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The McClatchy Co. (NYSE: MNI) has sold 14 acres of waterfront land for $236 million. The buyer, Bayfront 2011 Property LLC, is a subsidiary of Genting Malaysia Berhad, part of a group of international developers and operators of destination resorts in the U.S., U.K. and Asia. The site is currently home to Miami Herald Media Co.’s headquarters and an adjacent parking lot. The seven-story waterfront office building totals 604,000 square feet of…

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McClatchy Sells Miami Waterfront for $236M

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Continue here: Frank Perrotti, Jr. Joins Board of Studio One Media, Inc.

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How The Rapture Would Affect Real Estate Prices

May 24, 2011

Scribes from Jonathan Edwards to Robert Frost have ruminated about the end of the world, but few have been willing to suggest a precise date on which it will occur. Perhaps this is part of the reason that the media — as well as millions of people — held their breath for a moment last Saturday, the day on which California-based Christian broadcaster Harold Camping predicted that the world was going to end.

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Barry McCarthy Joins Eventbrite’s Board of Directors

May 23, 2011

Former Netflix CFO Brings Operating and Media Expertise to Fast-Growing Ticketing Start Up

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Christie Hefner Appointed Executive Chairman of New Canyon Ranch Business Entity

May 16, 2011

Canyon Ranch Enterprises to Focus on Media and Business Ventures and Extend Reach of Company’s Mission

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Yvette Kantrow: Connect Some Dots

May 10, 2011

It seems as if every magazine on the face of the planet is seeking to redesign itself for a digital world, which mostly means littering their pages with arrows, bullet points, swooshes and other assorted doodads, all in an attempt to appeal to readers who consume much of their media via the Internet. (See Bloomberg Businessweek ). But one publication is taking the webification of its pages to the next level: Forbes , the one-time “capitalist tool”. While other magazines develop new sections, revamp covers, choose new typefaces and call it a redesign, Forbes is altering the very way it reports and delivers its stories with an eye toward making their consumption more of a social media-like experience. Exhibit A: a piece — really, a set of pieces — in the May 9 issue about Lynn Tilton, the unconventional head of distressed investor Patriarch Partners. Forbes warns readers up front that its Tilton feature is not “a traditional profile,” though it did start out as one. We learn that a Forbes reporter began talking to Tilton as a possible subject for the mag’s “World’s Billionaires” issue, but things quickly turned difficult. The reporter couldn’t understand how Tilton made her money; Tilton ” took umbrage ” at the reporter’s questions; nasty threats of lawsuits followed. Forbes threw more staffers on the case, who accumulated a “welter of material”. But Team Tilton, we are told, didn’t know what to do with all the information it had gathered. The solution: Forget writing a profile. (That’s so last century, not to mention a lot of hard work.) Instead, “let the story unfold” mostly on Forbes.com, by allowing different members of Team Tilton to give their different points of view, complete with comments from visitors to the website and from the subject herself; then run excerpts from the posts in the magazine. “The process of getting the story became the story,” coos the intro in the magazine (emphasis Forbes ‘). The result, according to the mag ( riffing on Wallace Stevens), is “13 Ways of Looking at Lynn Tilton.” Interesting, but really: Do we want to look at her 13 different ways? Reading through the magazine’s Tilton feature feels a bit like wading through a data dump; you’re given a lot of information — she won’t disclose her wealth; she’s being sued by lots of people; her collateralized loan obligations look troubled — but no real context in which to think about it. Unlike a traditional profile, this feature doesn’t try to explain to readers why they should care about Tilton, save for her outlandish wardrobe and the fact that she gave Forbes a hard time. There’s no real attempt to construct a compelling narrative that is informative, entertaining and has a definitive point of view (though the sheer amount of reporting resources Forbes devotes to this exercise does feel vindictive). Of course, one could argue the more viewpoints, the better. Who wants some snooty, biased, know-it-all journalist to tell us what to think? Just report; we’ll decide, thank you. But is that really what we want from magazines? From the media? Even from social media? Is it enlightening to know what other visitors to Forbes.com had to say about Tilton? Should we care? I don’t know the answers. And either way, you have got to give the folks at Forbes credit for really trying to change their magazine, rather than just settling for a few randomly placed arrows and doodads. Whether it will work is another question. Interestingly, a few weeks before Forbes hit the newsstands, another magazine, New York , ran its own , more traditional profile of Tilton. While it certainly didn’t provide 13 ways of looking at her, it did manage to paint a complex, in-depth and entertaining portrait of a woman who is not easily understood. The Forbes effort, by comparison, seems disjointed and confused. Maybe that’s the point. In a world of Twitter and Facebook, we like our information fast and raw, like the tweets from the newly famous 33-year-old computer programmer in Abbottabad who unwittingly microblogged the U.S. raid on Osama Bin Laden’s compound in real time. (Sample tweet: “Helicopter hovering above Abbottabad at 1AM (is a rare event).”) By his own admission, @reallyvirtual had no idea of the import of the events he was broadcasting to the world. That’s the difference between social media and the more traditional kind; between citizen journalists and their more professional brethren. As Forbes goes about its grand experiment, it might want to keep that in mind. See the complete archive of Media Maneuvers Yvette Kantrow is executive editor of The Deal magazine.

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Industry Veteran Kit Simon Joins Adara Media as Senior Vice President of Sales

May 10, 2011

MOUNTAIN VIEW, CA–(Marketwire – May 10, 2011) – Adara Media Inc ., a customer lifecycle media company with a focus on customer strategy, announced today that Kit Simon has joined the company as Senior Vice President of Sales. Leveraging over 20 years of experience in online media and digital sales, Simon will play a pivotal role in communicating Adara Media’s impactful customer audience platform approach of helping companies acquire, retain and monetize customers anonymously online.

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Robert Lenzner: Warren Buffett Is Human, After All

April 29, 2011

The media loves to fall in love with Masters of the Universe — such as the former CEOs of Tyco, Enron, Worldcom, GE, Citigroup, Lehman Brothers and Merrill Lynch. Only some of them are in prison. That is, until they fall from grace and then the media dons its armored lances and savages their fallen Gods of Mammon. Just like that. If you doubt me, try to conjure up in your head all those cover stories of bygone heroes. I’m guilty of the same superficial hosannas. Now comes the Oracle of Omaha, the darling of CNBC, the beneficiary of innumerable Fortune covers — some jointly with Bill Gates. Imagine the relish with which the media fastens on to the 80-year-old stock picker’s trust in a long time aide and heir-apparent, Mr. Sokol. Oh my God, a flaw in the Great Buffett. Let’s scrutinize his corporate governance bylaws. Let’s see if he’s morally or ethically fallible. Let’s go over it and over it and over it to tantalize the Bloomberg TV audience, because it is such a grave matter. The controversy is being treated as The Last Act of a formerly perfect human being. Hasn’t anyone read the biography that reveals many of his personal weaknesses and idiosyncrasies. Indeed, why didn’t he just fire the great betrayer Sokol, when he discovered the louse had bought $10 million in Lubrizol shares before putting a move on the boss to buy the whole company? That’s what I want to know. From Asia yet. Tell the bum to pack up and be gone. And then instruct Robert Denham of Munger Tolles to draw up a lawsuit demanding that Sokol return his undeserved gains to the innocent sellers of Lubrizol. I just hope tomorrow Warren and Charlie don’t have to answer questions about Sokol for 6 hours. I just hope we can learn what they think about the end of QE2, the way to balance the federal budget, and some of their concepts for the future of Berkshire. Should we be told who would take over for Warren and if the structure of the leadership should be overhauled? There will be demands for more future guidance from a hungry pack of Buffett followers. When it’s far more important that Buffett has warned that the glory days of Berkshire’s stock exploits are over. Does that mean the $100 peak for BRK B- that was hit in 2007 won’t be matched for quite a while? Better note that the stock is holding in the $83-84 range and hasn’t really fallen in the face of the Sokol controversy. Better yet, read Buffett, July 26, 2010 to his Managers(“The All-Stars”) and the Directors: “The priority is that all of us continue to zealously guard Berkshire’s reputation. We can’t be perfect but we can try to be.” Amen. “We can try to be.” That’s all.

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Pat Panchak Joins STACK Media as Editorial Director

April 27, 2011

CLEVELAND, OH–(Marketwire – Apr 27, 2011) – Pat Panchak, an award-winning journalist with 20 years of experience in publishing and journalism, has joined STACK Media, the nation’s leading producer and distributor of sports participant information and services. As STACK’s Editorial Director, Panchak will manage the company’s overall content strategy and execution on all platforms, including the STACK Media network, STACK Magazine, STACK TV, the STACK blog and a profusion of partner sites, such as the Gatorade Performance Center, that feature STACK articles and video.

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The Miami Heat Is The New Corporate Model Of Teamwork, Apparently

April 20, 2011

I don’t even know how to begin with this Fast Company cover story on LeBron James, the Miami Heat and what they teach “us about teamwork.” Basically, the article teaches me that the people at Fast Company are capable of teaming up to shoehorn LeBron James onto the cover under the guise of teaching us something about business practices. And it’s not just that James can teach us all something about teamwork, it’s that the Miami Heat are “the World’s Greatest Chemistry Experiment.” So, snack on that Richard F. Heck, Ei-ichi Negishi and Akira Suzuki — and your Nobel Prize winning work in ” palladium-catalyzed cross couplings in organic synthesis .” Fast Company advises us: Forget for a moment that this has anything to do with basketball. Okay! That’s going to be hard, seeing as you’ve got four NBA-themed pieces for us to work through , but I’ll try. Forget about sports altogether. Almost as if I picked up a magazine that isn’t supposed to cover sports. Right. What LeBron and company are attempting to do applies to any organization that’s serious about winning. Well, who among the Fortune 500 hasn’t beaten the Philadelphia 76ers? A year ago, James, Wade, and Bosh were the top dogs — the leading scorers — on their respective teams. Today, they’re divvying up the sirloin scraps, at far less pay, in search of one prize: a championship. Yes, they’ve been derided for conspiring to give Miami a huge leg up at the expense of small-market teams (namely James’s former employer in Cleveland and Bosh’s in Toronto), but their mutual sacrifice is a resounding vote for teamwork. Teamwork among superstars. It’s a huge bet that, in the end, talent will prevail. If only the San Antonio Spurs had thought about combining superstars — like, say, Tony Parker, Manu Ginobili, and Tim Duncan — in their pursuit of NBA glory. (Instead, they wagered that playing great team defense was something that would “prevail.”) Finally, we start getting around to the “forgetting about sports altogether” part: This is a strategy that’s on the rise these days. Look at Silicon Valley. Which tech company, when given the chance, doesn’t raid the talent pool, stocking up on the world’s best execs and engineers in the hopes of racing past the competition? Late last year, Mark Zuckerberg personally persuaded Lars Rasmussen, the cocreator of Google Maps, to join a host of elite ex-colleagues at Facebook. If ESPN anchor Stuart Scott were to cover the business universe, he would have summed up the acquisition in a word: Boo-yah! Oh, okay, so here’s a new “strategy” that’s “on the rise” — hiring talented people in the hopes that a bunch of talented people will add value to your company. Glad to see people are trying this at last! Of course, this lesson was so well taught to the world by the Miami Heat, that Facebook was employing it just three days after the 2010-2011 NBA season began . In short, it’s a pretty awkward construct, ancient corporate-sounding bromides about “trust” and “teamwork” forced through this “the NBA playoffs are happening” perspective. At times, the piece has to contort in order to keep track of its thesis. “High-priced talent doesn’t ensure success,” says the magazine, you have to be “buddies,” too. And buddies have to leave room for Udonis Haslem and Zydrunas Ilgauskas. Larry Page and Sergey Brin are a formidable pairing — much like Hewlett and Packard, Ben and Jerry, the brothers Coen (Joel and Ethan) — but the truth is none of those guys could have achieved what they did if it weren’t for the help of supremely gifted employees. The Heat is no different. That would have been a really good place to inform readers who the “Zydrunas Ilgauskas of Google” is. (It still would be, if anyone would care to provide that information.) By the way, that marks the last time in the article that an attempt is made to connect this Miami Heat metaphor with an example in the corporate world, save for one stray mention of Carl Icahn. The piece goes on to really gloss over the ugliness that’s gone down between the team and their coach, Eric Spoelstra, who is nominally in charge of the “strategic vision.” I’m not entirely sure what to make of how this season’s brief Spoelstra-drama fits within this idea that stocking up on superstars is a winning strategy. The message seems to be: star talent is important, as long as Zydrunas Ilgauskas is around to do the thankless work, and your CEO is okay accepting abuse from the talent pool while never retaliating by telling the media that your star players cried in the locker room. And, in the end, it really helps to have Pat Riley to talk to about your feelings. It’s kind of a mess. But there’s one success strategy that seemed to work for the Heat: After the game, Wade and his teammates held a players-only meeting. “They kicked the coaches out,” says Windhorst. “It was literally in the shower. Guys were telling each other to stop playing afraid.” Not sure you should try to replicate that in the workplace! At any rate, every tech company should definitely try to hire Mike Miller , the end. [Would you like to follow me on Twitter ? Because why not? Also, please send tips to tv@huffingtonpost.com -- learn more about our media monitoring project here .]

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Advanced Digital Services Appoints Thomas Engdahl President and CEO

April 20, 2011

Entrepreneur, Holder of Six Patents, and Communications Visionary, Engdahl Will Accelerate Technology Innovation at ADS to Drive Growth Opportunities in New Media

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Jack Myers: Content Producers and Owners Turn the Table on Aggregators

April 19, 2011

It’s no longer about using technology to aggregate content. It’s about using content to aggregate technology. If there was one common theme at both this year’s CES and at last week’s National Association of Broadcasters Convention in Las Vegas, it is the shift in emphasis away from advances in TV technology and distribution to how content producers are being recognized as the monetization engines for technology companies. For the past five to six decades, the TV industry has handled content as a commoditized product (with occasional hits) to be aggregated, packaged and sold to distributors, advertisers and audiences. The digital media business has followed the same pattern, with investors, advertisers, agencies, media companies and developers all reducing the role of content to a tertiary player in the ecosystem. Invite the top 100 venture capital investors to invest in a content start-up, and more than 90 will advise they “don’t invest in content.” What they should admit is that they are ignorant about the fundamentals of the media and advertising business, locked into an outdated paradigm, and blind to the hottest growth sector of media and advertising for the next decade. Google’s acquisition of YouTube and NextNewNetworks acknowledges that reality. Ask 100 media buyers to identify their clients’ #1 priority, the answer has almost always been “reaching key audiences as efficiently as possible.” The biggest issue in the industry for the past half-decade: procurement ! But for the next five decades, the central-point of investment opportunity in both digital and legacy media will be content and context — not technology, and not content aggregation. Content creators and developers now have the ability to shop in a warehouse over-stocked with software tools and resources that enable them to build out their digital distribution models across all platforms. Free, cheap and ubiquitous tools are available for mobile apps, interactivity, group deals and commerce, social connections, ad management, advanced TV, performance measurement and pretty much any capability content producers may require to scale their businesses. Venture capital investors with deep pockets continue to fund one tech start-up after the other, all chasing advertiser dollars and consumer eyeballs. They, along with huge global CE manufacturers LG, Intel, Samsung, Panasonic, Sony and others are now all focusing on chasing content partners. It was inevitable that content would find its way to the center of this discussion. It’s no longer about technology tools aggregating and monetizing content. It’s about branded content producers aggregating and monetizing technology. Jack Myers can be reached at Jack@mediadvisorygroup.com . JackMyersThinkTank is free and underwritten, as part of MediaBizBloggers.com , by subscriptions to Jack Myers Media Business Report ( www.jackmyers.com ). Subscribe free to all MediaBizBloggers reports at www.MediaBizBloggers . For Jack Myers Media Business Report subscription information visit www.myersreport.com or contact Jack Myers at Jack@mediadvisorygroup.com . Jack Myers and Media Advisory Group provide details on all underwriters and companies in which we have an investment at www.jackmyers.com . This commentary was originally posted at www.jackmyers.com.

