opportunity

Huffington Post…

Marketing Situation: Could coupons shared via Facebook add a powerful dimension to your marketing programs? This intriguing case study from Social Media Jungle, which profiles an online loyalty program from the specialty ice cream producer and retailer Cold Stone Creamery, suggests that the answer could be “yes” — if . As In: If you listen to your customers, if you create engaging content that motivates people to opt in, and if you can identify a compelling program that will engage online fans. If you can do that, you may be able to pull off what Cold Stone Creamery did: dramatically higher redemption rates (14 percent vs. 0.2 percent) at dramatically lower costs per redemption ($0.39 vs. $3.60). Questions to Consider: Do your best customers have the opportunity to “like” your company, product, service or brand via a Facebook page? Could you leverage that interest with a targeted eGift campaign, enabling a fan of your page to send a discounted present to someone in his or her network? Four recommended actions: The four best practices Cold Stone Creamery followed appear below. Create a strong reciprocal value exchange. By “liking” the company’s Facebook page, customers and prospective customers receive a stream of engaging, regularly updated content. Over 1.6 million people now follow Cold Stone Creamery on Facebook. Listen to your fans. The initial idea for an online coupon campaign came from Cold Stone Creamery fans. Give Facebook users a simple, memorable way to interact with each other. If Jack sees that his friend Maria is having a difficult day, he can send her an online coupon for Cold Stone Creamery ice cream from the company’s fan page. A staggering 14 percent of those encountering the offer redeemed the coupon, as compared with 0.2 percent of previous online coupon campaigns. The low-cost campaign generated $10,000 in incremental sales. Make online friends look good. Jack’s thoughtful gift to Maria shows up in Maria’s News Feed, which means Maria’s whole network of Facebook friends sees it. The coupon campaign generated 66,000 new fans for Cold Stone Creamery in just eight weeks. The Takeaway for Marketers: Consider building a loyalty program on Facebook that is based on a strong reciprocal value exchange, that gives users the opportunity to send a memorable gift, and that makes the sender of that gift look good.

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Ernan Roman: Facebook Coupons: Money in the Bank?

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Huffington Post…

June 2, 2011 11:35:36 PM By Daniel Bases and Donna Smith NEW YORK/WASHINGTON (Reuters) – Ratings agency Moody’s warned Thursday it would consider cutting the United States’ coveted top-notch credit rating if the White House and Congress do not make progress by mid-July in talks to raise the U.S. debt limit. Treasury Secretary Timothy Geithner, seeking to convince Congress to increase his borrowing authority and prevent a government default, went to Capitol Hill to press his case in a 45-minute meeting with first-term lawmakers. “I am confident that two things are going to happen this summer,” Geithner told reporters after the meeting. “One is that we are going to avoid a default crisis and we are going to reach agreement on a long-term fiscal plan.” The meeting occurred just hours after Moody’s Investors warned that slow-moving deficit talks led by Vice President Joe Biden, hindered by entrenched positions on both sides, had increased the odds of a short-lived default by Washington. Moody’s warning increases pressure on President Barack Obama and House of Representatives Speaker John Boehner, the top Republican in the U.S. Congress, to strike a deal soon or risk upsetting global financial markets. Geithner has predicted a financial catastrophe if Congress fails to increase the current $14.3 trillion borrowing cap by Aug. 2, when his department will exhaust the extraordinary cash management measures it has been using since reaching the debt limit on May 16. Geithner said he had a “good meeting” with the first-term lawmakers, but some of the skeptical Republicans, who oppose increasing the debt limit without implementing deep spending cuts, were less pleased. “It is frustrating when the secretary talks in circles and that is very unfortunate,” said Representative Stephen Lee Fincher. “We are all big boys and girls. We need a framework put forward and we are not seeing that out of this administration, only seeing talk, talk and talk.” Representative Kristi Noem, a favorite of the fiscally conservative Tea Party movement, said the freshmen Republicans made it clear to Geithner that they would not “give this administration a blank check to spend even more.” “Secretary Geithner doesn’t get it,” said Noem, one of the ”mama grizzlies” touted by ex-Alaska Governor Sarah Palin. But a Treasury official characterized the talks with lawmakers as friendly and constructive. POLITICAL GRANDSTANDING Saying the risk of “continuing stalemate” between the two sides had grown, Moody’s urged progress on deficit reduction soon before politics takes over in the run-up to the November 2012 presidential election. “We think this is an opportunity,” Steven Hess, sovereign credit analyst for Moody’s, told Reuters. “If this opportunity goes by without them realizing a serious long-term debt/deficit reduction program, then we think that until the presidential election, the chances of such an agreement are really much reduced.” Mary Miller, a top Treasury official, said the Moody’s statement underscored the need for Congress to move quickly to make sure the United States could meet all its debt obligations while working to reach a long-term fiscal deal. A U.S. default would roil global financial markets, but few investors are rattled just yet. Wall Street, in large part, expects the debt and deficit negotiations to go down to the wire, as did talks over tax cuts and the 2011 budget. “We’ve been through this political grandstanding before,” said Jim Kochan, chief fixed-income strategist at Wells Fargo Advantage Funds. “We always go right down to the day on debt ceiling targets being raised. No congressman and no president wants to be responsible for Social Security payments not going out. This is a minimal risk. We’ve seen this so many times.” Obama has tasked Biden to lead negotiations with Republican and Democratic lawmakers to find a deficit-reduction deal that would be palatable to Congress and pave the way for the debt limit to be raised. Their talks are due to resume on June 9. But Republicans refuse to consider tax increases as part of a deal, while Democrats are opposed to Republican proposals to scale back the popular government-run Medicare healthcare program for future retirees. Republicans seized on the announcement by Moody’s, which comes two months after Standard & Poor’s revised down its credit outlook on the U.S. rating, as proof of the need to make some sharp spending cuts. “This report makes clear that if we let this opportunity pass without real deficit reduction, America’s financial standing will be at risk,” said Boehner. “A credible agreement means the spending cuts must exceed the debt limit increase. Senator Charles Schumer, a top Democrat, said a compromise that prevents a “catastrophic default on our obligations and significantly reduces the debt is within reach.” (Additional reporting by Rachelle Younglai, Alister Bull and Thomas Ferraro; Writing by Deborah Charles; Editing by Ross Colvin, David Lawder and Eric Walsh) Copyright 2011 Thomson Reuters. Click for Restrictions .

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Ratings Agency Warns U.S. On Debt Limit

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Euro Outlook Remains Bearish, New Zealand Dollar Offers Range Opportunity

May 25, 2011

Euro Outlook Remains Bearish, New Zealand Dollar Offers Range Opportunity

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Euro Outlook Remains Bearish, New Zealand Dollar Offers Range Opportunity

May 25, 2011

Euro Outlook Remains Bearish, New Zealand Dollar Offers Range Opportunity

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GBP/CHF Descending Channel, Wedge Provide Swing Trading Opportunity

May 25, 2011

GBP/CHF Descending Channel, Wedge Provide Swing Trading Opportunity

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GBP/CHF Descending Channel, Wedge Provide Swing Trading Opportunity

May 25, 2011

GBP/CHF Descending Channel, Wedge Provide Swing Trading Opportunity

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EURUSD An Optimal Bearish Opportunity, GBPUSD Bullish and AUDNZD Non-Directional

May 24, 2011

EURUSD An Optimal Bearish Opportunity, GBPUSD Bullish and AUDNZD Non-Directional

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Robert Greenwald: People of NYC vs. Koch

May 13, 2011

We’re on offense again, this time putting the spotlight on David Koch and denying him a chance to spend his millions on credibility and social status. We organized a flashmob in the heart of NYC. We projected four Koch Brothers Exposed videos on the facade of the David H. Koch Theater in Lincoln Center during our Guerrilla Drive In. Our event is spontaneous and funny, but there’s tremendous value in exposing the Koch ideology and legacy through a satirical bent. Our newest video features a choir, brass band, and New Yorkers renaming the Koch theater and sending a message to David Koch. The brothers David and Charles Koch have a knack for getting buildings named after themselves. Everything from theaters, to sports arenas and medical buildings bear the Koch brand. So why do the brothers hide from burnishing their name on their political causes? Brave New Foundation and middle class advocates The Other 98% teamed up to rally New Yorkers to rename the David Koch theater to something more appropriate and something that reflects his and his company’s record of pollution, the Tea Party funding, and climate change denial. Click here to rename the David H. Koch Theater. As New Yorkers take the fight to David Koch, we’re giving everyone the opportunity to rename the Koch theater with our latest Guerrilla Drive In video. What the Kochs are doing to our democracy is serious, but with your help, we can use satire to grow our movement and stop the Kochs.

