August 2011

Microsoft Sued By Customers

by on August 31, 2011

Huffington Post…

By Dan Levine SAN FRANCISCO (Reuters) – Microsoft allegedly tracks the location of its mobile customers even after users request that tracking software be turned off, according to a new lawsuit. The proposed class action, filed in a Seattle federal court on Wednesday, says Microsoft intentionally designed camera software on the Windows Phone 7 operating system to ignore customer requests that they not be tracked. A Microsoft representative could not immediately be reached for comment. The lawsuit comes after concerns surfaced earlier this year that Apple’s iPhones collected location data and stored it for up to a year, even when location software was supposedly turned off. Apple issued a patch to fix the problem. However, the revelation prompted renewed scrutiny of the nexus between location and privacy. At a hearing in May, U.S. lawmakers accused the tech industry of exploiting location data for marketing purposes — a potentially multibillion-dollar industry — without getting proper consent from millions of Americans. The lawsuit against Microsoft cites a letter the company sent to Congress, in which Microsoft said it only collects geolocation data with the express consent of the user. “Microsoft’s representations to Congress were false,” the lawsuit says. The litigation, brought on behalf of a Windows Phone 7 user, claims Microsoft transmits data — including approximate latitude and longitude coordinates of the user’s device — while the camera application is activated. It seeks an injunction and punitive damages, among other remedies. The case in U.S. District Court, Western District of Washington is Rebecca Cousineau, individually on her own behalf and on behalf of all others similarly situated v. Microsoft Corp., 11-cv-1438. (Reporting by Dan Levine, editing by Bernard Orr) Copyright 2011 Thomson Reuters. Click for Restrictions

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Microsoft Sued By Customers

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Huffington Post…

The vast majority of Americans say labor unions raise wages and better working conditions, a new survey finds. Yet despite those benefits, Americans have almost never disliked them more. Indeed, according to a Harris Interactive poll , more than seven in ten of those surveyed said labor unions are too politically-oriented and concerned “with fighting changes” as opposed to “bring[ing] about change.” Still, over six in ten say labor unions also provide workers with better conditions and pay. A Gallup poll also released Wednesday finds, more directly, that approval of labor unions has held at 52 percent, just above its lowest-recorded level going back to the Great Depression. Still, at 52 percent, the majority of Americans continue to support labor unions. The lowest recorded approval of labor unions was 48 percent in 2009, Gallup says. Labor unions have become particularly politically polarizing in the last decade. While Democratic support of unions has held relatively steady since 1999 — 78 percent of Democrats say they support labor unions — the percent of Republicans supporting unions has plummeted to 26 percent from 51 percent, according to Gallup. That diminishing approval can be in part explained by the 59 percent of those surveyed by Harris Interactive that say they disagree with the idea that unions help pass laws that help all workers, not just unions. Union members disagree, but not by much. Among union workers, 55 percent say unions pass legislation to help all workers, Harris Interactive says. Between 1973 and 2007, union membership has dropped to 8 percent from 32 percent among men, according to The New York Times . A recent study found that decline in union participation accounted for roughly one-third of the increasing gaps in pay between the rich and poor. In a weak economy, labor unions have been close scrutinized, especially in government. Wisconsin Governor Scott Walker earlier this year proposed a bill to limit labor unions’ right to collective bargaining in the name of cutting government spending. Within the Union Auto Workers, disputes between union management and the rank-and-file has caused deepening rifts , as The Huffington Post reported in August. Even larger unions are seeing their power tested. A recent strike by over 45,000 Verizon workers over pensions led by unions Communications Workers of America and International Brotherhood of Electrical Workers has been largely ineffective. Employees have returned to work after the two-week long strike, and as negotiations continue it’s said that Verizon will likely win out on several key disputed issues .

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Labor Unions, Benefits Understood, Have Almost Never Been Less Popular

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Costco Wholesale Corporation Reports August Sales Results; And Planned Management Change

August 31, 2011

ISSAQUAH, WA–(Marketwire – Aug 31, 2011) – Costco Wholesale Corporation (“Costco” or the “Company”) ( NASDAQ : COST ) today reported net sales of $6.9 billion for the month of August, the four weeks ended August 28, 2011, an increase of 17 percent from $5.9 billion during the similar period last year. This year’s four-week period included sales from the Company’s Mexico joint venture; otherwise the increase would have been 14 percent.

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Mattias Wallander: Going the Extra Mile

August 31, 2011

I’ve been a runner most of my life. I started running when I was in my teens and was immediately addicted. I’ve always found that running has been a great way to clear my head — I’ve come up with some of my best ideas while jogging along city streets, or on riverside trails. While running started out as just a way to get exercise, it quickly turned into a wonderful personal challenge for me. I began to run longer and longer distances and soon I was training for my first marathon. Training for a marathon is a process that I’ve come to both love and loathe, a process that’s both exhausting and exhilarating. I ran my first marathon in 2006. And I was hooked… You might think of running as a very ‘green activity’ — just you and your running shoes pounding the pavement. Right? Actually, that’s not the case. In 2008, Runner’s World magazine surveyed hundreds of runners and calculated the annual CO2 impact of a typical American runner, which includes everything from clothing and running shoes to traveling to and from marathons. They found that one runner generates approximately 5,449 pounds of CO2 in a year! That’s equivalent to driving an SUV 300 miles every month for a year. As the CEO of a ‘green company’ I found this very troubling. I’d been noticing some trends that weren’t so environmentally appealing. For instance, I saw how along the marathon course runners were tossing off, and abandoning, clothes — a lot of them. As runners warm up we shed layers: warm up jackets and pants, long sleeve T’s, hats, shirts and more. The more races I ran, the more concerned I grew that all that clothing might be thrown in the trash along with cups, water bottles and other discarded items along the race route. This seemed like a huge waste to me, but it also seemed like a problem that I could help fix. In 2008 my company, USAgain , which collects discarded clothes and shoes and puts them back in the use cycle, began partnering with marathons around the country. We have collected at the Twin Cities Marathon since 2008 and partnered with the San Francisco Marathon this year. At every marathon since then we’ve prevented an average of 500-600 pounds of clothing from being dumped in landfills. This is an incredible amount of clothing and almost all of it is perfectly wearable — some of it is even new. About 10.8 million tons of textiles end up in landfills every year. When it comes to marathons, there are hundreds of them annually in the United States, and thousands across the globe. USAgain is growing our reach in the marathon community so that we can do our part to make running just a little bit greener. Some things that you can do as a runner — even if you just jog a few miles a week — to go the extra mile to help lessen your impact on the environment are: recycle your old running shoes by donating them to charity, or giving them to an organization that will reuse or recycle them. Wash your running clothes in cold water, with minimal detergent — it’s gentler on both clothes and environment. Buy organic cotton clothing when possible. Non-organic cotton is grown with tons of fertilizer and pesticides that pose health hazards to people and animals, not just pests.

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Apple Accused Of Environmental Violations

August 31, 2011

By Michael Martina BEIJING (Reuters) – Chinese environmental groups accused Apple Inc of turning a blind eye as its suppliers pollute the country, the latest criticism of the technology company’s environmental record. Toxic discharges from “suspected Apple suppliers” have been encroaching on local communities and environments, a coalition of environmental organizations said on Wednesday in a 46-page report alleging efforts to conceal pollution. Widespread environmental degradation has accompanied China’s breakneck economic growth, and the government has been criticized for failing to take steps to curb pollution. “The large volume of discharge in Apple’s supply chain greatly endangers the public’s health and safety,” said the report, issued on the website of the Beijing-based Institute of Public and Environmental Affairs (www.ipe.org.cn). The report alleges that 27 suspected Apple suppliers had severe pollution problems, from toxic gases to heavy metal sludge. In one case, the report said, a nearby village experienced a “phenomenal rise in cases of cancer.” Apple has decided to “take advantage of loopholes” in developing countries’ environmental management systems to “grab super profits,” it said. Apple does not disclose who its suppliers are. The environmental groups said public documents and five months of research and field investigation led to the findings in the report. “A large number of IT supplier violation records have already been publicized; however, Apple chooses not to face such information and continues to use these companies as suppliers. This can only be seen as a deliberate refusal of responsibility,” the report said. This is not the first time Apple has been targeted for environmental infractions and its secretive supply chain management in Chinese factories, where it assembles most of its products. In January, several of the same non-governmental organizations issued a report alleging woeful environmental records for the iPad and iPhone maker’s China-based contract manufacturers. In February, workers at a Taiwanese-owned factory in eastern China making touch screens on contract for Apple aired their grievances over a chemical poisoning after using N-Hexane, a toxic solvent. Apple says it maintains a rigorous auditing regime and all its suppliers are monitored and investigated regularly. “Apple is committed to driving the highest standards of social responsibility throughout our supply base,” Apple spokeswoman Carolyn Wu told Reuters. “We require that our suppliers provide safe working conditions, treat workers with dignity and respect, and use environmentally responsible manufacturing processes wherever Apple products are made,” she said. Apple is not alone in drawing criticism from environmental groups. Some of the world’s leading brands rely on Chinese suppliers that pollute the country’s environment with chemicals banned in Europe and elsewhere. Many Western multinationals — including toymaker Mattel Inc, which suffered a toxic lead paint scandal in 2007 — have struggled to regulate product quality across scores of suppliers in knotted Chinese supply chains. Environmental degradation has emerged as one of the most potent fault lines in Chinese society. Beijing has repeatedly promised to clean up its stressed environment. But it often fails to match that rhetoric with the resources and political will to enforce its mandates, as local officials put growth, revenue and jobs ahead of environmental protection. (Reporting by Michael Martina; editing by John Wallace) Copyright 2011 Thomson Reuters. Click for Restrictions

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Dorie Clark: Maximize Your Profits by Maximizing Choice

August 31, 2011

Every company, every industry, and every culture has habits — assumptions we make about the way things work. Indeed, as much as 45 percent of what we do every day may be habitual. But a recent trip to Venice highlighted for me the benefits of deconstructing those assumptions and asking what customers really need — not just what we expect them to want. Mealtime in America is pretty straightforward — lunch sometime between 12 and 1:30pm, and dinner sometime between 6:00 — 9:00 p.m., depending how urban/hip/workaholic you are. Take out or eat in, same price. Want lunch at 4 p.m.? Maybe at McDonald’s, but the nice places are closed. In Venice, however, the formula is cracked open — it’s a cornucopia of customer choice. You can choose: • How much to eat (some of the best food is offered as tapas-style nibbles at wine shops). • When to eat (the wine bars and takeout pizza joints are open most of the day). • Whether to sit down (and pay more — sometimes double) or save money by carting your food off to eat by a canal. Of course, Venice also has its customer service hangups. Popular restaurants and bakeries are often closed on Sundays, even during prime tourist season — a wanton rejection of dollars that would make American entrepreneurs queasy. Almost no one seems to accept credit cards. And — tying in to a common “business as lifestyle” mentality — some proprietors feel perfectly comfortable setting their own arbitrary dictates. (At one wine bar, after filling up a plate with bruschetta and snacks for my girlfriend, the woman behind the counter scolded me for attempting to request a second plate for myself. One plate was clearly enough — a principle she felt was worth standing up for, regardless of lost sales.) But in both its strengths and limitations, Venice shows the importance of customer choice. If you want your business to thrive, you need to provide options, not dictate the terms “Soup Nazi” style. Consulting expert Alan Weiss describes the concept as providing a “choice of yeses.” It’s essential to identify the core values of your business and stand up for them. But it’s also essential to weed out false assumptions and bad business habits (Really, you want me to stop ordering food for my party because one plate is full?). Think broadly about how you can best serve your customers — and do it. What are your strategies for providing optimal customer choice? Are there instances where it’s not a good idea? Dorie Clark is CEO of Clark Strategic Communications and the author of the forthcoming What’s Next?: The Art of Reinventing Your Personal Brand (Harvard Business Review Press, 2012). She is a strategy consultant who has worked with clients including Google, the National Park Service, and Yale University. Listen to her podcasts or follow her on Twitter .

