Tuesday, April 28, 2009
Call for Federal Intervention: Closing US Auto Plants is not the answer
Call for Federal Intervention: Closing US Auto Plants is not the answer
Closing US Auto Plants is not the answer for improving the failing financial economy. It is only contributing more to the economic crisis. For many organizations, the first option is layoffs and closing offices or businesses. This is only a short term “fix” because when you close plants you are really only adding to the economic crisis and causing your organization more economic problems. Closing US Auto Plants increases the number of individuals seeking unemployment and reduces the disposable income of families. Thus families are unable to spend more on buying US Cars or in buying goods and services that can increase demand and make the supply chain more profitable. The key to long term sustainability for organization is to reduce wages and benefits while keeping employees on the payroll so that the employees are not reduced to unemployment benefits which do not cover their basic needs and in reality can cause the individual to join the millions of homeowners in foreclosure. Before organizations consider downsizing, there should be an evaluation of other options that would keep the organization viable and yet maintain the current workforce. This is not often done. Management and leadership consider layoffs as the first alternative. Salary reductions are never considered, especially at the leadership level where the most amount of salary expenditures are. Closing US Auto Plants and sending more then 19,000 workers to the unemployment lines should not be an option for the General Motors. The US Taxpayers have already suffered enough in providing bailout monies to the US Auto Industry and now for the Federal Government to “allow” them to increase the economic crisis by laying off workers is diabolical. We need an accounting of what the General Motors and Chrysler used the bailout monies for that has continued to cause them to be in such a financial state. When an organization has received such enormous amounts of bailout monies and not seen any viability, it indicates that the organization has a problem with mismanagement of funds rather than that their sales are not appropriate for maintaining the organization. General Motors and Chrysler are actually “living beyond their means” when it comes to their accounting practices and their expenditures. There are oversight committees that were established to determine how General Motors and Chrysler can become profitable organizations again. The problem with the oversight committees and the current leadership at General Motors and Chrysler is that they are still “leadership styles and ideals” from the 20th century. They are not utilizing the leadership and management ideals of the 21st century. When you have the same people that have been in the organization for the past 10-20 years “running the ship” the potential for “Out-of-the-Box Thinking” is significantly reduced. These organizations need “NEW BLOOD” infused into the leadership that brings a new way of thinking and that brings fresh ideas to the organizations that are essential for removing the old biased and misconceptions of how organizations should function. We can see this in the case of Chrysler Financial that refused the Federal Bailout monies because they do not want to adhere to limitations on executive pay rates (http://money.cnn.com/2009/04/20/news/companies/chrysler_bailout/index.htm). This indicates that Chrysler Financial is more concerned with its executives “draining” the organization dry rather than the survival of Chrysler. Thus Chrysler Financial is more concerned with lining the pockets of its executives than ensuring that the employees at Chrysler, as well as, Chrysler Financial continue to have a job for the next six months. In 2006, General Motors did indicate it was cutting salaries and bonuses for its executive (http://www.theage.com.au/articles/2006/02/08/1139379572293.html). However, let’s be realistic, their salaries are so high that the reductions probably did not make a “dent” in their actual compensation. General Motors and Chrysler have got to get serious on what it means to truly reduce executive level compensation, which has more of an impact on the profitability of the organization than the hourly workers compensation. As a matter of fact, an investigation of General Motors and Chrysler would probably find that many of the leadership and high level managers are still receiving outrageous salaries and benefits that are not conducive to ensuring that the organization restructures so that it can be more profitable.
The Federal Government needs to intervene and indicate to General Motors and Chrysler that any monies received are to be used to sustain the US Autoworkers and that they cannot close any more US Plants without government approval. The Federal Government can establish a subsidy program that provides a portion of the US Autoworker salary until it can be determined how to restructure the organization. In addition, the Federal Government may need to establish a “new” Auto taskforce that consists of individuals that are not in the auto industry, but are strategists that can provide a “new perspective” on how the organization can reach a sustainable stage over the next few years based on an unbiased approach that is not focused on the old views and concepts of what the auto industry should be and on the beliefs, values, and norms of the Industrial Revolution.