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Jerry Jasinowski: The Next Generation of Cost Savings

May 6, 2011

In these times of anemic economic growth, businesses must continue to increase profits by reducing costs. Procurement officers have become experts at extracting savings and innovations from suppliers, negotiating raw-materials contracts and managing complex global supply chains. But large amounts of goods and services are purchased too casually. Market researcher Gartner Inc., estimates that a typical company spends 30 to 60 percent of revenue on indirect goods and services. That’s not surprising in enterprises like law firms and ad-agencies where, except for salaries, almost all spending is “indirect.” But even manufacturers spend a lot of money on purchases related to sales and administration, rather than the production of goods. At packaged good companies, about 20 percent of non-core spending is logistics, encompassing everything from ocean-freight to short-haul trucking. Another 17 percent is in marketing services. About 9 percent is information technology and telecom. Corporate CFO’s are aware that indirect spending is significant, but do not appreciate the aggregate size, and find it difficult to control. Internal procurement managers are often stretched thin and focused on ensuring supply and optimizing pricing for core commodities. Even companies that have addressed indirect spending may still be leaving a considerable amount of money on the table. Although they have dedicated people and tools to improve the purchasing process, they do not have the full infrastructure to effectively managed indirect spending. With hundreds of supply markets to address and thousands of purchases to control, companies lack the market intelligence, specialized category expertise, structured processes and technology to maximize cost savings. Knowledge of the market, commodity experts and better buying processes can cut total indirect costs by 15 percent or more. One company I know had just negotiated 6 percent savings on linerboard, a dramatically fluctuating commodity. What they didn’t know was that the market had deflated further while they were negotiating. Using this outside intelligence they secured a total of 13.5 percent savings. Savings like this require a whole different level of discipline and resources. Some manufacturers such as Whirlpool, Kimberly Clark and Goodyear are using outside providers, leveraging the provider’s investments in dedicated category teams, market intelligence, and technologies to manage buying and enforce purchasing policies. But many are not. In one study by ICG Commerce, average companies were able to affect about half of indirect spending, while world-class companies were able to affect 93 percent. World-class companies have established business processes to make certain that everyone who buys anything used preferred suppliers to maximize savings. With $2 billion in indirect spending, an average company received a bottom line benefit of $54 million. A world-class company would save $272 million over the same time, and could increase that by 3 percent a year through continuous improvement. In today’s competitive environment, few companies can afford to overlook the opportunity to achieve this next generation of cost savings, which could amount to as much at 1 percent or more of a firm’s profit margin. Jerry Jasinowski, an economist and author, served as President of the National Association of Manufacturers for 14 years and later The Manufacturing Institute. Jerry is available for speaking engagements.

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White Digital Media Promotes Former Marketing Analyst Ashley Koons to Marketing Coordinator

April 27, 2011

San Diego-Based Digital Media Company Continues to Offer Its Own Opportunity for Advancement

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Labor Group Born After Ohio Gov’s Bob Evans Gaffe

April 21, 2011

COLUMBUS, Ohio — A labor-backed group seeking to capitalize on a verbal gaffe by Gov. John Kasich delivered a letter Thursday to Bob Evans Farms Inc. pushing the company to improve benefits for employees. Ohioans Against Shabby Benefits got its name from a remark Kasich made Tuesday while marking his 100th day in office. The Republican governor said a woman working at Bob Evans probably had no pension and health care benefits that were “shabby at best.” Company spokeswoman Margaret Standing said the governor called to apologize for what Bob Evans views as simply a misstatement. “We know he’s a fan, and he was apologetic for the attention,” Standing said. Last month, Kasich touted a deal keeping the restaurant and food company in Ohio. The state provided $7.7 million in incentives as part of the deal, which included a relocation of the company’s headquarters from Columbus to the wealthy suburb of New Albany. The labor coalition tied its Bob Evans effort to its fight against collective bargaining and pension limits backed by Kasich. He signed a law last month that allows unions to negotiate wages but not sick time, health care or pension benefits, a move that affects more than 350,000 public workers. Teresa Law, a coalition representative and member of Service Employees International 1199, offered to help the company improve employee benefits. “Governor Kasich should know something about ‘shabby’ benefits with his attack on workers’ rights in this state,” she said in a statement. “Governor Kasich needs to stop trying to eliminate middle class jobs when he should be creating them. Jobs with benefits are what Ohioans need to help get our economy back on track.” Standing said Bob Evans offers comparable benefits to its employees. “All our employees at Bob Evans Farms Inc. have the opportunity to participate in a variety of benefits programs, including medical benefits and a 401(k) program,” she said. “And we regularly review the benefits packages to make sure they’re on par with other publicly traded restaurant companies.” She said benefits information is also posted on the company’s website.

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Scott Gerber: Why It’s Less Risky To Never Get a "Real" Job

April 21, 2011

There are over 81 million young people unemployed worldwide. Not to mention tens — if not hundreds — of millions more that are underemployed. In the U.S., youth unemployment is just shy of 20%, nearly 40 percent of Gen Y has been either unemployed or underemployed at some point since December 2007 and college graduates are so poor that they are being forced to move back in with their parents and default on student loans in record numbers. These facts aren’t just depressing — they’re downright scary. Yet still, the older generations can’t seem to let go of the antiquated mantra of “work hard, get good grades, and go to school to get a job.” In a world where we have innumerable “career experts” still advising us on how to “improve” our job search efforts and parents still pressuring us to validate our diplomas by sending out countless resumes, I must ask: What rock are these people living under? How much longer are we going to pretend that jobs are going to miraculously appear out of thin air? How much longer are we going to disillusion ourselves into believing that globalization, recession, automation and the over-abundance of educational institutions haven’t forever changed our world? Even though it is beyond apparent that millennials are no longer beneficiaries of the hand-out, resume-driven society of old, people are still hesitant, or outright against, pushing entrepreneurship as a viable alternative for young people to pursue. Why? How could this be? Well, mainly it’s because most people say starting a business is too “risky.” Allow me to retort. While I won’t argue that there isn’t inherent risk in any start-up or venture (because there certainly is), I will say without reservation that, in this economy, there is just as much — if not more — risk in simply sending out countless resumes or under-employing oneself just to make ends meet. Whereas an entrepreneur’s risk can be mitigated, and in many instances controlled (e.g. scaling back on overhead, concentrating more efforts on selling, etc.), what exactly can a full-time job-seeker do other than wait and ante up again (and again and again and… you guessed it… again)? Are they not taking a risk with their financial futures every time they decide to spend more time, energy and resources on trying to fight their way into a system where they have absolutely no control or ownership? Contrary to the social norm, sure. Wrong, I think not. Think about it. If you were in a casino with your friend and he was losing his shirt at the craps table, wouldn’t you try to get him to walk away and make a better decision with what he had left? Why isn’t that same mindset applied to failed job searches? Why aren’t we telling more people to walk away and take a different approach? I have yet to figure out what compels people to still tout a broken system as the only practical solution. Nor do I understand how is it possible that the passive approach (e.g. sending resumes and hoping for the best) is widely considered to be less risky than the pro-active one (e.g. starting a business for oneself)? Are people simply too afraid to let go of the ‘mantra’ and try something new? This outdated, fear-ridden logic holds no water with me. Times have changed, and so must the advice, education and tough love we offer young people so that they can be fully equipped to meet the new challenges, demands and harsh realities of the new economy — and the new world. It’s time we get our heads out of the sand and realize that young people need a new direction. Whether we like it or not, the new economy has made it abundantly clear that in today’s world, Gen Yers will need to create a job to keep a job. Millennials must re-train themselves to become self-sufficiency experts capable of generating their own incomes. To my detractors who will undoubtedly say “not everyone is capable of being an entrepreneur” or “small businesses fail at alarming rates and aren’t advisable out of the gate”, I say to you: “What’s your solution?” Keep flooding the ever-diminishing job market with resumes? Tell our well-educated young people to under-employ themselves to the point of poverty? Let Gen Yers waste their most valuable assets — mainly their time and energy — on “real” jobs that barely make ends meet? I find these scenarios to be much riskier propositions than starting a business — especially the sort of businesses that I preach about. The key to Gen Y’s success is to start building the next generation of practical, nuts-and-bolts, low overhead, income-generating businesses. Not Facebook, but pool cleaning companies. Not Google, but tutoring services. These sorts of ventures will allow us to minimize risk, while simultaneously affording us the opportunity to take control of our financial futures. This is precisely why I wrote Never Get a “Real” Job and formed the Young Entrepreneur Council — to teach Gen Y exactly how to build businesses from the ground up the right way, as demonstrated by their successful peers, so that they can exponentially increase their likelihood of success. The question now is this: Does my generation have what it takes to tune out the noise and determine what real risk is? Do you think young people must create a job to keep a job in the new economy? Let me know what you think in the comments.

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Kenneth Cole, Compass Partners Launch Support For College-Aged Social Entrepreneurs

April 1, 2011

NEW YORK — As famous for his side-buckle shoes as for his work combining the political and sartorial, designer Kenneth Cole on Friday announced his latest effort to promote activism and engagement at the community level. Awearness , Cole’s philanthropic foundation, has pledged $500,000 to the nonprofit group Compass Partners, launching a partnership to support and mentor college-aged entrepreneurs aiming to develop the next generation of socially-conscious businesses. The effort is not Cole’s first foray into the world of social activism: he serves as chairman of the American Foundation for AIDS Research and has supported similar community engagement programs at Columbia and Emory universities. Awearness’ support for the two-year Compass Fellowship, presently on offer at nine schools, will help the organization to expand its training and mentoring program to 15 universities by year’s end. Describing what initially attracted him to Compass, Cole said, “I was overwhelmed by the extent of their understanding, and the opportunity to affect a generation of individuals who still have a genuine sense of social justice. They want to and are inspired to maintain and create a meaningful and sustainable difference. They also want to do it globally.” Compass Partners , a 2-year-old nonprofit founded by onetime fair-trade tea dealer Neil Shah and would-be farmer’s market delivery-service entrepreneur Arthur Woods, began as a project at Georgetown University while both Shah and Woods were still undergraduates (their other respective businesses ultimately shuttered). Sensing the need for greater support and training for socially-conscious businesses, the Compass Incubator gave way to the Compass Fellowship, which Awearness will support. Shah and Woods first contacted Cole after reading about his involvement with similar programs at Columbia and Emory. Describing their first encounter in New York, Shah said, “We didn’t know what to expect, but we explained what we were doing, and Kenneth said, ‘Let me know how I can help, give me a pitch.’ And it just blossomed into this relationship.” Cole, for his part, said he understands the need for greater resources for young, socially-minded entrepreneurs. “They’ve got a great sense of content, but not context,” he said. “They’re not taught how to do it — the skills of doing business.” Speaking to the importance of reaching college-aged students specifically, Cole said, “It’s so much easier to connect with people at that right point in their lives, when they believe that social justice is everyone’s right. While they’re students, they’re far more inclined to launch and experiment with new opportunities. In the real world, you don’t have the luxury of figuring it out along the way.”