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AT&T’s Proposed T-Mobile Acquisition: A Timeline

August 31, 2011

By The Associated Press — Some key dates in wireless carrier AT&T Inc.’s effort to buy competitor T-Mobile USA, which was threatened Wednesday after the Justice Department filed a lawsuit to stop it from going through: _ March 20, 2011: AT&T says it is offering $39 billion in cash and stock to buy T-Mobile USA from German telecom company Deutsche Telekom AG. Such a combination would make it the largest cellphone company in the U.S. AT&T is currently the country’s second-largest wireless carrier, while T-Mobile is the fourth-largest. Hoping to appease regulators, AT&T promised to spend an additional $8 billion to grow its ultrafast wireless broadband network in rural areas. The company now plans to cover 95 percent of the country with its so-called Long Term Evolution, or LTE, network, rather than 80 percent as was initially planned. _ March 28: Sprint Nextel Corp., the nation’s third-largest wireless carrier, urges the government to stop the proposed deal. Sprint Nextel argues that it would create a duopoly market with AT&T and Verizon Wireless – currently the largest cellphone company – taking the lion’s share of customers. _ April 7: In response to industry consolidation, the Federal Communications Commission approves rules that will require large wireless carriers to open their data networks to smaller regional carriers in areas where they don’t have their own systems in place. The big carriers will have to offer reasonably priced network access, and the FCC will resolve any disputes. _ July 20: The chairman of a Senate subcommittee on antitrust and consumer rights asks federal regulators to block the proposed deal. Sen. Herb Kohl, D.-Wis., says it would result in increased wireless service prices and fewer choices for consumers. He says there would be only three national cellphone companies left, and two of them – AT&T and Verizon – would control almost 80 percent of the market. _ Wednesday: AT&T promises to bring 5,000 wireless call center jobs back to the country if regulators allow the deal to go through. The company says that doing so won’t mean job cuts for call center employees that are already located in the U.S. _ Wednesday: The Justice Department files a lawsuit to halt the deal, arguing that it would raise prices for consumers and reduce their wireless choices. AT&T says it will fight the lawsuit and asks for an expedited court hearing.

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Gerry Nicholls: The Case For a Flat Tax

August 31, 2011

Finance Minister Jim Flaherty says when (if?) he balances the budget, he will move next to “flatten” taxes. As he recently put it , “I think we should be moving toward a flatter personal income tax system because it encourages economic activity … it encourages entrepreneurial activity in Canada.” More specifically, Flaherty is talking about reducing the number of personal income tax categories for federal taxpayers. And that would definitely be a move in the right direction. But Flaherty should consider going even further in his efforts to promote economic activity. Rather than simply reducing the number of tax categories, why not scrap our current tax system and replace it with a flat tax. What’s a flat tax? Well, essentially, under a flat tax instead of having different tax rates for different incomes, everybody (individuals and businesses) would pay the same marginal rate. In other words, everybody would pay the same proportion of their income (say 15 per cent) in taxes. There would be no tax credits, no special deductions, no complicated forms. And everybody would also claim the same basic personal tax exemption, which would mean if the exemption is made generous enough, many poorer families might pay little or no taxes at all. Flat tax experts, for instance, suggest single adults would claim a $13,000 deduction; married couples would receive a $26,000 deduction. Higher deductions could also be set for single-parent families. The bottom line is under a flat tax system, people would pay less in income taxes. (Some wouldn’t pay anything at all.) So a flat tax, with a generous exemption, is a lower tax. But what would the flat tax mean for government revenue? If people are paying less in taxes, would the government have to cut services for lack of money? No and here’s why. Our current tax structure is based on the idea that the more money you make, the steeper your income tax bill. Left-wingers and other pro-big government advocates call this sort of tax policy “progressive,” but in reality such taxes actually retard progress. Just think about it. A higher tax rate for higher incomes and profits essentially means the government is financially punishing success. Simply put, the government is making it harder for people to save money or to invest or to engage in wealth-producing entrepreneurial activities. In fact, the Fraser Institute , an economic think tank, says business and personal income taxes “are the most inefficient taxes because they penalize productive economic activities.” A flat tax, on the other hand, is more like a consumption tax. You pay based on what you take out of the economy. What you put back in the economy — in the form of investment and savings — would go untaxed. This would encourage more investment and more savings. This in turn would boost economic productivity and at the same time increase the money government collects. The Fraser Institute estimates that under a flat tax the government would collect just as much money as it does now. Now besides being a lower tax, a flat tax is also a fairer tax. It’s fairer because everybody would pay exactly the same rate, meaning the more you earn, the more you pay. If you earned $40,000 a year, a 15 per cent flat tax would mean you pay $3,000 in taxes; if you earned $100,000 you would pay $12,000. Sounds good, right? So a flat tax is lower and it’s fairer, but wait’s there’s more. The flax tax is also much simpler. Mind you, that’s not much of a trick since taxes now are extremely complicated. Every time you pay income taxes you must wind your way through a maze of complex codes and regulations, seeking deductions for this and credits for that. Then there’s all the time and effort we spend hunting down those crinkled, torn receipts hidden away in forgotten shoe boxes and let’s not forget the emotional trauma associated with the fear of tax audits. It’s no wonder so many of us pay good money to hire experts like accountants or tax lawyers. A flat tax would change all that. With a flat tax in place, figuring out your tax bill would be a simple three-step process. Step one: Figure out what percentage of your income you need pay. Step two: Write out a cheque to the government. Step three: Drop your cheque in a mailbox. Now that’s easy. Imagine the joy of filing your income tax return in less than 15 minutes. Imagine not having to hire an accountant to figure out your taxes for you. Nor is a flat tax a radical untried idea. Indeed, many countries in Europe and elsewhere are now employing a flat tax and it seems to be working quite well. Why not try it in Canada? What do we have to lose, except a tax system that’s hindering economic growth? Indeed, Ontario Progressive Conservative Leader Tim Hudak should make implementing a flat tax a part of his platform. Imagine telling Ontarians he would introduce a tax that’s lower, fairer and simpler. Sounds like a vote-getter to me.

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Aaron Shapiro: Be The Steve Jobs Of Your Company

August 31, 2011

In the wake of Steve Jobs’ announcement that he would be stepping down as CEO at Apple, Market Watch reporter Brett Arends wrote “What Apple has achieved isn’t impossible. Why don’t more companies do it?” Last week in a post for Fast Company, I answered that question by taking a look at what it takes to create outstanding digital products. Apple is a standout company because Steve Jobs refused to accept mediocrity. Your company’s success depends on whether you follow in his footsteps. Apple will be fine without Steve Jobs. Because Steve Jobs isn’t just a CEO, he’s an idea and an idea that all companies should embrace. I know, because I aspire to bring him to life every day at my company. Steve Jobs represents an ethos that is core to Apple’s culture. He, as an idea, is a simple one. It’s all about building amazing, intuitive, life-changing products that people love. To embody this principle, Apple doesn’t need Jobs. It can live on through the shared vision of Apple’s talented people who deeply care and are dedicated to creating greatness. As long as that culture continues to thrive in Cupertino, Apple will be fine. That said, it’s also a culture other companies would be well-served to have. As MarketWatch reporter Brett Arends wrote last week, “What Apple has achieved isn’t impossible. Why don’t more companies do it?” Because it’s really, really hard. At HUGE, we all come together, every day, to try to build Apple-caliber digital products that people love to use. That’s what our clients are asking from us when they hire us to create a new mobile application, website, social media experience, outdoor digital installation or anything else. They want us to produce something so special, something that’s so genuinely loved by their users, that their business is dramatically transformed as a result. That’s no easy task. It means pushing yourself to design something, and then throwing it all away to try to make it better. It means constantly challenging yourself to see if the experience can be easier, more beautiful, simpler, more elegant, more in tune with what people will embrace. It’s a painstaking undertaking that means sweating all the details, because your heart and soul is in it, and because it’s become your baby and you want it to be absolutely perfect. Then one day you release it to the world — in our case turning it over to our clients and their audience — and you hope for the best. You catch yourself holding your breath, sitting at the edge of your seat, engaged in a very pregnant pause waiting for feedback. But in your heart of hearts, you know that it will be OK and the product will be a success for one simple reason: you designed it for yourself. That’s the secret to all great design: you may not be a member of the product’s target demographic, and you may never use it in real life, but you designed it for yourself. And your goal was to build a revolutionary product. Your self-imposed expectation of performance exceeds that of most technology users in the world. And that’s what makes great products great. But most people don’t bother to do this. That’s why Apple is such a standout. For many the passion, the heartache and the pressure that’s required is just too much. They fall back to what is easy: mediocrity. They punch the clock, go home at five to play soccer with the kids, and don’t really push themselves or their team toward greatness. HP’s TouchPad is a case in point. Think for a moment about that product and the team behind it. Were they really trying to reinvent the world? To create the best tablet possible? No. If they were, they certainly weren’t trying hard enough. Because all they created was an iPad clone with a few extra bells and whistles. Why would anyone buy a bad imitation of the original for the same price? They wouldn’t and didn’t. If HP had a Steve Jobs culture, they would have made something completely different. They would have pushed themselves to make something better. Better could have been cheaper; better could have been something dramatically different that makes people rethink whether an iPad is the tablet for them; better could have had consumers wondering how they ever lived without it. But HP took the easy way out. For many years, taking the easy way out was relatively acceptable. You could get away with it and keep a product on the market. No more. In the tech world this has come to life as a “Sell Big or Die Fast” mentality. To non-tech companies, the stakes are the same. There’s no such thing as an offline business. Every company’s customers, employees, job candidates, “friends,” and “followers” are technology users. They create mass public opinion and operational performance; they shape brands and drive sales. In 2012, 50 percent of consumer spending is going to be influenced by or transacted through the Internet, according to Forrester Research. This means every company must provide users with a first-class digital experience they want to use, ideally one worthy of Steve Jobs’ approval. This is what I write about in Users, Not Customers . Every company can and should provide people with outstanding digital experiences, because it is increasingly becoming the point of difference between companies that thrive and those that die. So the opportunity for you, as a manager, executive, technologist, or whatever your job is, is to follow in Steve Jobs’ footprints. Be the Steve Jobs of your company. Just like him, you can push yourself and your team to create exceptional digital products and experiences that are so special in forty years you’ll look back and be proud that you were part of it. It’s the key to your business success, your company’s ability to compete in today’s digitally-driven economy, and it’s the key to a rewarding, fulfilling career and personal happiness. Make something you really, really love. Got a question for Aaron Shaprio? Let him hear it at @amshap.

