your toilet in your cell, pruno (the homemade wine made by fermenting rotting fruit that is favored by inmates), and a prison full of people who will resent you and spend their days sharpening home-made plastic shivs.
"Free" is undoubtedly another theory of customer gathering and outreach that travels the long line of distribution between buyers and sellers. This latest observation or strategy attempts to identify trends and habits made possible by existing technologies to those that will capture the future. In essence, the market is always in a state of flux and change and by its own nature survives by creating its future versus following it, or, more importantly, misinterpreting it. Who, what, where, why, how. Sound familiar? Personal technology is the new kid on the block (yup, still young enough to be termed a kid) - check him or her out and solve the riddle. Not much different from yesteryear - we always somehow pay for securing the customer and sorting out what makes them tick - you know, the old fashioned way (sundry marketing strategies, advertising, mailing lists, fill out the registration card for a free gift or coupon and so on). The objective never changes but the choice of how and when you get there always does. Is "free" the new and future "means to an end" as a mainstream model? Your choice! [BOSTON GLOBE]
Until 1996, Boeing was run mainly by engineers. In 1996, Boeing merged with McDonnell Douglas. MD was run by bean counters who's every decision was based upon enhancing shareholder value. They had enhanced MD's value to the point that MD could no longer make airplanes and was about to go out of business. The bean counters were very good, however, at corporate infighting and moving up the corporate ladder. They were much better than were the Boeing managers and soon controlled Boeing. The joke at Boeing was that MD had found a way to use Boeing money to take over Boeing. They set about enhancing Boeing shareholder value and made such decisions as outsourcing most of the 787. Fortunately, the chief problem got caught e-mailing love notes to his mistress and had to resign. Unfortunately, it didn't happen soon enough. There are still too many bean counters in charge at Boeing but that is changing. Gradually Boeing managers are being replaced with people who know how to build things rather than just write subcontracts. Meanwhile, Boeing is stuck with some of the decisions made for the purposes of enhancing shareholder value rather than for the purposes of making a better product. Eventually, Boeing will move its headquarters to a city that makes sense, Boeing will again build the best airplanes in the world (and build them in the USA), and Boeing's stock price will get back to what it was just before the merger. [WALL STREET JOURNAL] <>
First of all, let's not exaggerate the girl's age - not many 12 year olds I've seen that look like that. Second of all, anybody been to Europe recently? The Puritan reactions to ads such as these most likely cause more damage than the ad itself. Adolescence is very much about rebellion, and while ground rules are necessary, those should be nurtured at home, so that when kids grow up they can deal with sexualized images and situations appropriately and not grow up sheltered to the point of ignorance. Finally, I wouldn't worry about explaining this to a 4-year old. The target audience here are the teenagers and those in their early 20s. Sorry to be slightly libertarian here, but maybe if we made less of a big deal out of nonsense such as this and used our resources to focus on real issues, we'd raise kids who can go on to function in the real world. [CBS EARLY SHOW]
JUNE 22, 2009- JUNE 28, 2009 BUSINESS The problem isn't that lawmakers and regulators couldn't get a handle on what was going on if they had wanted to, the problem was that they were sitting on their asses. Solution is to pay attention, adapt regulations where necessary, and enforce. Lawmakers and regulators to be very involved and aggressive. The thought of that doesn't make me feel too good either about the prospects for a dynamic, growing economy under such a regime. This has to be a balancing act between free market and regulatory forces, and we don't seem to be able to get that right. [BUSINESS INSIDER] <> So the self anointed "masters of the universe" get to go to Washington and persuade the administration to allow them to continue their pillaging and outright thievery. How about speaking and receiving input from the folks who lost their homes through the shenanigans and malfeasance of unscrupulous mortgage brokers complicit with the white shoes institutions i.e. Goldman Sachs, Lehman Brother, Morgan Stanley, etc...; or the millions of people who are yoked by the usurious credit card rates charged by the same institutions who were so generously bailed out with taxpayer money; or those individuals who are screwed by the insurance companies, i.e. AIG when they refuse to pay a claim; or the millions of people whose pensions have been looted by the very executives who lobby for more; or the thousands who have been decimated by onerous and unfair collections of exorbitant student loans; who hears these voices? The damage that the "masters of the universe" have caused our country is severe, and its sickening to see most of them take up where they left off.[NEW YORK TIMES]
All Investment banking firms are not created equal. Goldman Sachs is apparently one of those firms that our Don Corleone government forced to take TARP money so that the other firms wouldn't be embarrassed by their own lack of financial virility. GS is paying back the money (our money) with interest specifically so that they can return to the policies that made them the juggernaut in the financial industry that they are. Goldman has a history of paying its employees the largest and most obscene bonuses of any of the investment banking firms. If that was a bad business practice for them, then that was - and now that they are repaying their debt is - solely the business of the shareholders. Thanks for treating our money like a loan, GS and not a hand out. FWIW, I'm not outraged. [GAWKER] I predict that Obama killing a fly with his bare hands will cause the price of fly swatters to drop dramatically and the stock market will tank because of the drop in sales. This will show conclusively that the “hands on” approach the government uses is too much governmental interference! When will it ever end !? [CHRISTIAN SCIENCE MONITOR] "Enghien-Moisselles, our little aerodrome which is two minutes flight north of Le Bourget." Hmm, eh? If you do the boucles de la Seine at the weekend, you probably fly over my house (it's the one with the decrepit tennis court across the river from a shipyard and little sailing club). I wonder if you could press my point at the aero club that some of those old cuckoos really need silencers on their engines? They're less irritating than the jet skis, but still. [TIMES ONLINE] JUNE 15, 2009 - JUNE 21, 2009 BUSINESS Let's move on from blame assessment to solutions.
JUNE 8, 2009 - JUNE 14, 2009 BUSINESS I'm still mystified at how a pay cut for few hundred people is really going to make a difference when the company is losing 80 million dollars. I can understand how, if I were in the union, I might say, "let someone else pay for it." But I would expect everyone at the Globe to be furiously job searching now and planning their transition into a career with a future. Note to job seekers: things not to expect in next job: union, job guarantee, printing presses, pension plan--these are all relics of the early 20th century [Boston Globe] This is not an accurate statistic because it does not include those who worked less than 40 hours (part-time) for businesses that have closed. If you look at places like Circuit City and Ritz Camera who closed hundreds of stores the only full-time employees who qualify for unemployment were the managers - usually only 2 per store. The majority of persons working for retail are not full-time employees, mainly so the businesses didn't have to pay benefits of any kind. There are thousands of people who cannot apply for unemployment and can't find another job. That so-called stimulus legislation will do nothing to create new businesses and career type jobs because the lobbyists bought congress to pay for dead end construction projects where they can hire anybody who can lift a shovel and who doesn't even have to be a US citizen. [Huffington Post]
JUNE 1, 2009 - JUNE 7, 2009 BUSINESS GM and Chrysler feasibility of emerging somehow from bankruptcy is only a financial manipulation and a sale of illusions.[NY Times] It has become more lucrative to become fat & lazy in this country than to go out and work. [USA Today] I think Murdoch is wrong on what's likely to happen with the industry. I think the majority of people will do without it online if they have to pay for it where they were used to getting it for free. Some will pay, just as there are people who still buy CDs (like me), but I think the numbers newspapers used to reach, the everyday American audience, will be lost hereafter unless they can find a way to make it "free" the way regular TV is (and I believe that is doable). [Huffington Post] |