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Srinivasan Pillay: What Do You Do if You Are Jobless? Insights About the Business Brain

March 30, 2011

While the number of planned layoffs did fall in March in the US, the rate of joblessness is still alarming. When jobs are scarce and hopelessness is rife, what can you do in a down economy where you cannot see any obvious options for return to work? How does brain science and psychology research help us deal with this? A person who has just lost a job feels shocked, alarmed and depressed. This is understandable and to a certain extent conventional psychology teaches us that this grief reaction to loss is normal. The problem arises when the grief is prolonged due to not seeing any obvious options. In a world where resources are limited, who are the people who survive and win? Jobless people who are reengaged in the workforce need to remember that their job loss in many instances has nothing to do with their own incapacity. It is often a product of the financial environment. As a result, taking on the emotional burden of shame and regret just adds to the burden of fear and not knowing how survival is possible. So, my first request would be to feel the fear but not the shame and regret which can be debilitating to motivation. The fear is natural, and within limits, can be motivating. When it is excessive, it may put the brain in reaction mode, and as a result, the brain may either flee opportunities or feel paralyzed in the face of them. Winners in the jobless situation never stop looking for alternatives. This is because they understand that joblessness means that they have to climb a mountain to see the opportunities on the other side. Those who are hopeless give up because they cannot see the answer from where they are standing. But those people who move forward first are at an advantage. They use what I call “possibility thinking” rather than “probability thinking.” It is absolutely true that finding a job in this economy is not highly probable for many, but totally false that it is not possible. The problem is that it takes a certain effort and motivation to pursue what is possible but not probable, and the disappointment of the job loss leaves people feeling hopeless and stuck. I therefore advocate “possibility thinking.” The reason I do is that when we feed our brains possible choices, the brain’s unconscious “navigator” starts to sketch a plan to move us toward potential solutions. If at first we do not see the answers, it does not matter. Simply feeding the brain information will help us see possibilities. In the best situations, we will not only find solutions but also better alternatives than we had previously had. So what does this translate to practically. If we know that at a brain level, we must feed the unconscious navigator (the posterior parietal cortex) and that we must continue to move rather than being paralyzed, here are a few suggestions: Look through classifieds at a set time each day. Make it a focused task rather than an incidental happening. When looking for jobs, rather than simply seeing if you like something or not, make a list of certain features that appeal to you. e.g. flexibility, work from home, short commute. This will start the process of feeding your brain information to attend to. When a job is almost what you want but not exactly what you want, ask yourself the following questions: Is there a way I can start a business like this? What is the one step above this job that would make me apply for it? What do I stand to lose by applying for it? Start going for interviews at a level that is below what you want. In this way, someone you meet may be able to refer you to a job that you actually like. Think of definite ways to motivate yourself each day. Physical exercise, a massage, or doing anything that you love will help you see the jobs that you are looking at differently. Realize that being jobless can also motivate you to stay that way. It may reduce your anxiety, and make you feel comfortable about not having to perform. Avoid being in this rut. The longer you are in it, the harder it is to leave. Being jobless is probably not your “fault.” Be easy on yourself. To remind yourself of your talents, write out positive qualities about yourself a few times a week. An effective way to do this is to write out one or two letters describing why you are ideal for a job even if you are not applying for it. This will help focus your attention on your strengths. This is just to remind you that the difficulty you experience after losing your job is not easy to get over. However, the earlier you start to move toward your next goal, the more you will be at an advantage when the opportunity arises.

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Roger Ehrenberg: What Keeps Venture Investors Up At Night

March 15, 2011

As a venture investor, one thought routinely keeps me up at night: Are we making the right investments? After the beads of sweat form on my brow, they really get going when I think of the complexity and multi-dimensional nature of the question. Some related issues that keep me awake include: Are we seeing the right deals? Is our evaluation process effective? Does our method of decision-making promote successful outcomes? Are we capturing the data necessary to make a reasoned assessment of the above? Gulp. Each one of these represents a key strategic initiative, core questions whose answers are necessary for building the best firm possible for the long term. Needless to say, these issues can’t be assessed in a vacuum, as the vectors of time, competitive pressures and market conditions are at play and invariably impact the answers. In short, running a venture firm is very difficult, and it’s successful operation involves navigating a multi-variate thicket of obstacles while optimizing the combination of long-term franchise value and LP returns. Are we seeing the right deals? One of the eternal questions in venture capital relates to the “deal funnel”: Should we work to maximize throughput or optimize for quality. There are massive trade-offs between these two approaches, and different strategies subject themselves better to one or the other. For example, a general fund that is seeking to make a very large number of small investments is likely to solve for maximum throughput. They will apply a very basic but robust screen to quickly weed out the definite “nos,” likely do those that arrive with a high degree of “social proof” and spend some time thinking about the rest. Conversely, a more specialized fund (like IA Ventures) works to be crystal clear in its messaging in order to only attract deals that fundamentally fit with its investment thesis. This will yield a smaller amount of more highly-curated throughput, providing a more manageable pool of deals that require more in-depth screening before a go/no-go decision is arrived at. Seems pretty rational, right? Well, if you consider being almost 100 percent reactive rational. The problem is, I don’t. While having a giant catcher’s mitt is a fine way to gain a sense of what’s trending, it is very hard to identify true gems sitting on your ass and letting the market define your opportunity set. So that means thinking deeply about what the future holds, considering mega-trends, and actively seeking opportunities that others think suck or simply don’t understand but really represent a window into the future. It is quite difficult to have this level of conviction and risk tolerance and to subject yourself to ridicule by shunning conventional wisdom. But who said the road to innovation — and riches — was going to be easy? It’s not. Being contrarian and pursuing true innovation requires a lot of hard work, and sitting in your office and simply being a filter is not the way to achieve extraordinary returns IMHO. So bottom line: our approach is to combine a clear domain focus (which generates curated, but reactive, deal flow) with a willingness to try, test and incubate. Is our evaluation process effective? The Big Screen. Not easy, when you consider the massive inbound volume of most venture firms (and IA Ventures is no exception.) Do we have a clear sense of what we’re looking for (like a checklist), or is the spark of a crazy idea what really gets us going? More importantly, what should get us going? And are we able to glean enough from basic written materials to make an educated judgment as to whether or not an idea is worth digging into? Due to sheer volume, it is impossible for us to engage with more than a small percentage of the companies that reach out to us. Since we’re almost exclusively focused on pre-revenue opportunities, it really is about the entrepreneur, the idea and the vision, not actual performance. And most challenging of all, we are too young to have much data on the efficacy of our evaluation process. We do not yet have an “anti-portfolio,” a series of misses that might be instructive of our fears, biases and blind spots. So we are using our experience and best efforts to choose well, but with precious little data on which to base our decisions. As a firm, we have a series of well-understood “hot buttons”: a set of attributes we are looking for in an opportunity. These attributes are applied to the top of our deal funnel, sharply reducing the number of potential opportunities that warrant a follow-up phone call, meeting, etc. We definitely try to apply the lens of “Is this really differentiated/transformational/addressing a sharp pain point in a large market?” when gauging our interest. We are also predisposed towards opportunities that reach us early in the financing process, where we can both play a significant role in the deal and work with the entrepreneur on the plan, milestones and syndicate. The nature of our interaction with the entrepreneur is also instructive of whether we make a good team, and a positive working relationship can help de-risk execution of the plan. While I feel like we’re doing the right things, the jury is still out until we are able to collect the data necessary to validate our process. Does our method of decision-making promote successful outcomes? Now this is where it gets very tricky. Different partnerships have starkly different views on how a deal gets approved. They also have different cultures with respect to individual “check writers” versus a firm approach. Some firms want consensus. Others will not do a deal if there is consensus. Some firms have very rigid time frames around which funding decisions can get made. Others are more free-form. How a firm makes decisions can define a culture and a partnership, and is not a matter to be taken lightly. At IA Ventures, we take a team-managed approach to investing. There are no individual check-writers. We invest as a group. We do not strive for consensus or have hard and fast “thumbs up/thumbs down” rules. Deal deliberations are active and ongoing at each stage of the evaluation process, and by the time we are considering issuing a term sheet, we’ve all hashed it out pretty well. It is rare that all four of us are equally pumped about a deal, which is good. Because if we’re all psyched, it probably means the idea isn’t sufficiently differentiated to disrupt a market. In fact, we revel in conflict and dissent because it forces us to look at all sides of an opportunity, and to guard against the group-think/rose-colored glasses associated with a “hot” (read: popular) idea. I think we do a pretty good job on this front. One thing we don’t do — an idea that my smart friend Phin Barnes and I were kicking around last week — is empower an individual to meet an entrepreneur, fall in love, have a strong gut feel and make a commitment on the spot. The benefits: a willingness to fund orthogonal ideas without over-thinking and detailed analysis; a forced focus on the entrepreneur and their power to make an idea come to life; a special bond with the entrepreneur by showing deep confidence and conviction in their idea by offering an immediate commitment; and the signaling effects of having a firm and culture that supports such instinctive and passionate decisions in favor of the entrepreneur. If one truly believes that success in stage investing is heavily dependent upon the quality and passion of the entrepreneur and a contrarian take on the market, then having this as part of an investment program might be both rational and effective. I’m not there yet, but it is certainly a provocative and interesting approach to deploying an amount of high risk, high return capital. Are we capturing the data necessary to make a reasoned assessment of the above? It is early days, but we have built instrumentation and processes to help us collect data on the dimensions discussed above. While there is little doubt in my mind that smart venture investing — specifically seed stage investing — is impacted by a heavy dose of art, with a modicum of science, we want to collect as much data as possible about how we do what we do to ensure that we’re using all the information at our disposal. Are we seeing the deals we want to see, and what portion of the deals are because we went out and got them as opposed to them coming to us? Are we doing a good job investing in companies consistent with our mission, some of which are off the beaten path? Are we taking enough risk, and do members of our firm have the opportunity to be hard-core champions of a deal and to get it done in the face of dissent? Do our dashboards give us useful and actionable information about how we should be running our business? All of these metrics are important for doing the best job possible and building the best long-term business at IA Ventures, for the benefit of our entrepreneurs, our LPs and our firm colleagues. Being a startup investing in startups is no easy task. But we’re trying to be thoughtful about it, try new things and iterate rapidly with the benefit of data. Sounds a lot like what we expect from the startups we invest in. Makes sense. This post originally appeared on Information Arbitrage .