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ValueVision Media Appoints Multichannel Retailing Veteran Annette Repasch as Vice President Soft Lines

April 6, 2011

MINNEAPOLIS, MN–(Marketwire – April 6, 2011) –  ValueVision Media, Inc. ( NASDAQ : VVTV ), a premium interactive retailer via TV, Internet and mobile operating under the “ShopNBC” brand, announced today the appointment of multichannel retail veteran Annette Repasch, as Vice President of Soft Lines, effective May 2. She will report directly to Bob Ayd, President of ShopNBC.

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Prominent Media Exec Caroline H. Little Joins citybizlist Board

April 5, 2011

BALTIMORE, MD–(Marketwire – April 5, 2011) – Citybizlist , publisher of local business news in 11 U.S. cities, announced today that Caroline H. Little , former CEO of Guardian News & Media and Washingtonpost.Newseek Interactive, has joined the company’s board of directors.

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Van Jones: ‘This Is Not America’: SWAT Team Evicts Grandmother, Community Fights Back (Video)

April 1, 2011

Day after day, the media and government ignore an ongoing national tragedy: a tsunami of foreclosures is still sweeping millions of Americans out of their homes. As many as three million American families this year will hear a terrifying knock on the door: a law enforcement officer will tell them to get out, because a bank won’t work out a fair deal and allow them to stay. But one remarkable grandmother this month refused to go quietly. And her brave example — including her willingness to stand up, along with her neighbors, to a SWAT team — finally got elected officials to intervene. A modern day Rosa Parks, her courage may well spark a national movement. Grandmother and longtime Rochester resident Catherine Lennon was evicted from her home on March 28. It was a moving scene captured on the video below. But Ms. Lennon should never have been booted out. Her problem was simple enough to solve: her husband died in January of 2008, leaving her with no will and her home ownership in legal limbo. She acknowledges missing some payments. But then, because her name was not on the house’s official mortgage paperwork, she says her bank refused her checks and returned them to her. She says she has the ability to make her payments.* But believe it or not: Fannie and Freddie wouldn’t accept her money. Fannie Mae, which now owns Lennon’s home, received $90 billion in bailout money. According to Max Rameau of Take Back the Land, “In order for banks to get their mortgage insurance money, they must evict the families. Instead of a system or laws that try to keep families in their homes, banks have a perverse incentive to evict them. We should be rewarding banks that keep people in their homes, not the ones that kick people out.” Instead, according to Ms. Lennon, the bank called in the police. A SWAT team came to evict her and her 11 children and grandchildren. Neighbors stood with Ms. Lennon throughout the ordeal. “This is not America,” said one shocked neighbor. Take Back The Land Rochester, a local group providing eviction defense, attempted to stop the eviction. Seven people were arrested, including a 70-year-old neighbor, still in her pajamas. Take Back the Land Rochester is a part of an impressive national network of volunteers who are standing on the frontlines and helping those facing eviction and foreclosure. After Lennon’s eviction, Rochester residents increased their calls and letters to their elected representatives and the media. Congresswoman Louise Slaughter intervened and got Lennon on the phone with Fannie and Freddie to begin negotiations on the mortgage. Senators Chuck Schumer and Kirsten Gillibrand of New York also called Take Back the Land Rochester to offer their support. Lennon’s story is both a light of hope and a warning. In the next week or two, Lennon may get her home back. We hope to see a video of the celebration as Ms. Lennon and her family are allowed back into their family home. But tonight Lennon and her family are in a homeless shelter. And today across the United States, more than 8,000 people will lose their home to foreclosure. They are grandmothers, husbands, sisters and aunts. They are the fabric of our community: the teachers, the janitors — the same workers who are under attack in Wisconsin, Ohio, Indiana, and elsewhere. The time has come in the United States where we all must be brave like the volunteers of Take Back the Land, where we all must be eviction defenders. Fannie Mae and Freddie Mac were originally established to help US citizens fulfill the dream of owning our homes. In a time when communities are hurting, we must stand together and demand policies that will save American families from losing their homes. We must stand together to protect and rebuild the American dream. *An earlier version of this post stated that Catherine Lennon was making payments. UPDATE: Bank of America today said that Ms. Lennon had fallen behind on her payments. In response to the Bank of America statement, Ryan Acuff (an organizer with Take Back the Land- Rochester, the community group supporting Ms. Lennon) released the following statement: After Catherine Lennon’s husband died of brain and lung cancer in 2008, the Lennon family, understandably, experienced the same financial harship many people are facing today. As a result, Catherine did miss some mortgage payments to Countrywide/Bank of America, just as we have stated in our press releases and public statements. However, Catherine not only met with the Housing Council, the local HUD approved mortgage counselors, but attempted to engage with Bank of America. In fact, Catherine sent a payment to the bank, but the bank returned the check and refused to negotiate with her because the mortgage was in the name of her deceased husband, who did not leave a will. While Catherine was, indeed, delinquent, the fact remains that Bank of America refused her attempts to pay and efforts to negotiate modifications to her mortgage for the reasons stated above.

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Jack Myers: Television Network Upfront 2011/2012: ‘Them That Has, Gets!’

March 29, 2011

As the national TV Upfront season moves toward the May/June negotiating period, one thing television networks, media agency executives and marketers all agree upon is that broadcast and cable network TV remains the engine that pulls the media and marketing train. As the digital rocket ship climbs through the atmosphere, marketers’ remain committed to shoveling more and more coal to fuel the TV train and keep it running smoothly. In this week’s Jack Myers Media Business Report , I shared historical network TV Upfront cost-per-thousand data from 2002 to 2004, the two seasons following the 2001 recession. The 2002-2004 Myers data arguably serves as a forecast for the 2011/2012 national television Upfront season, which should be one of the most interesting and robust in recent history. As a child, I played Monopoly with my dad. When I landed on his hotel on Boardwalk or Park Place, his favorite comment was “Them that has, gets!” In this year’s Upfront, the broadcast and major cable networks have the best real estate and have built out their houses and hotels. As advertisers move their pieces around the Media Monopoly board, they can still buy less desirable real estate, but the best properties are controlled by the TV networks. Once the agency buyers pass “GO” and move into the May/June negotiating season, there will be no Get Out of Jail Free card and it’s pretty clear that “Them That Has, Will Get!” With broadcast network TV rating erosion taking its toll again this year, the leading networks will be under pressure to generate cost-per-thousand increases that not only compensate for lost rating points, but that assure meaningful revenue increases. Strikes threatening the NFL and NBA seasons add increased demand for primetime network and high appeal, male targeted programming. It’s unlikely that broadcast and leading cable networks will increase year-to-year sell out. Marketers’ options are limited as digital video CPMs remain greater than broadcast and cable costs. Cinema, video place-based and point-of-influence media, and local TV and radio will all benefit with increased revenues but will not significantly reduce advertiser demand for network TV. The most appealing national broadcast syndicators will experience strong CPM increases, especially as supply erodes with the shift of Oprah to cable. Smaller cable networks will experience some gains but agency buyers point to their clients’ current reach over-exposure on cable and are reluctant to increase their current cable ratings levels. The top ten cable networks led by Turner, A&E Networks, FX and NBCU are likely to generate costs-per-thousand increases at or above broadcast network levels. Bottom line, the national TV marketplace is healthy. Marketers continue to depend on broadcast and cable network TV as the foundation of their advertising plans. And this year’s Upfront will be fascinating to follow as it continues to unfold. Share your comments here . These issues and more will be discussed this Thursday at the annual IRTS Foundation Media Buyers Newsmaker Breakfast, featuring Gibbs Haljun of MEC Global, Greg Kahn of Optimedia, Mike Rosen of Starcom, Maribeth Papuga of Mediavest and Dani Benowitz of UM. I am moderating the panel discussion, which will be at the Pierre Hotel. Advance purchase is required and tickets are available by calling the IRTS at (212) 867-6650 x 11. Jack Myers can be reached at Jack@mediadvisorygroup.com . JackMyersThinkTank is free and underwritten, as part of MediaBizBloggers.com , by subscriptions to Jack Myers Media Business Report ( www.jackmyers.com ). Subscribe free to all MediaBizBloggers reports at www.MediaBizBloggers . For Jack Myers Media Business Report subscription information visit www.myersreport.com or contact Jack Myers at Jack@mediadvisorygroup.com . Jack Myers and Media Advisory Group provide details on all underwriters and companies in which we have an investment at www.jackmyers.com . This commentary was originally published at www.jackmyers.com

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Danny Wong: How Yahoo Can Save Itself

March 24, 2011

After being seen as a repeated failure of a company over the past couple years, Yahoo may just yet redeem itself with its latest search engine update, Search Direct . While this reminds most Google users of one of the latest and biggest Google updates, Google Instant, with its real-time results as you type, Search Direct is less about helping you find the most relevant links for your search query and much more about giving you the appropriate answer, right then and there, to what you are searching for, because the fact is, we all search to ultimately find an answer, information about the thing we’re searching for. This is actually quite an exciting update to Yahoo’s search index, which I first heard about after Anthony Ha reported it on VentureBeat. This advancement in the usability of search engines is incredible. It was first thought that the Google Instant update was exciting because it eliminated the use of having to hit the search button to perform your search query. But now, you don’t even need to click the first link in the results page to get the answers you want to the most common of queries, easily finding out things like the local weather forecast, stock performance, even where to find a local theatre playing the films you want. Yahoo has been seen as dying for several reasons: 1. It’s becoming less innovative in the search game. Yahoo hasn’t done anything exciting with its search algorithm in a while, and while Bing is gaining popularity amongst shoppers and media consumers, Google reigns king because it continues to deliver the best search results, despite some of the bad press it’s received as of late in terms of spammers compromising their search quality. 2. It’s becoming less prominent a company. With less big acquisitions, Yahoo doesn’t have prominence like Google who’s snatching every hot business up both for branding and for profit purposes. No one thinks about Yahoo much anymore because Yahoo’s not doing much of anything that’s interesting, or applicable to our everyday lives. I’ve even stopped using my Yahoo mail for the most part, and use two Gmail accounts, one for personal use and one for professional use. 3. As a media company, they’re not doing anything special. AOL is getting most of the spotlight these days as the big media company to end all media companies, especially with its recent merger with the Huffington Post to house all of its media properties under the Huffington Post. Yahoo just continues to aggregate content from the newswire and isn’t doing enough news publishing itself. What Yahoo can do now to save itself: 1. Actually make Search Direct awesome. While the concept of Search Direct is amazing, and they have rolled out their public beta for the system, I’m sure there’s a lot more to do in updating their algorithms and ensuring that quality answers are always provided for search queries that could easily be answered and immediately displayed without searchers having to click a search results link to find the answer they are looking for. 2. Get back on the media’s good side. Yahoo should be doing more amazing things as a company, and should also be creating more value for users. As such a large company, the media will always bite at anything special going on with Yahoo, so as long as Yahoo is continually building better products for users, it’ll get better press and more people will begin to trust and use Yahoo again. 3. Become an integral part of users’ lives. While Yahoo failed in making Delicious their Yahoo owned service that everyone used and associated Yahoo with, Yahoo can acquire similar companies, or perhaps build its own products and services that millions of users will use each and every day, solidifying its place in users’ daily lives. Yahoo has a long way to go before it redeems itself again as the golden company it once was, but luckily, it’s far from dying anytime soon, so we’ll just have to wait and see how Yahoo develops. Danny Wong is a Boston-area entrepreneur running Blank Label Group , which powers the startups Blank Label , Thread Tradition and RE:custom . Danny also blogs at TheNextWeb and ReadWriteWeb .

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Jack Myers: Legacy Media’s Slice of the Social Commerce Economy

March 22, 2011

Of the $46.6 billion invested last year in digital marketing and advertising, 20% was targeted to legacy media companies (TV, magazines, newspapers, yellow pages, outdoor, radio, etc.). By 2020, legacy media will capture only 13% of the $300 billion in estimated digital marketing and advertising investments. Full details are reported in this week’s Jack Myers Media Business Report and are available to subscribers here . For the next decade, an estimated 50% of digital marketing growth will accrue to social media plus digital coupons and online/mobile promotional investments, aka Social Commerce. Facebook, Twitter, Groupon, Living Social and other social marketing and commerce leaders are positioned to capture a sizable chunk of these investments. Legacy media companies such as Viacom, Disney, CBS, Hearst, Gannett, Comcast NBCU and Clear Channel could step up their social engagement efforts and benefit greatly from marketers’ growing commitments to social commerce. The odds are they will not make the necessary investments. An economist studies the production, distribution and consumption of goods and services. For more than three decades, I’ve studied the media industry from the perspectives of content producers, distributors, agencies, advertisers and audiences. As a media economist, I’m fascinated by the impact of emerging technologies and how they influence economic variables across the media, marketing, information and entertainment ecosystem. How marketers invest in social commerce over the next decade will play a primary role in determining the ultimate outcome of the current media transformation. Publicly traded legacy media companies have consistently ceded the high ground of the media battlefield to venture funded companies such as Facebook, Twitter, My Yearbook, Groupon and Living Social without investing in the modern social media weapons systems required to compete. As reported last week in Jack Myers Media Business Report , network TV ad revenues will grow slowly but steadily for the next decade, powered primarily by digital media budgets. This may be good enough for Wall Street, but it is a corporate failure of major dimensions. Instead of declines or slow growth, many established media companies with powerful content brands could capture double digit growth if they focused on social marketing and commerce opportunities. Newspapers and yellow pages stood by passively as Google and Craig’s List destroyed their classified and retail ad businesses. Again, newspapers, News America and Valassis are failing to react as Groupon and Living Social dominate the group deal business. The decline of legacy media’s share of total digital ad budgets could be reversed with aggressive investments in social commerce, but there are no indications on the horizon that will happen. SOURCE: Jack Myers Media Business Report Media & Marketing Investment Forecast December 2010 . Source details available here . The detailed annual 2010-2020 forecasts for 55 media and marketing categories are available to subscribers at www.jackmyers.com . Subscribers have passcode access. If you require your User ID and/or password, contact maryann@jackmyers.com . Jack Myers can be reached at Jack@mediadvisorygroup.com . JackMyersThinkTank is free and underwritten, as part of MediaBizBloggers.com , by subscriptions to Jack Myers Media Business Report ( www.jackmyers.com ). Subscribe free to all MediaBizBloggers reports at www.MediaBizBloggers . For Jack Myers Media Business Report subscription information visit www.myersreport.com or contact Jack Myers at Jack@mediadvisorygroup.com . Jack Myers and Media Advisory Group provide details on all underwriters and companies in which we have an investment at www.jackmyers.com . This commentary was originally posted at www.jackmyers.com.