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Struggling Law Graduates Sue Alma Mater For Fraudulent Advertising

August 31, 2011

FORTUNE — Budding law school students are still coming in droves, tuition coffers are plentiful, and faculty still receive generous six-figure salaries. And some top-performing graduates continue to land the golden $160,000 first-year law firm job.

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HuffPost TV: WATCH: Arianna Discusses Job Creation With Martin Bashir

August 31, 2011

Arianna appeared Wednesday on MSNBC to discuss job creation with Martin Bashir. “What I find amazing is that normally both political parties, you know, talk about the middle class, this is not a left-right issue, everybody wants to support the middle class. And yet now, there is a kind of economic equivalent of creationism where people think that really you need to deal with the deficit first,” explained Arianna. She continued, “You know obviously this is the creed of the Tea Party. But the President in a way has bought into it in his rhetoric.” Arianna said that the austerity approach “hasn’t worked in Greece.” She explained that in Greece, “they actually have cut a lot, they’ve cut more than the IMF wanted them to cut. But what’s happened in the process is that growth and tax revenues are less than they had expected, so they’re in a worse hole than before.” “What we need to do here is to touch people’s hearts and minds to make people recognize that we need to come together to solve our problems, otherwise we’re not going to be able to,” concluded Arianna. WATCH ( via MSNBC ): Visit msnbc.com for breaking news , world news , and news about the economy

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Gilbert B. Kaplan: President Obama, Enact a Jobs Program Based on Real Trade Reform

August 31, 2011

Press reports make clear that the president and the White House staff are working non-stop to put together a jobs program to announce on Labor Day. Obviously a good thing to do, given that unemployment appears to be stuck permanently above 9%. At that level, and with other financial indicators tanking, President Obama may soon find his name among the 9.1% unemployed. If the president wants to find a place to create jobs, he needs to look hard at what has happened to the manufacturing sector since 2000 and figure out a way to start turning that around. At the end of the year 2000, we had 17,263,000 manufacturing jobs in this country. Today we have about 11,745,000, an astounding drop of 32% in a little over ten years, in the most important job generator in the economy. In addition to these 5,518,000 manufacturing jobs lost, it is universally recognized that manufacturing jobs have a multiplier effect. For every manufacturing job there are at least 2 or 3 additional jobs created, in services around the plants and in manufacturing communities, in R & D and finance, in transportation, in wholesale and retail trade, and in government. Let’s assume it’s just two additional jobs. That means the 5.5 million manufacturing jobs we have lost have resulted in total job loss of 16.5 million. Given that the total number of unemployed in the economy as of the end of July (according to the Bureau of Labor Statistics) was 13.9 million people, it is clear that these manufacturing job losses are having an astounding effect. So what should the president do about it? The simple fact is that the majority of these manufacturing jobs are now overseas, as a result of our failure to enforce our trade laws or to adopt creative, new solutions to the trade problems we face. During the 2000-2010 period, our trade deficit in manufactured goods increased by almost 30%, roughly parallel to the loss in manufacturing jobs. Our trade deficit just in advanced technology products increased to $81 billion, from a surplus of $5.3 billion in 2000. Our trade deficit with China increased from $84 billion to $273 billion. For those who say that the issue is lower wages in China, Vietnam or elsewhere, that’s simply not true. Almost nothing we make in the U.S. or made in the year 2000, has a wage component of more than 10% of the cost of production, a cost that is readily off-set by the cost of shipping products from distant shores. The real problem is unfair trade practices by our trading partners and our foolish and destructive refusal to take actions to remedy these practices. We have to adopt new trade strategies on manufacturing if we want to create good jobs in this country. To do that, I hope the president will announce the following trade actions in his jobs speech next week: Immediately off-set currency undervaluation by the Chinese, or at least instruct the Department of Commerce to self-initiate countervailing duty cases on the undervaluation. A few weeks ago, Fred Bergsten, President of the Peterson Institute of International Economics called the sustained currency undervaluation by the Chinese “by far the largest protectionist measure adopted by any country since the Second World War — and probably in all of history.” Yet the president just stands idly by. As to other subsidies which have caused U. S. industries to move off-shore or have created unfair advantages causing U. S. industries to cut back or close plants, the president should instruct the United States Trade Representative and the Secretary of Commerce to create an unfair trade strike force that would immediately initiate anti-subsidy cases against any government that gives subsidies to its industries that cause harm to U. S. competitors. These subsidies include programs like free land, below-market interest loans, grants to build greenfield factories, free energy and tax breaks — all actions that are endemic in China and our other trading competitors. We should expect our government to act against these economic security and job base threats the same way they act against national security threats. The third major disadvantage U. S. manufacturers have is that, in every other country when manufacturers export, their VAT (value added taxes) are rebated. As a result they get a 5-17% cost and price advantage on every export sale. This is supercharging the export proclivities of every other country in the world. Because of a peculiarity we wrongfully agreed to in the international trade regime decades ago, when U. S. manufacturers export their goods, the U. S. cannot rebate the income taxes they have paid. Our manufacturers are undercut and forced out of the globalized market. The president should immediately propose a system of trade zones where manufacturers will pay a VAT tax in lieu of an income tax, and then rebate the VAT tax on goods which are exported — equalizing competition with China, Japan, the EU and the rest of our trading competitors. All over this country, plants remain closed down and workers are moving down the food chain, suffering from the enormous loss of manufacturing jobs, and from the disappearance of related jobs in their manufacturing communities. We are a great country but we cannot sustain a 32% drop in a very high paying sector of our economy — manufacturing including advanced manufacturing — and expect to remain so. Without dealing with the trade issues, there is no way to address this decline. The above steps will quickly begin the turnaround. As an added bonus, this is not a big new spending program, which would likely hit a road block in the House. President Obama, take the leap!

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Porter Gale: Serendipity In The Sky: Conversations With 4C

August 31, 2011

The thing I’ll miss most when I leave my post as VP of Marketing at Virgin America — other than skipping the TSA line and our amazing teammates — is seat 4C. It’s a great seat, designed with a sexy, leather seat cover, a power outlet and the best seat-back entertainment in the sky. But these luxuries are not why I’ll miss 4C. It’s not its proximity to the front of the plane either. We all know being up front can save you thirty minutes when you land (and, if you’re trying to get home to make a 9-year old dinner, that’s an eternity) but it’s not that. What I’ll miss most, but take with me from 4C, is an appreciation for the power of random moments. We’ve seen it in the movie Sliding Doors and we’ve all heard stories of couples that met at a dog park, a coffee shop, at the dentist’s office or on a flight. You see, 4C is the stage for a perfect random moment. I realized early on that the guests flying Virgin America were way cooler than me. Sure, I worked for the airline that brought the fun back to flying, but I’m a single, suburban mom that finds pruning rose bushes and making kale chips exciting. I’m don’t know the hip bands. I haven’t funded a tech start-up. And, I’m certainly not an eco-adventurer. However, I can work an airplane cabin and a cocktail party. After 15 years of sobriety, I don’t need a drink to socialize. I have no fear when it comes to meeting people. On a plane, your conversation starters can be simple, “That’s odd I store my iPhone in my shoe too.” Or, “I’m glad those twins aren’t sitting next to us.” I also get to ask questions. People love questions. Asking questions makes people feel valued — and they transfer that value over to liking you more. If this is starting to sound like painful flight — we’ve all sat next to the chatty Cathy who will talk the entire journey — I’ll give you the end of the story first (and add that you can fly with your headphones on or your headphones off). I leave Virgin America with a richly diverse, life-improving network of friends, technology experts, digital influencers, artists, entrepreneurs and more. Because of 4C, my daughter and I were invited to see David de Rothschild’s Plastiki boat being made. And, because of travels from 4C, several passionate kids met Sir Richard Branson. Their lives were changed too when he asked them, “What’s important for the future? Why do you want to be entrepreneur?” He gave them his time, and he gave them a sense of value. This didn’t occur in some boardroom, it started in the cabin of a plane. When the world has moved from six degrees to four degrees of separation, a single connection on an airplane or at an event can change your life. One dear friend that had his life change by random connections on ground is Steve Shimmel. Steve grew up in near poverty, in a 600-square-foot apartment with his parents and sister. As a boy, he helped his dad run his pest control business. After college, Steve couldn’t get a job so he put his resume on a sandwich board and hit the streets of San Francisco. One introduction led to another and so on and so on. Steve ended up being number 13 at Google and retired at age 38. Steve’s moment was random, but he made it happen. It might be a sandwich board or a pair of headphones that you leave on your lap, but it all comes back to networking, anytime, anyplace. It’s the most powerful business tool we have. I leave you with this. I was recently asked to speak on social media at a conference. After some thought, I emailed the host group and inquired if I could speak on networking. The reason? My thoughts are that networking is all about making the most of random moments. It’s not always about building your Twitter following or increasing the number of folks in your G+ circles or maintaining your Klout score. Sometimes, the most powerful person in your future is randomly sitting next to you at an event, in the grocery store or on a plane.

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American Businesses Need More Of Steve Jobs’ Courage

August 31, 2011

Of all that Steve Jobs’ achievement has taught us, the importance of courage is especially relevant now.

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Warren Buffett Chief Of Staff’s Business Card: ‘You Don’t Call Me. I Call You’

August 31, 2011

Yesterday was Berkshire Hathaway CEO Warren Buffett ‘s birthday. And while the 81-year-old’s public perception is that of an affable billionaire, his chief of staff would appear more severe. According to The New York Observer , she’s carrying business cards with an unambiguous message : I’ll be in contact if I feel like it. At last May’s premiere of HBO’s Too Big To Fail , Warren Buffett’s Chief of Staff Devon Spurgeon reportedly handed the business card seen below to New York Observer reporter Foster Kamer , after Kamer tried to ask Buffett a question about farming investments. The card read: “Telephone: You don’t call me. I call you.” But Spurgeon’s isn’t the only business card with attitude. According to CNNMoney , Facebook CEO Mark Zuckerburg carried two business cards in the early days of the company. One simply identified his position in the company, the other doing so with some extra emphasis. “I’m CEO B*itch!” it reportedly read. Buffett, the third richest man in the world , has lately often found himself in the news, both for light and more serious reasons. Just before Buffett’s birthday, The New York Post published an editorial bringing light to the fact that Buffett’s Berkshire Hathaway owes taxes going back nearly a decade, which the paper used as reason to attack his position that America’s richest taxpayers should pay more taxes. Last week, Buffett admitted he dreamt up a deal to invest $5 billion in Bank of America while bathing. The New York Observer notes that Spurgeon, a former Wall Street Journal reporter, was admitted to Buffett’s inner-ring in 2004. Interestingly, that’s despite Buffett criticizing a “glaring error” in a New York Post story she co-wrote in 2001. And that wasn’t Spurgeon’s only controversy while working at the New York Post . Back in 1998, an article appeared in the Washingtonian concerning claims of sexual harassment made by Spurgeon against co-worker and columnist Richard Cohen. He was consequently moved to a different floor. See what the New York Observer is calling the ” best business card ever ” here:

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Many Big-Name Stocks Now Cheaper Than During Financial Crisis