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Randall Kempner: Dharavi, India: The Most Entrepreneurial Slum In The World?

March 11, 2011

If you’ve watched the opening scenes of Slumdog Millionaire, you’ve seen Dharavi, a teeming slum of nearly a million people in the heart of Mumbai. I’m just back from India, including a visit to Dharavi. And, let me assure you, the film was shot on location. Walking into the slum from Mahim Link Road, poverty slaps you in the face. Ramshackle buildings made of a mélange of found materials and corrugated tin line unpaved passageways. Open sewage runs through the alleys, collecting in puddles alongside playing children. There is only one public toilet per approximately 1,500 residents, and most families have neither the means nor the space to have a private bathroom. So, the site of kids relieving themselves in public fields is depressingly common. But at second glance, the slum is more intriguing and–much more encouraging. Despite the low education levels, substandard housing, and intense overcrowding, Dharavi is a veritable entrepreneurial hotspot.

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A Look At Who’s Hiring Now

March 10, 2011

Lets face it. Although the current job market is improving nationally, things are still tough . Many around the country are still out of work and struggling. For a new feature called HuffPost Social Jobs, we’ve gathered some of the best positions recommended by our readers. Below, check out some of our most recent submissions — or submit your own. (Employers: we’re looking for simple, common-language descriptions why you’re hiring, please skip all jargon, promotional language and other forms of corporate doublespeak.) Are you hiring or do you know someone who is? Submit your job at HuffPost Social Jobs below or tweet your opportunity with hashtag #SocialJobs!

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Jodie Levin-Epstein: Don’t Cut Off Your Knows

March 7, 2011

Federal Reserve Chairman Ben Bernanke knows it. Education and training are central to our nation’s economic competitiveness. In fact, he recently urged that budget deliberations recognize the benefits of programs that equip workers with needed skills — even when we must grapple with difficult decisions around balancing state and federal budgets. But House leadership is taking action that will cut off our nose to spite our face. The House-passed Continuing Resolution, which would fund the government through the remainder of FY 2011, includes drastic cuts to adult, dislocated worker and youth programs under the Workforce Investment Act (WIA). These cuts would sharply reduce or eliminate funding for summer jobs for youth, job and training assistance for unemployed and underemployed workers, and support for one-stop career centers. Chopping job training programs is counterproductive to an effective recovery, especially at a time when the number of unemployed and underemployed is at historically high levels and nearly 14 million people are struggling to find work. Dislocated workers and other unemployed and underemployed workers benefit from WIA by gaining valuable skills. In fact, during the worst of the economic recession in 2008 and 2009 more than two-thirds of adults and three-quarters of dislocated workers who completed training programs found jobs, according to the U.S. Department of Labor. In a new CLASP report , workforce development policy experts Neil Ridley and Evelyn Ganzglass look specifically at how the WIA Adult program in three states responded to the urgency of the Great Recession. In good economic times, a major barrier to upgrading skills is “opportunity cost” — or what economists describe as the trade-off between spending time in training and at work. During the recession, however, jobs were scarce and the opportunity cost of education and training was low, making it an ideal time for many unemployed and low-income adults to build skills and earn credentials. Even though unemployment has declined in recent months, it’s still significantly higher than it was before the start of the recession. Further, given the skills/jobs mismatch that many economists have noted, now is the worst possible time to cut investment in workforce development programs. Many signs point to a long road to pre-recession unemployment rates. Workforce programs are helping by providing opportunities for the unemployed and underemployed to prepare for jobs once the economy fully recovers. They help employers by providing workers with the skills to compete. Cutting jobs and training just doesn’t add up, and it’s hardly the way to out-compete the rest of the world in a changing global economy that increasingly relies on what a workforce knows and the skills it possesses. On its face, these facts should move Congress to act on what we know: that training our workers is fundamental to recovery and future competitiveness.

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Lacy Schutz: Women at Work: Historic Photos From the Museum of the City of New York

March 2, 2011

The first half of the 20th century was filled with changes for women in the United States, not the least of which was the right to vote, granted by a constitutional amendment in 1920. The rise of manufacturing created factories and industries that provided new jobs for women, and the opportunity to gain financial independence and pursue jobs outside domestic confines. The mobilization of troops in both of the World Wars opened up job prospects for women in fields formerly dominated by men. Women also served in record numbers in many roles in the United States military during World War II. The Museum of the City of New York is committed to digitizing its photographic holdings and has put more than 52,000 historic images of the city online so far, with more to come in the near future. We celebrate Women’s History Month with this selection of photographs, and observe the 100th anniversary of the Triangle Shirtwaist Factory fire, a seminal event in women’s labor history.

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Steve Blank: GE Is Innovating Like A Startup

March 2, 2011

“Men wanted for hazardous journey. Low wages, bitter cold, long hours of complete darkness. Safe return doubtful. Honour and recognition in event of success.” In 1912 Ernest Shackleton placed this ad to recruit a crew for the ship Endurance and his expedition to the South Pole. This would be one of the most heroic journeys of exploration ever undertaken. In it, Shackleton defined courage and leadership. Over the last year, I’ve been lucky enough to watch the corporate equivalent at a major U.S. corporation – starting a new technology division bringing disruptive technology to market at General Electric. One of GE’s new divisions – GE’s Energy Storage – has been given the charter to bring an entirely new battery technology to market. This battery works equally well whether it’s below freezing or broiling hot. It’s high density, long life, environmentally friendly and can go places other batteries can’t. This is a new division of a large, old company where one would think innovation had long been beaten out of them. You couldn’t be more wrong. The Energy Storage division is acting like a startup, and Prescott Logan its General Manager, has lived up to the charter. He’s as good as any startup CEO in Silicon Valley. Working with him, I’ve been impressed to watch his small team embrace Customer Development (and Business Model Generation) and search the world for the right product/market fit. They’ve tested their hypotheses with literally hundreds of customer interviews on every continent in the world. They’ve gained as good of an insight into customer needs and product feature set than any startup I’ve seen. They’ve continuously iterated and gone through a few pivots of their business model. (Their current initial markets for their batteries include telecom, utilities, transportation and Uninterrupted Power Supply (UPS) markets.) And they’ve being doing this while driving product cost down and performance up. GE’s performance in implementing Customer Development gives lie to the tale that only web startups can be agile. Corporate elephants can dance . So why this post? GE’s Energy Storage division is looking to hire two insanely great people who can act like senior execs in a startup: A leader of Customer Development — think of it as a Product Manger running a product line who knows how to get out of the building and not write MRD’s but listen to customers. A Sales Closer — a salesman who can make up the sales process on the fly and bring in deals without a datasheet, price list or roadmap. They will build the sales team that follows. If you’ve been intrigued by the notion of customer development in an early stage startup — getting out of the building to talk to customers and working with an engineering team that’s capable of being agile and responsive — yet backed by a $150 billion corporation, this is the opportunity of a lifetime. (The good news/bad news is that you’ll spend ½ your time on airplanes listening to customers.) If you have 10 years of product management or sales experience, and think that you have extraordinary talent to match the opportunity, submit your resume by: 1) Clicking on Customer Development or Sales Closer , and 2) Emailing your resume to Prescott Logan at prescott.logan@ge.com Tell him you want to sign up for the adventure. Honor and recognition in event of success.