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Time To Celebrate The Success Of TARP Again, While Ignoring The Totality Of The Taxpayer Bailout

March 17, 2011

It seems it’s time for this old song and dance again: Six banks repaid nearly half a billion dollars in funds they received from the government bailout of Wall Street, the Treasury Department said, bringing the total bank repayment under the Troubled Asset Relief Program to 99%. The Treasury on Wednesday said the banks repurchased TARP investments with proceeds to taxpayers totaling about $475 million. TARP was created in 2008, with its Capital Purchase Program set up for banks hurt in the financial crisis. Through the repayments announced Wednesday, as well as dividends and interest, taxpayers have recovered about $244 billion of the $245 billion in TARP funds disbursed to banks, the Treasury said. The Treasury currently estimates that bank programs within TARP will ultimately provide a lifetime profit of nearly $20 billion to taxpayers. From the Treasury’s lips to your eyeballs, courtesy of the Wall Street Journal and others. We’ve been through this before, yes? Back in July of last year, it was, ” Thus ends the much-maligned ‘Wall Street bailout .’” Except it didn’t end . In early March, it was, ” There is now broad agreement that the bailouts worked, stabilizing the financial system and preventing an even deeper crisis .” But the agreement wasn’t broad enough, for an ample number of reasons . But now TARP is almost paid back, we’re told, and taxpayers have earned $20 billion, to boot. Don’t spend it all in one place, America! Because as it turns out, you’re still out a LOT of money. And, courtesy of the Real Economy Project at the Center for Media and Democracy, I have some charts and graphs that should finally make this clear : While it is true that many TARP bailout programs have ended, Center for Media and Democracy research shows that money is still due to taxpayers under the TARP. More importantly, the research shows that the U.S. Treasury Department’s ten TARP programs represent less than seven percent of the $4.7 trillion disbursed by the U.S. government in an effort to aid the financial services industry. Far more money has been disbursed by the Federal Reserve to prop up the financial system than by the U.S. Treasury and those loans are still outstanding. The first graph shows that non-TARP expenditures, largely by the Federal Reserve, dwarf those of the TARP. It is absurd to declare ‘mission accomplished’ while counting only one small portion of the bailout. While the Federal Reserve aid was disbursed mostly in the form of loans, that money has not been paid back yet, and in the housing sector this disbursal of funds continues in what we like to call a “stealth bailout.” Our unique timeline of the bailout derived from government data pulled on a quarterly basis, clearly shows the initial infusion of some $2.7 trillion in emergency funds into the financial system, followed by a second infusion of funds into the mortgage and housing markets, largely through Fannie Mae and Freddie Mac and without a vote or any Congressional oversight. It represents the largest intervention in the housing market in history, yet it is not getting any of the scrutiny that has been applied to the TARP from policy experts, policymakers or the press. As I’ve been saying for a long while, TARP is just a fraction of the overall taxpayer intervention in the financial collapse, and we are far from recouping 99 percent of that. The above charts, obviously, have not been updated since last year, but Mary Bottari, the director of the Real Economy Project, told me Thursday, “My guess is that we are not too far off these numbers still,” adding, “TARP was never the big enchilada. It was always the Fed, and the Fed’s exposure still remains in the housing sector, where they have pumped billions in an effort to prop up the housing market.” The Real Economy Project tracks the total Wall Street bailout cost on this page at SourceWatch , which exhaustively runs down that enchilada. Sorry to rain on the parade, everybody! [Would you like to follow me on Twitter ? Because why not? Also, please send tips to tv@huffingtonpost.com -- learn more about our media monitoring project here .]

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Yvette Kantrow: Means, Ends and Money

March 11, 2011

The media has long taken it on faith that private equity is an evil, possibly criminal, enterprise, run by money-hungry fraudsters who bury their companies in debt, rape them for fat dividends and charge onerous fees to their investors. (Who can forget the old Businessweek’s infamous “Gluttons at the Gate” cover story?) So it was a bit jarring a few weeks back to come across a piece on Fortune.com lamenting private equity’s inability to buy really large companies that just a few years ago were easily within reach. “It’s a significant loss of clout that shows no sign of abating, and the big losers are those with megacap stocks in their portfolios,” writes Dan Primack, Fortune’s resident private equity expert. “No longer can such folks buy, hold, and wait to be cashed out by free-spending financial sponsors.” So let’s get this straight. Private equity’s inability to do megadeals is bad for shareholders of big public companies — the piece lists investors in Microsoft, Boeing, CVS Caremark, Home Depot, Oracle and United Healthcare as examples — “who must now content themselves with hefty dividends and steady revenue growth” rather than benefit from the quick payday that a private equity sale could bring. Perhaps Primack was simply trying to make his piece relevant to Fortune, which has always aimed its content at public shareholders (when it wasn’t fawning over CEOs) and has long preached the supremacy of shareholders’ interests. But there’s something unsettling here. The media has spent years painting private equity as a destructive villain. Is all that forgiven if it means that holders of megacap stocks can make a quick buck? Put another way, do the ends justify the means? Shareholders seem to think so, as evidenced by the recent high-profile, controversial buyouts of two consumer-brand icons, J.Crew and Del Monte Foods. Both deals, which feature some of the biggest names in private equity, were the result of conflict-ridden, faulty processes, and for that reason, both were the subject of lawsuits in Delaware. But they were both eventually approved by shareholders, who received a high premium for their holdings. This presented a problem for a media that’s usually all too happy to call out private equity firms for the merest hint of untoward behavior. Indeed, a segment on CNBC about the two deals was headlined “LBOs — Last Legal Scam” and carried a crawl reading “Why management-led buyouts are scamming investors out of money.” But for all that graphics bluster, host David Faber couldn’t help but point out that both deals carried high multiples and juicy premiums. “Why isn’t that good for shareholders?” he asked his guest, Stuart Grant, co-founder of Grant & Eisenhofer, the plaintiffs’ law firm on both the J.Crew and Del Monte deals. Grant gamely tried to explain that the problem is the flawed processes behind the deals and the lack of any real competitive bidding. But that message was largely lost on CNBC, given the fact that shareholders of both companies fared fairly well. Who cares about process when shareholders are making money? But when shareholders are losing money, well, watch out. That’s when the media becomes obsessed with process — and is pretty sure the process isn’t just flawed, but illegal. Remember Analystgate? That research analysts existed more to serve investment bankers than investors was an open secret on Wall Street and in the media for years. It only started garnering outraged headlines (and possible perp walks) when the dot-com bubble burst and people lost money. Before that, everyone just shrugged — and went on counting their gains. Something similar is now happening in the wake of the financial crisis as the media continues its collective handwringing over the fact that not one Wall Street bigwig has gone to jail — a handwringing that grew more intense after “Inside Job” director Charles Ferguson lamented the lack of financial jailbirds during his acceptance speech at the Academy Awards and was met with wild, approving applause. This isn’t to say that no criminal activity took place during the run-up to the crisis or that investigators shouldn’t be digging to find and punish wrongdoers. But what, exactly, makes the Oscars glitterati so sure that financial executives belong in jail? The answer is that lots of people lost lots of money, which seems to be proof enough that the financial system is not just seriously flawed or wildly unfair, but downright criminal. It’s funny. That’s what people thought about private equity not long ago. But now that shareholders are eager for gains, nobody seems to mind. See the complete archive of Media Maneuvers Yvette Kantrow is executive editor of the Deal magazine.

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Investors Put Murdoch In A Bind, Push BSkyB Value Skyward

March 10, 2011

News Corp mogul Rupert Murdoch turns 80 today , and he finds himself tantalizingly close to closing a deal that would take his media empire to new heights: the “complete takeover of UK satellite television operator British Sky Broadcasting (BSkyB), which would cement News Corporation’s move away from relying on the cyclical advertising market to drive earnings.” Murdoch sees the move to a subscriber model of content as critical to his empire’s bottom line. That plan, however, is hitting a snag. A year ago, Murdoch offered a competitive bid at 700p per share for BSkyB, which at the time was trading at 555p per share. The move was reminiscent of the way Murdoch drew down on Dow Jones. There, he offered $60 per share on a property that was trading at $36. A lot of intense wrangling ensued, during which time Dow’s value rose right up against Murdoch’s offer. The same thing is happening with BSkyB, only in this case, activist investors have caused BSkyB’s value to skyrocket. Yesterday, it closed at 828.05. Leading the charge to push up BSkyB’s value are two hedge fund managers. The first is financier Frank Brosens , who runs Taconic Capital Advisors and who has “in recent weeks bought more than 20.7m shares in BSkyB, amounting to a 1.18pc stake in the company.” The other is Crispin Odey of Odey Capital Management . In a fun twist, Odey is Murdoch’s former son-in-law. Hedge funds now control 12 percent of BskyB. They seem, at the very least, determined to force Rupert to take a haircut on the deal. They’re actually just 3 percent short of being in position to block the deal entirely. As you might imagine, there’s enormous resistance in Europe to Murdoch expanding his empire. Consumers aren’t fond of the idea of massive media consolidation coming to the United Kingdom. Murdoch’s decision to install his son James as the chief executive has been greeted by investors with charges of nepotism . The U.K. is also still roiling over the phone hacking scandal that News Corp property News Of The World engaged in, and which cost former NOTW editor Andy Coulsen his position at 10 Downing Street as PM David Cameron’s communications director. Beyond that, investors eye the coming rollout of a new BSkyB box as a reason to believe that BSkyB’s share price is currently undervalued. The dramatic rise in share price puts Murdoch, who had hoped to make the acquisition for £7.8 billion, in a bind. Per Andrew Clark at the Guardian : “One leading institutional investor told the Observer that a fair valuation for BSkyB was 950p per share – which would cost News Corp £10.5bn – and that the inclusion of a bid premium would push the true asking price up to as much as £11 per share, or more than £12bn.” Ultimately, I’ve learned to not bet against Rupert when he sets his sights on an acquisition, especially one that he desires so desperately in order to immunize his media holdings from the vagaries of the advertising market. It seems pretty clear, however, that this time around, Murdoch will have to pay dearly to get what he wants. [Would you like to follow me on Twitter ? Because why not? Also, please send tips to tv@huffingtonpost.com -- learn more about our media monitoring project here .]

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Buysight Appoints Veteran Executive Phu Hoang as Chief Strategy Officer

March 10, 2011

Former Yahoo! Executive Who Led Shopping, Search, Advertising and Media Products to Contribute to Buysight’s Continued Success and Growth

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Buysight Appoints Veteran Executive Phu Hoang as Chief Strategy Officer

March 10, 2011

Former Yahoo! Executive Who Led Shopping, Search, Advertising and Media Products to Contribute to Buysight’s Continued Success and Growth

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The Beltway Bubble And Unemployment

March 4, 2011

Yesterday, The Nation ‘s Chris Hayes published a piece that discussed the “disconnect” between Washington lawmakers and their constituents throughout the country on the the unemployment crisis. Felt searingly throughout the nation, and especially so in isolated pockets, concern over the crisis seems to be largely declining inside the Beltway bubble, as “lawmakers of both parties have jettisoned the jobs agenda in favor of an austerity program that will barely reduce the deficit but will almost certainly hurt employment.” Along the way, Hayes points out the unemployment rate among Americans with “four-year college degrees” is 4.2 percent, and the unemployment rate in the DC-Arlington-Alexandria area is a mere 5.7 percent. Hayes goes on: What these two numbers add up to is a governing elite that is profoundly alienated from the lived experiences of the millions of Americans who are barely surviving the ravages of the Great Recession. As much as the pernicious influence of big money and the plutocrats’ pseudo-obsession with budget deficits, it is this social distance between decision-makers and citizens that explains the almost surreal detachment of the current Washington political conversation from the economic realities working-class, middle-class and poor people face. Hayes concludes: “The people running the country are not viscerally experiencing the depredations of this ghastly economic winter, and they lack what might be called the ‘fierce urgency of now’ in getting the heat turned back on.” Combine the change in conversation with those unemployment rates and it becomes a decent argument. And yet, I don’t find it entirely convincing. While most of our lawmakers obviously spend the bulk of their time in the DC-Metro area, they all have offices in their districts back home, and they all have people on staff who work closely with their constituents. Gabrielle Giffords’ aide Gabe Zimmerman, killed in the Tucson shootings, had a great reputation in the community for his constituent work. Heck, let’s not forget that Gabrielle Giffords herself was shot during a public meet-and-greet, outside the Washington bubble. I’d imagine within the cohort of Congresspeople, you’ll find individuals who are very close to their voters and highly motivated to ameliorate their unemployment problems. We don’t know who measures up and who falls victim to the bubble because it’s an under-reported matter. Perhaps the party that’s really to blame here isn’t our lawmakers, but a group of people who Hayes only touches on in passing who most definitely reside within that bubble: the Beltway media. Turn on the teevee on Sunday morning and you will — I promise you — hear all sorts of discussions about the unemployment crisis. But they all take place 30,000 feet in the air. The crisis is never captured as a thing that impacts ordinary Americans. It is always discussed in terms strictly defining it as something that impacts the electoral prospects of politicians . Pundits hardly ever give the crisis a face. And so, if a political figure says something crazy, like, the unemployed should have their UI benefits taken away as a measure of “tough love” because it’s disincentivizing them from finding employment, you’ll have an argument in the media over whether the person is being mean-spirited or not, or whether it will win or lose an election. You might be fortunate enough to hear someone mention the fact that currently, there are five job seekers for every job opening. What you won’t see is anyone go out and prove the unemployed are, in fact, busting their asses to find work and get off the dole, because you have to be a) interested in the lives of ordinary people , and b) willing to cast a wide net across the country . Largely, the Beltway media isn’t that interested in any of this, so a larger conversation about how the economic crisis impacts people at street level never gets started. Instead, we hear about how deficits (the Federal one, not your household one) are terrifying, TARP was a huge success, wars are something that happen to other people and which we have an infinite supply of money to fund, and the high unemployment rate mainly impacts Obama’s re-election hopes. (Also, you hear complaints about how a once-in-a-decade blizzard in Washington critically impacted Chris Matthews commute and Sally Quinn’s social calendar .) [Would you like to follow me on Twitter ? Because why not? Also, please send tips to tv@huffingtonpost.com -- learn more about our media monitoring project here .]