August 31, 2011

NEW YORK (Rodrigo Campos) – One out of every 10 companies in the S&P 500 index — including stalwarts like Apple and JPMorgan Chase — is now cheaper than during the 2008-2009 market meltdown. Even as S&P 500 earnings soar past Wall Street estimates quarter after quarter, the lack of investor confidence has dropped the forward price-to-earnings ratio of at least 50 of the largest U.S. companies below their crisis lows, according to a screen of Thomson Reuters data. Investors are now willing to risk less cash for every $1 in earnings they expect to rake in for upcoming quarters than they were in 2008 or 2009. The companies in question are not exactly obscure. Besides Apple Inc and JPMorgan Chase & Co, others on the list include Microsoft Corp and Wal-Mart Stores Inc, illustrating the extent of investor pessimism. “Risk aversion is so great right now that high quality U.S. common stocks are on sale,” said Jack de Gan, chief investment officer at Harbor Advisory Corp in Portsmouth, New Hampshire. Thomson Reuters data shows that 72 percent of the S&P 500 components beat earnings expectations in the second quarter. Estimates updated Tuesday show full-year earnings growth is seen at 14.1 percent for 2012 –just 0.2 percentage point less than the estimate on July 1, and still higher than the 13.6 percent estimate on April 1. By sector, technology, financials and consumer discretionary shares are trading at valuations not far from their 10-year lows. “It shows an incredible drop in overall confidence, not only in financial markets but in the political environment,” said Fred Dickson, chief market strategist at D.A. Davidson & Co in Lake Oswego, Oregon. “Knowing we are going into a political election year (investors) haven’t embraced what we would consider a decent, steady flow of good earnings.” Apple shares are up 350 percent since the start of 2009, while the company’s forward P/E ratio has fallen to 12.29, down from 15.52 in late November 2008. Apple is one of those companies whose share price is not keeping up with its rapid growth in earnings. Other companies on the list are not growing as rapidly. Wal-Mart has seen same-store sales fall every quarter for two years now. Hewlett-Packard Co, another Dow component on the list, is divesting its personal computer unit amid struggles, as well. But some of the names are stronger: The second-biggest U.S. bank by assets, JPMorgan, with its stock up more than 19 percent since the start of 2009, has seen its forward P/E decline to 6.63 from 9.44 in January 2008. “You have a company with a $200 billion market cap like some of these are, and to make that go up you need a lot of capital inflows,” said Harbor Advisory’s De Gan. “We’ve seen the P/E on some of these stocks basically decline for 10 years; at some point it becomes ridiculous.” (Reporting by Rodrigo Campos; Editing by Leslie Adler) Copyright 2011 Thomson Reuters. Click for Restrictions .

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Benedict Clements: When Reality Doesn’t Bite — Misconceptions about the IMF and Social Spending

August 31, 2011

All too often we hear the claim that the programs the IMF supports in low-income countries hurt the most vulnerable by forcing cuts in social spending. This is a misconception. Our study concludes that, contrary to these claims, IMF-supported programs boost education and health spending in low-income countries for as long as countries are engaged with the IMF. Let the numbers do the talking We based our analysis on public spending on education and health in 140 countries between 1985 and 2009. The dataset is the most comprehensive ever assembled to assess this issue. The results show the beneficial effects for social spending in program countries in several respects. First, social spending increased at a faster pace in countries with programs compared to those without, particularly for low-income countries with programs (see chart). This is true for social spending in relation to GDP and as a share of total government spending, as well as increases in per capita social spending after adjusting for inflation. Second, the benefits for social spending have accelerated over time in low-income countries. The median annual increase in education and health spending in low-income program countries since 2000 was more than double the average increase during 1985-1999. The rate of increase since 2000 implies that education and health spending, as a share of GDP, would increase each decade by 0.7 percentage points and 0.6 percentage points, respectively. Because GDP is also growing rapidly in these economies, increases in spending relative to GDP imply large increases in spending per capita. The rate of spending growth since 2000 suggests that education and health spending per person, after adjusting for inflation, would rise by about 50 percent and 60 percent, respectively, over a 10-year period. Of course, IMF-supported programs are not the only determinants of a country’s social spending. Many other factors–age profile of the population, income levels, and macroeconomic conditions–come into play. A fair test of the impact of IMF-supported programs on this spending must take these factors into account. Using statistical techniques that distill the impact of an IMF-supported program, as distinct from these other factors, we again find that IMF-supported programs have a positive, and even stronger, effect on the rate of increase in social spending in low-income countries. For example, over a five-year period with IMF-supported programs, education spending increases in low-income countries by about ¾ percentage point of GDP; and by about 1 percentage point of GDP for health spending. Facilitating social spending The IMF is committed to help protect or increase social spending in the programs it supports in low-income countries. In this regard, there are numerous channels through which programs help spur higher spending in education and health, including: Reforms that increase government revenues–on average, program countries increase revenues at a brisker pace than non-program countries–help create “fiscal space.” IMF-supported programs help countries mobilize donor financing. To the extent that programs lead to higher growth, they can help generate greater fiscal space. Finally, the emphasis in these programs on using additional resources–including those generated by debt relief–to support poverty-reducing spending contributes to rising shares of education and health spending. The results suggest that IMF-supported programs are compatible with the efforts of countries to boost critical social spending to improve social outcomes. But, it will be equally important, as many scholars have emphasized, to improve the targeting and efficiency of public spending to make it a more powerful instrument for bettering the lives of the poor. From iMFdirect blog

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Chicago Executive Named New President & CEO of Global Christian Business Leader Group

August 31, 2011

ATLANTA, GA–(Marketwire – Aug 31, 2011) – The Fellowship of Companies for Christ International (FCCI), a laser-beam discipleship ministry for Christian business leaders, announced today the appointment of Terence Chatmon as President and CEO, effective immediately.

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Cosi, Inc. Announces Leadership Transition

August 31, 2011

DEERFIELD, IL–(Marketwire – Aug 31, 2011) – Così, Inc. ( NASDAQ : COSI ), the premium convenience restaurant company, today announced that its Board of Directors has appointed Chairman of the Board Mark Demilio, 55, as interim Chief Executive Officer of the Company following the resignation of James Hyatt, 54. Mr. Hyatt has resigned as Chief Executive Officer and President of the Company and as a member of the Board of Directors, effective immediately, to pursue another opportunity due to family considerations. He will remain an employee of the Company until September 23, 2011 in order to assist with the leadership transition.

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Walsh Slams Buffet’s Tax Hikes, Appears On Chicago Tonight Wednesday

August 31, 2011

U.S. Rep. Joe Walsh’s (R-Ill.) scheduled appearance on WTTW’s “Chicago Tonight” Wednesday will cover the economy, debt and revelations about his personal finances–and will no doubt mention his inflammatory appearance on the Bloomberg news show “Inside Track” Tuesday where he attacked billionaire businessman Warren Buffet for his recent op-ed calling for a tax hike on the super-rich Buffet’s August 14 article in the New York Times highlighted proportional tax discrepancies that give breaks to America’s millionaires and billionaires and volunteered himself, and other “coddled” wealthy businessmen, for higher taxes. “I think Mr. Buffet needs a day job. He’s got too much time on his hands,” Walsh said on “Inside Track” Tuesday. (Scroll down for video) “This is ridiculous. He’s so disingenuous. He’s heating up his rhetoric because his support for the President is so desperate.” The Tea Party politician slammed Buffet’s claims that lower- and middle-class Americans pay a larger percentage of their income in taxes than the wealthy, especially in the case of capital gains and dividend “loopholes,” arguing that there are too few millionaires and billionaires for a tax increase of that group to make a difference. When asked if the Tea Party’s inexperienced politicians could have impacted the nation’s credit downgrade, he insisted that Tea Partiers weren’t the problem. “We lost our credit rating because this country is in debt,” Walsh said. “We lost our credit rating because this President has increased the debt $4 trillion in two and a half years. He knows that. Warren Buffett knows that. And that’s what the credit agencies told us. Look, the American people understand that if these troublesome Tea Party Republicans hadn’t gotten here, we’d erase the debt ceiling without even thinking about it. And we’d be spending away our kids’ future every single day.” Walsh will be on “Chicago Tonight” on WTTW Wednesday at 7:00 p.m. CT. Watch Walsh’s rant against Warren Buffet’s tax proposal:

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Preeti Vissa: How Goldman Sachs’ Bet on Obama Paid Off

August 31, 2011

Goldman Sachs has made a lot of bets that paid off handsomely over the years — for example, its bet against the subprime housing market that gained the Wall Street giant $4 billion as the housing bubble imploded in 2007. One of the firm’s biggest bets has been on Barack Obama, and that bet seems to be paying off too. The “vampire squid” raised more money for Obama’s 2008 presidential campaign than any other bank or Wall Street firm, over $1 million from Goldman employees, officers, etc. If the goal was to gain access to the White House, the plan seems to have been wildly successful. As McClatchy Newspapers noted in 2010: Several former Goldman executives hold senior positions in the Obama administration, including Gary Gensler, the chairman of the Commodity Futures Trading Commission; Mark Patterson, a former Goldman lobbyist who is chief of staff to Treasury Secretary Timothy Geithner; and Robert Hormats, the undersecretary of state for economic, energy and agricultural affairs. Lawrence Summers, an Obama economic advisor during the early days of his administration, was reportedly paid $135,000 by Goldman Sachs for a one-day visit in 2008. And in the spirit of the revolving door I’ve complained about before, the same McClatchy article noted that “Goldman is retaining former Obama White House counsel Gregory Craig as a member of its legal team.” Of course, Goldman had powerful connections before, including Bush administration Secretary of the Treasury Henry Paulson, a former Goldman CEO. Maybe it’s just coincidence that the firm got a great deal during the TARP bailout, receiving some $23 billion in direct or indirect federal aid, according to McClatchy , along with actions that helped Goldman (like the bailout of AIG) and hurt rivals (such as Paulson’s refusal to rescue Lehman Brothers). But it sure looks like it helps to know the right people, and to have helped them get into office. And now, in a story that got pretty much lost amid all the other breaking news in late August, Goldman honcho Lloyd Blankfein just hired a new lawyer to help him through the ongoing Department of Justice investigations of possible wrongdoing. According to the New York Times , that lawyer, Reid Weingarten, was once a Justice Department employee, where he worked “with another young prosecutor, Eric H. Holder. Mr. Holder, now the attorney general of the United States, remains one of Mr. Weingarten’s closest friends.” Nice move. Oh, and it was recently revealed that the Securities and Exchange Commission has been shredding documents related to past investigations, making it vastly harder for present or future investigators to connect the dots between past and present misconduct. Maybe this is all just coincidence, but it sure looks like Goldman’s bet on Obama is paying off.