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Big Retail Companies Require Job Applicants To Disclose Their Age

March 1, 2011

Ruth Lyons, 59, was born on April 28, 1951. But after two and a half years of not even being able to get an interview for a job, she decided that her new “job application birthday” was going to be March 19, 1969 — just as an experiment. “They’re asking for your Social Security number and date of birth on applications now, which I don’t think they have a right to do unless they’re hiring you, and you don’t have the option of not filling them in,” she told HuffPost. “You either fill them in right, or you lie, and I’m all for lying.” Several of the nation’s biggest employers, including Target, Kroger and Home Depot, require job applicants to disclose their date of birth in the online application, a practice that employment discrimination lawyers say seems a little fishy. “It’s not per se discrimination to ask for your date of birth or age or some other age-identifying information on a job application, but when there’s a claim that EEOC’s investigating, we’re going to closely scrutinize what we see on the form,” said Ray Peeler, a senior attorney at the Equal Employment Opportunity Commission. “It definitely makes the EEOC look a little harder at what’s going on.” Kroger’s online application says that a candidate’s birthday is used “to ensure compliance with laws and regulations governing the employment of minors or establishing age requirements for certain tasks,” and that the age of anyone 21 years old or older “will not be seen by the hiring manager.” Human resources representatives at Target and Home Depot told HuffPost an applicant’s age is only used for the purpose of background checks after the person has been hired. But Susan Heathfield, a human resources expert who regularly writes and consults on hiring issues, said a company should never ask for a person’s specific age or Social Security number until after that person is hired. “I am stunned to hear that they’re asking for people’s ages in applications,” she told HuffPost. “They should know better. As an employer, you do not want to put yourself in a position where anything you do could be conceivably discriminatory.” Older workers, especially those that have been out of work for any significant period of time, are having an increasingly difficult time landing jobs in the recession because employers have their pick of younger candidates. A recent Pew report found that those who are older than 55 are most likely to remain jobless for a year or more, and the number and percentage of age discrimination charges filed with the Equal Employment Opportunity Commission have grown noticeably since 2006, rising from 16,548 charges, or 21.8 percent of all such EEOC filings, to 22,778, or 24.4 percent, in fiscal year 2009. “Some older employees just look old,” Heathfield said. “And it’s so darn subtle — an older person can come in for an interview and not get the job, and they’ll be informed that a more qualified candidate was hired. They’ll never know or be able to prove that two or three people on that committee kept thinking, ‘This person’s really old.’ I’d hate to be looking for a job right now, truthfully.” Heathfield said that while she wouldn’t recommend lying about one’s age on a job application, she believes there are other ways to avoid filling in a date of birth or Social Security number. “I usually tell people, ‘Write in all zeros, and say in the written section that you’ll be happy to supply those numbers if your application reaches the point of a background check,’” she said. Lyons believes lying about her age helped her land a job. She says she applied to work at a local retail store a handful of times since being laid off from her job as a florist in September 2008, but never heard back from them until she filled out an application with her fake birthday. “I lied to get past ‘Go’ and got past ‘Go,’ and then it was my experience and winning personality that took me the rest of the way,” said Lyons, who landed the job on the spot. “It may be a fluke, but it worked for me!”

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Pound-Yen Reversal To Gather Pace, New Zealand Dollar Offers Range-Trade Opportunity

February 17, 2011

Pound-Yen Reversal To Gather Pace, New Zealand Dollar Offers Range-Trade Opportunity

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Sideways AUD/NZD Channel Provides Swing Trading Opportunity

February 8, 2011

Sideways AUD/NZD Channel Provides Swing Trading Opportunity

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Stephen M. Wing: Winning the Future Means Closing the Skills Gap

February 6, 2011

In his State of the Union address, President Obama outlined a plan for the United States to win the future through better education, smarter innovation and broader investment. He would have done well to invoke another favorite phrase–”the fierce urgency of now”, itself borrowed from Dr. Martin Luther King, Jr.–to bolster his case. That urgency was imprinted in black and white, quite literally, the next morning. As the day-after analysis of the speech occupied front pages of newspapers across the country, readers needed only flip to page 2 for a reality check. “National science test scores disappoint,” announced one headline. “Less than half of students proficient in science”, proclaimed another. The newest report from the National Assessment of Educational Progress, known as “the nation’s report card”, was but the latest in a litany of sobering findings suggesting today’s generation of young Americans is fully unprepared for the challenges of tomorrow. How, indeed, will we seize our future and out-compete the rest of the world in scientific and technological advances when just one-third of American 8th graders and barely one in five high school seniors are deemed “proficient” in science? How will we out-innovate our global peers in creative pursuits when today’s American 15-year-olds rank 17th internationally in reading comprehension and 31st in math? And–worse still–when a quarter of our students won’t finish high school on time, if at all? These are questions that vex many of the forward-thinking business executives we work with at Corporate Voices for Working Families, the leading national business membership organization shaping conversations and collaborations on policy issues involving working families. Employers are certainly not alone in the collective hand-wringing, but they possess a unique perspective on the skills and knowledge young people need to succeed in the labor market today and the workforce of tomorrow. Our work at Corporate Voices reflects this perspective, and the recognition that employers can and must be active partners in preparing the talent pool of skilled employees. One important way to do so is to invest in their continuing education and training through ” learn and earn ” initiatives–programs offering lower-skilled workers in particular the opportunity to pursue higher education and post-secondary credentials while earning a living at the same time. The need is critical: Of the 47 million jobs projected to be created in the U.S. by 2018, some 30 million will require at least some post-secondary education. Those jobs will simply be out of reach for too many young Americans unless they are able to negotiate the demands of school and work. In a new publication, ” From an ‘Ill-Prepared’ to a Well-Prepared Workforce: The Shared Imperatives for Employers and Community Colleges to Collaborate ,” we explore innovative partnerships between the business sector and community colleges. We highlight the most successful practices in these ‘learn and earn’ programs, and recommend a set of public and private policies to support their growth and replication. Such business-college partnerships are one tiny but promising strategy in support of the ambitious domestic agenda President Obama imagined once again last week. To win the future in a vastly different global landscape of tomorrow, we’ve got to start today–and investing in the best-educated workforce we’re capable of producing is a fine place to start.

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Ronald Reagan Centennial Endowment Reaches $100M Goal

February 6, 2011

SIMI VALLEY, Calif. — The Ronald Reagan centennial endowment campaign surpassed its $100 million goal Saturday, hours before the Gipper’s 100th birthday. The nonprofit Ronald Reagan Presidential Foundation told The Associated Press that the milestone was reached about two years after the foundation set its $100 million endowment goal. Foundation board chairman Frederick Ryan said achieving the steep milestone for the nation’s 40th chief executive, and the timing, were remarkable. “We couldn’t have asked for a better present on President Reagan’s 100th birthday,” Ryan said during private reunion of Reagan associates at the Ventura County library some 50 miles northwest of Los Angeles. “Just over two years ago, we set a steep goal of raising $100 million for an endowment that will ensure the Reagan Foundation and its work will live on in perpetuity.” The endowment means Reagan’s legacy will be preserved and promoted, Ryan said. The endowment also maintains and expands the foundation and the Ronald Reagan Presidential Library in Simi Valley. Reagan was 93 when he died on June 5, 2004, after a 10-year battle with Alzheimer’s disease. Library executive director John Heubusch said the foundation’s mission is “ensuring that our next generation of leaders has the opportunity to learn about President Reagan and his impact on U.S. and world history.” “As President Reagan himself once said to America’s youth, ‘We need you, we need your youth, your strength, and your idealism,’” Heubusch said. _____ Online: http://www.reagancentennial.com http://www.reaganfoundation.org

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Boreal Water Collection New York Update: Boreal’s Sales and Marketing Team Presence in New York Continues to Strengthen With Rabbi Gruber

February 4, 2011

President Francine Lavoie “Welcomes the Opportunity to Expand and Improve Boreal’s Service to the Jewish Community of New York,” With Leisure Time Spring Water

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GBP/AUD Channel Provides Swing Trading Opportunity

February 3, 2011

GBP/AUD Channel Provides Swing Trading Opportunity

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AUD/JPY Channel Provides Swing Trading Opportunity

February 1, 2011

AUD/JPY Channel Provides Swing Trading Opportunity

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Jeff Bocan: Venture Capital Investing in Michigan — Going Beyond Hand-Waving and Hopeful Hype