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Covario Taps Harrison Magun to Head Its Paid Media Team

March 1, 2011

Former Microsoft and Razorfish Exec Charged With Growing Software Solutions and Media Buying Services for Paid Search, Display and Social

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SpotXchange Appoints Former Procter & Gamble Executive Bob Dees as Senior Vice President, Strategy

February 28, 2011

Former Head of P&G Media Buying Becomes Latest Addition to Executive Team

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Awareness, Inc. Announces New CEO

February 28, 2011

Brian Zanghi Takes Over Top Spot at Growing Social Media Management Software Company

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Jane White: America’s Pension Crisis — Where’s the Rage?

February 21, 2011

We should all be inspired by the breathtaking speed that protests against repressive regimes are spreading across the Middle East. It’s amazing how the power of the Internet has enabled these heroes to galvanize the public to take their countries back from the dictators. At the same time, it saddens me that there has been no uprising in the U.S., with the exception of the phony-baloney Tea Partiers ranting about high taxes. While the American public appears to be divided over whether unions should have generous wages and pensions as they do in Wisconsin, they are remarkably complacent when it comes to their own pension poverty. While I don’t blame people for being angry about subsidizing public sector pensions that start at age 50 why don’t they mind that they will probably have to work into their 80s? Most likely because their employers aren’t required to deliver this bad news and the media hasn’t covered this fact until Saturday’s front page Wall Street Journal article . Why is nobody up in arms that the mortgage mess won’t be remedied anytime soon, thanks to lobbying by the financial dis-services industry? I’m sure that’s why Elizabeth Warren was forced to selected leaders of the Consumer Financial Protection Bureau, who are “more friendly to the financial industry,” than to borrowers, according to the Wall Street Journal . The result: we taxpayers will continue to be on the hook for future bank bailouts. It didn’t take long for the newly-elected Tea Party members of Congress to get cozy with K Street, where many lobbyists have their offices in D.C.. As pointed out i n Business Week , according to the Sunlight Foundation, nearly one-fifth of the 87 new Republican House members held fundraisers from lobbyists — as opposed to the constituents who elected them — in early February. “A lot of members did say they were coming to Washington to change it,” Sunlight editorial director Bill Allison told Business Week . “It’s very hard to change it when you are sitting down with the kinds of lobbyists who are interested in keeping the status quo.” Cozying up with lobbyists isn’t simply an easy way to pay off your campaign bills, it ensures you a job as a lobbyist in the event that your constituents throw you and other bums out of office. As I pointed out in my book, America, Welcome to the Poorhouse , this revolving door strategy was dreamed up in 1995 by then-House Republican Whip Tom DeLay of Texas and conservative activist Grover Norquist, calling it the “K Street Project.” The idea: Republicans would take over the big lobbying firms as successfully as they already had taken hold of the House of Representatives. As a result, between 1998 and 2004 some 42% of former House members and 50% of former senators became registered lobbyists. For that reason, don’t be surprised that even if we’re lucky enough to see Sen. Richard Shelby and House Majority Leader John Boehner get thrown out of office they will likely end up with cushy jobs lobbying for the financial dis-services industry. That will be the payback for Shelby, who, as chairman of the Senate Banking, Housing and Urban Affairs Committee opposed credit card reform and a Bush administration proposal for mortgage reform. Bankers and real estate interests thanked him with nearly $2 million in contributions in 2007-2008, ranking him fourth in the Senate. He is also King of Earmarks, having sponsored or co-sponsored 66 earmarks totaling more than $173 million in fiscal year 2010 alone, ranking 19th. And in Boehner’s previous job as chairman of the House Education and Labor Committee student loan-industry officials got him to draft legislation that would prevent borrowers from locking in a low fixed interest rate, along with making it more difficult to extend payment terms. Comedian Lewis Black famously said that the Republicans were the party of bad ideas and the Democrats of no ideas. Those of us who consider ourselves progressives need to get off our butts and take this country back.

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Tony Hsieh: Zappos CEO: In Your Next Speech, Just Wing It

February 18, 2011

Excerpted from #1 NY Times Bestseller Delivering Happiness by Zappos CEO Tony Hsieh In the two years leading up to the announcement of the Amazon acquisition, Zappos started getting more and more media coverage. A lot of people assumed that we must have stepped up our PR efforts, but that wasn’t the case at all. We simply continued doing what we had always done: constantly improving the customer experience while simultaneously strengthening our culture. The funny thing is that a lot of the press we got was for things we had first done several years earlier, such as paying employees to quit during their new hire training or occasionally sending flowers to customers. We didn’t intend for any of the things we were doing to end up in the news or on blogs. But every once in a while, a reporter or popular blogger would pick up on something that we were doing, and the story would spread like wildfire. We were as surprised as anyone else by the publicity because it was never planned for on our end. We learned a great lesson: If you just focus on making sure that your product or service continually wows people, eventually the press will find out about it. You don’t need to put a lot of effort into reaching out to the press if your company naturally creates interesting stories as a by-product of delivering a great product or experience. As our media coverage increased, I started receiving more and more speaking requests for different conferences and industry events. One of my first speeches was at the Footwear News CEO Summit in 2005. I remember I was a nervous wreck, because I hadn’t really done much public speaking before. At the time, I agreed to do it because it would be a good opportunity to tell the Zappos story to a lot of footwear vendors we were still trying to establish relationships with. I wrote out my entire speech beforehand, and then spent a month memorizing it and rehearsing it. I couldn’t sleep the night before my speech. It ended up going okay, and I was relieved when it was finally over so I could catch up on my sleep. Even though I didn’t really enjoy the whole experience, it had a very positive impact on our business, so I was glad I had done it. Over the next year, a few more speaking requests started trickling in. I agreed to all of the with a feeling of dread, but I knew they would help build our business and our brand. I also thought that, as uncomfortable as I was with doing them, they were opportunities for me to grow both personally and professionally. Like anything else in life, I figured that public speaking was just a skill that required practice on a regular basis. Each speech I gave was just another practice session. During my first year of public speaking, I was diligent about writing out my speeches beforehand and memorizing them. It took a lot of time to do, and I would never sleep well the night before my talks. Sometimes, while giving the speech, I would accidentally skip over or forget a sentence or an entire paragraph, which would leave me temporarily flustered on stage as I racked my brain trying to remember the lines I had practiced the night before. With each speech, I found myself slowly improving. But I still didn’t enjoy the actual speaking itself. Even though my speaking was helping build the Zappos brand, I thought that maybe I just wasn’t meant to be a public speaker because I was so uncomfortable with the process, even after having done it for a year. And then one day, I had an epiphany. I realized that nobody knew what I had written down beforehand. Nobody would ever know if I skipped a sentence, a paragraph, or even an entire section. I had also noticed that while people appreciated the content of my speeches, they generally commented about two things afterward. They told me they really enjoyed the personal stories, and they said that, even though many of them had already read about Zappos in the press, it made a huge difference to actually hear it come from me. They told me they could really feel my passion for company culture, customer service, and Zappos in general. So, for my next speech, I tried a completely different approach. I decided not to memorize or rehearse anything. I would just wing it and see what happened. I knew I had a lot of stories I could choose from on the fly to tell, and I knew that as long as I stuck to topics I was passionate and knowledgeable about — customer service and company culture — that I would have plenty of material to draw from to fill the time. When I finally got on stage, I still had some jitters for the first minute or two as I adjusted to the audience and the room. After that, the time just flew by. The audience was more engaged than they had been in my previous talks. I even managed to get some unexpected laughs from moments in my stories when I was just trying to tell a story instead of trying to recite lines from a script I’d written. I would later learn that I had achieved the state of flow . In his book by the same name, researcher Mihaly Csikszentmihalyi describes flow as a type of happiness, in which someone loses sense of time, self-consciousness, and even self. That’s exactly what happened to me. From that point forward, I used the same formula for all of my speeches and found that most of the rest of the stuff that I used to worry about usually just fell into place. I just went by three basic rules for my talks: 1. Be passionate. 2. Tell personal stories. 3. Be real. I made the mistake once of agreeing to speak at a conference about a topic that I wasn’t actually passionate about. Even though I knew all the content inside and out, I wasn’t able to speak passionately, so my performance turned out to be only okay. But it was a good learning experience. Today, whenever I’m invited to speak somewhere, I let them know that I will only speak about certain subjects, which may or may not match the overall theme of the conference. I then leave it up to the conference organizers to decide whether they are okay with that or not. Usually they are fine with it, but occasionally not. In those instances, no matter how much money the conference is offering to pay Zappos and no matter how good an opportunity it would be for Zappos to be exposed to that audience, I always do the same thing. I politely decline.

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Richard (RJ) Eskow: Hank Paulson: Ex-Goldman Sachs CEO, Ex-Bush Treasury Secretary, and Ex-actly Right

February 17, 2011

Somebody said that regulators need real power in order to be tough and effective. He said a strong, independent consumer protection agency is needed to help prevent the next financial crisis. And that we should help the millions of “responsible” homeowners hurt by the crash, instead of demonizing them. This guy described Fannie and Freddie’s assets as “bullsh*t capital” — $5.4 trillion of it, with taxpayers on the hook and potential debtors that included China and France. He also said this about the whole notion of privatizing a government activity: “To me, if there’s a guarantee, they should be a (government) utility (rather than a private company) — why should people get wealthy off of a government guarantee?” So who is this socialist — Noam Chomsky? He’s Hank Paulson, former Goldman Sachs CEO and Bush’s Treasury Secretary during the 2008 meltdown. Paulson’s interview with the Financial Crisis Inquiry Commission may leave you wishing he was still in Washington. The clarity of his comments highlight the absurdity of those politicians who claim that the FCIC reached a “partisan” conclusion. Here’s a Wall Street powerhouse and GOP stalwart who’s saying the same things — and more. Paulson didn’t just express opinions to the FCIC. He also provided anecdotes that illustrate the real problem with Fannie, Freddie, and the entire “privatize government” movement: When you give government backing to people with private-sector incentives, very bad things happen. So as the media distracts itself (and us) with the power struggle between Democrats and Republicans, a conflict it insists on describes as the “left” versus the “right,” Paulson described problems and their solutions in ways that neither party’s leaders are willing to discuss. Paulson spoke to FCIC staff last April, and an internal memo summarized that conversation: Not enough regulation + no consumer protection = catastrophe Here’s how the memo summarized Paulson’s thoughts, under the heading “Sec. Paulson’s Evaluation of Root Causes of Crisis” (all emphases in these excerpts are mine): Sec. Paulson stated that the root causes of the crisis were housing policy in addition to the lack of regulation . He explained that many mortgages had big regulatory gaps and many mortgages issued in many number of states did not have an adequate regulator. Sec. Paulson recommended including in a regulatory blue print a consumer agency that focuses on consumer protection and a mortgage origination commission that evaluates the training and regulation that goes on a state level and will be able to evaluate the different programs so investors would be informed . [ pdf ] Look at what Paulson’s saying: We need more regulation (“regulatory gaps”) and more regulators. We need a “consumer agency that focuses on consumer protection” (we now have the Consumer Financial Protection Bureau — it was downgraded from an agency to a bureau by the Senate). We need better training and regulation at the state level (banks are now trying to overrule state regulations to escape the consequences of foreclosure fraud). Investors need to be better informed about where there investments are going (Mr. Paulson’s former company is, of course, a major offender in this area). How many of these ideas are being promoted today by either party? And about that “housing policy”: This may sound like the old right-wing theme that it’s over-reaching when government tries to help poor people, but that’s not what he’s saying. As I hear it, he’s saying that many people were encouraged to buy homes who would’ve been better off renting. The problem wasn’t that government was too activist, but that the “ownership society” idea (and other government policies, including taxation) used government to encourage over-borrowing by some homeowners, enriching financial speculators while creating needless risk for borrowers. A lot of innocent homeowners got hurt — and they weren’t getting enough help. Paulson held town hall-style meetings in hard-hit real estate markets like Burbank, Stockton, Orlando, Chicago, and Kansas City. “I was literally sickened in terms of what I saw in terms of what had happened to some people, the terms of the mortgages,” he told the FCIC staff. He added that “lending essentially shut down on the private side, so now we were in a situation where very responsible people who wanted to buy or refinance to prevent losing their homes under very reasonable terms were having difficulty doing so.” Paulson described his own efforts to get loans out to these homeowners, which met with strong resistance from Fannie and Freddie’s badly-incentivized executives. Since Paulson left office, the current Administration’s HAMP program has only helped a few hundred thousand people although an estimated eleven million homes are considered at risk for foreclosure, and HAMP has harmed many others through the “extend and pretend” phenomenon. Meanwhile the House is planning to eviscerate funding for all housing programs in the next budget. Ideological battles diverted Congress from the task at hand. It’s ironic how many politicians who get campaign money from Wall Street banks — banks which continue to collect billions in indirect government assistance — resist anything that might help homeowners, because American families who obtained mortgages from those banks are supposedly “undeserving.” From the FCIC memo: According to Sec. Paulson, the “march to reform” in 2008 was diverted because of “really what were inconsequential battles” in the House over the Hope for Homeowners legislation, which he called a “a flash point” in the debate about on one hand, bailing out irresponsible individuals, and on the other hand inflating the number of individuals it would actually help … the battle over the program delayed GSE regulatory reform from being accomplished. In other words, Representatives were trying so hard to score points by knocking homeowners that they delayed action on the big-picture reforms that were so desperately needed. Significantly, ten Republican on the House Financial Services Committee crossed party lines to join with Democrats in forwarding Hope For Homeowners to the floor of the House, proving once again that common-sense reform needn’t be and shouldn’t be a partisan issue. By privatizing Fannie and Freddie, we created a monster. Intentionally or not, Paulson paints the picture of a monster: A company run by private-sector sharks, backed by government guarantees but unwilling to help the government carry out its policy — and aggressively lobbying to undermine the very principles that led to its creation. From the FCIC memo: “I had been trying to work regulatory reform through Congress, the House was not a problem, the Senate was a big problem” … Sec. Paulson said that he felt it was necessary to get the GSEs on board with reform … “I wanted them [the GSEs] to reiterate in front of the Senators the commitment to raise capital,” Sec. Paulson said. “And also, we had figured out that we were not going to get regulatory reform done if they opposed it. They had a lot of contacts on both sides of aisle, and were enormously effective , and they had different views …” Here’s what Paulson doesn’t say: Like Sallie Mae , the institution created to issue government-backed student loans, Fannie and Freddie were privatized and then went on a lobbying rampage designed to undermine their very own mission in order to further enrich the executives in charge. Paulson ran into roadblocks when he tried to get these “government sponsored enterprises” to collaborate with the government during an emergency. “Regulators were downplaying [the capital situation],” said Paulson. “There was a little bit of regulatory capture going on, I think.” That’s an understatement: He’s referring to $5.4 trillion in loose securities that had the implicit guarantee of the Federal government. $1.7 trillion was held by foreign countries, and Paulson explains how messy it became when he tried to explain this illogical and risky public/private marriage to leaders from countries like China and France. From the memo: Sec. Paulson said that the enterprises had “flimsy capital” and he said that some people referred to it as “bullshit capital,” (the deferred tax asset, for example), and that the regulator had no discretion to use its judgment with respect to the level of capital. Added to that, the country promoted a policy where the companies were chartered by Congress, “try to go around the world and explain to one leader after another what this implicit-not-explicit government guarantee was about. To me, if there’s a guarantee, they should be a utility — why should people get wealthy off of a government guarantee? Regarding those regulators, Paulson’s putting it mildly. Fannie and Freddie’s overseers ” didn’t have the power of a normal safety and soundness regulator,” as he put it, adding: “I don’t want to leave Washington without there being some major attempt to make it better and get a regulator who was more power.” Overall, Paulson paints the picture of runaway enterprises that were designed to fulfill a government mission but structured to do what private corporations do – with the corrupting influence of government guarantees creating a recipe for disaster. The end result was almost inevitable: Overly aggressive and reckless officers, backed by a Board of Directors Paulson described as “cheeky” and uncooperative. Despite this experiences, what’s the most popular recommendation in Washington these days for reforming Fannie and Freddie? Making them even more “privatized.” Somebody really ought to listen to Hank Paulson. In fact, why not put him in charge of the SEC? I know, I know: He’s ex-Goldman. But hey, Joe Kennedy did a damned good job at the SEC under Roosevelt. This guy’s learned a thing or two, and we could use him now. Besides, nobody ever called Hank Paulson a socialist. Richard (RJ) Eskow, a consultant and writer (and former insurance/finance executive), is a Senior Fellow with the Campaign for America’s Future. This post was produced as part of the Curbing Wall Street project. Richard also blogs at A Night Light . He can be reached at “rjeskow@ourfuture.org.” Website: Eskow and Associates