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Jane D. Wurwand: Dreaming Is Fine, but Doing Is Better

August 31, 2011

The first day of school definitely inspires optimism for the future. Speaking as the mother of a young woman who will soon begin her freshman year in college, of course we have high hopes. And no guarantees. Americans have always been dreamers. For generations, Americans have promised their children that they can be brain-surgeons and rocket-scientists, cowboys and ballerinas, astronauts or the president of the United States. Part of this optimism springs from the faith of immigrants who flooded into America a century ago, and did, indeed, create success in ways which never would have been possible in their native lands. British people like myself tend to regard this level of optimism as a bit naïve — a cultural difference, perhaps. But given the current state of the world economy, we must temper “Dream big!” optimism with pragmatism. I have spent my entire career — 30 years — encouraging and motivating young women to achieve. My specific expertise is in professional skin care, and the creation and running of a skin care business. My skills are very tangible, and my approach has always been practical. And I have used my skills to help literally thousands of women succeed in this profession. Was I a dreamer? Dreaming sounds abstract to me now, and I was always more of a doer. I began working at 13, after being told by my own hard-working mother — she raised me and my three sisters on her own — that I needed to be able to “do” something to make money, so that I would never, ever have to rely upon a man for a place to live and something to eat. My upbringing was not especially future-minded, although Mum did teach me to save money for a rainy day (we certainly have plenty of those in the UK). The focus was on the here-and-now. Not lofty, and not so very dreamy. I quickly learned there is no shortcut around sweat-equity. As a “Saturday Girl” in the neighborhood salon, my sweat-equity began with sweeping up hair cuttings and sterilizing hair-pins. Although I consider myself a perpetual student, I did not pursue an academic education. I was trained and licensed in the craft of professional skin care, which is comparatively short-term. When I had my license, I went right to work, and I’ve never stopped. This feeling of hands-on, here-and-now is what drove me to launch joinFITE.org in January of this year. The women — we’re aiming for 25,000 — we will be empowering with microloans funded through this initiative may talk about dreams. These are dreams of putting food on the table, and creating a better life for their children in very immediate terms. I recently encountered a remarkable woman who represents both the dream and the willingness to work tirelessly to make it real. Her name is Rosa, and she is the owner of a shop called Native Hand by Hand in San Francisco. Rosa grew up in a family of gifted artisans in Ecuador, and her shop is filled with exquisite silver jewelry and clothes made by artisan cooperatives in her country. But in 2009, when she wanted to expand, she was deemed “unbankable” by major lending institutions, since she had no credit history. Her first microloan from Opportunity Fund allowed her to invest in inventory, and establish herself as a business. Now joinFITE has funded her second microloan, allowing her business to expand. Rosa’s so proud that her daughter has just graduated from high school, and you can get a glimpse of this success story here . Maybe it’s semantics, but I don’t know that I would call Rosa a “dreamer.” Instead, I see unrelenting doing, working, and sacrificing for a clear objective, which is to give her daughter the tools she needs for success. I am relentlessly upbeat, but I am about to send my oldest daughter off to college with this caveat: wishing and wanting will not make it so. The vision and the dream are just the first step. The sweat-equity is as important, maybe more so. For entrepreneurs like myself in particular, this sweat-equity means 12, 14, 16-hour days, and the potential of literally years without profit. The dream and vision, the wanting and the wishing, are what allow you to persist spiritually through the hardship. But I place wishing and wanting into the same category as Snow White warbling “Someday my Prince will come.” Maybe in a 1937 Disney cartoon, but I don’t advise any of this as a strategy for success. I was reminded of this by Susana, another woman I also met on my recent trip through Northern California. Susana received a joinFITE microloan for her daycare center called Happy Faces in San Jose, and word-of-mouth in the community has enabled her business to quickly grow to maximum-capacity. In fact, she is now sought out by mothers-to-be, who place their names on a waiting list. It’s worth mentioning that Susana, like Rosa –and like myself, at age 13 — had made her living sweeping and cleaning, before being licensed as a professional in her chosen field. For everyone starting a new school year, starting a new business or just looking for a job: there is no “secret.” Americans love the word “visualization” these days, and it’s the theme for countless books, seminars, success-coaches and self-professed entrepreneurism gurus who tell willing believers that if they just want something badly enough, it will happen. But the success of Rosa, and Susana, and of Dermalogica, too, are proof that this simply isn’t so: you just can’t skip the heavy lifting. Learn more about my recent trip to Northern California to meet Rosa and Susana .

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AT&T : ‘We’re Surprised’ By Justice Department’s Move To Block Merger

August 31, 2011

Though AT&T’s bid to buy T-Mobile has been criticized for months and was seen by antitrust experts as having little chance of being approved outright , AT&T said in a statement that it was “surprised” by the Justice Department’s move to block the merger. Shortly after the Justice Department announced Wednesday it would file an antitrust suit to stop the acquisition, AT&T general counsel Wayne Watts issued a press release in which he said the company would “vigorously contest” the DOJ’s lawsuit. AT&T “[remains] confident that this merger is in the best interest of consumers and our country, and the facts will prevail in court,” according to Watts. Many disagree: even before the Justice Department’s suit, groups ranging from wireless-industry rivals Sprint and Leap to the National Hispanic Media Coalition spoke out against AT&T’s $39 billion bid to buy T-Mobile. Senator Al Franken said the massive merger posed “threats too large and too irrevocable to be prevented or alleviated by conditions.” “We are surprised and disappointed by today’s action, particularly since we have met repeatedly with the Department of Justice and there was no indication from the DOJ that this action was being contemplated,” said Watts . “We plan to ask for an expedited hearing so the enormous benefits of this merger can be fully reviewed. The DOJ has the burden of proving alleged anti-competitive affects and we intend to vigorously contest this matter in court.” (Read the full statement here ) If the deal is not approved by U.S. regulators, AT&T stands to lose not only T-Mobile, but also $3 billion in cash and some of its access to wireless spectrum, which were promised to Deutsche Telekom in the event the acquisition was blocked. According to Wired , “Deutsche Telekom valued the total worth of the kill package at as much as $7 billion.” AT&T rival Sprint, which has opposed the merger since it was announced, praised the Justice Department’s decision in its own press release. “The DOJ today delivered a decisive victory for consumers, competition and our country. By filing suit to block AT&T’s proposed takeover of T-Mobile, the DOJ has put consumers’ interests first,” said Sonya B. McCann, Sprint’s senior VP of government affairs. “Sprint applauds the DOJ for conducting a careful and thorough review and for reaching a just decision – one which will ensure that consumers continue to reap the benefits of a competitive U.S. wireless industry. Contrary to AT&T’s assertions, today’s action will preserve American jobs, strengthen the American economy, and encourage innovation.” The Justice Department opposed the deal on the grounds that it would “substantially lessen competition for mobile wireless telecommunications services across the United States, resulting in higher prices, poorer quality services, fewer choices and fewer innovative products for the millions of American consumers who rely on mobile wireless services in their everyday lives.” Read the Justice Department’s full statement here.

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Krispy Kreme To Take On Dunkin’, Starbucks With New Coffee Offerings

August 31, 2011

When you visit the Krispy Kreme website , you’re confronted with three central options. From left to right, you see first ” Iced Drinks ,” then ” Coffee ” and only then, third, ” Doughnuts .” This order is in spite of the fact that the chain’s official name is “Krispy Kreme Doughnuts” — not to mention the fact that only 12% of its revenue comes from beverages, with 4% coming from coffee. But if the rank does not yet reflect Krispy Kreme’s hierarchy of profit-drivers, it may signal a shift in the company’s priorities. According to Nation’s Restaurant News , Krispy Kreme is set to release three new signature coffee flavors this Friday, and plans to advertise them with the slogan “Worthy Of Our Doughnuts.” The three flavors, which are made from 100% Arabica beans, are House, Dark Roast and House Decaf. The 660-outpost-strong chain’s representatives have said that they hope the coffee offerings will entice customers to visit the store more often. American coffee drinkers gulp an average of 3.1 cups of Joe per day, so it seems like a strong bet. Moreover, the company can look to its largest shareholder, Robert Stiller , for advice if it gets confused by the competitive coffee market: he made his considerable fortune as the founder of Green Mountain Coffee Roasters Inc. If Krispy Kreme’s signature coffee gambit pays off, it could be the boost the chain needs to regain market share it’s lost since its peak in 2006. Since then, revenues have tumbled by a third, from $543 million to $362 million — though that latter figure is itself a significant increase from 2010′s nadir of $347 million. Krispy Kreme’s main competitor, Dunkin Donuts, gets the majority — 60% — of its revenue from beverage sales.

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Black Households Maintain Faith In Obama

August 31, 2011

Walter Character — a self-described Atlanta family man, out-of-work African American and independent voter — spends a great deal of time consuming news that criticizes the Obama administration for ignoring blacks’ struggles, but said he doesn’t believe the president should shoulder the blame alone. In June, Character read about the spate of Republican presidential hopefuls who declared that Obama has failed black America. In August, Character saw stories about an anti-poverty tour organized by Princeton University professor Cornel West and talk show host Tavis Smiley. The two men said they wanted to draw attention to a growing group that Obama has willfully ignored: the poor . Then, Character came across stories about a group of black federal legislators frustrated with what they say is the scant attention the White House has paid to black unemployment . It has been a noisy summer, filled with bad economic news for all Americans, dismal reports on black family finances and plenty of anti-Obama rhetoric, Character said. “I watch enough news so I can tell you. There are a lot of folks, folks on every side, who seem to want to blame the president for any and everything,” said Character, 45. “But, you have to ignore the facts, pretend there is no Congress, pretend the president can just make laws and create jobs on his own to believe that idea.” Despite declines in black employment, homeownership and just about every other measure of black economic health, a pair of recently-released Pew Research Center studies found that black Americans rank the president’s job performance and the nation’s economic prospects higher than any other demographic group. “If you look at objective reality,” said Paul Taylor, the Pew Research Center’s executive vice president, “the household wealth number or the unemployment number or any other number of economic indicators, there is not a lot of cause for anybody, but in particular, African Americans to think that things are getting better. But our results are clear. There’s something quite fascinating going on here.” In late 2009, nearly a year after Obama’s inauguration, Pew researchers first noticed how strong Obama’s support remained among black Americans. Black household median income was nearly $20,000 below white household median income . The black homeownership rate was sliding faster than that of other groups grappling with the recession and foreclosure crisis. And median white household wealth — the assets that families have to tide them over if a job disappears or assets that can simply be passed on to successive generations — had reached a mark 20 times higher than that of the average black family . But when Pew researchers asked people about the state of the economy in December 2009, they found that just 7 percent of whites described it as good or excellent compared to 14 percent of blacks . Character said he wouldn’t describe the economy in such positive terms, but said he understands why some people don’t blame the president. “No president, not Bush, not Obama could turn the mess that we are in around in four years, much less the two Obama has had,” Character said. “This is a mess many years and many greedy people in the making. “Now, to get us out, could the president compromise a little bit more with the Republicans, yes. Could he let the businesses have some more tax breaks, yes. But could the Republicans behave better, could the Congress actually do its job, I would also have to say yes.” While Obama was running for office in 2008, Character was working as a cable television installation crew supervisor. Character had been with the company for six years and was earning about $43,000, plus extra pay for particularly difficult installations. His wife was earning another $35,000 at a bakery where she had worked for 20 years. Together, the couple was making enough money to send their daughter to college, their youngest on class trips and enjoy the occasional dinner together in a restaurant, Character said. “Things were really great, frankly,” Character said. “Bills were paid, you know, life was good.” Then in March, Character’s wife lost her job when the bakery closed. One month later, Character’s employer decided to lay off its Georgia crews, he said. For the first time in their two-decade marriage, Character and his wife were looking for work at the same time. The couple abandoned their plan to buy a house just outside Atlanta. They lived off of their unemployment benefits. Some bills simply could not be paid, Character said. In order to hold onto their cars — something Character said is essential for anyone who wants to get or keep work in Atlanta — the couple declared bankruptcy. By 2009, the family’s economic outlook improved, even if their financial situation did not. In January of 2009, Character landed a temporary job at an Atlanta factory. A few months later, Character’s wife found a job at an Atlanta company that processes airline food. By June, the plastic factory hired Character full time. Still, the couple was earning about $40,000 less than they had been when the recession began. “I’ve always been a worker, a hard worker,” Character said. “As a matter of fact, every job I’ve ever had, I’ve received some sort of promotion. So, those were tough times. But I knew that we would be able to climb out and pay everyone eventually. That is what Americans do. That’s certainly what we’ve tried to do.” When Obama was elected, Character said he was hopeful that the new president might be able to begin the long process of improving the nation’s economy or stimulate job growth. But to do so, Obama would need a cooperative Congress, he said. When you ask why economic trends haven’t been enough to turn African Americans against the president, it’s like asking why a person facing a torrential downpour puts on a rain coat, said David Bositis, a senior political analyst at The Joint Center for Political and Economic Studies, a Washington, D.C.-based think tank. “You have to put the choice that African Americans are making in context,” Bositis said. “Certainly there may be some residual good feelings from that historic moment in 2008. But support for the president remains strong because there is no real menu of political options for African Americans. Economic conditions don’t change what the Republican Party has become.” The Republican Party is dominated by Tea Party enthusiasts, Bositis said. In a study that began in 2006 and continued this summer , researchers found that Tea Party supporters are long-time Republicans who have a low regard for immigrants and blacks that predates Obama’s election. In July of this year, things got worse for Character. As federal officials wrangled over the best method to reduce the national deficit, the plastic factory announced layoffs and Character lost his job. So when Character saw a story indicating that the job fair organized by that group of frustrated federal legislators was coming to Atlanta on Aug.18, he made plans to go. This was a chance, he thought, to get past the faceless online application process, talk with a human being and show them what kind of worker he could be. But Character wasn’t the only one with high expectations. One Atlanta radio station that bills itself as the “home for Atlanta’s hip-hop community” announced boldly on its website that the Congressional Black Caucus was ” coming to Atlanta with jobs! ” When Character arrived just after 8 a.m., he found a line of job seekers wrapped all the way around a mammoth building on the Atlanta Technical College grounds. local paper reported the next day that about 3,000 people waited in line outside the Atlanta job fair. When a rumor spread around 10:30 a.m. that a woman who arrived before sunrise still had not made it inside, Character grew concerned. When people started to pass out in the 94 degree heat, Character grew frustrated. And when he talked to a woman leaving the job fair about her experience, he decided to leave. Character said the woman told him that employers were not hiring or even interviewing people on the spot, but rather were shaking hands and directing jobseekers to apply online. Character already spends a few hours each day doing that at a local library, he said. “I don’t know what that was at the college,” Character said. “Maybe it was organized with good intentions. Maybe somebody wanted to show the world how desperate black people are for work because 99.9 percent of the people in that line were African Americans. But, you have truly got to twist that and turn that all types of ways to say that is Barack Obama’s fault. That’s just the way things are right now.”

