PostBadge tag to show // FeedBurner FeedFlare. // ------------------------- // FeedBurner account and feed required. // Sign up at http://feedburner.com //================================================ class module_feedflare { function init(){ global $gregarious; $gregarious->add_settings ( array ( 'feedburner_url' => '' ) ); $gregarious->add_page ( 'FeedFlare', 'modules/feed-flare/icn_Flare.png', 'page_feedflare();', 'feedFlare' ); } function postbadge_tags(){ return array ( array ( 'tag' => '%FLARE%', 'replacewith' => 'feed_flare("",false)' ), ); } function update_info(){ return 100; } } //------------------------------------------ // TEMPlATE TAGS //------------------------------------------ function feed_flare($settings = '', $echo = true){ global $wp_query; $post = $wp_query->post; $sets = array('postID' => $post->ID, 'before' => '', 'after' => 'Gregarious FeedFlare', 'force' => 0 ); grab_sets($settings, $sets); if ( !$sets['force'] && hideOnID($sets['postID']) ){ return ''; } if( !$path = _get_feedburner_url() ) return ''; if( substr( $path, -1 ) == '/' ){ $path = substr( $path, 0, strlen( $path ) -1 ); } $path = str_replace ( 'feedburner.com/', 'feedburner.com/~s/', $path ); $path .= '?i='.get_permalink($sets['postID']); $result = $sets['before'] . "" . $sets['after']; if($echo) echo $result; else return $result; } function _get_feedburner_url(){ $feedurl = greg_get_option( 'feedburner_url' ); if ( $feedurl ){ return attribute_escape($feedurl); } else { $feedburner_settings = get_option('feedburner_settings'); if( is_array($feedburner_settings) && ($feedurl = $feedburner_settings['feedburner_url']) ) { return attribute_escape($feedurl); } else { return false; } } } //------------------------------------------ // OPTIONS PAGE //------------------------------------------ function page_feedflare(){ $feedurl = _get_feedburner_url(); ?> Tag Archive for ‘Business’ at spencerb.net

Tag Archive for 'Business'

Markets Final Respond Positively to a Treasury Plan

Finally, a plan that addresses a root cause of the crisis: housing.

It’s clear that politicians have been dragging their feet on dealing with bad assets in banks. This topic certainly deserves a fool post, but since I’m on vacation, you get a link and a quote.

ut the first-day verdict on the Dow Jones average went in the right direction for Mr. Geithner this time, up nearly 7 percent and 500 points, in contrast to the precipitous slide after Mr. Geithner’s first effort, when his inability to explain in any detail how the program would work left Wall Street jittery about whether the administration had a workable plan.

A Treasury spokeswoman insisted the only difference was that Mr. Geithner had the time to complete details so complicated that they amount to creating a new financial system with global reach. But beyond the substance, the administration also had a more careful plan in place to introduce the proposal, because neither Mr. Geithner nor Mr. Obama could afford another negative review.

Customer Service Shoutouts

Great customer service deserves recognition. For that reason, I want to give shoutouts to three companies that have given me amazing service in the past couple of days.

First of all, Newegg. This is no surprise for those of you who have bought computer parts or accessories from this site. Newegg has some of the best customer service I have seen from an online company. I have spent thousands of dollars there over the years and would prefer there over all other technology B&M stores.

Let me give you a few examples of Newegg’s fantastic customer service. Yesterday, I bought something from them, a small order less than $75. They shipped it out the same day and since one of their warehouses is in IL, it is being delivered today. That’s right, next day shipping because of their expediency. They are great for RMAs. In fact, they have never hassled me and with a kind request via their online help chat, will often upgrade the shipping for free.

Second, Logitech. Logitech makes a lot of solid products that I fully advocate. Including my G15 Keyboard and Z-5500 speakers. A few months ago, I would have included my G7 Cordless Laser mouse, but I started having problems with that after more than 2 years of ownership. A simple email to Logitech and they are now shipping a replacement product out via UPS. An inconvenient factor after two years, but an incredibly simple solution.

Lastly for today, Steep and Cheap. They feature deals on outdoor products at closeout prices. Anything you could imagine in REI store, may appear on the site. The great thing is that although closeout deals usually come with restrictions on returns, Steep and Cheap stands by all of their products. I have RMA’d several things without a problem. Recently, I sent back a pair of sunglasses that broke. I was forgetful and did not do this for a few months. They still accepted the return after a bit less than two years of ownership. That is what I call customer service.

Since, I mentioned REI, their prices are a bit higher, but if you are a member, returning anything without a receipt after almost any time period has never been a problem for me.

Auto Bailout Suffers Possibly Fatal Blow

The Senate voted 52-35 to bring the measure for a vote — short of the 60 votes needed to advance the legislation. The failure followed the collapse of negotiations between Senate Democrats and Republicans seeking a compromise that all sides could accept.