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Financial Crisis Inquiry Commission Report Creeping Onto Best-Seller Lists

February 16, 2011

Good news for people who like the published findings of government inquiries! “The Financial Crisis Inquiry Report,” by the Financial Crisis Inquiry Commission, is something of a modest best-seller. And the chairman of the commission, Phil Angelides, is doing book signings . Dale Kasler of the Sacramento Bee has the good news : While it’s no threat to “The Girl with the Dragon Tattoo” mysteries, the book has climbed up several charts since its release in late January. The report, which documents the causes of the 2008 crash in the financial markets, is No. 10 on the New York Times’ list of best-selling nonfiction paperbacks, for instance. It’s also made lists compiled by the Washington Post and USA Today. It sounds pretty good to me that people are taking an interest in the commission’s findings. If you’d like some recommendations for further reading on the subject, I personally enjoyed Diary Of A Very Bad Year: Interviews With An Anonymous Hedge Fund Manager , 13 Bankers , and I.O.U.: Why Everyone Owes Everyone And No One Can Pay . Kasler reports that the commission’s report had an initial print run of 25,000 copies, which have sold well enough that its publisher, Public Affairs has “since run off another 5,000 copies.” It’s also available as a Kindle edition . To put this in perspective, it’s still lagging behind the all-time best selling government inquiry report, “The 9/11 Commission Report,” which “sold more than 1 million copies.” SPOILER ALERT: The financial crisis was “avoidable.” Also, Dumbledore dies. (By “Dumbledore,” I mean “the entire economy” and “most of the jobs.”) RELATED: ‘Financial Crisis Inquiry Report’ book is a best-seller [Sacramento Bee] PREVIOUSLY, on the HUFFINGTON POST: Financial Crisis Inquiry Commission’s 10 Major Findings [Would you like to follow me on Twitter ? Because why not? Also, please send tips to tv@huffingtonpost.com -- learn more about our media monitoring project here .]

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Pandora To Raise 100M Via IPO

February 14, 2011

Pandora Media is seeking to raise about 100 million in an initial public offering

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Yvette Kantrow: Access Davos

February 13, 2011

Filled with self-styled straight shooters who claim to be beholden to no one, the blogosphere has long positioned itself as an antidote to the so-called access journalism racking the mainstream media, most infamously during the run-up to the Iraq War and, more recently, in the run-up to the financial crisis. Because they rely heavily on high-level, establishment sources for their stories, the argument goes, mainstream journos — think Judith Miller — must censor their own reporting or risk losing access to the machers in the corridors of power. The blogosphere, with its emphasis on commentary, analysis and citizen journalism, claims to be unfettered by such restraints. After all, people don’t visit blogs to read worked-over quotes by a CEO or a government official. Against that backdrop, it’s pretty weird to witness the growing army of bloggers who now flock to the World Economic Forum in Davos, the ne plus ultra of access journalism. Bloggy new-media types like Arianna Huffington and Jeff Jarvis have been schlepping to Switzerland for years, and they have more recently been joined by financial bloggers, including Business Insider’s Henry Blodget and Reuters’ Felix Salmon. Then there are the big media outlets including The New York Times , Time Inc. and CNBC, which conduct interviews with bigwig attendees from the mountaintop. Indeed, Davos seems tailor-made for access-obsessed CNBC, which specializes in providing a friendly forum for CEOs and other muckety-mucks to talk directly to viewers. But what of Salmon, Blodget and their ilk? What do they get from a conference where most of the “real” action takes place behind closed doors while reporters lurk in hallways or at parties hoping to nab a few moments with a Big Name attendee? Faced with this reality, bloggers employed a different strategy in Switzerland this year: They went to Davos not to cover it, but to mock it. Blodget, who vowed to give his readers ” The Truth About Davos ,” judged it to be “just like high school.” Salmon declared: “Just about everything in Davos is ridiculous in its own way. It’s like Disneyland.” And Harvard Business Review’s Justin Fox, in his ” Obligatory Pre-Davos Post! ,” admitted that when he was blogging for Time.com “traffic fell off markedly as soon as I started posting from the Swiss Alps… There’s seldom much in the way of news generated at Davos, and most people aren’t itching to hear a soundbite from CEO or government official rushing between meetings.” That message wasn’t lost on Timesman Andrew Ross Sorkin, who in a conference missive outed the high cost of being a Davos Man (as much as $622,000, depending on the size of your entourage). Sorkin’s piece was hailed as a standout by the New Yorker’s John Cassidy, who was not at Davos, while Blodget told readers that everyone at the event was talking about it. That’s nice, but the story seemed a tad hypocritical, given the Times ‘ symbiotic relationship with Davos. Arthur Sulzberger Jr. was at the confab, as were Thomas Friedman and Nicholas Kristof — Davos Men of the highest order — plus Sorkin and other Times scribes who were covering it. How much the cash-strapped New York Times Co. spends to have them there Sorkin’s piece did not say. Perhaps that’s because Sorkin is on his way to becoming a Davos Man himself — Blodget blogged that Sorkin is “a god” around Davos “and quite possibly the first one invited to every party.” And why would a god want to anger his people? But Sorkin’s piece was indicative of the type of snark that the media, particularly the new media, brought with it to Davos this year: sharp-tongued enough to protect itself against charges of being too cozy with the global elite, but soft enough to ensure that its authors will get invited back. Despite all the negative coverage, few journos, including bloggers, seem able to resist the invitation and the proximity to power. Indeed, after spending a few days at the conference, Blodget gave its corporate attendees a big wet kiss, concluding that for executives, the business meetings they conduct at Davos “can end up being vastly more valuable than the price of admission.” OK, fine, but if Davos is nothing more than a big networking event, doesn’t that make all the Big Thoughts a farce? In the blogosphere, only Salmon seems to have stuck to his guns and left the confab as disgusted by it as when he arrived. Moving from snark to satire, he lauded Davos for “deftly leveraging the talk around its chosen theme — ‘shared norms for the new reality’ — into an effective and timely intervention in Egypt.” Well done. But whether that conclusion required a trip to Switzerland is another question.

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Pandora Tunes Up For IPO

February 12, 2011

SAN FRANCISCO — Popular Internet radio service Pandora is tuning up for an IPO later this year. In documents filed Friday, Pandora indicated it would raise $100 million with an initial public offering stock. That figure will likely change as bankers gauge the demand to invest in or an 11-year-old company that has helped change the way people listen to music. A target price for the shares won’t be set until the IPO is closer to happening. The offering probably won’t happen for at least three months. Pandora’s decision to go public is the latest sign that Internet companies sense the time is ripe to mine the markets for money amid growing excitement about digital media and online networking. Demand Media Inc., an online service that hires freelance writers to go write stories about frequently searched topics, made a big splash with its IPO last month and professional networking service LinkedIn Corp. filed its IPO papers last week. In the past few days, AOL Inc. agreed to buy online news and opinion service Huffington Post for $315 million and The Wall Street Journal reported that online messaging service Twitter may now be worth $8 billion to $10 billion. Online coupon service Groupon Inc. is expected to go public later this year and Facebook – the most prized of all privately held Internet companies with a market value recently pegged at $50 billion – may file its IPO papers next year. Given the growing fervor for widely used Internet services, it makes sense for Pandora to make the IPO leap now, said Inside Digital Media analyst Phil Leigh. “It’s kind of like nuclear fission; we’re seeing a chain reaction of these things,” he said. Pandora Media Inc. started out in 2000 as a music recommendation service called Savage Beast Technologies. It changed its name in 2005 when it launched an Internet radio service that allows people to stream music over the Web – enabling users to tailor playlists suited to their tastes to listen whenever they want, wherever they want to be. The idea came from Pandora founder Tim Westergren, an avid musician who also has worked as a record producer. Westergren, 45, is now the company’s chief strategy officer and one of its largest stockholders with 3.6 million shares. Joseph Kennedy, a former salesman for automaker Saturn Corp. and executive for online banker E-Loan, has been Pandora’s CEO since 2005. He owns 4.2 million Pandora shares. Other major shareholders in line for a potential windfall are venture capitalists Crosslink Capital, Walden Venture Capital and Greylock Partners. Those three firms collectively own about 85 million shares. Hearst Corp., a major newspaper and magazine publisher, also is a major stockholder with 8.7 million shares. Pandora lets users create “stations” by typing in the name of an artist or song on its site: The site’s software uses that information to create a personalized stream of music that may include the artist or song you indicated plus other similar music. If you like a song, you can give it a thumbs-up. Songs you don’t enjoy can be skipped, but you can only skip a limited number of songs. Pandora users have created more than 1.4 billion stations thus far. In addition to its website, Pandora.com, Pandora also offers several apps that enable its use on smart phones like the iPhone and phones that run Google Inc.’s Android operating software. The basic Pandora service is free, with most of its revenue coming from advertising, just like traditional radio stations. Users can pay more to get rid of the ads, enable unlimited listening time and more “skips” and receive higher-quality songs. Most people apparently are willing tolerate the ads. The IPO documents said 86 percent of Pandora’s revenue came from advertising in its fiscal year just completed Jan. 31. The company has lost $83.9 million since its inception and remains unprofitable, according to Friday’s filing. In the first nine months of its last fiscal year, Pandora suffered a $328,000 loss on revenue of $90.1 million. The filing said its independent auditor determined there was “material weakness” in Pandora’s financial reporting practices. The company said it’s trying to fix the problems. .

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Dean Baker: Arithmetic and the Fannie/Freddie Fix

February 10, 2011

Arithmetic is a skill that is in short supply among economists in policymaking positions. The Obama administration is about to come out with its plans for replacing Fannie and Freddie. The word in the media is that the administration will propose a range of options, with one option maintaining a Fannie/Freddie type structure and one option going to a completely private system for the main sector of the housing market. (Presumably the Federal Housing Authority would remain in place even in the private system to provide credit to moderate income households.) The third option, that apparently many Washington policy wonks are smiling upon, is a hybrid system with private institutions buying mortgages with a government guarantee standing behind them. (Depending on the construction, the government may either guarantee the institution or the mortgage backed security — more likely it will be the latter.) According to a new paper by Moody’s, this sort of hybrid system will reduce the cost of a 30-year mortgage by 90 basis points (9/10ths of a percentage point) compared to a purely privatized system. The Moody’s analysis also calculates that it will raise house prices by 8 percent compared to a privatized system. There are some reasons for skepticism about the Moody’s estimates of the cost advantages of the hybrid system, most notably that the spread between jumbo mortgages, which are not bought by Fannie and Freddie, and conformable mortgages that go into the Fannie and Freddie pools has generally been just 25 basis points. Even in the current environment, it is just 75 basis points, so a spread between mortgage rates in a purely private system and hybrid of 90 basis points seems somewhat high. But let’s just take the Moody’s estimates at face value and have some fun with numbers. The median house price is currently around $170,000. Prices are still falling, but let’s assume for the moment that we freeze them at their current level. Let’s see what the picture looks like. I got the mortgage rates by assuming that the typical 30-year mortgage rate under the current system has been around 6.0 percent. The Moody’s paper assumes that it will rise by about 20 basis points under their hybrid system. This gives us a 6.2 percent rate. If we add another 90 basis points for the purely private system, we get the 7.1 percent rate shown above. So taking the estimates from the Moody’s analysis exactly as written, we find that the hybrid system will save the buyer of the median home about $8 a month on their mortgage. The basic story is that the benefit of the lower interest rate is largely offset by the fact that buyers will have to pay more money for their house. So, is it important to set up a whole new system of finance, with all the regulatory problems with which we are now quite familiar, in order to save homebuyers $8 a month on their mortgage? But wait, there’s more. One big obstacle to homeownership is the downpayment. In both cases we have assumed a 20 percent downpayment, the standard for a conformable mortgage. In the case of the private system this requirement means that homebuyers would need $31,280 in cash. In the case of the hybrid model, following Moody’s estimates, they would need to come up with $34,000 in cash. That might not be easy for many first-time buyers. But wait, there is still more. In most parts of the country people pay property taxes on their homes. Let’s assume that the tax rate is 1.0 percent, which is somewhere near the average. Let’s see what happens to those monthly payments now. Hmmm, now it looks like our homeowner comes out somewhat worse under the hybrid system. It seems that their savings on mortgage payments is more than offset by higher property taxes. This one is not looking really good. But, in the spirit of old-fashioned late night TV commercials, there is still more. The current value of residential real estate is around $16 trillion. if we take the Moody’s numbers at face value then it will fall by roughly $1.3 trillion to $14.7 trillion under the private system. The housing wealth effect is around 6 percent, meaning that an additional dollar of housing wealth leads to 6 cents in additional consumption each year. This means that this should lead to a decrease in annual consumption and an increase in annual saving of around $78 billion, a bit more than 0.5 percent of GDP. This would be a large increase in saving. While higher savings (and less consumption) would not be helpful at the moment, with the unemployment rate near 9.0 percent, when the economy is near full employment, higher savings means more investment and more growth, at least in standard economic models. And increasing savings by a half percentage point of GDP is a big deal. So, what have we learned about the relative merits of the private system and the hybrid model? Well the hybrid model will mean slightly lower monthly mortgage payments, but this benefit is likely to be offset by higher property taxes. The higher house prices in the hybrid model will mean that it will be more difficult for first-time buyers to come up with a downpayment. And, the wealth effect associated with the higher house prices in the hybrid model will mean lower savings and less growth. We could also point out that financial intermediaries (e.g. Goldman Sachs and J.P. Morgan) would stand to make more money on housing in a hybrid model, but there is no reason to get into such details.