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Europe Shares Suffer Worst Monthly Loss Since Lehman Brothers Collapse

August 31, 2011

LONDON (Dominic Lau) – European shares suffered their biggest monthly loss in August since Lehman Brothers collapsed in 2008, with German stocks posting their worst drop in nine years, as worries over slowing growth and the euro zone debt crisis spooked investors. The sharp falls, which wiped more than $750 billion off share values, came in high volumes. Trading turnover in August, which is usually low with many fund managers and traders on holiday, was the highest in almost three years. The sell-off was sparked by an escalation in the euro zone sovereign debt crisis, fears the United Statescould be heading for a recession and the loss of the world’s biggest economy’s triple-A debt rating. In response, investors sought shelter in safe-haven assets such as gold and U.S. and German government bonds, or even just cash. “This month’s performance has been very bad, on the back of a mix of fundamental elements coming in such a short span that the effect on the market was devastating,” Franklin Pichard, director at Barclays France, said. “Political cacophony on both sides of the Atlantic, credit downgrades, doubts about banks’ balance sheets, fears of a repeat of the credit crunch of 2008… coupled with a number of profit warnings. All this has prompted investors to cut their weighting on equities, in favor of cash,” he said. The latest Reuters monthly asset allocation poll showed cash holdings in Europe leapt to 10.4 percent in August from 6.8 percent last month, while asset managers sharply cut equity holdings. “Economic growth is slowing down, with scant hopes of regaining strength any time soon, as governments in developed countries push for budget austerity,” said Giordano Lombardo, Group chief investment officer at Pioneer Investments. “Most of Europe feels the heat of the sovereign debt crisis… We believe volatility will settle down somewhat, otherwise our asset allocation will cut risky assets.” The pan-European FTSEurofirst 300 index of leading European shares lost 11 percent this month, its biggest monthly percentage drop since October 2008 after the collapse of investment bank Lehman Brothers. The benchmark has fallen 14 percent so far in 2011, far outstripping a 2.7 percent drop in the U.S. S&P 500 index. UNDERPERFORMANCE “European stocks have been seriously underperforming U.S. shares this year, with a risk premium linked to the region’s debt trouble, but also as if a U.S. recession had been priced in here but not on Wall Street,” said Catherine Garrigues, senior equity portfolio manager at Allianz GI Investments Europe, which has around $178 billion under management. Germany’s DAX index, which outperformed other major European markets in the first seven months of the year, was down 19 percent in August, its worst monthly fall since September 2002, as investors reassessed the impact of slowing global growth on German exporters. That compared with an 11 percent fall in France’s CAC 40. Some dealers ascribed part of the underperformance of the German blue chip index to a ban on short selling of financial stocks introduced by France, Spain, Italy and Belgium on August 12. Investors use the DAX and DAX derivatives as proxies to bet on falls in the broader European market. However, expectations that the Federal Reserve may step in next month with another stimulus package to boost the U.S. economy have stabilized markets and may help stop the outflow from equities. September tends to be weakest month for equities, with an average monthly drop of 0.7 percent for theMSCI world index between 1971 and 2010. December, by contrast, has seen the biggest gains, with stocks rising 2.2 percent on average. (Additional reporting by Natsuko Waki and Luke Jeffs in London, Blaise Robinson in Paris,; graphics by Scott Barber and Vincent Flasseur; editing by Nigel Stephenson) Copyright 2011 Thomson Reuters. Click for Restrictions .

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Harlan Green: The Fed’s Paralysis — Who Will Do the Right Thing?

August 31, 2011

I actually agree with Fed Chairman Bernanke in his latest Jackson Hole speech , when he in effect said the Fed can’t grow the economy without some help. So who is setting our monetary and fiscal policy these days? No one, at the moment. The White House is always one step behind events — worrying about deficit reduction when it can’t shrink the deficit without more job growth. And Congress is obsessing about the size of government, when government employment and spending have been shrinking faster than in the private sector. “The country would be well served by a better process for making fiscal decisions,” was Bernanke’s understatement of the year, signaling it was fiscal policy that should now take the lead in growing the economy. So is Bernanke is throwing up his hands at the moment, in refusing to even hint at what other stimulus policies might come from the Fed until after a special 2-day September convocation of the FOMC? He was putting the policy ball back in the politicians’ court. It’s up to them to settle their differences if they want growth. It’s of course obvious our ‘lack of a policy’ is now being set by the right wing of the Republican Party, who oppose all forms of stimulus. The downsizing of government has been their agenda since Ronald Reagan, and the only way seems to be by creating recessions. In fact, there have been four recessions during the last three Republican administrations. One occurred during Reagan’s presidency (1981-82), one during Bush I (1991) and two during GW Bush’s presidency (2001, 2007). Bernanke has been a strong advocate for an active Fed in stimulating economic growth in the past, which is why Nobelist Paul Krugman in effect called him craven for caving in to the Republican extreme right wing. “Now just imagine the reaction if the Fed were to act on the…arguably more important parts of the Bernanke 2000 agenda–more purchases of long term debt (i.e., a QE3), an announcement that short term rates would stay low for an extended period, to further reduce long term rates; and an announcement that the bank was seeking moderate inflation, “setting a target in the 3-4 percent range for inflation, to be maintained for a number of years.” Bernanke himself actually accused the Bank of Japan at that time of a “self-induced paralysis” in not providing more stimulus to their sputtering economy, according to Krugman . “Well now, the Fed is suffering from externally induced paralysis,” he concludes. At a time when growth has slowed drastically through the first two quarters of 2011 after soaring above 4 percent for several quarters last year, the fears of a double-dip recession is depressing financial markets at the moment. But the outcome is more likely a “growth recession,” defined as slow growth amid rising unemployment that the Japanese have been experiencing for the last 20 years. Bernanke’s scholarly treatise on the causes of the Great Recession comes at the same time that GDP Q2 growth had just been revised downward to 1 percent from 1.3 percent. “Unfortunately, the recession, besides being extraordinarily severe as well as global in scope, was also unusual in being associated with both a very deep slump in the housing market and a historic financial crisis,” said Bernanke. Well, duh. How is that new news? He actually pins most of the blame for the current slowdown on the euro debt crisis and S&P downgrade. “It is difficult to judge by how much these developments have affected economic activity thus far, but there seems little doubt that they have hurt household and business confidence and that they pose ongoing risks to growth.” But then he goes on to discuss the need to cure the long term deficit, and only at the end of his speech does he mention the necessity for more job creation to cure the short term deficit due to the Great Recession. “In the short term, putting people back to work reduces the hardships inflicted by difficult economic times and helps ensure that our economy is producing at its full potential rather than leaving productive resources fallow. In the longer term, minimizing the duration of unemployment supports a healthy economy by avoiding some of the erosion of skills and loss of attachment to the labor force that is often associated with long-term unemployment.” Why so much emphasis on debt, rather than recovery? It is because of timidity on all sides, from the White House and Congress. Even Europe is suffering from the same paralysis in not providing enough aid to Greece, a paralysis that is now spreading through several other countries, says Krugman. “The fiscalization of the crisis story — the insistence, in the teeth of the evidence, that it was about excessive public borrowing — has become an article of faith on both sides of the Atlantic. And that faith has done and will do untold damage.” So in effect the current slowdown is due to a paralysis of will from our leaders, not lack of monetary and fiscal tools to bring about a sustained recovery. Harlan Green © 2011

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Obama Requests A Joint Session Of Congress For Major Jobs Speech

August 31, 2011

WASHINGTON — Upping the stakes of his push for a major jobs plan, President Barack Obama has requested House Speaker John Boehner (R-Ohio) and Senate Majority Leader Harry Reid (D-Nev.) to call a joint session of Congress that would take place on September 7, 2011. The letter, sent from the White House to the respective leaders, reads as follows: Dear Mr. Speaker: (Dear Mr. Leader:), Our Nation faces unprecedented economic challenges, and millions of hardworking Americans continue to look for jobs. As I have traveled across our country this summer and spoken with our fellow Americans, I have heard a consistent message: Washington needs to put aside politics and start making decisions based on what is best for our country and not what is best for each of our parties in order to grow the economy and create jobs. We must answer this call. Therefore, I respectfully request the opportunity to address a Joint Session of Congress on September 7, 2011, at 8:00 p.m. It is my intention to lay out a series of bipartisan proposals that the Congress can take immediately to continue to rebuild the American economy by strengthening small businesses, helping Americans get back to work, and putting more money in the paychecks of the Middle Class and working Americans, while still reducing our deficit and getting our fiscal house in order. It is our responsibility to find bipartisan solutions to help grow our economy, and if we are willing to put country before party, I am confident we can do just that. A request for comment from Speaker Boehner’s office as to whether he will formally invite the president to address Congress was not immediately returned. If the president’s request is granted, the joint session would provide him with the type of audience that usually accompanies a State of the Union address. It would also add additional weight to an already critical push by the administration to shift political discussions to job creation. Obama has deployed this tactic in the past. After a series of town hall protests nearly derailed the health care reform legislative process in the summer of 2009, the president addressed a joint session. Politics also seem to be at play here. The president’s speech would occur at precisely the same time as the Republican presidential field is set to hold a presidential debate at the Reagan library in California. Asked if the White House chose the date specifically to upstage the Republican presidential field, White House Press Secretary Jay Carney responded, “No, of course not,” adding that the Sept. 7 debate, which will be co-hosted by NBC and Politico, was “one debate of many.”