Closing US Auto Plants is not the answer for improving the failing financial economy. It is only contributing more to the economic crisis. For many organizations, the first option is layoffs and closing offices or businesses. This is only a short term “fix” because when you close plants you are really only adding to the economic crisis and causing your organization more economic problems. Closing US Auto Plants increases the number of individuals seeking unemployment and reduces the disposable income of families. Thus families are unable to spend more on buying US Cars or in buying goods and services that can increase demand and make the supply chain more profitable. The key to long term sustainability for organization is to reduce wages and benefits while keeping employees on the payroll so that the employees are not reduced to unemployment benefits which do not cover their basic needs and in reality can cause the individual to join the millions of homeowners in foreclosure. Before organizations consider downsizing, there should be an evaluation of other options that would keep the organization viable and yet maintain the current workforce. This is not often done. Management and leadership consider layoffs as the first alternative. Salary reductions are never considered, especially at the leadership level where the most amount of salary expenditures are. Closing US Auto Plants and sending more then 19,000 workers to the unemployment lines should not be an option for the General Motors. The US Taxpayers have already suffered enough in providing bailout monies to the US Auto Industry and now for the Federal Government to “allow” them to increase the economic crisis by laying off workers is diabolical. We need an accounting of what the General Motors and Chrysler used the bailout monies for that has continued to cause them to be in such a financial state. When an organization has received such enormous amounts of bailout monies and not seen any viability, it indicates that the organization has a problem with mismanagement of funds rather than that their sales are not appropriate for maintaining the organization. General Motors and Chrysler are actually “living beyond their means” when it comes to their accounting practices and their expenditures. There are oversight committees that were established to determine how General Motors and Chrysler can become profitable organizations again. The problem with the oversight committees and the current leadership at General Motors and Chrysler is that they are still “leadership styles and ideals” from the 20th century. They are not utilizing the leadership and management ideals of the 21st century. When you have the same people that have been in the organization for the past 10-20 years “running the ship” the potential for “Out-of-the-Box Thinking” is significantly reduced. These organizations need “NEW BLOOD” infused into the leadership that brings a new way of thinking and that brings fresh ideas to the organizations that are essential for removing the old biased and misconceptions of how organizations should function. We can see this in the case of Chrysler Financial that refused the Federal Bailout monies because they do not want to adhere to limitations on executive pay rates (http://money.cnn.com/2009/04/20/news/companies/chrysler_bailout/index.htm). This indicates that Chrysler Financial is more concerned with its executives “draining” the organization dry rather than the survival of Chrysler. Thus Chrysler Financial is more concerned with lining the pockets of its executives than ensuring that the employees at Chrysler, as well as, Chrysler Financial continue to have a job for the next six months. In 2006, General Motors did indicate it was cutting salaries and bonuses for its executive (http://www.theage.com.au/articles/2006/02/08/1139379572293.html). However, let’s be realistic, their salaries are so high that the reductions probably did not make a “dent” in their actual compensation. General Motors and Chrysler have got to get serious on what it means to truly reduce executive level compensation, which has more of an impact on the profitability of the organization than the hourly workers compensation. As a matter of fact, an investigation of General Motors and Chrysler would probably find that many of the leadership and high level managers are still receiving outrageous salaries and benefits that are not conducive to ensuring that the organization restructures so that it can be more profitable.
The Federal Government needs to intervene and indicate to General Motors and Chrysler that any monies received are to be used to sustain the US Autoworkers and that they cannot close any more US Plants without government approval. The Federal Government can establish a subsidy program that provides a portion of the US Autoworker salary until it can be determined how to restructure the organization. In addition, the Federal Government may need to establish a “new” Auto taskforce that consists of individuals that are not in the auto industry, but are strategists that can provide a “new perspective” on how the organization can reach a sustainable stage over the next few years based on an unbiased approach that is not focused on the old views and concepts of what the auto industry should be and on the beliefs, values, and norms of the Industrial Revolution.