January 28, 2011

“Leading the cleantech revolution,” or “Leveraging the intellectual property of our major research universities” — such hopeful and visionary statements are just a sampling of various mantras that have echoed the chambers of Midwestern capitals and filled the pages of local newspapers for the past several years. In the face of the recent economic despair that has besieged the regional economy, numerous Midwestern politicians, economic developers and regional venture capitalists have been, somewhat counter-intuitively, touting the notion that Midwest states like Michigan actually present excellent, yet overlooked, venture capital investment opportunities (including yours truly, as I did in ” America’s Midwest: Cashless Chasm or The Valley of Opportunity? “). Skeptics (which predominantly include frustrated Midwesterners, some business journalists and dismissive coastal venture capitalists) have generally disregarded such optimistic economic proclamations as desperate political hand-waving and hopeful, yet hollow hype to win votes, mollify the economically depressed and justify their own existence. I can understand why one would be doubtful — it is easy to be negative these days. But today, I write to tell you that the skeptics and defeatists look to be wrong, and we have some early evidence to prove it. It has been nearly a year and a half since I moved my family from the venture capital scene and beaches of Southern California to pursue what I believed was a greener, relatively untapped entrepreneurial landscape of Michigan and the Great Lakes region. (The decision to do so was laid out in my first HuffPo blog post, ” Five One-Way Tickets to Michigan, Please “). For those of you who don’t know, the venture capital process is a long-term game — it often takes 5-7 years to say with certainty whether we have done well with our investments. My firm is roughly two years into the process of investing our $100+ million venture capital fund into companies that are based in or that have operations in Michigan. With a couple of years of hard work under our belts, I feel comfortable sharing some initial data points to demonstrate that the opportunity is indeed real, though it is actually bigger and more diverse across the capital need continuum than we originally thought. Let me be clear, I am not prematurely rolling out the “Mission Accomplished” banner. As I mentioned, it takes years before a venture capitalist can claim victory for their fund. Think of this more as a peek at the scoreboard in the third inning of a baseball game… Attaining “victory” in our case is generally a three-step process: 1) Find 12-16 promising, fast-growing companies consistent with our investment strategy to invest into; 2) Work with the management of those companies over several years to build them and position them to realize their fullest potential; and 3) Generate a significant financial return for our investors through the realization of profitable “liquidity events” — the sale of our companies to larger companies or through an IPO. Here is a breakdown on how what we have done to date: 1. Executing the Investment Strategy — finding and completing investments Our investment strategy is to invest $2-8 million into mid to later stage companies that need growth capital to expand their products, services or to enter new markets. We are not doing early stage ventures (i.e., two guys and a powerpoint presentation) with this fund — we felt the need for growth capital was particularly acute for growth-staged Michigan companies given the pronounced shortage of investment capital in the state. A key assumption driving the aforementioned hopeful hype was that because of its manufacturing legacy and excess capacity, disproportionately high number of mechanical and industrial engineers per capita, existence of some of the largest research universities in the nation, amongst other things, the Midwest possesses many of the key elements for innovation, cost leadership and entrepreneurship to thrive, particularly in cleantech and health care. To date, we have reviewed over 1,000 opportunities and have invested nearly $50 million into 12 companies (and have reserved another $25 million or so for further capital needs those companies may have). The breakdown by sector in terms of capital invested is roughly: Health Care: 42%; Cleantech: 33%, and IT: 25%. The proportional split of our portfolio indeed suggests the key assumption behind the hype is well-founded. All 12 of our investments remain in good health and in all instances the core investment thesis (the reason we thought it was a good idea to invest in the first place) is still intact. Again, it is too early to break out the champagne, but we are on the right path and the early indicators give me the confidence to state that there are plenty of high quality opportunities to invest into in Michigan (and we aren’t done yet!) — it is no longer a hypothetical vision touted by a politician. 2. Building the Businesses and Positioning for Success It is certainly premature to make definitive claims on this point, but I can say that all 12 of our companies have increased their revenues and/or are ahead of their technical milestones after the first year of our investment (some dramatically). Creation of jobs is a major metric of focus and natural benefit of venture capital investment. All 12 companies have significantly increased their workforce (relative to their size) and often times, given that our investment focus is on knowledge-based services or innovative technologies, many of the new hires are higher salaried jobs that contribute welcome increased tax revenue to shrinking state and local budgets. For example a recent investment, ReCellular , hired over 30 people within a couple months of receiving our fund’s investment and is continuing to grow its business and its talent pool. 3. Generating Financial Return for Our Investors To our investors, returns are the ultimate determining factor of success, and at this point it is way too early to tell how things will shake out. Suffice to say, we feel good about where we are at this point but a lot of hard work remains and hopefully we are graced with a little bit of luck along the way before we call it a day. I have always been a person who takes pride in doing what they say they are going to do. Stating my intentions on a Huffington Post blog post a year and a half ago may have been a bold place to do it, and as such, I felt a sense an obligation to my readers to check in and let you know if we are doing what we set out to do. Indisputably, we have moved beyond the political hand-waving and the hopeful hype – we are finding great companies and putting the capital to work. Now we must continue building market leading businesses that can enable a significant financial return to our investors and to make a positive lasting impact on the communities where our companies operate — it is then we can proclaim, “Mission Accomplished”. So far, so good…

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Judy Lubin: Obama Schools Nation on Technology and Changing Economy

January 28, 2011

During his State of the Union address President Obama placed special emphasis on technology as an underlying force driving change in our economy. Early in his speech the president juxtaposed the “good old days” of “when finding a job meant showing up at a nearby factory or a business downtown” against a global, technological juggernaut that has opened up markets while increasing competition for jobs. “In a single generation, revolutions in technology have transformed the way we live, work and do business,” he said. Before laying out his vision of a new era of American innovation, Obama noted that “thirty years ago, we couldn’t know that something called the Internet would lead to an economic revolution.” Speaking about the economic benefits of technology and innovation, Obama noted that “today, just about any company can set up shop, hire workers, and sell their products wherever there’s an internet connection.” Obama’s overall message was that the world has changed. In this new world, Americans must embrace technology or risk being left behind in an age of new demands and global competition. He noted that by recognizing the value of technology and emphasizing science and math education, countries such as China and India are attracting businesses and developing highly skilled workers. One of the more illustrative moments of the speech was when Obama spoke of the “shuttered windows of once booming factories, and the vacant storefronts of once busy Main Streets.” While he acknowledged the hardship and pain brought on by closed factories and steel mills that can “do the same work” with less people, the president urged Americans not to “stand still” despite the reality that the “rules have changed” for millions of workers. In so many words, the president was telling the nation that it’s time to retool and figure out how we’ll survive in an increasingly “flat” world. Obama put the onus on government investments and preparing young people for science and technical fields but did not address the fact that an American worker with comparable training and education will likely still find it hard to compete in a free enterprise system that favors cheap labor and lax regulations. While I was happy to hear the president talk about the internet and the promise of technology, I couldn’t help feeling that the focus on “winning the future” through innovation was a way to bypass dealing with today’s difficult challenges. Still, I liked that Obama took the opportunity to remind Americans about the enabling power of the internet. By seizing on the forward-moving nature of technology, the president invited us to look past the present moment and imagine a different tomorrow.

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AUD/NZD Channel Provides Additional Profit Opportunity

January 21, 2011

AUD/NZD Channel Provides Additional Profit Opportunity

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Barry Moltz: 20 Most Important Words for Your Small Business

January 14, 2011

Words are powerful things. And what they mean has a big influence on your customers’ expectations. It is important in your business to understand and define each term for your company and customers. It will make a big difference in how your company grows. 1. Belief: What people think and accept as true. May not correlate with facts. Have great sticking power, even when they are wrong. 2. Complain: What a customer does when they are unhappy. They complain to themselves, to friends, on the Web, and even sometimes to you. 3. Disney: A place where most customers are always happy. This takes a lot of employee training. 4. Empowerment: Training employees to make decisions on their own to help a customer without talking to “the boss.” 5. Feedback: Giving the customer the opportunity to tell you what they think at many different stages of interaction, and the opportunity to do it in many different ways depending on what is convenient and appropriate for them. Something smart companies listen to and take to heart. Associated with the Three Times Rule–if you hear something about your business three times, whether you like it or not, pay serious attention. It is probably true. 6. Forever: Relative time the customer feels they need to wait. 7. Happy: An impossible dream that is sometimes worth the pursuit. No business strategy in the world can make all customers happy. 8. Humans: Who every customer wants to talk to when they call your company. 9. Kick the Cat: What employees do when they take their frustrations out on the customer. Blowing a situation out of proportion. The kiss of death for a company. 10. Mistake: The hardest thing for the company (or the customer) to admit. 12. My Manager: The person the customer is seemingly always getting passed to or who always gets blamed by the employee if something goes wrong. The catcher in “passing the buck.” 13. Overpromise : Making a commitment to a customer or to all customers that the company is not economically able to keep. 14. Patience : What businesses think customers ought to have. What customers think they have a lot of. 15. Peer Reviews : Online references written by customers on the level of quality or service in your company. Sometimes called an open reputation system. 16. Pest: A customer the company may need to fire to be more profitable. 17. Promise : A solemn commitment to a customer that the company will honor and the customer will not forget. 18. Self Service: Tools such as kiosks and Web tools for customers to assist themselves. Not always linked to satisfaction, but increasingly linked to high expectations of a quick turnaround. 19. Survey: A mostly ineffective means of getting customer feedback, especially when the company bribes the customer to do it. 2 0. Voice Mail Jail : Every customer’s nightmare, especially if they do not get a call back. What important words would you add?

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Tons of Opportunity but Rules are Holding Me Back

January 14, 2011

Tons of Opportunity but Rules are Holding Me Back

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GBP/USD’s Short-term Range Presents Scalping Opportunity

January 5, 2011

GBP/USD’s Short-term Range Presents Scalping Opportunity

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GBP/USD’s Short-term Range Presents Scalping Opportunity

January 5, 2011

GBP/USD’s Short-term Range Presents Scalping Opportunity

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A Range Bound Euro Presents Bearish Opportunity

January 3, 2011

A Range Bound Euro Presents Bearish Opportunity

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A Range Bound Euro Presents Bearish Opportunity

January 3, 2011

A Range Bound Euro Presents Bearish Opportunity

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New Year’s Resolution: 84% Want To Find A New Job

December 29, 2010

New Year’s resolutions come in all shapes and sizes. From losing weight to spending less to finding a new job it seems everyone has something they’d like to change. It seems the thing most people want to change this year, is their job . 84% of working individuals plan to find a new job in the new year, according to Manpower, a job-placement firm. That’s up a staggering 24% from last year. The change comes largely from the fact that people seem to simply be disappointed with their current positions, as wages have frozen, according to CNN Money . However, this doesn’t necessarily mean there will be a large number of available jobs. While the desire to change jobs may be powered in many cases by dissatisfaction with management, it may actually have more to do with money, according to The Street . Wages have grown marginally since the height of the recession ended, and many are looking for greater income. While unemployment was up at the end of 2010 , the outlook for 2011 looks better, and may afford many workers the opportunity to make career changes.