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Dal LaMagna: "Hail Mary" or "Hail Arianna"?

February 8, 2011

Ken Auletta at the New Yorker is saying that the AOL acquisition of the Huffington Post is Tim Armstrong’s “Hail Mary” pass for AOL. Since yesterday’s announcement AOL’s stock has been failing towards its yearly lows of $19.52 now at $20.50 as I write this. I say this is a “Hail Arianna” pass that will be caught. How can one person make the difference in the fortunes of a company? Think Steve Jobs of Apple, Larry Ellison of Oracle, Bill Gates of Microsoft, Larry Page of Google, and Mark Zuckerberg of Facebook. Arianna is now the president of the Huffington Post Media Group an AOL Company with a domestic audience of 117 million people. I was an original investor in Arianna Huffington’s Huffington Post back in March of 2005. Why? I wanted to see an effective progressive voice operating online. Back then Arianna was a consummate blogger who relentlessly and effectively articulated many of our frustrations with the Bush administration particularly its march into Iraq. Back then Arianna met Ken Lerer a genius strategist and teamed up with him to create the Post. Ken helped built the infrastructure around Arianna turning the blogger she once was into an institution. Last year Arianna met Tim Armstrong the new CEO of AOL and now he teams up with her supplying the infrastructure that multiplies the reach of the Post fivefold. Yes, I made a very nice return on my investment. I am using part of it to aggressively buy up AOL stock and while saying my Hail Ariannas.

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Raymond J. Learsy: Risks to the Suez Canal Set the Stage for Falsely Hyping the Price of Oil

February 6, 2011

Over the past days, the airwaves and talking heads have been frightening us with somber predictions of what would happen to the price of oil should current events in Egypt shutter the canal. The oil boys and their allies can barely contain themselves in their appearances of concern and like minded predictions of calamity, such as today’s Reuters report quoting Imad al-Atiqi, member of Kuwait’s Supreme Petroleum Council — “I expect oil to reach $110 during the first half of 2011… A huge amount of oil passes through the Suez Canal…” thereby ever nudging oil prices skyward with Brent Crude already surpassing $100 a barrel. Yet has anyone stopped to determine what the closure of the Suez Canal would actually mean to the oil market in dollars and cents? In the shipping world the type of vessel that can transit the Suez Canal has its own designation, named a “Suezmax” category. The typical deadweight of a Suezmax oil tanker is about 240,000 tonnes. Now, approximately 7.1 barrels of oil make up one metric tonne. Therefore a 240,000 tonnes deadweight tanker carries some 1.7 million barrels of oil. According to the New York Times , “Taking cargo around Africa would add about 16 days time to delivering oil to world markets.” Calculating a per diem charter rate for a Suezmax tanker at $50,000 per day (and probably less), brings the additional cost of transporting a cargo of oil, lifting 1.7 million barrels around Africa to $800,000 per voyage. More to the point, the additional cost per barrel of oil would be 47 cents per barrel. And these 47 cents would apply only to the some 1.8 million barrels of crude oil that are transported through the canal (an additional 2mm plus barrels can be transported through Egypt overland via the Sumed pipeline). The additional cost of $800,000 for transporting these 1.8 million barrels around the horn of Africa, distributed over the world’s daily consumption of oil of 85 million barrels, would settle out at just under a penny per barrel. All said, the additional 16 days would be a problem if the oil market were in a state of hand to mouth. Fortuitously, oil stocks are bulging throughout the world and the sixteen days additional steaming time can be easily accommodated with ample leeway to alter delivery schedules factoring in these changed logistics. Clearly, the closing of the Suez Canal to the oil trade would be a hindrance but hardly the disaster portrayed in the media and our friends at OPEC.

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Robert L. Cavnar: BP Wins: EPA Will Agree to Cut Oil Spill Estimate

February 2, 2011

I know I keep saying it, but I told you so .

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Dean Baker: Debts Should be Honored, Except When the Money is Owed to Working People

January 31, 2011

This seems to be the lesson that our nation’s leaders are trying to pound home to us. According to the New York Times , members of Congress are secretly running around in closets and back alleys working up a law allowing states to declare bankruptcy. According to the article, a main goal of state bankruptcy is to allow states to default on their pension obligations. This means that states will be able to tell workers, including those already retired, that they are out of luck. Teachers, highway patrol officers and other government employees, some of whom worked decades for the government, will be told that their contracts no longer mean anything. They will not get the pensions that they were expecting. Depending on the specific circumstances, they may find their pensions cut back 20 percent, 30 percent, perhaps even 50 percent. There would be no guarantees if a state goes into bankruptcy. There has been a concerted effort to bash public sector employees by either highlighting the few instances where pensions actually are exorbitant or just making things up. Untruths about Goldman Sachs, General Electric or any other major company rarely appear in the media, and are usually quickly corrected when they do. However, exaggerations or outright fabrication are a standard practice for those who report on state and local budgets when it comes to public employees. The public has been bombarded with stories of public employees retiring with six-figure pensions while still in their early 50s. There may be some instances of such inflated pensions, but that is far from the typical story. If we look to New York State, the hotbed of bloated public budgets, we find that the state’s main retirement system pays an average pension of $18,300 a year . For many workers this is their whole retirement income since they were not covered by Social Security. This is the general story of public pensions. Public sector workers are often better situated than their private sector counterparts, in that they even have pensions. But study after study shows that these workers paid for their pensions with lower wages than their private sector counterparts. It is tragic that so many private sector workers cannot count on a secure retirement, but it won’t help them to make workers in the public sector equally insecure. And, there is the matter of paying debts. State governments are legally obligated to pay retirees the pensions they worked for just like any other debt. It is fascinating to see the interest by many pro-business conservative types in defaulting on this debt. Many of these same people have been determined to argue that homeowners who are underwater in their mortgages should pay their debts. They certainly have not been offering them any assistance in staying in their homes. In fact, back in 2005, some of the same crew were busy re-writing the bankruptcy law. They wanted to make it harder for individuals to get out of their debt through bankruptcy. They felt it was so important the people paid their debts to credit card companies and other lenders that they actually applied the law retroactively. People who took out debt under one set of bankruptcy rules suddenly found that Congress had changed the rules after the fact and they would now be subjected to a much harsher set of bankruptcy rules. Let’s see if we can find a pattern here. When families take out a mortgage in the middle of a housing bubble, which may have been misrepresented at the time of sale, the homeowner has an obligation to repay the money to the bank. When people take on credit card debt, they absolutely have an obligation to repay the bank – even if it means changing the rules after the fact. However, when the government signs a contract with workers, it doesn’t have to pay the workers’ pensions if it proves to be inconvenient. Of course, we may also throw in the fact that when the flood of bad mortgage loans issued by the banks threatened to push them into bankruptcy, the Treasury and the Fed give them trillions of dollars of loans at below market interest rates. There certainly seems to be a pattern here. The story has nothing to do with preferences for the market or government intervention. The picture here is very simple: The rules get changed whenever it is necessary to make sure that money flows upward from ordinary workers to the rich. In 21st century America, upward redistribution seems to be the guiding principle.

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The Next Generation Of Wikileaks