Sunday, April 19, 2009
The Bank of the United States of America
The Bank of the United States of America
For decades banks and credit card companies have taken advantage of the American Taxpayers through high interest rates and bad lending practices. The duped the Federal Government and the American Taxpayers during the 3rd quarter of 2008 by indicating that they were in financial distress and without Federal bailout monies they would not be able to survive, when in reality they wanted to use the Federal bailout monies to pay millions of dollars of executive level compensation packages. These banking entities were never in any type of financial crisis, which in seen in the fact that less than six months later, many are indicating that they have billions in profit and are ready to pay back the Federal bailout monies because they do not want to be “regulated” by the government in how they award and pay executive level compensation. It is time for the Federal government to make banks realize that there can be competition in the banking industry that will limit their abilities to remain so profitable that they are able to even pay executive level compensation. There are complaints from politicians that with government intervention, the United States is moving from a Capitalist Society to a Socialist Society. If this is the case, then the American Taxpayer should be able to decide if they want to live in a Capitalist Society derived from the greed of business owners or in a Socialist Society where they have a choice of how they want to live. The Treasury Department and the Federal Reserve need to establish The Bank of the United States of America (BUSA), a government controlled and sponsored banking entity. The Bank of the United States of America would bring some competitiveness to the banking industry as it would offer interest rates between 5-16% for credit cards and higher interest for deposits than the current banks. The BUSA would start to refinance mortgages directly, bypassing the banks, which would allow more homeowners to remain in their homes and alleviate some of the “bureaucracy” of the current banking industry which is not focused on helping homeowners. As there are many banks that have become insolvent and their facilities are now empty, the BUSA would be able to open branches in major cities to allow American Taxpayers to begin making wire transfers from their existing banks and transferring credit card balances. The BUSA would also offer online banking services to allow American Taxpayers to establish accounts online and receive debit and credit cards via the mail just as the current banks do. The advantages of opening The Bank of the United States of America is that the interest monies received could be used to reduce the Federal Deficit, it would alleviate the size of banks that are thought to be too big to fail, it would create jobs locally as new offices are opened, and it would provide the American Taxpayer with a better solution for investing and saving their monies than in the current banks that are using the monies to pay the executive level bonus compensation packages.
It would be a “win-win” solution for the American Taxpayers and the Federal Government and let the current banks know that the American Taxpayers have a choice in how they want their hard earned monies to be used.
How to start a bank: http://www.ehow.com/how_2062432_start-bank.html?ref=fuel&utm_source=yahoo&utm_medium=ssp&utm_campaign=yssp_art
For decades banks and credit card companies have taken advantage of the American Taxpayers through high interest rates and bad lending practices. The duped the Federal Government and the American Taxpayers during the 3rd quarter of 2008 by indicating that they were in financial distress and without Federal bailout monies they would not be able to survive, when in reality they wanted to use the Federal bailout monies to pay millions of dollars of executive level compensation packages. These banking entities were never in any type of financial crisis, which in seen in the fact that less than six months later, many are indicating that they have billions in profit and are ready to pay back the Federal bailout monies because they do not want to be “regulated” by the government in how they award and pay executive level compensation. It is time for the Federal government to make banks realize that there can be competition in the banking industry that will limit their abilities to remain so profitable that they are able to even pay executive level compensation. There are complaints from politicians that with government intervention, the United States is moving from a Capitalist Society to a Socialist Society. If this is the case, then the American Taxpayer should be able to decide if they want to live in a Capitalist Society derived from the greed of business owners or in a Socialist Society where they have a choice of how they want to live. The Treasury Department and the Federal Reserve need to establish The Bank of the United States of America (BUSA), a government controlled and sponsored banking entity. The Bank of the United States of America would bring some competitiveness to the banking industry as it would offer interest rates between 5-16% for credit cards and higher interest for deposits than the current banks. The BUSA would start to refinance mortgages directly, bypassing the banks, which would allow more homeowners to remain in their homes and alleviate some of the “bureaucracy” of the current banking industry which is not focused on helping homeowners. As there are many banks that have become insolvent and their facilities are now empty, the BUSA would be able to open branches in major cities to allow American Taxpayers to begin making wire transfers from their existing banks and transferring credit card balances. The BUSA would also offer online banking services to allow American Taxpayers to establish accounts online and receive debit and credit cards via the mail just as the current banks do. The advantages of opening The Bank of the United States of America is that the interest monies received could be used to reduce the Federal Deficit, it would alleviate the size of banks that are thought to be too big to fail, it would create jobs locally as new offices are opened, and it would provide the American Taxpayer with a better solution for investing and saving their monies than in the current banks that are using the monies to pay the executive level bonus compensation packages.