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Robert Lenzner: Obama’s Surprise Year End Gift to Wealthy Americans and Their Heirs

December 23, 2010

No one expected the Obama administration to give wealthy Americans the ability to give away, tax free, up to $5 million in 2011 or 2012 to anyone including children, grandchildren or friends. Couples will be able to give away $5 million each or $10 million among as many members of their family as they like. If this extraordinary measure did not exist, wealthy donors would have to pay a gift tax to the federal government and their state of residence for making any cash payment over $1 million, to their heirs. If they take advantage of this opportunity, it means they avoid waiting to see if the $5 million exemption on estate taxes, just passed by Congress, remains in effect — a quite serious risk, when you might have to pay a large percentage of 35-50% to Uncle Sam in the event the $5 million gift tax exemption is ever rolled back. Gifting grandchildren $5 million in early 2011 removes $5 million from your estate and avoids the New York State estate tax of 12-13% after the first $1 million if you leave the $5 million in your estate. By doing so, wealthy Americans avoid taking the risk that some time in the future this tax bill will be revoked and a more stringent limit of the amount subject to exemption from taxes along with a much more punitive levy on inherited wealth be passed. As Schulte Roth & Zabel, a law firm that represents many wealthy individuals and families (including me) trumpets in their “Alert ” of December 21, the new tax legislation significantly changes the federal estate, gift and generation-skipping transfer tax laws for 2010 through 2012 and provides taxpayers with valuable wealth transfer opportunities. Skipping a generation means that assets will be protected for your grandchildren and won’t be taxed in the estate of your children when they die. This ability to protect distant heirs has been a great advantage for wealthy families wishing to protect their capital and see it grow over several generations. Indeed, trust and estate lawyers were not sure until the bill was passed that even the $5 million exemption for estates would remain, as many Democratic legislators were vehemently against raising the exemption from taxes to the $5 million level. The exemption for the remainder of 2010 is only $1 million. Their surprise about the bill’s success was underscored by the unexpected added ability for individuals with assets that have gained in value over the years, to gift them in 10 days to their heirs and grandchildren without paying a cent of taxes. Says Judith E. Siegel-Baum, a partner of Cozen & O’Connor’s Private Client Services Group in New York: “This surprise part of the bill gives individuals with accumulated wealth the ability to pass on assets l that have risen in value to anyone — but especially their children and grandchildren without incurring any gift tax that would reduce the value of he assets.” Schulte Roth & Zabel also underscore that wealthy Americans who wish to create generation-skipping trusts for grandchildren or more distant heirs, have a unique opportunity which may never be available again, to make gifts… in 2010 without incurring any GST tax.” SRZ’s memo urges wealthy individuals to hurry to establish these GST trusts before the close of 2010. A similar ALERT from law firm Cozen O”Connor, also emphasizes that “Gifts made directly to grandchildren (either outright or in trust) in 2010 will not be taxed for GST tax purposes and will not require any use of GST exemption. Therefore, clients who have not used all of their existing gift exemption (still capped at $1,000,000 per donor for 2010) should consider making such gifts.”

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EUR/CHF at Record Low Presents Bullish Opportunity

December 16, 2010

EUR/CHF at Record Low Presents Bullish Opportunity

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USD/CAD at Range Bottom Generating Long Opportunity

December 3, 2010

USD/CAD at Range Bottom Generating Long Opportunity

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Bryce Covert: The Beginnings of a Credit Card-Free Revolution? Maybe Not.

December 1, 2010

Cross-posted from New Deal 2.0 . Welcome to the club , eight million new people without a credit card! CNNMoney reported yesterday that credit card use is in decline, with the number of cardless people jumping up to 78 million this year from 70 million last year. In a recession where every penny counts, many consumers shredded their cards in a move to reduce their debt (and probably avoid fee hikes ). The article reports, “TransUnion said the average U.S. credit card debt fell more than 11% over the past year to $4,964 in the third quarter.” Gerri Detweiler of Credit.com called the phenomenon “unprecedented.” Consumers never abandon their plastic, she says; the numbers have “always gone up.” Perhaps a silver lining of our economic misery could be consumers moving from debt and risk to saving and building real wealth. But the drop in users isn’t all due to penny pinching and/or outrage. Part of this trend is from “charge-offs in the higher risk segments,” says TransUnion. Because the new credit card act puts a kink in card companies’ ability to jack up interest rates and impose fees, they dumped consumers who they “saw as dead weight,” the article reports. With a recession causing more defaults on debt, the companies are getting out of riskier accounts. So both consumers and companies are parting ways with risk. And with easy access to credit cards dried up, some see the opportunity to cash in by creating new products. Enter the Kardashians — because we should always take financial advice from celebrities famous only for being famous. The reality TV celebs planned to market a pre-paid debit card to young teenage girls with their faces painted across the front. While they decided to shut down the venture (after Connecticut Attorney General Richard Blumenthal questioned the legality of the card’s “pernicious and predatory fees”), they aren’t alone in trying to get in on a growing trend. Annie Lowrey reports that “the total market will double in size in the next three years, with customers loading a whopping $672 billion onto prepaid cards by 2013.” The cards are sometimes used to get money to underserved communities such as immigrants and the poor. But they are also seen as a way for banks to cash in on a new distaste for credit cards among young people and to avoid rules that could limit profits on credit and debit cards. Lowrey points out that the Kardashian Kard (yes, with a ‘K’) would have had “more fees than the Kardashians have reality shows.” On top of that, these cards don’t have “the protections or the financial-education benefits of plain-vanilla banking products,” she adds. So good news: more people converting to the non-credit card cause. Bad news: not all of those people chose to leave credit card ownership of their own accord, and financial wizardry is already on the case, filling our need for predatory products. Innovation at its best! Sign up for weekly ND20 highlights, mind-blowing stats, event alerts, and reading/film/music recs.

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NZD/USD Consolidation Presents Ideal Scalping Opportunity

December 1, 2010

NZD/USD Consolidation Presents Ideal Scalping Opportunity

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Ron Ashkenas: How Companies Can Give More Than Just Thanks

November 24, 2010

Many cultures around the world celebrate a yearly thanksgiving festival, a time when we express our gratitude for a successful harvest. While observances and timing vary considerably based on different crops, climates, religions, and histories, the common thread is that we should set aside time to thank a higher power — or nature — for providing us with another year of sustenance. Although it’s common knowledge that effective food production is critical to our survival and worthy of a yearly ” thank you ” (especially in light of recent food recalls ), most of us in the modern, developed world take the annual harvest for granted. Although we are aware of droughts, floods, and fires that may affect food production in various parts of the globe, producing food for most of us is no longer a miracle — it’s an established industry . As a result, the Thanksgiving holiday, particularly in the United States , has become more about football and parade floats than the availability of food. The reality is that malnutrition and starvation have not been eradicated , even in the developed world, and may only worsen as the population expands. The food agency of the United Nations, the FAO, estimates that there are 925 million undernourished people in the world , largely because the calories produced worldwide (which should be sufficient) are not effectively utilized and distributed. So while there is abundance in some places, there are shortages in others. The FAO also reports that food production needs to rise by 70% in the next 40 years to meet population growth, while there will be less available land due to urbanization and climate change. According to their study, hitting this target will require a 50% annual increase in agricultural investment starting now. Clearly these macro-economic and developmental problems cannot be solved by any one person or organization alone. However, the Thanksgiving holiday (which comes this week in the United States) is a good time to think about what each one of us can do, both as individuals and as members of organizations . Here are a few ways to promote giving throughout the year: 1. Make giving easy. Talk to your leadership team about making it convenient for you and your colleagues to make charitable contributions beyond just the yearly United Way campaign. Due to the recession, donations to the 400 largest charities in the U.S. (including the United Way) dropped by 11% in 2009 . At the same time, contributions by people making over $200,000 per year fell by 35% . So, in these tough times when many aid organizations have fewer resources, it is all the more important to mobilize larger numbers of people to contribute. Obviously organizations cannot (and should not) force employees to give — but they can make giving easy by setting up payroll reduction plans, putting links to vetted charities on company websites, and providing forums for educating employees about social and community issues. 2. Cut back to give back. Consider ways of redirecting some of the lower-value items in your budget to community or social activities. For example, one company realized that it was supplying three biscuits (as well as coffee, tea, and soft drinks) for every person attending meetings in the headquarters building. By reducing the biscuit allocation it was able to save hundreds of thousands of dollars per year, some of which could be shifted to corporate giving. Another opportunity is to either reduce the luxury level of corporate offsites, and/or spend a portion of each offsite with your team doing community service. This not only benefits the community, but also develops the team . 3. Work together to give your time. Use the Thanksgiving holiday to talk with your team about doing or sponsoring a social service project together (again on an optional basis). Find out what kind of project they would feel good about, and tap into their interests and passions. Set a goal for what you want to accomplish, and then keep it going throughout the year. Although it may not be apparent, individuals and organizations can make a difference — especially if we all increase the giving that goes along with our thanks. How can your company give more? Cross-posted from Harvard Business Online .

