Entries Tagged as 'Economy'

Apple – Double or Nothing?

Yesterday Apple announced another record quarter in sales.  In fact, iPhone sales doubled in Q4 2009 (a good holiday present for Apple).

Tomorrow Apples announces a new tablet computer (at least that’s the rumor of what they will announce).

Google has a lot of ground to catch up with Apple in the phone market, and it certainly doesn’t appear that Apple is going to just stand by and wait for them.

I guess the one thing that Apples numbers show is that there is money to be made in economic hard times if you’ve got something people want.

Originally posted 2010-01-26 01:00:44.

Boehner makes sense

House Minority Leader John Boehner (Republican) stated that he would support President Barack Obama’s proposal to renew the expiring Bush tax cuts only for those making less than $250,000 if it were his only option.

The Republicans in both the House and Senate were quick to add fuel to the fire and turn up the volume on the rhetoric about fiscal responsibility, watching out for the little guy, etc, etc, etc — and saying that they believe the tax cuts should be extended for all Americans.

Do people making over $250,000 really need a tax cut?

Seems to me that they’re doing OK; much better than the average American is fairing in this economic crisis (I won’t call it a recession because it certainly seems much more like a depression — so we’ll leave it a crisis).

The bottom line is we have to pay our bills — and as the Republicans are complaining about the government has been spending out of control… but what they don’t remind you is that George W Bush is responsible for the out of control spending; Barrack Obama and his administration haven’t spent anywhere near as much as George W Bush — and a large amount of what is being spent now is being spent on a war that George W Bush threw this country into (and lied to get the support for it).

I’m well aware that it’s a tenant of Socialism that we take more from those who can afford it, and give it to those who need it…

From each according to his ability, to each according to his need
· Karl Marx, 1875 Critique of the Gotha Program

But in point of fact the American income tax structure has always been based on a progressive tax (those who earn more, pay more); except what happens now is that those who earn enough can avoid taxes by taking advantage of the loop holes the complex laws afford them.

We really need to rework the tax system so that it’s more equitable across the board; and those who benefit greatly from society pay their fair share of the costs of supporting society… but until then, I think getting $700B from those who earn more than a quarter million dollars per year is a necessary step to putting this country back on the road to stability.

Originally posted 2010-09-15 02:00:52.

Boeing

I’ve seen a number of initiatives from Boeing that are targeted at trying to get a US DOD contract for supplying tankers to the US Air Force.

I don’t think there’s anything wrong with Boeing as a potential supplier for tankers (though I would like everyone to review why we need to build tankers period); but Boeing seems to be forgetting that with government contracts, it’s the lowest bidder who wins.

Boeing talks about American jobs, know-how, unfair competition from Air Bus (well, Boeing probably thinks any competition is unfair)… but they don’t highlight the fact that they simply aren’t competitive.

Welfare capitalism to large is just another form of socialism — and part of the “trickle down” philosophy (the question is how much get’s skimmed of with huge executive bonuses and how much really does trickle down).

We need to think global; and keep moving forward to creating a global economy and global society rather than trying to make sure the grass in our own yard stays the greenest (of course we can talk about this on a state-by-state basis just as easily as a nation-by-nation basis).

I say, the the low bidder win; and let’s make sure that the defense budget is treated with the same scrutiny and cuts that other budgets are — waste is waste, and “saving” our troops (who were put in danger by a lie by George W) just isn’t a reasonable excuse to keep spending on destruction.

Originally posted 2010-04-29 02:00:45.