January 28, 2011

BERLIN (By Mark Hosenball) – All across Europe, from Brussels to the Balkans, a new generation of WikiLeaks-style websites is sprouting. Like their forerunner, the fledgling whistle-blowing sites are a chaotic mixture of complex systems engineering, earnest campaigning, muckraking and self-promotion. And though their goals are varied, the activists behind the sites told Reuters that they share one major concern: they all vow not to repeat mistakes they believe were made by Julian Assange, the controversial WikiLeaks creator. The proliferation of websites to encourage, facilitate and shelter leakers is so anarchic that two aspiring anti-corporate leak sites are both claiming rights to the rubric “GreenLeaks” and muttering about legal consequences if the other side doesn’t back down. The most closely watched rollout in the leak-hosting world was the launch on Thursday of OpenLeaks.org, a site whose principal creator, German transparency activist Daniel Domscheit-Berg, was once Assange’s closest collaborator. Domscheit-Berg, who used the pseudonym “Daniel Schmitt” as Assange’s official WikiLeaks co-spokesman, says he doesn’t believe, as Assange initially did, that confidential material should just be dumped on the Internet. The bare-bones mission statement posted on OpenLeaks describes Domscheit-Berg’s vision as both a safe-deposit box and a social networking site for leakers and their consumers. Other WikiLeaks copycats, spinoffs and wannabes are germinating: activists say they have learned of recent launches of leak-accepting websites focused on specialized topics or regions — from Russia and the European Union bureaucracy to international trade and the pharmaceutical industry. Major news organizations are also moving to establish web-based mechanisms for receiving leaks directly, such as electronic “drop boxes” which would enable leakers to feed the media outlets directly, cutting out middlemen like Assange. “THE ARCHITECT” The most ambitious and potentially far-reaching WikiLeaks spinoff to surface this week is Domscheit-Berg’s OpenLeaks, which its founder describes as a mechanism both for putting together leakers with knowledgeable recipients and for linking leak-consuming organizations to each other. The burgeoning Wikiworld has been eagerly anticipating Domscheit-Berg’s next project since his falling out with Assange last year. The two became estranged following an e-mail exchange in which Assange summarily suspended Domscheit-Berg as WikiLeaks co-spokesman for allegedly leaking information to the media about growing concern among other WikiLeaks activists about Assange’s private life. Domscheit-Berg subsequently quit WikiLeaks, denouncing Assange for “acting like an emperor or slave trader.” He took with him other more shadowy figures who had been important collaborators with Assange in creating key elements of WikiLeaks’ leak-handling systems architecture. One of the defectors was a programer known to most insiders simply as “The Architect.” Described by colleagues as at least as brilliant at programing as Assange, The Architect was the principal designer of the systems WikiLeaks used to produce Assange’s greatest public triumphs last year, the distribution of hundreds of thousands of classified U.S. government reports. In a conversation with Reuters on Thursday from Davos, Switzerland, where he appeared on a World Economic Forum panel devoted to “Confidentiality and Transparency,” Domscheit-Berg said his WikiLeaks experience had convinced him of the wrongness of Assange’s view that the website should publish raw information and let others sort through it. (Assange’s approach subsequently appears to have matured, as demonstrated by WikiLeaks current snail-like release of its cache of 250,000 U.S. diplomatic cables.) Domscheit-Berg said WikiLeaks taught him that huge efforts have to be made to authenticate, analyze, filter and if necessary redact leaked secret documents before making them public. He said that WikiLeaks also demonstrated that a top-down group like WikiLeaks, which Assange by his own account rules like something of an absolute monarch, might not be the best model to undertake painstaking pre-publication reviews of complex, and potentially damaging, data. He said his concept is to create a new network through which leakers of any kind — government, corporate, environmental, whatever — could make confidential submissions to groups that could make use of them. OpenLeaks itself would not evaluate, let alone publicly release, the information. Instead it would convey it from leaker to leakee. The plan is to create a central web architecture for moving confidential documents from leaker to recipients, and then recruit organizations from the media, NGO world and labor movement, to become partners in the network he is creating. With his system — which is still being put together, and which, according to some activist sources, has had to postpone its launch date more than once — would-be leakers could anonymously approach OpenLeaks to be connected with a group of OpenLeaks partners who would have the resources and expertise to process their data properly, or with a single leak recipient. Leakers wanting to connect with a single recipient, such as a specific media outlet, would be able to. But Domscheit-Berg says that in most cases OpenLeaks’ practice would be that the individual media organization receiving a leak would have only a limited embargo period, usually a few weeks, to analyze the material and decide how or whether to use it. After that, the leaked material would be shared with all partners in the OpenLeaks project. Domscheit-Berg says this system is designed both to provide leaks exposure to a wider circle of potential expertise and publicity and also to encourage partners to share more information among themselves. “We’re trying to be a gatekeeper but actually enabling everyone else,” Domscheit-Berg said. If a leaker wanted the material never to be shared beyond a single initial recipient, he said, that could be arranged. Domscheit-Berg said that at some point he hoped to establish a foundation to help raise funds for not just OpenLeaks operations but also research legal and political issues related to transparency and disclosure. He said none of the partners joining the OpenLeaks network would be asked to make any direct financial contribution, and that OpenLeaks would not generate revenue by brokering information. Instead, he said, OpenLeaks will suggest that potential partners with large servers contribute computer time or space to help build the network. Some internet activists and journalists who heard details of Domscheit-Berg’s scheme before its official launch are already raising questions. They wonder whether the plan is too complicated and how the system will fulfill promises to leakers that their material will only be shared with limited recipients if that’s what the leaker wants. Domscheit-Berg said that leakers and partners would have to operate on a measure of “trust.” He declined to discuss the role “The Architect” or other activists would play in crafting OpenLeaks’ technical infrastructure, other than to acknowledge that some of his new site’s “technical people … were with WikiLeaks.” “COUNTERINTELLIGENCE FOR THE EARTH” Of more immediate interest to oil, mining and other natural resources industries might be the launch of two websites which say they intend to become conduits for corporate insiders wanting to blow the whistle on environmental abuses. But the race to set up environmentally-oriented websites under the rubric “GreenLeaks” became slightly toxic earlier this week when groups of activists in Denmark and Germany, who say they have been working independently for months on creating infrastructures in cyberspace and assembling networks of lawyers and experts to process leaks, learned of each others’ existence. The rival groups were not pleased to discover they had become involved in a competition. Representatives of both groups say they are willing to discuss their visions with each other. But each side is also assessing possible legal moves. The leader of one of the groups told Reuters that his lawyers may file legal papers challenging his rivals’ activities before the end of this week. The creators of both “GreenLeaks” websites each say they came up with the idea independently and have already expended considerable energy working on both legal and technical aspects of their sites. As the rival sites’ founders describe them, each site has its own quirks and merits, which in theory could complement each other. But for now, the two sites are glowering at each other, hoping their antagonist will blink first. A group based in Denmark has registered the Internet domain name “GreenLeaks.org” and said it has applied to trademark it as well. Based in Copenhagen, the group is led by Internet advertising executive Mads Bjerg and backed by his boss Jacob Hagemann, head of Searcus, a Copenhagen ad agency that specializes in crafting ads linked to internet searches. Bjerg’s project has been endorsed by Birgitta Jonsdottir, a member of Parliament in Iceland who was once a close collaborator with WikiLeaks and Assange. (After Swedish authorities opened a sexual misconduct investigation against him, Jonsdottir fell out with Assange and denounced him.) Bjerg has also been in contact with OpenLeaks via one of Domscheit-Berg’s collaborators, an Icelandic former WikiLeaks volunteer named Herbert Snorrason who uses the OpenLeaks handle “Odin”. In two days of interviews with Reuters at restaurants, lawyers’ offices and the houseboat where he lives, Bjerg said he had recruited a group of prominent Danish lawyers, journalists and activists to help him build GreenLeaks. He said he already had an idea about landing a big leak — though he wouldn’t say what it was — and said that other supporters of his project included an unidentified former official of a European intelligence service, who would help his site with security issues. Bjerg said that on January 17 he launched a homepage with a “GreenLeaks.org” logo (and little, if anything, else) and added: “Money is not an obstacle right now.” He declined to identify how much financial support his site had or where it came from. He said at the moment volunteers were offering help. His ambition for the site is expansive. “We want to be the authority when it comes to leaks about nature, the climate and the environment … The voice of the Earth … Counterintelligence agency for the Earth, you could say.” Bjerg said journalists and activist groups — including the Nordic branch of Greenpeace — have already pledged support to GreenLeaks.org. DanWatch, a non-profit investigative journalism group which gets funding from both the Danish Government and the European Union, has also affiliated itself with Bjerg’s website. Anne Skjerning, DanWatch’s director, said that her group, which specializes in corporate exposes, had “a hard time getting information on companies because it’s confidential.” She said that a GreenLeaks website “would be a big help for us” as a conduit through which anonymous leakers could supply inside information. Bjerg said that Thorkild Hoyer, a prominent Copenhagen lawyer who specializes in human rights, has agreed to serve as one of the group’s spokespeople. But responsibility will be shared among activists and supporters, and there will be no cults of personality. “We do not want this organization to be led by one person,” Bjerg said. “As we saw with WikiLeaks, certain things can work against an organization if the initial financier is also the early programer and chief editor.” The competitor to Bjerg’s GreenLeaks.org is being put together by Scott Millwood, an Australian documentary film-maker based in Germany. Over lunch in a Berlin sushi bar, Millwood told Reuters his group acquired the domain name GreenLeaks in 36 countries where it also has registered GreenLeaks internet addresses under the “.com” and “.biz” designators. Millwood said he also has applied to the European Union to register “GreenLeaks” as a trademark, but recently learned that Bjerg’s Denmark-based group had made a similar move within days of Millwood making his own application. Millwood acknowledged that there was “one inactive domain name that we don’t own” — Bjerg’s URL, “GreenLeaks.org.” By the same token he said, one of the URLs Millwood says he registered himself is “GreenLeaks.dk” — a domain name specifically related to Denmark. Millwood acknowledged the rivalry between the two groups could escalate into a “legal dispute.” His GreenLeaks.com will be organizationally similar to the original WikiLeaks — in that Millwood will be chief editor and principal spokesman. “I’m the public face and the editor. It’s important our organization has a responsible editor. We’re a news organization with a responsible editor. We’re not clandestine. We won’t be faceless or placeless.” Millwood nonetheless did not identify other collaborators in his website, other than to say that they included people located in several countries with backgrounds in environmental activism, information technology, social media and the law. He said that despite his plan to be his website’s public face, his philosophy of handling leaks is markedly different from the one pursued by WikiLeaks and Julian Assange. “He believed that he had a duty to history to put everything in the public sphere; information for its own sake,” Millwood said. “That’s not our philosophy. If we release information we want it to have a specific purpose.” To this end, Millwood, who produced documentaries about alleged environmental abuse in his native Tasmania, says that one of his main objectives will be to take leaked information and popularize it — for example through reporting out stories or crafting graphics. Like his rival GreenLeaks and OpenLeaks, Millwood talks of enlisting partners or eventually setting up a network of regional GreenLeaks sites. For the moment, however, Millwood’s Greenleaks.com site, which he managed to launch a few days before his Danish rivals “.org” site went live, is skeletal. He acknowledged he is “still developing the infrastructure” for a site which can receive and process confidential leaks. “EZ-PASS FOR LEAKERS” At least one other website channeling purported insider disclosures on green issues, called EnviroLeaks.org, is also up and running, though much of its initial fare consisted of re-posting State Department cables already released by WikiLeaks. More original — and arcane — are recent launches such as balkanLeaks.eu and brusselsleaks.com, which deal, respectively, with scandals in countries like Bulgaria and in the European Union bureaucracy. (BalkanLeaks’ content appears to be mainly a one-page manifesto.) Meanwhile, one prominent media outlet which has had a productive, though tempestuous relationship with Assange and the original WikiLeaks, is brainstorming whether it might be possible to cut out the middleman entirely and establish a secure channel for leakers to feed stuff to it directly. The New York Times, which is publishing an e-book on its dealings with WikiLeaks and also has posted a lengthy account by Executive Editor Bill Keller of his turbulent dealings with Assange, is examining whether it could set up its own Internet conduit for secure leaking. “Yes, a few people in our computer-assisted reporting and interactive news units are looking at setting up a drop box of some kind,” Keller told Reuters in an e-mail. “I’ve taken to calling it an EZ Pass lane for whistleblowers.” Keller noted that there are “some technical, legal and journalistic issues to work through” and added: “Nothing decided yet, but I’m intrigued.” (Editing by Jim Impoco and Claudia Parsons) Copyright 2010 Thomson Reuters. Click for Restrictions .

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Microsoft Earnings Edge Down On Slow PC Sales

January 27, 2011

SEATTLE — Microsoft Corp. said Thursday that its net income for the latest quarter fell slightly from a year ago, and it beat Wall Street’s expectations despite the weak personal computer market. Sales of Office 2010 to consumers and businesses buoyed the results, as did the popularity of Kinect, Microsoft’s new motion-sensing controller for the Xbox 360 video game system. Microsoft’s net income for the October-December quarter was $6.63 billion, compared with $6.66 billion in the same period last year. Thanks to stock buybacks, its net income rose to 77 cents per share, from 74 cents. Analysts surveyed by FactSet were expecting net income of 69 cents per share for the fiscal second quarter. Much of Microsoft’s business depends on selling copies of the Windows operating system and Office desktop software, products that usually rise and fall with fluctuations in the personal computer market. Microsoft launched Windows 7 in the same quarter of 2009, making for a tough comparison. Revenue plunged 30 percent in the Windows division to $5.1 billion. Worldwide personal computer shipments only grew about 3 percent in the latest quarter, as Apple Inc.’s iPad and the promise of more tablet devices to come made consumers think twice about what kind of device to buy. However, the division that sells Office software and other programs saw revenue rise 24 percent to $6 billion. Big companies that put off buying new technology during the worst of the recession are more willing now to upgrade their systems. Microsoft said the division’s revenue from businesses rose 18 percent while revenue from consumers jumped 49 percent, both because of sales of Office 2010. Strength in the entertainment and devices division, which is responsible for Xbox 360, also helped make up for weak Windows sales. Microsoft says it sold 8 million Kinect controllers, helping push revenue for the segment up 55 percent to $3.7 billion. In all, Microsoft’s revenue edged up 5 percent to $20 billion, topping analysts’ expectations for $19.2 billion in revenue. The software maker rushed out its earnings report a few minutes early, just before the markets closed for the day. Shares spiked to more than $29 per share in heavy trading about 15 minutes before the closing bell, before dropping back to $28.87, a 9 cent gain for the day. They slipped 16 cents to $28.71 in extended trading. “A preproduction draft of our earnings release was discovered by one or more media sources who then published our results to the Web before market close,” Bill Koefoed, Microsoft’s general manager of investor relations, said in a statement. Microsoft posted its official numbers after consulting with the Nasdaq stock market, he said. The company is reviewing its procedures to avoid a repeat of the earnings leak. This has happened before to other companies, including The Walt Disney Co. last year. A reporter accessed the quarterly report by guessing the Web address Disney would use before the information was made public, based on the pattern used in past quarters. Microsoft did not immediately say whether the media used a similar tactic to obtain the early results. Despite a successful holiday season for Kinect, Microsoft still needs to prove it is heading in the right direction in areas where it currently lags behind market leaders. Thursday’s report included a wider loss in the online division, which is mostly made up of online advertising. Google Inc., which makes almost all of its money from online advertising, saw its earnings in the same period rise 29 percent to $2.5 billion. Devices running a new smart phone system, Windows Phone 7, went on sale during the quarter, but in its quarterly filing with the Securities and Exchange Commission, Microsoft did not mention its contribution to the entertainment and devices division, which also houses Xbox.

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On Eve Of State Of The Union, The Housing Market Is Hitting The Skids

January 25, 2011

As we already noted, it took Peter Baker several thousand words to say nothing at all about the overall decline of the housing market that lies at ground zero of the economic collapse. Tonight, the president himself will have the opportunity to say several thousand more words about matters of great import to Americans. Will he mention anything about housing? We’ll see, but we’re guessing that he probably does not want to say something like, “The state of our union is in peril, because its citizens reside mainly in a bunch of shanties that are rapidly declining in value.” The Washington Post ‘s Dina ElBoghdady, thankfully, minces few words in a piece titled, ” Home prices fall in nearly all major cities, heightening fears of double dip .” And the picture she paints is not pretty: From October to November, prices fell in 19 of the 20 metro areas tracked by the Standard & Poor’s/Case-Shiller index, widely considered a gauge of the housing market’s health. The only exception was San Diego, where prices were basically unchanged. Only four areas posted year-over-year gains in November, including Los Angeles, San Diego, San Francisco and the Washington region. But in the aggregate, prices dipped 1.6 percent in November from the same time a year earlier, falling in 16 cities. You should note that the fact that “the Washington region” is doing quite well. In fact, ElBohghdady reports, the region “has bucked the trend” because of its “healthy job market.” By “trend”, she means the “trend” of home prices declining to the point of a “double dip” because the market is being dragged down by the twin maladies of mass unemployment and widespread foreclosures. Included in that “healthy job market” are the many politicos and lobbyists and media figures who gather here to cavort together in a bubblicious orgy of high self-regard. But I’m sure doesn’t obscure coverage of this issue at all. Here’s a fun fact! Among the nine cities that have “hit their lowest annual levels since the housing bust” are Tampa and Charlotte, the confirmed and all-but-confirmed locations of the 2012 Republican and Democratic National Conventions, respectively. So the good news is that D.C.-based politicians and media figures may, at some point in the next two years, have the opportunity to become intimately familiar with the crisis they are not in any way addressing. In the meantime, everyone should start reading Dina ElBoghdady, okay? RELATED: Home prices fall in nearly all major cities, heightening fears of double dip [PostBusiness @ WaPo] [Would you like to follow me on Twitter ? Because why not? Also, please send tips to tv@huffingtonpost.com -- learn more about our media monitoring project here .]

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Google Hiring More Than 6,200 Workers This Year

January 25, 2011

SAN FRANCISCO — Google Inc. plans to hire more than 6,200 workers this year in the biggest expansion yet by the Internet’s most profitable company. The hiring spree will likely be welcomed by President Barack Obama, who is expected to emphasize the need for more jobs during his State of the Union address Tuesday night. Google CEO Eric Schmidt was among a group of business leaders who met with Obama last month to discuss ways to bolster the listless economy. But Google’s push to further expand a work force that grew by 23 percent last year may not be as well received on Wall Street, where the Internet search leader’s spending has annoyed some investors who would prefer a more frugal approach in hopes of fatter returns. Google executives have consistently brushed aside those concerns, saying that the company needs to aggressively recruit the smartest computer engineers and most persuasive sales representatives to maintain its lead in online search and advertising, as well as to diversify into other services in computing, telecommunications and the media. The company outlined its hiring plans Tuesday with The Associated Press without providing many specifics beyond its pledge to hire more people than it did in 2007 when it added 6,131 workers. Google hired nearly 4,600 people last year to end 2010 with 24,400 employees. Based on its hiring commitment, Google’s work force will increase by at least 25 percent this year. Analysts polled by FactSet expect Google’s net revenue to increase 22 percent this year. Google wouldn’t say how many of the new jobs will be based in the United States, where most of its current workers are located. In a speech Tuesday, Schmidt said Google will hire more than 1,000 workers in Europe this year. All told, Google has more than 60 offices in 30 countries. “At this stage, the number of opportunities just vastly exceed the number of people we have at the company,” said Alan Eustace, Google’s senior vice president of engineering and research. Even if it surpasses 31,000 employees this year, Google will still have far fewer people than Microsoft Corp., probably its fiercest rival. Microsoft employed about 88,400 people through September, the most recent head count available. Managing a company with the population of a small city will pose another challenge for Google co-founder Larry Page as he prepares to take over as the company’s CEO April 4 in a shake-up that will reassign Schmidt to executive chairman. In that role, Schmidt will focus on meeting with government officials, business partners and potential takeover targets while Page runs the company. Page, 37, served as CEO in Google’s early days when the company was far smaller. Google had fewer than 300 employees when Schmidt replaced Page as CEO a decade ago. Google has become a coveted place to work, largely because Page and fellow co-founder Sergey Brin have always insisted on making the company’s offices seem like a home away from home in an effort to make people more productive. All meals, snacks and drinks are free at Google, and employees can commute on free shuttles equipped with Internet access to San Francisco and other cities located within a 50-mile radius of the company’s Mountain View, Calif. headquarters. The sprawling headquarters, dubbed the “Googleplex,” is a testament to the company’s explosive growth and its ambitions to become far larger. Google owns or leases about 4.2 million square feet scattered across more than 60 buildings in Mountain View and hopes to build another corporate campus on a nearby NASA complex in Silicon Valley. It also signaled plans to expand in New York last year when it paid about $2 billion to buy a 15-story office spanning about 2.9 million square feet – more space than the Empire State building. About 2,000 Google employees currently work in that New York office. Trying to get a job at Google is akin to trying to get into Stanford University, where Page and Brin started working on their search engine as graduate students. The company receives more than 1 million applications a year and identifies the top candidates through a rigorous screening process that analyzes SAT scores, grade point averages and their performance on tests with mind-questions such as: “How many different ways can you color an icosahedron with one of three colors on each face?” The people who make it through Google’s intellectual gauntlet will likely be under intense pressure if they get hired. Management is pushing aggressively for more innovation so that the Internet giant can compete against emerging threats from smaller companies such as Facebook and Twitter. “The opportunities are so big this year that for us to maximize them we are going to have to work quicker and we are going to have to make decisions faster,” Eustace said. As its Internet social network grows, Facebook has become more successful at luring away Google’s workers. About 200 of Facebook’s roughly 2,000 employees formerly worked at Google. The defections haven’t left a big dent, given that the company hired an average of nearly 200 workers every two weeks last year. But the recent raids by Facebook and other promising startups got Google’s attention. In an effort to retain its current employees, the company this year gave its entire work force a raise of 10 percent. That move alone could increase Google’s operating expenses by about $500 million this year, based on analyst estimates. Virtually all employees also receive stock options, a benefit that turned most of the company’s early hires into multimillionaires. Shares of Google rose by 1 percent to $617.81 in afternoon trading, even with most of the tech sector selling off Tuesday.