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A Range Bound USD/CHF Presents Scalping Opportunity

November 22, 2010

A Range Bound USD/CHF Presents Scalping Opportunity

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Jeffrey Wasserstrom: Covering China for Marketplace: A Quick Q & A With Rob Schmitz

November 16, 2010

Over the summer, there was a changing of the guard in the Shanghai office of Marketplace , a radio program that has consistently carried smart reports about China. Scott Tong moved from the PRC back to the US (where he continues to work for the show) and former Peace Corps volunteer Rob Schmitz took his place. I had the pleasure of meeting them both in Shanghai in July and ran a post with the former in early August, in which he reflected on his time covering the China beat. Now, as a sequel to that post, comes a quick q and a with Schmitz, who recently did a great feature on Inner Mongolia (listen to it here, and check out the striking photos that he took to accompany the report here ), which among other things is a fascinating addition to the growing number of intriguing pieces, in varied media, on how life in the PRC is being transformed by the increasing importance of cars as forms of transportation and status symbols: JW: What story has been the most fun to cover for Marketplace since you arrived in Shanghai? RS: I just finished a series of stories on the rapid economic transformation of the Ordos basin in Inner Mongolia. All the big dreams, hope, and optimism that make life in today’s urban China so full of electricity seemed to shine even brighter in this tiny region. The area is making a mint off its status as one of the most prominent coal and natural gas producers of China. Nearly everyone I met there was either looking for investors or looking to invest. Both groups were overcome with a type of gold fever that made them fun to be around. One guy intercepted me on the airplane to Ordos and talked me into scheduling an interview with the CEO of his logistics company. When I showed up the next morning, I was ushered to the corner office. The CEO shook my hand without letting go. At the point where it started to become uncomfortable, a photographer appeared out of nowhere and began to snap photos. The CEO then released my hand and announced that he was too busy for an interview. They had gotten what they needed: a photograph of their leader with a foreigner for promotional material to attract more investors. But I fought for a consolation prize. After the paparazzi shoot, I asked my new acquaintance for a tour of the automobile industrial park his company was constructing. He was happy to do so, and the result ended up in the first piece of the series. Two days later, I met my Mongolian fixer. I found him through a mutual acquaintance, and we had spent the week prior emailing each other about the details of my upcoming trip and some of the rural areas where we could find ethnic Mongolian herders to talk to. I expected him to be middle-aged, possibly a former herder. Not even close. Baigaal was 24 years old, had a shaved head, and upon meeting me, had one question: “Do you like Eminem?” Baigaal was an aspiring rapper. He brought two of his college friends along on our day-trip through the grasslands. There we were: three ethnic Mongolians, my Chinese assistant, and me, crammed into a tiny Suzuki Swift, listening to a mix CD Baigaal had put together of Mongolian hip-hop music. All of the sudden the car goes silent. Two electronic gongs pound through the speakers. It’s ‘Beat It’ by Michael Jackson. Within a minute, we’re all humming along–Mongolians, a Chinese, and an American–as the grasslands of Inner Mongolia flash by outside our Japanese car… there’s nothing like Michael Jackson to make the world a little smaller. JW: What do you consider the biggest challenge to reporting from China just now? RS: On the surface, China is a journalist’s playground: It’s changing at an historic pace, it’s home to the largest human migration the world has ever known, and its fate has become intertwined with the world’s fate. The trick is to make sense of all this. China forces you to become a better reporter–you’re constantly having to check your facts, because what you thought were facts oftentimes weren’t facts to start with. It’s difficult to find the reality behind economic numbers from Beijing, and it requires persistent follow-up with a variety of economists, academics, social scientists, and, most importantly, laobaixing. Once you’ve got what you think is a reasonable amount of material to tell a story, then the challenge becomes trying to fit the nuance and complexities of China into a four-minute feature. The amount of material left on the cutting room floor could fill books. JW: What has surprised you most about how China has–or hasn’t–changed since you were there last? RS: After living in Sichuan as a Peace Corps Volunteer in the mid-90s, I’ve returned to China every two years or so as a journalist, and, like many who live here, I’ve learned to reset my expectations each day when I wake up. Anything can and will happen here, and the rapid pace of change makes surprises an everyday part of life. I just came back from a weekend trip in Hangzhou. My wife, son, and my mother, who’s visiting from the states, walked a few blocks from our home to the subway, where it took 20 minutes to arrive to Shanghai’s new Hongqiao train station. From there, we boarded a sleek, comfortable bullet train that whisked us to Hangzhou in 38 minutes. A trip that used to take 3-4 hours was now reduced to under an hour. As the countryside went by at around 220 mph, my two year-old sat in my lap with his forehead planted on the window, screaming in excitement at how fast we were going. I felt the same way. JW: During your first stay in China you were based in Sichuan and now you are living in Shanghai. Any thoughts you want to share, besides the obvious ones of infrastructure and access to international goods and the like, about how the two living experiences are similar and different? RS: My China experience has changed alongside my evolving career path and in tandem with the economic transformation of the country. In the 1990s, I was a volunteer teacher in the city of Zigong. My Peace Corps site mates and I were the first foreigners to live in the city since 1949. I lived on a hundred US dollars a month and it was my job to help people. Today, I’m a journalist in China’s largest city, I’m one of at least 150,000 foreigners in Shanghai, and it’s my job to pester people with questions. I make more money than I did during my Peace Corps days, but I miss the relationships I shared with my Chinese students and colleagues when I was a teacher. As a journalist, it’s more difficult to cultivate these types of meaningful relationships because you’re always rushing to meet the next deadline. But it’s not impossible. I’m working hard to establish a handful of sources from all walks of life who I can check-in with from time to time. It’s not a daily routine like I had when I was a teacher, but it’s regular enough to serve as a suitable substitute. On the flip side, being a journalist gives me the freedom to explore and analyze parts of Chinese society I was always curious about but didn’t have access to as a teacher. It gives me the opportunity to tell the stories of the Chinese people to an audience thirsty for more knowledge about this fascinating land. It’s a fantastic job. China inspired me to become a journalist in the first place, and I’m thrilled to have this opportunity. JW: Now that the Expo is over, any predictions on how it will be viewed in China a year from now, whether it will be thought of as a success, a failure, a bit of both? RS: I think it depends on whom you talk to. For the Chinese, I think Expo was a rousing success. Tens of millions of people attended the event. Many of them were from smaller cities throughout China and were making their first trip outside their province to ‘see the world’ in Shanghai. It’s easy to criticize the flaws of the event, and many foreign journalists did. But I think dwelling too much on the negative aspects misses the point that this World’s Fair really wasn’t designed for the international community. It was made for China, and the Chinese clearly benefitted from it, no matter how long the lines became and how tacky some of the pavilions were. For the more sophisticated worldly visitor, yes, parts of the Expo were a huge disappointment. To many, the mix of corporate and Chinese propaganda throughout much of the fair was an accurate reflection of a disturbing new world order. But for me, a former teacher in rural Sichuan whose Chinese friends were constantly dreaming of seeing the world and learning about different cultures and ideas, Expo gave them a chance to do that, and I think that’s great. * This piece also appeared today, under a different title, at “The China Beat” blog/electronic magazine.

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Ken Blackwell: Getting Our Fiscal House in Order

November 15, 2010

On November 2, the American people sent a resounding message to Washington D.C. that the era of reckless spending must stop. We all know a Balanced Budget Amendment is vital to stopping out of control spending. That’s why Senator-elect Mike Lee (R – Utah) and I launched Balanced Budget Amendment Now . Actually passing conservative measures such as this, though, will require making sure conservatives are in a position to lead. The good news is there are signs that Speaker-elect John Boehner and Majority Leader-elect Eric Cantor have gotten the message. For example, an unprecedented movement is afoot to appoint bona fide deficit hawks to the appropriations committee who will reign-in the out of control spending and slash our dangerous unsustainable deficits. (Part of the reason this opportunity exists is that so many appropriators have recently lost election, thus making it a less enticing committee for liberal Republicans to seek). As Politics Daily’s Matt Lewis recently noted, “Once thought of as a powerful committee for members wanting to ‘bring home the bacon,’ in today’s political environment sitting on an appropriations panel seems to be an albatross .” That may be true for “appropriators,” but what if real fiscal conservatives were to join the committee, thus changing the way the committee was run? Fiscal conservatives like Reps. Jeff Flake (R-Ariz.) and Tom Graves (R-G.A.) are gaining momentum within the Republican caucus as exactly the type of principled leaders needed to bring fiscal sanity to the appropriations committee. (The Club For Growth, where I sit on the board of directors, has endorsed both in their campaigns). Rep. Flake, of course, is well known to fiscal conservatives, but Rep. Graves is a rising star who is not yet widely known. Having won four races in less than one hundred days (including a special election and two run-offs) to fill the seat for Georgia’s ninth congressional district this summer, Rep. Graves wasted little time in becoming an outspoken opponent of earmarks. Prior to being elected to Congress, Graves was a leader in the Georgia General Assembly to cut $3.1 billion from Georgia’s budget, and authored legislation to implement zero-based budgeting to bring transparency and accountability to the state budgeting process In just his first month in Congress, Graves authored legislation to defund the Patient Protection and Affordable Care Act and the Health Care and Education Reconciliation Act of 2010. Republicans have an opportunity to change the way Washington works by putting proven conservative leaders in a position to lead by example. To help keep our Fiscal House in order, Reps Graves and Flake should be placed on the appropriations committee.

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USD/CHF Test of Resistance Could Offer Scalping Opportunity

November 10, 2010

USD/CHF Test of Resistance Could Offer Scalping Opportunity

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