Auto bailout suffers possibly fatal blow in Senate – Dec. 11, 2008.

Believe me, I’m not happy that this is happening as the result of Senate inaction, but ultimately might force Congress to reconsider prepackaged bankruptcy options.

Bankruptcy…yeah…Chapter 11…that thing used for companies who aren’t making money, but if they restructure could be profitable.

Chapter 11 a Solution for US Carmakers?

The US car industry will not be shut down, but it does need to be restructured. That is what Chapter 11 of America’s bankruptcy code is supposed to do. A variant of pre-packaged bankruptcy – where all the terms are set before going before the bankruptcy court – can allow them to produce better and more environmentally sound cars. It can also address legacy retiree obligations. The companies may need additional finance. Given the state of financial markets, the US government may have to provide that at terms that give the taxpayers a full return to compensate them for the risk. Government guarantees can provide assurances, as they did two decades ago when Chrysler faced its crisis.

FT.com / Comment / Opinion – Chapter 11 is the right road for US carmakers.

A great piece from the Financial Times explains how Chapter 11 would be the best solution for Detroit.  This goes back to something Dan said at Up for Grabs, Detroit is like a bucket with a hole in it – the money just drains out.  The FT piece cites industry experts who believe the Big 3 need more than $125 billion to get out of this miss.  Giving them $15 billion now is like using that bucket with a hole to try and save a sinking Titanic – futile.

Even so, we should not forget that a few months ago, President George W. Bush said there was not enough money for health insurance for poor children although it cost just a few billion dollars.

I think the above paragraph makes a great point.  We shouldn’t be forgetting the things this money could go to…The money draining out of the bucket.

Detroit Auto Bailout

I’m curious what people think about this next round of bailouts? It appears that the White House and Democrats have agreed on taking a large stake in the Big 3 automakers.

The benefit for the auto makers? Money. They need capital to operate. It has been no secret that GM, Ford, and Chrysler have been struggling to compete with more modern, foreign car companies. Where does this leave them? Strapped for cash with expensive union contacts, too many dealerships, too many brands, and too many retirees to support. State law makes it nearly impossible for GM to start consolidating its 7000 dealerships (opposed to Toyota’s approximately 1500). Stubborness has made it difficult for GM to abandon one of its eight brands.4 It is no wonder the Big 3 are losing market share.

The cost for Detroit? Government oversight, control, and mandates. I would argue that government oversight is probably a good thing because a tough leader can start instituting some of the structural forms that make these companies unprofitable. Government control, on the other hand, is unfortunate, but the consequence of giving these companies tax payer money. Lastly, government mandates appear to be the knife in the heart of Big Auto.

The WSJ shed some light on the issue:

All this is dragged down by federal fuel-economy mandates that require them to lose tens of billions making small cars Americans don’t want in high-cost UAW factories. Understand something: Ford and GM in Europe successfully sell cars that are small but not cheap. Europeans are willing to pay top dollar for a refined small car that gets excellent mileage, because they face gasoline prices as high as $9. Americans are not Europeans. In the U.S., except during bouts of high gas prices or in the grip of a Prius fad, the small cars that American consumers buy aren’t bought for high mileage, but for low sticker prices. And the Big Three, with their high labor costs, cannot deliver as much value in a cheap car as the transplants can.

Read over that passage carefully and a few things become clear. 1 – Even if unions have served a role at some point in the life of these very storied companies, they are now choking them. The problem? UAW donated a lot of money to Obama, they paid 3 million dollars to run a single ad for him a few weeks before the election. It is clear that the solution to Detroit’s woes involve not only reshaping the corporate structure, but reshaping the corporations’ relationships with the UAW.

2- Fuel efficiency standards distort the decisions of automakers. American consumers pay big bucks to drive the cars they want to spend that money on. Think about this carefully. Let’s do it step-by-step:

-Car companies have the choice to make a variety of cars.
-They have inputs like labor, materials, and machinery.
-Those inputs are expensive.
-Consumers have the choice to buy a variety of cars.
-Demand is high for Trucks and SUVs.
-Automakers charge higher prices for Trucks and SUVs.
-They make a profit.
-Demand is low for Cars at the same prices.
-Automakers charge lower prices for Cars.
-They lose money on smaller cars, which sell for less, but still require the expensive inputs.
-Government mandates require Car companies to produce small, fuel efficient vehicles in expensive factories.
-Big 3 become unprofitable.

The government’s solution? Take over the companies and make them produce more fuel-efficient vehicles.

WAIT a second!?!?! Buy a company and pursue its unprofitable business?

But, gas is expensive and people want to stop global warming! Right?…Right? Let’s take the facts from a ‘green living website’:

In 2004, many experts criticized the investment return on hybrid cars. They said that with the economy at the time, at $2 per gallon of gas, it would take 12 years to recover the investment of a hybrid Civic compared to the purchase of an equally equipped Civic powered strictly by gasoline. At that point, the hybrid Civic only averaged seven more miles per gallon than the gas powered Civic. Additionally, the hybrid Civic’s sticker price was $6,000 more.