Keep Wall Street Occupied

A friend of mine put this together; and I think it’s very good advice…

I’ll add a couple points:

  • Mail over 13 oz requires you drop it off in person
  • Mail over 5mm thick is charged a higher postage rate (regardless of weight).
  • I’d discourage you from spending a penny on sending anything to a bank (not just because of the cost, but because of the environmental impact to produce and distribute anything); find your non-recyclable items around your house and use those to send a message — just be careful, some items are prohibited from sending via the US Postal Service — A Customer’s Guide to Mailing.
  • You may want to include in your note to remove your name and address from their mailing list (they already have all that information, they got the mail to you right — so you don’t really have to worry).
  • Don’t do business with banks — especially “big banks”.  Choose a credit union or a local bank for your needs.  If you have credit card services from a “big bank” make sure they are paying you back to use their card (they still make money, but at least you get something), never pay a membership fee or yearly fee for credit cards, and never carry a balance on a credit card at a “big bank”.

Originally posted 2011-10-30 02:00:24.

CEO Pay Cut

I don’t think any of them need to worry about landing in the poor house, but here’s a list of the twenty largest pay cuts this year.  I guess the economy must be down — perhaps we can take up a collection to help them all out.


  1. Lloyd C. Blankfein, -$40.1 million
    Company: Goldman Sachs Group (GS)
    2009 salary: $600,000 (same as 2008)
    2009 bonus, options and other comp: $262,657 (down $40.1 million from 2008)
    Lloyd C. Blankfein
  2. Vikram S. Pandit, -$38.1 million
    Company: Citigroup (C)
    2009 salary: $125,001 (down $833,332 from 2008)
    2009 bonus, options and other comp: $3,750 (down $37.3 million from 2008)
    Vikram S. Pandit
  3. James Dimon, -$34.5 million
    Company: JPMorgan Chase (JPM)
    2009 salary: $1,000,000 (same as 2008)
    2009 bonus, options and other comp: $265,708 (down $34.5 million from 2008)
    James Dimon
  4. Robert A. Iger, -$29.5 million
    Company: Walt Disney (DIS)
    2009 salary: $2,038,462* (up $38,462 from 2008)
    2009 bonus, options and other comp: $19.5 million (down $29.5 million from 2008)
    Robert A. Iger
  5. David M. Cote, -$15.9 million
    Company: Honeywell International (HON)
    2009 salary: $1,800,000 (down $25,962 from 2008)
    2009 bonus, options and other comp: $11 million (down $15.9 million from 2008)
    David M. Cote
  6. Richard H. Anderson, -$15.7 million
    Company: Delta Airlines (DAL)
    2009 salary: $600,000 (same as 2008)
    2009 bonus, options and other comp: $1.2 million (down $15.7 million from 2008)
    Richard H. Anderson
  7. Louis C. Camilleri, -$12.4 million
    Company: Philip Morris International (PM)
    2009 salary: $1,500,000 (down $67,308 from 2008)
    2009 bonus, options and other comp: $23 million (down $12.3 million from 2008)
    Louis C. Camilleri
  8. Rupert Murdoch, -$12.1 million
    Company: News Corp. (NWSA)
    2009 salary: $8,100,000* (same as 2008)
    2009 bonus, options and other comp: $9.8 million (down $12.1 million from 2008)
    Rupert Murdoch
  9. Kenneth I. Chenault, -$11.3 million
    Company: American Express (AXP)
    2009 salary: $1,201,923 (down $48,077 from 2008)
    2009 bonus, options and other comp: $15.4 million (down $11.2 million from 2008)
    Kenneth I. Chenault
  10. Mark V. Hurd, -$9.8 million
    Company: Hewlett-Packard (HPQ)
    2009 salary: $1,268,750* (down $181,250 from 2008)
    2009 bonus, options and other comp: $22.9 million (down $9.6 million from 2008)
    Mark V. Hurd
  11. Kenneth D. Lewis, -9.0 million
    Company: Bank of America (BAC)
    2009 salary: 0* (down $1.5 million from 2008)
    2009 bonus, options and other comp: $32,171 (down $9.0 million from 2008)
    Kenneth D. Lewis
  12. Stephen A. Roell, -$8.4 million
    Company: Johnson Controls (JCI)
    2009 salary: $1,371,500* (up $46,500 from 2008)
    2009 bonus, options and other comp: $5.1 million (down $8.5 million from 2008)
    Stephen A. Roell
  13. James W. Owens, -$7.9 million
    Company: Caterpillar (CAT)
    2009 salary: $1,550,004* (same as 2008)
    2009 bonus, options and other comp: $5.2 million (down $7.9 million from 2008)
    James W. Owens
  14. John B. Hess, -$7.8 million
    Company: Hess (HES)
    2009 salary: $1,500,000 (same as 2008)
    2009 bonus, options and other comp: $12.1 million (down $7.8 million from 2008)
    John B. Hess
  15. John T. Chambers, -$6.0 million
    Company: Cisco Systems (CSCO)
    2009 salary: $375,000* (same as 2008)
    2009 bonus, options and other comp: $12.4 million (down $6.0 million from 2008)
    John T. Chambers
  16. Miles D. White, -$3.2 million
    Company: Abbott Laboratories (ABT)
    2009 salary: $1,852,319 (up $56,848 from 2008)
    2009 bonus, options and other comp: $20.1 million (down $3.2 million from 2008)
    Miles D. White
  17. Daniel R. Hesse, -$3.1 million
    Company: Sprint Nextel (S)
    2009 salary: $1,200,000 (same as 2008)
    2009 bonus, options and other comp: $11.1 million (down $3.1 million from 2008)
    Daniel R. Hesse
  18. Thomas M. Ryan, -$3.0 million
    Company: CVS Caremark (CVS)
    2009 salary: $1,400,000 (same as 2008)
    2009 bonus, options and other comp: $14.8 million (down $3.0 million from 2008)
    Thomas M. Ryan
  19. Ivan G. Seidenberg, -$2.9 million
    Company: Verizon Communications (VZ)
    2009 salary: $2,100,000 (same as 2008)
    2009 bonus, options and other comp: $14.9 million (down $2.9 million from 2008)
    Ivan G. Seidenberg
  20. Frederick W. Smith, -$2.7 million
    Company: FedEx (FDX)
    2009 salary: $1,355,028* (down $75,438 from 2008)
    2009 bonus, options and other comp: $6.4 million (down $2.6 million from 2008)
    Frederick W. Smith