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Fox News Host Gets Good News In FEC Case

January 20, 2011

In a case with potential implications in the roiling debate about the politicization of talk media, the Federal Election Commission last month effectively dismissed a complaint accusing Sean Hannity of illegally raising cash for a Republican congressional candidate, because the commission concluded Hannity was acting in his capacity as a member of the media and serving a “legitimate press function.”

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SUFFER Appoints Kevin James as Operations Director for SUFFER Media Division

January 12, 2011

LAS VEGAS, NV–(Marketwire – January 12, 2011) – SUFFER ( PINKSHEETS : SUFF ) today announced the appointment of KEVIN JAMES as Operations Director for the “Suffer Media” division.

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Augme Technologies, Inc. Appoints David Reese to Company’s Board of Directors

January 12, 2011

Experienced IT Executive Brings Extensive Digital Media Background to Board

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Dylan Ratigan: Free Market Fraud

January 7, 2011

At first glance, the December jobs report seems to be a step in the right direction. An unemployment rate of 9.4 percent, the lowest level in 19 months. And a president, happy to boast about another 103,000 jobs being created last month. However, renowned economist Peter Morici points out two important caveats. For one, 260,000 Americans simply dropped out of the labor force in December. They are out of work, yet no longer counted as unemployed by the government. And secondly, 103,000 jobs is nowhere near the number of jobs we need to be adding each month. To bring unemployment down to 6 percent by 2013, businesses need to hire an average of 350,000 new workers each month. Even Federal Reserve Chairman Ben Bernanke, who continues to defend his Quantitative Easing (aka money-printing) program, couldn’t ignore the writing on the wall during a Senate hearing Friday morning. “If we continue at this pace”, said Bernanke, “we are not going to see sustained declines to the unemployment rate.” This “pace” that we’re operating at is working out just fine for the incumbent power structure, but it is strangling the rest of America. And it’s not the first time a group of outdated industries has controlled our government for their own benefit, and at the detriment of everyone else. It took a courageous — and at the time crazy — leader by the name of Teddy Roosevelt to step up and change that. He took on the biggest financial giant there was, JP Morgan, and he won. Roosevelt’s underlying premise — if you’re too powerful and you’re profiting at the expense of the American people — then you are an enemy of freedom and the government must break you up. It was that simple. Here we find ourselves today in a similar situation, where six industries have a stranglehold over Washington. And the draining of our current and future wealth will only continue as both the media and the political class not only tolerates but spreads the phrase “free market” when the reality doesn’t match the rhetoric. Our politicians continue to take money from massive corporations to subsidize them in a rigged marketplace that only cares about protecting the incumbent structure. At the same time, the American people are drowning in a red sea of debt caused by perpetuating banking, health care, energy and defense systems that are expensive, ineffective and protected from competition. So I have a challenge for those so-called free market Republicans who rode a wave of voter discontent into Washington. I challenge you to end massive corporate subsidies. To end tax loopholes. And to end rigged trade with China and release the true power of free markets. This can no longer be simply a talking point to win votes. Because this broken system is not only costing American jobs… it’s costing us the very prosperity and freedoms that this country was founded on. WATCH: “The Bears Talk China’s Manipulation” ….

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Lexr Media Introduces First 128GB Secure Digital Memory Card

January 4, 2011

Lexr Media Introduces First 128GB Secure Digital Memory Card

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David Isenberg: The $10,000 Iraqi Civilian

January 4, 2011

Just how much is an Iraqi life worth? I don’t know but, in the aftermath of the killing of 17 Iraqi civilians by Blackwater employees at Nisoor Square in September 2007, apparently Iraq and the United States, had very different ideas, according to one of the recently released Wikileaks cables. (Note: One can find all the Wikileaks cable concerning Blackwater here . The cable shows, not surprisingly, that the Iraqi and U.S. governments were magnitudes of order apart on what an Iraqi life was worth. According to the cable the U.S. Embassy in Iraq obtained a copy of the Government of Iraq’s investigation report of the September 16 incident at Nisoor Square. The report recommended payments of $8 million and $4 million for each death and injury respectively, and called for the USG to replace Blackwater within six months of the incident. At that time the Embassy had begun accepting claims from victims of the incident and approved payments of $10,000 for each death, $5,000 for each injury, (800 times less than the Iraqi figure for both death and injury) and $2,500 for property damage. The cable said the Iraqi government report stated “the conduct of the PSD violated Iraqi law and a number of CPA [Coalition Provisional Authority] orders and that therefore the incident is a pre-meditated murder for which the Blackwater personnel must be held accountable. It also claims that the Ministry of Interior has information on seven other instances in which Blackwater personnel killed 10 Iraqis and wounded 15 others.” Perhaps the most interesting part of the cable is at the end: Numerous editorial cartoons have been published depicting Blackwater as bloodthirsty mercenaries. While the escalation of the Turkish border issue has been dominating the media, the Blackwater incident will likely remain a prominent issue for editorials and political cartoons as the unpopularity of private security firms makes it an easy target. This seems to indicate that the embassy regarded criticism of private security contractors as just an image problem, and not a serious oversight and accountability concern. According to another Feb. 7 2008 cable the U.S. Iraqi embassy had, at that point, paid “132,500 dollars to claimants: 40,000 dollars to the families of 4 killed, 65,000 dollars to 13 injured, and 27,500 dollars to 11 claimants for vehicle damage.” An interesting passage from this cable is: Blackwater Condolence Payments —————————— ¶19. (C) On January 18, 2007, the DCM and RSO met with Blackwater representatives and were briefed on Blackwater,s intentions to make condolence payments to the victims of the September 16 Nisur Square incident and to obtain an operating license from the Ministry of Interior. In a change from Blackwater’s previous position, the representatives said that Blackwater has hired a number of Iraqi attorneys, including one who has had significant experience dealing with MNFI on Iraqi claims cases, to work with local courts on payment issues and plans to follow procedures for payments as determined by local laws and regulations. Blackwater has set aside “a generous pot” of money for these payments and the Iraqi attorneys will be contacting survivors and relatives of the deceased. Representatives said that they intended to make payments to all claimants, including those with lawsuits pending in the United States, largely because they did not expect those lawsuits to be successful. They also said that they would take into account the specific requests and circumstances of the claimants where possible. ¶20. (C) Blackwater is also moving ahead with efforts to obtain an operating license from the Ministry of Interior (MOI), and said that through their lawyers’ communications with the MOI they were told that Prime Minister Maliki would approve the licensing of Blackwater if condolence payments are made. They have received this same assurance from members of the Ministry of Interior responsible for licensing. ¶21. (C) The DCM told Blackwater that the Embassy believed it was morally correct for Blackwater to make condolence payments. She also indicated that while the Embassy welcomes this action by Blackwater, it will not have any effect on the DOS/Embassy decision on whether to retain Blackwater, and that in regards to the MOI licensing issue, under no circumstances could the Embassy approve of or in any way be part of a bribery effort. The Blackwater representatives indicated that they understood and that the process would be straightforward and transparent. In fairness, Blackwater was more generous than the U.S. government when making compensation. The cable notes “On average, Blackwater said it expects they will pay at least twice as much as what the Embassy paid and substantially more for victims or families that were more significantly impacted by the incident.”

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Richard Gaudreau: How to Get Rid of a Second Mortgage Without a Loan Modification

January 3, 2011

Following the maxim that drastic times call for tepid measures, the banking industry continues to pay “lip service” to loan modifications while doing little. On Dec. 15, the Congressional Oversight Committee admitted the government’s HAMP loan modification program has failed to help enough homeowners to stem the tide of foreclosures. The vast majority of loan modification requests fail, in part, experts believe, because banks have balked at offering a reduction in mortgage principal, the most effective way to halt costly foreclosures. Trying to revive HAMP, the administration in December announced new regulations designed to push banks into offering more reductions in principal than they have in the past. Fannie Mae and Freddie Mac immediately proclaimed, however, that they remain opposed to making this option available to struggling homeowners. Protecting the interests of the banking industry over the consumer, the Federal Reserve also blocked new foreclosure regulations that would have reined in foreclosure abuses. Although the economic collapse of 2008 has caused the tide to rush in on everyone, there has been no bailout for the “little guy.” Left to fend for themselves, increasing numbers of homeowners are turning to a little-known provision in the federal bankruptcy law, which permits the discharge of a second or even third mortgage in its entirety in a Chapter 13 bankruptcy. The American Bankruptcy Institute recently reported that Chapter 13 bankruptcies have risen by 9 percent in 2010 compared to last year. Flying under the media radar, the right to discharge a second mortgage in a Chapter 13 bankruptcy provides a glimmer of hope to homeowners stuck with a foreclosure because they own a home they can’t afford and can’t sell. With one in 10 Americans out of work, while others have suffered a pay cut as a condition of keeping their jobs, the amount of disposable income available to pay a mortgage is not what is used to be. Getting rid of a 2nd mortgage payment can sometimes make the difference between keeping a home and losing it to a foreclosure. How then does a homeowner qualify? Quite simply, when a home is worth less than the balance of a first mortgage, federal bankruptcy law — at least in most states — permits a homeowner to treat a second mortgage like an unsecured credit card and discharge it in a Chapter 13 bankruptcy. Housing prices dipped for the third straight month in October, and hope for a recovery in 2011 has started to fade. According to Corelogic, an industry researcher, 11.8 million homes , or more than one out of five mortgages in the United States are “underwater” — i.e. the total mortgage debt exceeds the value of the home. The U.S. Department of the Treasury estimates eight to 13 million foreclosures will occur from December 2010 through 2012 unless something intervenes. Ironically, the HAMP requirement that a homeowner generally be at least 60 days behind on a mortgage in order to qualify has led to foreclosures on homes where the mortgage payment had been up to date. In fact, a recent National Consumer Law Center’s survey of 96 foreclosure attorneys in the US found that mortgage servicers began foreclosure proceedings against 2,500 of their clients even though a loan modification request was pending. Loan servicers do make more in fees from the foreclosure process than from the loan modification process, so this is not surprising. Bankruptcy is a business decision, no less for a homeowner than it was for General Motors when it filed a Chapter 11 bankruptcy. This economy has sent clients to my door that I seldom used to see — attorneys, physical therapists, nurses, college professors, and scores of people dependent on the real estate market for their livelihood. A bankruptcy is usually preceded by a loss of income, a divorce or medical issues, sometimes all three. Bankruptcy is not on anyone’s list of fun things to do, and clients only consider it when the alternative, like a foreclosure, is worse. Many have tried to do a short sale or loan modification to no avail and have found that the bank would rather foreclose. In New Hampshire, a homeowner will be responsible for a mortgage deficiency for 20 years. These problems will persist until the powers that be decide to offer more than half-measures to address the foreclosure crisis. For those facing the loss of their home and wondering whether a Chapter 13 bankruptcy may help get rid of a second mortgage, the following information may be helpful: (1) It is disingenuous of banks to lull homeowners into a false sense of security by scheduling a foreclosure auction when a loan mod request is pending. If this happens to you, don’t be too trusting when your bank tells you not to worry about the foreclosure because they’ll continue the auction if there’s no answer by the auction date. What they are really saying is if you are denied, the foreclosure will happen. One client told me that Bank of America won’t even consider continuing a foreclosure auction due to a loan mod request until it was 72 hours before the auction date. I regularly receive panicked calls from homeowners denied a loan mod just before the auction occurs. While a Chapter 13 stops a foreclosure automatically, given how busy most bankruptcy lawyers are these days, finding one who has time to do a court filing at the last minute may be difficult. (2) If you decide to see if you can get rid of a second mortgage, ask a broker to give you an opinion in writing of what your house is worth. Brokers will usually do this as a courtesy, figuring if you ever do decide to sell your house, you’ll go through them. Make sure you ask for the potential sales price rather than a list price, which may be somewhat inflated. If the estimate is less than the balance of your first mortgage, then removing it in a Chapter 13 bankruptcy is possible. (3) Even if you can get rid of a second mortgage, however, a Chapter 13 is not for everyone. Removing a second mortgage only works if you have enough income to complete the plan successfully. If the real problem is that you don’t have enough monthly cash flow to pay your first mortgage and other expenses, Chapter 13 won’t solve that problem. (4) Chapter 13 will permit strapped homeowners to discharge most or all of their credit card debt. It usually won’t discharge certain debt like taxes and student loans. (5) Before making a decision, you want to be sure you can keep all property. Most states have exemptions sufficient to permit a homeowner to keep a house, vehicles, and other assets, however, some states are more generous than others. The above is not intended as legal advice for your particular situation. Questions should be addressed to attorneys admitted to practice within your state. Richard Gaudreau is a lawyer admitted to practice in New Hampshire and Massachusetts and may be reached by email at: richard@attorneygaudreau.com or by phone at: 603-893-4300.

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