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Chuck Collins: CEOs Rewarded for Tax Dodging Gymnastics

August 31, 2011

As the Super Congress eyes trillions in budget cuts that will undermine the quality of life for most Americans, here’s a stunning fact to contemplate: Twenty-five hugely profitable U.S. companies paid their CEOs last year more than they paid Uncle Sam in taxes. In other words, the more CEOs dodge their civic responsibilities, the more lavishly they’re paid. That’s the key finding of a new Institute for Policy Studies report, Massive CEO Rewards for Tax Dodging, which I co-authored. These artful dodgers include the CEOs of Verizon, Boeing, Honeywell, General Electric, International Paper, Prudential, eBay, Bank of New York Mellon, Ford, Motorola, Qwest Communications, Dow Chemical, and Stanley Black and Decker. Their average annual compensation totaled $16.7 million, well above last year’s average of $10.8 million for the CEOs of S&P 500 companies. Instead of paying their fair share, these companies spend millions lobbying for additional tax breaks and loopholes. Twenty of the 25 companies spent more lobbying Congress last year than they paid the IRS in federal corporate taxes. General Electric invested $41.8 million in lobbying and got $3.3 billion in tax refunds. Boeing spent $20 million on lobbying and got a $35 billion contract from the U.S. government, while paying a paltry $13 million in U.S. taxes for a company with $4.3 billion in U.S. income last year. Eighteen of the 25 companies aggressively use off shore tax havens to shift profits around the globe to avoid U.S. taxes. These 18 companies together had 556 subsidiaries in the Cayman Islands, Singapore, Ireland, and other havens. The offshore scam works like this: companies pretend their profits are earned in low-tax or no-tax jurisdictions — and then feign losses from their U.S. operations at tax time. Whatever happened to corporate civic leadership? A previous generation of CEOs would have been ashamed to be compensated so lavishly while their companies abandoned responsibility for paying their fair share. They would have been embarrassed to go year after year contributing little or nothing to the public investments that make the United States a vibrant business environment. Here are a few examples of these champion tax-dodgers: • Chesapeake Energy paid its CEO Aubrey McClendon $21 million last year but paid zero federal corporate income tax in 2010. Chesapeake is fracking the tax code, drilling it for every possible subsidy it can extract — while lobbying to preserve antiquated tax breaks for oil and gas industry. • Online retailer eBay paid its CEO John Donahoe $21.4 million last year while collecting a federal tax refund of $131 million. eBay’ 31 subsidiaries in Switzerland, Singapore, and seven other tax havens facilitate its efforts to move money around the planet as a tax-dodging strategy. • Insurance giant Marsh & McLennan paid its CEO Brian Duperrault $14 million yet collected a $90 million tax refund from Uncle Sam. The company has 105 subsidiaries in 20 off shore tax havens, including 25 in Bermuda — a favorite locale for insurance companies seeking to avoid both taxes and regulation. These super-moocher companies happily benefit from the privileges and advantages of doing business in the United States. If a competitor tries to steal their product or idea, these corporations rush to the U.S court system and law enforcement agencies for remedies and justice. The U.S. military guards their global assets. They use the fertile ground of publicly funded research and infrastructure to bolster their own profits. They create new products from a foundation of Uncle Sam’s investments in medical and scientific research and government funded technologies like the Internet. Our taxpayer-funded roads, ports, and bridges bolster their business environment. Our public schools and universities educate the workers these companies rely on. In fact 16 of these 25 CEOs attended public universities. They personally were educated with help from U.S. tax dollars. These CEOs profess to love America. But when it comes time to pay the bills, they’d rather outsource that job over to you or the small business down the road. Congress should pass the Stop Tax Haven Abuse Act which would limit some of these tax shenanigans. In the face of growing fiscal austerity, these companies should contribute to the solution and pay their fair share of U.S. taxes.

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Penny C. Sansevieri: The Quickest Way to Kill Your Online Success

August 31, 2011

I have a friend who lives in San Diego. She and her boyfriend rented this lovely home outside of the city. They have tons of land, a great house. It was really a fantastic deal. Since they were in such a good place, the rent was cheap and they had no intention of moving anytime soon, they decided to do some minor renovations to the house. This became their “weekend warrior” project. They’d paint, tinker, plant and in the end, they had a great and slightly improved property. Then one day the owner stopped by for a visit. “Bad news,” he said, “I need to sell this property and I have a buyer who wants to offer top dollar, in a market like this I’m sure you understand why I need to take it.” They had 30 days to move out. Now, you might think this is a very sad and unfair situation, but it happens all the time. And it doesn’t just happen in real estate, it happens online too. It’s a great thing, this social networking, but what a lot of people forget is that you don’t own the sites you are populating. While Facebook owns the world (pretty much) right now, things could change. But more than that, sometimes a slight “uh-oh” from you and a slight violation of the site’s terms of service can cause you a world of grief. We had a client several years ago who built up 5,000 friends on his personal profile. I kept cautioning him about doing promotion on that page as Facebook has rules against doing promotion on a personal profile. He continued to do promotion (though not heavy) and lost his page. He never got it back. His entire tribe of 5,000 people were lost in the minute it took Facebook to pull down that page. Don’t get me wrong, it’s great to utilize these tools and promote yourself, but just remember: as much as you might feel “at home” on Facebook, LinkedIn, Google+, YouTube, and Twitter, you don’t own these properties. They do. Be smart and make sure you aren’t making these sites the center of your success. Here are a few tips to help you own your real estate. Website: You should always, always, always have a website. I know some authors who use Facebook as their websites. Big mistake. I know other authors who get a website that doesn’t belong to them, meaning they are part of a community of free sites they don’t own. If the community decides to stop doing websites and goes away, guess what happens? So does your content. Smart Social Media: One of the things I really recommend is that you center all of your content around your website. That’s partially why I suggest linking your blog to Facebook and Twitter. The content starts on your site and gets funneled from there, rather than in reverse. Other ways to promote: Consider other ways to promote your stuff that isn’t social media centric. Interviews on (other) blogs, websites. Yes, you are still putting stuff out there on other sites, I’m not saying not to. I’m saying that you need to make sure that whatever content you put out there is reflected on your site as well. Duplicate content: There’s a problem with posting huge amounts of duplicate content online, but unless you are pushing hundreds of pieces out a month, I doubt you have anything to worry about. However, the flip side is that you want to make sure you have copies of all the content you put out there. If you’re uploading a video on YouTube, don’t delete it off of your computer because you think it’s “safe” on this site. It may very well be, but if you lose your page or YouTube gets bought (again) and morphs into something else, you’re in trouble. Website… more: When I talked about having a website, I’m not just talking about having a one or two-pager. I mean have a robust site packed with content. Make sure that you have a blog, and you might consider adding a resource section, etc. All information about your books should be on the site (don’t rely on Amazon to house this for you) and be sure that any ordering information is on your site as well. Wait! You might ask, is Amazon in danger of going away? Not likely. But as they’ve shown in the past by pulling down books and buy buttons without warning: they are Amazon and can do whatever they want. Traffic: So, the nitty-gritty of promotion is what? Sales, right? Sure, and exposure too (though I think you should target exposure first, then sales, but that’s another article). If you’re sending all of your traffic to social media sites, guess what? Your website traffic is probably pretty low or non-existent. If you send traffic to social media sites guess who benefits? Well, certainly you do in the way of exposure, but long-term this isn’t a good plan. Let me explain why. If you aren’t promoting your site as the center of the universe, and instead pushing people to social media sites, then your website isn’t getting those super valuable incoming links from blogs, websites, etc. that you are promoting yourself to. As a result, your site will sink in Google rankings. That means if you lost one or more of your social media sites, you could certainly pick up the pieces and start sending people to your site, but that will be a long, hard haul. Better to focus on that now and gather that traffic, along with the buzz you create in social media, so you aren’t caught with a zero starting point if anything happens. You might think that the moral of this story is a slightly paranoid “trust no one” mantra but it’s not. It’s about protecting your stuff and being a smart and savvy author. You would never open up a store in a mall without a lease that locked you in for a certain amount of time, right? While there are no guarantees in anything, you need to be smart about all of these wonderful, free, not-owned-by-you social media sites. You might do a fantastic job of driving traffic, fans, and likes to various pages. But the reality is that you should focus on what you own, your website. I love my social media sites and yes, it’s a widely known fact that I’m addicted to Twitter. Yet they aren’t the center of my online universe, my website is. Yours should be, too.

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Jerry Jasinowski: Creating Private Sector Jobs

August 31, 2011

Some years ago when I was President of the National Association of Manufacturers (NAM), I challenged a representative of one of our larger members to explain why his company was sending so many jobs overseas. “Because,” he replied with some heat, “the young people coming out of our public schools today cannot pass a reading test, a writing test or a math test.” There was more than a little exaggeration in that comment, but it reflects an attitude I encountered many times during my years with the NAM. In every survey of NAM members we conducted when I was there, a majority of respondents inevitably replied that finding qualified job applicants was one of their biggest headaches. Workers in modern manufacturing must be deft with math and science. They need to know how to read blueprints and program computers. But these skills are sorely lacking among the unemployed. There is a great debate in Washington and across the nation about the economy, and in particular what we must do to create more jobs. We will not get the economy growing again, and will not restore consumer confidence, until we put millions of the employed back to work. But how? Most of the discussion centers on general policies such as payroll taxes, regulations, infrastructure and investment – the presumption being that if we support business, business will create jobs. But business is already rolling in cash and many of the jobs business is creating are overseas. Clearly something else is needed. I suggest a cooperative program, jointly funded by government and business, to train unemployed workers for specific jobs that need filling now. There are a variety of programs out there providing training to the unemployed, and many of them are very good, but they rarely include a direct transition from training to employment. Too often, unemployed workers go through these programs only to discover there are few if any opportunities for them, even with their newly-acquired skills. I have heard many small manufacturers complain that these training programs, usually run in conjunction with community colleges, are not in synch with real world workplace needs. Give us that training money, they say, and we will train applicants to do the jobs and then put them directly to work. I think that is worth a try – at least as part of a more comprehensive job creation program. The program should be jointly funded by a foundation or government grant, plus money from participating businesses. The key ingredient should be employers with jobs that need filling who will pledge to provide employment to people who complete their training programs successfully. The employers will not be able to complain about the training because they will be the ones providing it. They will get to know the workers personally, and whether or not they are qualified to do the jobs. Based on my own experience at the NAM, I believe a program like this could bring a significant number of people into the work force in a relatively short period of time. Jerry Jasinowski, an economist and author, served as President of the National Association of Manufacturers for 14 years and later The Manufacturing Institute.