It would be a “win-win” solution for the American Taxpayers and the Federal Government and let the current banks know that the American Taxpayers have a choice in how they want their hard earned monies to be used.
How to start a bank: http://www.ehow.com/how_2062432_start-bank.html?ref=fuel&utm_source=yahoo&utm_medium=ssp&utm_campaign=yssp_art
Wednesday, April 15, 2009
Spring Cleaning: Strategies for School Districts to reduce deficits
Spring Cleaning: Strategies for School Districts to reduce deficits
All across the nation, school districts are indicating that there are millions in deficits that must be addressed for the school system to remain viable. The strategy that many school boards are utilizing is to layoff teachers and support personnel, not administrators. Teachers are the “front line” workers that facilitate the learning environment for the students. An alternative strategy can be to evaluate the need for administrators. In many cases, schools have multiple administrators performing the same tasks and duties within a school or even district. These administrators are making high five to six figure salaries, which in many cases could keep 2-3 teachers employed. In some schools, there may be as many as five principals in the same school, the Main Principal and Principals for each grade level. In addition, there may be many different “Area” offices that provide the same services only to different schools within the district. When indicating strategies for reducing deficits, there has been no indication that administrators will be terminated or laid off as a method of reducing the deficits. In Los Angeles, 5,400 teachers and support personnel may be laid off. In Detroit, over 600 teachers and support personnel will be laid off. It is time to review the School Boards and their logic for the layoff teachers when classrooms are already overcrowded with teachers instructing so many students that is it hard to maintain order within the classroom, let alone provide the necessary instruction for students to strive and excel in the educational environment. While it is understood that a strategy must be developed to reduce the deficits, it would seem that financial managers and school boards are opted for the same old strategy, reducing the teaching workforce. While a Turnaround Strategy may be applied that focuses on Capital Expenditures and Workforce Reduction, it should not be relegated to the layoff of teachers, but rather to analysis and reduction of Administrators, as well.
School Districts need to conduct a “Spring Cleaning”, which entails working from the “attic to the basement” and depending on how many floors the cleaning may be extensive. When cleaning the attic, an analysis of the Administrators and their roles needs to be conducted. While longevity and dedication can be applauded, many of the Administrators have been in positions for decades utilizing archaic educational practices and sometimes just drawing a paycheck for sitting behind a desk. If “Spring Cleaning” is conducted effectively, much of the deficit will be reduced in the termination of high paid Administrators and redundant positions and the replacement of some with new Administrators at a lower salary. President Obama signaled a new era with the concept of “Change” and how organizations cannot continue to operate under the same status quo that they have for decades and even centuries. This is true of school districts as well. School districts cannot expect to become fiscally sound if you keep the same leadership in place that has made “poor and inappropriate” decisions in the past. Reorganization and restructuring should start at the top with Administrators and Leadership, rather than teachers. If School Districts find it necessary to reduce the number of teachers, then it would be more appropriate to retire older teachers and reduce Administrators to maintain an equilibrium within classrooms that does not alienate the students which results in higher drop out rates.
