Posted in Businesson Dec 2, 2008
Quick Sanity Check!
Today Ford Motor Company asked for $9 Billion in loans from the government, and promises to return to profitability within two years. According the the Ford Wikipedia article, Ford employees 87,700 people.
Doing just a little bit of math, dividing $9B into the number of employees, the Ford bailout is equal to $102,622 per employee. It seems a little excessive.
Posted in Businesson Nov 20, 2008
Yesterday the CEOs of the big three US automakers showed up in Washington DC to ask the federal government for bailout money. How did they show up? In private luxury jets.
Rich Wagoner, CEO of General Motors, flew in a $36 million jet to ask congress for money, some $10-12 billion. The flight alone is estimated to cost around $20,000. Meanwhile, I used Orbitz.com to find a next-day first class flight on Northwest airlines to cost only $1,385.
Posted in Businesson Nov 11, 2008
Today I read a news report stating that Starbucks’ profits are down 97% over the same quarter last year. Such a steep decline must be caused by more than just a bear market.
Trends can be fun an exciting, but they are hard to keep going. Gourmet coffees have been very trendy for quite a while. I’m sure many people (not me) consider going out with friends to get some expensive coffee to be an energizing lifestyle.
But trends attract trendy people who are always looking for the next big thing. This means when other things come along, they abandon their old brands for newer, trendier brands. Especially with market downturns, expensive trends are the first to get cut. Read the rest of this entry »
Posted in Businesson Oct 6, 2008
The following facts refer to the Dow Jones Industrial Average:
Update Oct 7:
Posted in Businesson Jun 25, 2008
Today I passed one of those big trailer hauling semis, and I started to wonder about what it might be carrying. Bread that I might buy at the grocery store? My next couch? Fertilizer for the farm down the road?

Then I started to think about how incredibly not aerodynamic the trailer is. Anyone who has participated in a pine wood derby knows that a big block on wheels isn’t the best way to go. If you’ve felt the wind come off the end or sides of one of these trucks as it drives by, then you have felt the energy that is lost because of the inefficient design of the big box trailer.
I suppose they are made that way because that is the most inexpensive way to make a trailer. But with diesel prices near $5 per gallon, maybe it’s time to re-think that.
If big-rig trucks were more aerodynamic, then they would get better gas mileage. If they get better gas mileage, then that reduces the cost of delivery for the products they are delivering. This, in turn, can keep consumer prices slightly lower. Lower prices helps the economy.
So much of our economy depends on the distribution of goods, that maybe it is time to think uniquely about making our means of distribution more affordable.
Posted in Politicson Oct 14, 2004
J. Edward Carter & Cesar V. Conda on 368 Economists Against John Kerry
I’m convinced that Bush will only win if his supporters are vocal. This is my voice. I think that Bush has a better plan for the economy than Kerry. This article supports this.
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