Source: Equilar Inc.

Originally posted 2010-08-22 02:00:27.

Ups and Downs

Just as the trucking industry tells us that delivery volume has been steadily increasing since the beginning of the years; retailers tell us that consumers are beginning to spend less.

And the Commerce Department announced that the recession was deeper than previously estimated.

Who’s doing the estimates?

Anyone with any sense knew the economy was in bad shape, and that it would likely take a number of years before there was any real improvement, and potentially a decade before we truly recovered.

You have to ask yourself are the people in Washington DC and on Wall Street stupid — or do they just think the American public are so stupid they will believe anything?

Personally I feel this is a catastrophic event in World history that requires leadership to acknowledge it’s severity and begin making long term plans for recovery while creating short term safety nets to keep society afloat.

Just one more sign that anyone who’s been in office in this country isn’t part of the solution — they’re part of the problem.

INCUMBENTS

Originally posted 2010-08-05 02:00:45.

What taxpayers want

There is a good read on CNN.com by Lou Zickar entitled What taxpayers want (yes, I leveraged the title), it’s very well written and compelling; but I think it fails to be totally upfront and honest about the problem and is overtly politically spun.

You see, taxpayers also happen to be the electorate… so what they want they express by voting in each election and determining who goes to Washington (as well as their local and state seats of government) to make decisions — and since by-far-and-large voters have sent the same people back to Washington in some cases for nearly 60 years, taxpayers need look no further than the nearest mirror to see where the problem is.

If you vote for the same person election after election who has contributed to the problems, then you are getting exactly what you’ve ask for, and thus what you must want… if you want change, start at the ballot box.

But, realistically — I don’t see this happening.

America has become the home of the content, and the land of entitlement… entitlement which starts at the top and stretch to the very roots of society; and no one is willing to give up their “special” dispensations, but expect everyone else to do so.