LA School Board to layoff 5,400 employees:
http://news.yahoo.com/s/ap/20090415/ap_on_re_us/la_schools;_ylt=AkAHM3ZtTnIVUzgV.gGbRDRH2ocA;_ylu=X3oDMTJkdG9rMnF1BGFzc2V0A2FwLzIwMDkwNDE1L2xhX3NjaG9vbHMEY3BvcwM2BHBvcwM2BHNlYwN5bl90b3Bfc3RvcmllcwRzbGsDbGFzY2hvb2xib2Fy
Detroit to close 23 schools, layoff 600 teachers:
http://www.azcentral.com/news/articles/2009/04/09/20090409detroit-schools0409-ON.html
All across the nation, school districts are indicating that there are millions in deficits that must be addressed for the school system to remain viable. The strategy that many school boards are utilizing is to layoff teachers and support personnel, not administrators. Teachers are the “front line” workers that facilitate the learning environment for the students. An alternative strategy can be to evaluate the need for administrators. In many cases, schools have multiple administrators performing the same tasks and duties within a school or even district. These administrators are making high five to six figure salaries, which in many cases could keep 2-3 teachers employed. In some schools, there may be as many as five principals in the same school, the Main Principal and Principals for each grade level. In addition, there may be many different “Area” offices that provide the same services only to different schools within the district. When indicating strategies for reducing deficits, there has been no indication that administrators will be terminated or laid off as a method of reducing the deficits. In Los Angeles, 5,400 teachers and support personnel may be laid off. In Detroit, over 600 teachers and support personnel will be laid off. It is time to review the School Boards and their logic for the layoff teachers when classrooms are already overcrowded with teachers instructing so many students that is it hard to maintain order within the classroom, let alone provide the necessary instruction for students to strive and excel in the educational environment. While it is understood that a strategy must be developed to reduce the deficits, it would seem that financial managers and school boards are opted for the same old strategy, reducing the teaching workforce. While a Turnaround Strategy may be applied that focuses on Capital Expenditures and Workforce Reduction, it should not be relegated to the layoff of teachers, but rather to analysis and reduction of Administrators, as well.
School Districts need to conduct a “Spring Cleaning”, which entails working from the “attic to the basement” and depending on how many floors the cleaning may be extensive. When cleaning the attic, an analysis of the Administrators and their roles needs to be conducted. While longevity and dedication can be applauded, many of the Administrators have been in positions for decades utilizing archaic educational practices and sometimes just drawing a paycheck for sitting behind a desk. If “Spring Cleaning” is conducted effectively, much of the deficit will be reduced in the termination of high paid Administrators and redundant positions and the replacement of some with new Administrators at a lower salary. President Obama signaled a new era with the concept of “Change” and how organizations cannot continue to operate under the same status quo that they have for decades and even centuries. This is true of school districts as well. School districts cannot expect to become fiscally sound if you keep the same leadership in place that has made “poor and inappropriate” decisions in the past. Reorganization and restructuring should start at the top with Administrators and Leadership, rather than teachers. If School Districts find it necessary to reduce the number of teachers, then it would be more appropriate to retire older teachers and reduce Administrators to maintain an equilibrium within classrooms that does not alienate the students which results in higher drop out rates.
LA School Board to layoff 5,400 employees:
http://news.yahoo.com/s/ap/20090415/ap_on_re_us/la_schools;_ylt=AkAHM3ZtTnIVUzgV.gGbRDRH2ocA;_ylu=X3oDMTJkdG9rMnF1BGFzc2V0A2FwLzIwMDkwNDE1L2xhX3NjaG9vbHMEY3BvcwM2BHBvcwM2BHNlYwN5bl90b3Bfc3RvcmllcwRzbGsDbGFzY2hvb2xib2Fy
Detroit to close 23 schools, layoff 600 teachers:
http://www.azcentral.com/news/articles/2009/04/09/20090409detroit-schools0409-ON.html
Friday, April 3, 2009
Tammy Bruce … Eat Your Heart Out!!!