Additionally,

In 2004, Max Martina, managing director of the Alternative Energy Institute, said that gas prices were going to have to reach $2.50 to $2.65 to cause hybrids to show a five year return on investment.

Gas has to be around $2.50/gallon for your hybrid car to save you any money over buying the standard model. With gas at current prices, it would take approximately 12 years. Not only are hybrids more expensive up-front, the investment is highly sensitive to fuel prices. If its the environment we are worried about, then we’ll have to wait for some kind of carbon tax for producing these cars to be a profitable decision. Until then, it is hard for consumers to justify purchasing these cars because the incentives aren’t in place for people to value global warming in their economic decisions. Furthermore, tax incentives to buy these cars are about to expire as well:

Hybrid tax incentives start to go away when a car maker sells its 60,000th alternative-fuel vehicle, a level Toyota reached in mid-2006 and Honda hit in the third quarter of 2007. The amount of the tax credit is first reduced by 50% before disappearing altogether over several months. Honda’s tax credit, currently $525, will be phased out by Dec. 31, according to the Internal Revenue Service. The Civic credit had been as high as $2,100 before the phase-out began in January 2008.

The article continues,

“If you look at it strictly from a short-term payback perspective, without the tax credits, hybrids make absolutely no sense for the average driver,” says Kim Korth, president of IRN Inc., a consulting firm in Grand Rapids, Mich. “The tax credit at least made it neutral, if not positive.”

Removing tax credits would extend the time it takes to receive a return on investment on a hybrid car in some cases up to 16 years! That article is from November, gas is has continued to drop since then.

So, what is Congress thinking? Why is the Bush administration agreeing to this non-sense? Making hybrid cars isn’t going to save Detroit! Requiring the Big 3 to make these cars will kill them. In fact, the Chevrolet Volt, an electric car which is getting everyone excited, will cause GM to lose money “for years”.

I know this blog post would disappoint Al Gore, but I think everyone needs a reality check here! This is going to cost a lot of money and involve a ton of special interest? When do we get smart about this?

I can tell you right now, that this NY Times editorial is not the answer:

G.M. said it would offer 15 hybrid models by 2012. Its Chevy Volt, which can travel up to 40 miles on electric power, is scheduled for production in 2010. Chrysler also said it would offer an all-electric automobile. Ford said it would cut trucks, vans and sport-utility vehicles to 40 percent of its portfolio from 52 percent in three years and would put more fuel-efficient engines in most of its cars.

Congress should ask for more

Classic. A NYT article heralding the inception of the unprofitable Volt and wanting Congress to make things worse.

Big Day for Markets

The first week of the past several months has set the tone for changes in the major indexes. Look at Google Finance and look at November and October, big drops at the start of the month. If the rebound of the past few days is a real recovery, we should expect a gain this week. Especially on news of strong holiday sales so far.

So far, the Dow is done 400 points, things aren’t looking great.

Record Price Drops

I just went to Google News and saw this interesting article:

The cost of living in the U.S. fell by the most on record as fuel costs plummeted and retailers used discounts for cars and clothing to entice consumers hobbled by job losses and sinking home values.

This is an interesting result of the current economic slow down. It fundamentally goes against the goals of the Fed targeting a minimal inflation rate. In the short run it is great for consumers, since wages are slow to adjust, it will increase their purchasing power. If the price drops are expected to turn into a prolonged inflation, then wages will drop over time. We all know that this is never perceived well by actors in the economy. So let’s not celebrate sales at our favorite stores too quickly.

Furthermore, prolonged deflation can have negative effects on the economy as Japan experienced in the 1990’s. It can cripple the power of the central bank, especially if expectations cause wages to drop further in a vicious cycle.

Like everyone else, I’m happy that gas prices are down, but I think this summer’s oil prices were inflated. In our current economic times, I feel certain that any news with the word “record” (besides Olympic ones) is bad news. This even includes falling prices, somewhat ironically.

Exxon Mobil Posts Record Profits

Exxon earned $14.83 billion for the quarter, or $2.86 a share, up a whopping 58 percent from the third quarter of 2007.

Exxon Mobil posts record profits – San Antonio Business Journal:.

Delta-Northwest Merger Sealed

The Justice Department’s antitrust division earlier Wednesday said the merger “is likely to produce substantial and credible efficiencies that will benefit U.S. consumers and is not likely to substantially lessen competition.”

The Justice department said it reached its conclusion after a thorough six- month investigation in which it heard from a wide range of industry players, including the two companies, other airlines, corporate customers and travel agents.

Delta-Northwest Merger Sealed After Receiving DOJ OK.

Dow Soars Nearly 900 Points



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