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S&P Rates Subprime Mortgages Higher Than U.S.

August 31, 2011

Standard & Poor’s is giving a higher rating to securities backed by subprime home loans, the same type of investments that led to the worst financial crisis since the Great Depression, than it assigns the U.S. government.

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Tea Party-Backed Rep: Bachmann Made ‘An Incredible Faux Pas’

August 31, 2011

Rep. Allen West (R-Fla.) said that Republican presidential candidate Michele Bachmann made “an incredible faux pas” when she said she would consider drilling for oil and natural gas in the Everglades over the weekend, the Palm Beach Post reports . “The United States needs to be less dependent on foreign sources of energy and more dependent upon American resourcefulness,” Bachmann said during a stop in Florida on Sunday. “Whether that is in the Everglades, or whether that is in the eastern Gulf region, or whether that’s in North Dakota, we need to go where the energy is.” The conservative congresswoman added , “Of course it needs to be done responsibly. If we can’t responsibly access energy in the Everglades then we shouldn’t do it.” On the heels of Bachmann making the remarks, West said during a town hall event in his home state, “When I see her next week, I’ll straighten her out about that.” Tampa Bay-based station WTSP reports that Florida Senator Bill Nelson, a Democrat, said, “To go in the middle of the Everglades and to spoil the river of grass just because somebody wants to, that’s not a wise thing to do.” The AP reports : In 2002, the federal government at the urging of President George W. Bush bought back oil and gas drilling rights in the Everglades for $120 million. Bachmann, who wants to get rid of the federal Environmental Protection Agency, said she would rely on experts to determine whether drilling can be done without harming the environment. “No one wants to hurt or contaminate the earth. … We don’t want to harm our water, our ecosystems or the air. That is a minimum bar,” she said. “From there, though, that doesn’t mean that the two have to be mutually exclusive. We can protect the environment and do so responsibly, but we can also protect the environment and not kill jobs in America and not deny ourselves access to the energy resources that America’s been so blessed with.” WTSP reports : Tuesday, a CBS reporter in Miami confronted Bachmann about her call for drilling, asking, “Why would you invade that natural resource with gas and oil drilling?” Bachmann responded, “Let’s access this wonderful treasure trove of energy that God has given us in this country. Let’s access it responsibly.” Is there even any oil beneath the Everglades? 10News sat down with USF Geologist Dr. Albert Hine, and he told us, “There is no known evidence that there is a significant hydrocarbon deposit beneath the Everglades.” Below, a video report from WTSP on the fallout from Bachmann’s remarks.

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Justice Department Seeks To Block AT&T, T-Mobile Merger

August 31, 2011

By JOELLE TESSLER and PETE YOST, Associated Press WASHINGTON — The Justice Department filed suit Wednesday to block AT&T’s $39 billion deal to buy T-Mobile USA on grounds that it would raise prices for consumers. The government contends that the acquisition of the No. 4 wireless carrier in the country by No. 2 AT&T would reduce competition and thus lead to price increases. At a news conference, Deputy Attorney General James Cole said the combination would result in “tens of millions of consumers all across the United States facing higher prices, fewer choices and lower quality products for mobile wireless services.” The lawsuit seeks to ensure that everyone can continue to receive the benefits of competition, said Cole. Four nationwide providers account for more than 90 percent of mobile wireless connections – AT&T, T-Mobile, Sprint and Verizon. T-Mobile has been an important source of competition, including through innovation and quality enhancements such as the roll-out of the first nationwide high-speed data network, Sharis Pozen, acting chief of Justice’s antitrust division, said at the news conference. Mobile wireless telecom services play a critical role, with more than 300 million smart phones, data cards, tablets and other mobile wireless devices.

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Obama Pushes Congress On Transportation Spending Bill

August 31, 2011

WASHINGTON — President Barack Obama will make a push for more transportation spending on Wednesday. The White House says Obama will urge Congress to pass a federal highway bill that he says will protect about 1 million jobs. At issue is the renewal of a transportation spending bill that expires Sept. 30. The House is considering a six-year, $230 billion bill paid entirely with current fuel taxes. The Senate proposal would last only two years and cost $109 billion. The president will be joined in the Rose Garden by Transportation Secretary Ray LaHood, AFL-CIO President Richard Trumka and David Chavern, the chief operating officer of the U.S. Chamber of Commerce.

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Jon Huntsman To Offer Jobs Plan

August 31, 2011

EXETER, N.H. — Struggling in the polls, Republican presidential candidate Jon Huntsman is proposing sweeping tax changes and new trade agreements as the means to stimulate new jobs. The former Utah governor will become the first Republican contender to offer a detailed job-creation blueprint when he delivers the address Wednesday afternoon at Gilchrist Metal Fabricating in Hudson, N.H. “The president believes that we can tax and spend and regulate our way to prosperity. We cannot. We must compete our way to prosperity,” Huntsman is to say, according to an excerpt of prepared remarks obtained by The Associated Press. “We need American entrepreneurs not only thinking of products like the iPhone or Segway; we need American workers building those products. It’s time for `Made in America’ to mean something again.” Huntsman will propose new trade deals beyond Colombia, Panama and South Korea, the three pacts the Obama administration supports, as well as an overhaul of the current tax code to create a simpler system, according to an adviser who discussed the plan on condition of anonymity ahead of the speech. Huntsman, who served as the Obama administration’s ambassador to China, has fought to win over Republican primary voters since entering the race, despite assembling a huge staff in New Hampshire, which hosts the nation’s first presidential primary. He earned support from just 1 percent of Republicans in a CNN/ORC International survey released this week. That’s down from 4 percent in early August.

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Ardelyx Appoints Mark Kaufmann to Chief Business Officer

August 31, 2011

FREMONT, CA–(Marketwire – Aug 31, 2011) – Ardelyx, Inc. today announced it has appointed Mr. Kaufmann to the newly created position of Chief Business Officer. Mr. Kaufmann’s role will include business and corporate development, licensing, and strategic planning. Mr. Kaufmann is formerly the CEO of Allostera and Celmed BioSciences.

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Kony Appoints CFO to Drive International Expansion Strategy and Financial Excellence

August 31, 2011

ORLANDO, FL–(Marketwire – Aug 31, 2011) – Kony Solutions, Inc., the leading mobile platform provider, today announced the addition of seasoned technology finance executive Kelly Enos to the management team as Chief Financial Officer (CFO). Enos brings a wealth of international financial expertise and knowledge to Kony, notably a solid track record of growing companies on a global scale, along with merger and acquisition experience, and raising capital through public and private investments.

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Industry Leader David Roberson Rejoins RagingWire Board of Directors to Provide Strategic Vision

August 31, 2011

SACRAMENTO, CA–(Marketwire – Aug 31, 2011) – RagingWire Enterprise Solutions, Inc., the nation’s leader in innovative enterprise data centers, announced today that David Roberson, a former Hewlett-Packard (HP) executive and leader in the enterprise storage and networking industry, has rejoined the company’s board of directors.

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Carey Metz Takes Strategic Investment Position in Cinsay, Inc. and Joins Board of Directors

August 31, 2011

AUSTIN, TX–(Marketwire – Aug 31, 2011) – Carey Metz has joined the Board of Directors of eCommerce software firm Cinsay, Inc., and has taken a substantial investment position in the company, it was announced today by Christian Briggs, Cinsay, Inc. Chairman of the Board. As Managing Partner and Chief Investment Officer of Whiteside Energy, LP, Metz oversees that Houston-based firm’s successful energy hedge fund. Before starting Whiteside, Carey was a founding partner at Alpha Energy Partners, a U.S.-based hedge fund started by former American Electric Power Co. traders.

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Outdoor Power Equipment Institute Announces New CEO and President, Kris Kiser

August 31, 2011

ALEXANDRIA, VA–(Marketwire – Aug 31, 2011) – The Outdoor Power Equipment Institute (OPEI) is pleased to announce the appointment of Kris Kiser as the Institute’s next President and CEO, succeeding retiring President and CEO Bill Harley. Mr. Kiser formerly served as the Institute’s Executive Vice President and COO.

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Seven Arts Pictures Announces Substitution of Its NASDAQ Listing to Seven Arts Entertainment and Exchange of Its Shares for Common Stock of Seven Arts Entertainment and Appointment of Robert Kaiser to the Board of Seven Arts Entertainment

August 31, 2011

LOS ANGELES, CA–(Marketwire – Aug 31, 2011) – Seven Arts Pictures PLC ( NASDAQ : SAPX ) (the “Company”) today announced NASDAQ has approved the substitution of Seven Arts Entertainment Inc. (“Seven Arts” or “SAE”) for the Company’s NASDAQ listing, effective at the opening of trading on September 1, 2011. On that date, each of the Company’s ordinary shares will be exchanged for one share of common stock of SAE, which will commence trading on NASDAQ as the successor to the Company’s NASDAQ listing. SAE’s new CUSIP number is 81783N102 and its trading symbol will remain SAPX. The Company expects that DTCC will continue electronic transfer of SAE common stock as it has of the Company’s ordinary shares. This transaction was approved by the Company’s shareholders at the Company’s General Meeting on June 11, 2010.

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Australia’s strong currency to increase pressure on trade sector

August 31, 2011

(MENAFN) Australia’s Treasurer, Wayne Swan, said that the country’s strong currency had its negative impact on trade, mainly the manufacturing division, which by the year 2020 would grow only 5 …

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China’s CNPC to invest USD8.4b in Iran’s Azadegan oilfield

August 31, 2011

(MENAFN) Iran’s Petroleum Engineering and Development Company’s director, Naji Sa’dooni, said that within ten years, China’s National Petroleum Corp (CNPC) would invest USD8.4 billion in order to …

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International mobile connections in 2011 to grow 11%

August 31, 2011

(MENAFN) Gartner Inc., the research firm, said that in the current year, global mobile connections would increase 11 percent from 2010′s 5 billion connections to 5.6 billion connections, reported …

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Energy giant ExxonMobil to make massive energy play in Russia

August 31, 2011

(MENAFN – Saudi Press Agency) Russian government officials and senior executives from the energy giant ExxonMobil on Tuesday said the corporation had signed agreements with Moscow for oil and gas …

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Japan stocks jump 1.1% on overseas gains

August 31, 2011

(MENAFN – Saudi Press Agency) Japanese shares rose more than One per cent Tuesday as investor sentiment was bolstered by overnight rallies on Wall Street and European markets. The benchmark …

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New Zealand Press Association to shut business

August 31, 2011

(MENAFN) The New Zealand Press Association (NZPA) would close its business after 132 years of broadcasting news, due to changing technology and media consolidation, reported Associated Press. The …

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Japan’s Jobless Rate Edges up to 4.7% in July Against 4.5% in May

August 31, 2011

(MENAFN – Qatar News Agency) Japan’s unemployment rate climbed to 4.7% in July for the second straight month of increase in the aftermath of the March 11 earthquake and tsunami, the government said …

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Economic Confidence in Eurozone Falls in August

August 31, 2011

(MENAFN – Qatar News Agency) Economic confidence in the 17-member Eurozone fell for the sixth consecutive month in August, the European Commission said on Tuesday, amid growing fears over an …

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