Tammy stated: ”That's what he's married to," Bruce said. "...You know what we've got? We've got trash in the White House. Trash is a thing that is colorblind, it can cross all eco-socionomic...categories. You can work on Wall Street, or you can work at the Wal-Mart. Trash, are people who use other people to get things, who patronize others, who consider you bitter and clingy..."
Tammy Bruce called the Obamas “Trash in the White House” because of the First Lady’s discussion with children on getting an “A” and being called out for “talking like a white person”. Thank you Tammy Bruce for your perspective on the First Family, We truly admire your candor. At the same time, we can only surmise that the demonstration of your ignorance and insolence is an indication of your anger that there are finally “African Americans” in the White House and not as servants. That you could have the gall to call the President of the United States and the First Lady “trash” demonstrates that you are truly prejudice and discriminatory. Laura Bush visited many schools and even had commercials with children promoting education in which the children were not allowed to touch the First Lady and she looked very distant and uncomfortable in the “situation”. That the First Lady can look so natural among the children and that she is a success story in her own right is enough to make the most conservative American cringe as they realize that there is hope that minority children around the nation can grow up to be successful business people and entrepreneurs despite the fact that they have been oppressed for so long. Ms. Bruce, Eat your Heart Out, that you are not a First Lady and that your brand of journalism is not the type of news that appeals to the masses of American that are offended by your labeling of the First Lady as “trash”. When Ms. Bruce defines trash as “colorblind”, she was missing the point that “trash” is a substandard individual with low morals and self-esteem that is demonstrated in their behavior. With that being said, take a look in the mirror and see the true nature of “trash”. Based on the definition that Ms. Bruce puts forth, “Trash” is someone who uses others to get things, to patronize others and that are bitter and clingy. What a great reflection of Ms. Bruce. The only recourse is the pity Ms. Bruce that she would have to lower herself to such standards of calling the President and First Lady “trash” to identify her perception of self. Your analysis of the First Family only demonstrates your jealousy of individuals that you wish you could be.
http://www.huffingtonpost.com/2009/03/23/tammy-bruce-calls-the-oba_n_178109.html
Tammy Bruce called the Obamas “Trash in the White House” because of the First Lady’s discussion with children on getting an “A” and being called out for “talking like a white person”. Thank you Tammy Bruce for your perspective on the First Family, We truly admire your candor. At the same time, we can only surmise that the demonstration of your ignorance and insolence is an indication of your anger that there are finally “African Americans” in the White House and not as servants. That you could have the gall to call the President of the United States and the First Lady “trash” demonstrates that you are truly prejudice and discriminatory. Laura Bush visited many schools and even had commercials with children promoting education in which the children were not allowed to touch the First Lady and she looked very distant and uncomfortable in the “situation”. That the First Lady can look so natural among the children and that she is a success story in her own right is enough to make the most conservative American cringe as they realize that there is hope that minority children around the nation can grow up to be successful business people and entrepreneurs despite the fact that they have been oppressed for so long. Ms. Bruce, Eat your Heart Out, that you are not a First Lady and that your brand of journalism is not the type of news that appeals to the masses of American that are offended by your labeling of the First Lady as “trash”. When Ms. Bruce defines trash as “colorblind”, she was missing the point that “trash” is a substandard individual with low morals and self-esteem that is demonstrated in their behavior. With that being said, take a look in the mirror and see the true nature of “trash”. Based on the definition that Ms. Bruce puts forth, “Trash” is someone who uses others to get things, to patronize others and that are bitter and clingy. What a great reflection of Ms. Bruce. The only recourse is the pity Ms. Bruce that she would have to lower herself to such standards of calling the President and First Lady “trash” to identify her perception of self. Your analysis of the First Family only demonstrates your jealousy of individuals that you wish you could be.
http://www.huffingtonpost.com/2009/03/23/tammy-bruce-calls-the-oba_n_178109.html
Lay offs: The Follow the Leader Philosophy
Each day we see more organizations that are in the process of a lay off of employees. It started with one organization and the cycle has continued daily. Is it really necessary for these organizations to lay off employees? That is a good question. Are these organization really in the financial crisis that they state or just “following the leader” so that the perception that they are in a financial crisis is displayed. Some organizations are indicating losses rather than profits. In some cases, this can be a falsehood.