Change is easy, and every individual is a part of it — all you have to do is send a real message to your elected officials, send them all home (for good).


What taxpayers want by Lou Sickar on CNN.com

Originally posted 2011-08-21 02:00:23.

It’s not our fault we went bankrupt…

I wasn’t sure it it was a new daytime sitcom or a hearing when former Lehman CEO Dick Fuld delivered his 1680 work prepared testimony.

Lehman was a strong company that had corrected it’s problems:

In retrospect, there is no question we made some poorly timed business decisions and investments, but we addressed those mistakes and got ourselves back to a strong equity position … There is nothing about this profile that would indicate a bankrupt company.

The market and the public were wrong to lose confidence in Lehman:

Lehman’s demise was caused by uncontrollable market forces and the incorrect perception and accompanying rumors that Lehman did not have sufficient capital to support its investments.

The government was at fault for not banning naked short selling or allowing Lehman to convert to a bank holding company or let it take deposits:

Each of those requests was denied at the time. Tellingly, though, each measure was later implemented in some form for other investment banks during the days and weeks following Lehman’s bankruptcy filing.

Lehman was the victim:

This loss of confidence, although unjustified and irrational, became a self-fulfilling prophecy and culminated in a classic run on the bank starting on September 10, 2008, that then led Lehman to file for bankruptcy four days later, in the early morning hours of September 15.

For more comedy (without my satire — and please don’t think I’m serious about anything I’ve written in this post) see the links below; and don’t laugh too hard.

Dick Fuld
Repo 105
Lehman bankruptcy attorney
New York Fed general counsel

Originally posted 2010-09-02 02:00:11.

Humankind and Socialism

I’ve often said that the one fundamental human traits that Karl Marx always failed to consider when he talked about socialism was the intense greed that drives most humans.

Greed, the failing of socialism, is largely the driving force that makes capitalism work.

The United States doesn’t have a totally free market economy; the government regulates many aspects of businesses — perhaps it shouldn’t or perhaps it should regulate more — there’s always a good argument on both sides.

Maybe it’s time that the United States government regulated businesses by exactly the same set of laws that it regulates individuals by.

Giving corporations the exact same rights and privileges, and subjecting them to the exact same legal and tax structure.

Powerful corporations have too long tried to manipulate society and government to satisfy their greed, and such manipulation in the long run puts an undo burden on society.

I see few alternatives for our society to grow and flourish.

Since humans will likely never be able to build a Utopian society, socialism (or any system like it) is not an option… since the powerful (and rich) will it seem always try and manipulate society to satisfy their own selfish greed we cannot depend on them “to do what’s right”.

How then do we build a society that will last and continue to grow?

Level the playing field — through insuring that one tenant of socialism lives on: from each according to their ability (where in this case, ability is wealth).

Long ago when I was much more idealistic I felt that the progressive tax system the United States uses was wrong…

Now I believe that a progressive tax system, with no deductions, treating all individuals and all corporations equally might be the absolute best solution.

Corporations will scream that their profits will suffer — but in the end greedy corporations will pass along those costs to individuals… the ones that will suffer will be the very rich… they will start paying their fair share (those who profit from society should bear a much larger portion of the costs of propagating it).

I’d prefer a better solution, but until humankind changes, we have to deal with realistic solutions to real problems.

Originally posted 2010-06-13 02:00:09.

April Fools Day

But this is totally serious…

Today, California’s 1% increase in sales tax goes into effect; the term of the increase won’t be known until after a ballet measure is voted on.

California, like many states, has been spending far more than it’s been taking in — and this is yet another misguided attempt by the Governor and assembly to make up the difference.

In a down economy, let’s raise the sales tax — I’m sure that will jump start retail sales and put the economy on the fast track to recovery… GET A CLUE, it’s not like most people are spending money on luxury items right now, they’re just trying to make ends meet; and those with means to buy expensive items will just purchase them out of state.

It looks to me like the best view of California is in the rear view mirror leaving!

Originally posted 2009-04-01 01:00:49.