Scenario:
Organizations predict their profit for the year. ABC Organization predicts that it will have a $1 million profit for 2008. The profit for 2007 was $500,000. ABC Corporation did not hire any new employees during 2008 and expenses remained constant. ABC Corporation has a $510,000 profit for 2008. The company indicates that it has a loss of $490,000 based on the fact that it predicted a profit of $1 million for 2008. However, the company really is sustainable based on the profit of $510,000 as the profit was more than in 2007 and covered the expenses and overhead that the company incurred for the 2008 year. The companies will layoff employees on the basis that they did not meet the anticipated profit for 2008.
Companies are laying off employees to follow the “current trend” of the market that formulates that the economic crisis is causing less of a demand for goods and services. While the unemployment rate is 8.5%, there are still 91.5% of the American citizens that are still employed. Therefore, there is spending that is occurring and businesses are still having some profit. It just is not the profit that they are predicting. The solution … reduce profit expectations to a realistic amount. Each year, corporations increase profit predictions by a “certain” percentage and when that percentage is not reached, then a loss is indicated. This is Accounting 101. As demand for products increased, companies increased their profit expectations. This cycle has continued for years and now that there is a “perceived” financial crisis, companies are using the “inflated” profit expectations to indicate that their company is in financial turmoil and to base the need for lay offs. When in reality, the company could continue with the current workforce based on the historical profit margins of the past and by maintaining current expenses. An Audit of the organizations would find that these organizations have significant reserves generated from years of profit that would provide the “capital” needed to sustain the organization and its current workforce without lay offs.
Scenario:
Organizations predict their profit for the year. ABC Organization predicts that it will have a $1 million profit for 2008. The profit for 2007 was $500,000. ABC Corporation did not hire any new employees during 2008 and expenses remained constant. ABC Corporation has a $510,000 profit for 2008. The company indicates that it has a loss of $490,000 based on the fact that it predicted a profit of $1 million for 2008. However, the company really is sustainable based on the profit of $510,000 as the profit was more than in 2007 and covered the expenses and overhead that the company incurred for the 2008 year. The companies will layoff employees on the basis that they did not meet the anticipated profit for 2008.
Companies are laying off employees to follow the “current trend” of the market that formulates that the economic crisis is causing less of a demand for goods and services. While the unemployment rate is 8.5%, there are still 91.5% of the American citizens that are still employed. Therefore, there is spending that is occurring and businesses are still having some profit. It just is not the profit that they are predicting. The solution … reduce profit expectations to a realistic amount. Each year, corporations increase profit predictions by a “certain” percentage and when that percentage is not reached, then a loss is indicated. This is Accounting 101. As demand for products increased, companies increased their profit expectations. This cycle has continued for years and now that there is a “perceived” financial crisis, companies are using the “inflated” profit expectations to indicate that their company is in financial turmoil and to base the need for lay offs. When in reality, the company could continue with the current workforce based on the historical profit margins of the past and by maintaining current expenses. An Audit of the organizations would find that these organizations have significant reserves generated from years of profit that would provide the “capital” needed to sustain the organization and its current workforce without lay offs.
Call 911 The Stock Market is a Joke!!!
Call 911 … The Stock Market is a Joke!!!
“Call 911. The Stock Market is a joke in your town”. The World bases whether the economy is improving on the buying and selling of stocks on a stock exchange. How ludicrous is that. The stock market consists of a combination of corporations and small businesses and their stock volume, along with the value of the stocks. Each day, we watch the stock market and see the ups and downs of how the stocks are faring. STOP!!! We do not have enough information or access to information to determine the validity of this process as a basis for how the economy is progressing. How do we know what stocks are being bought and sold? It could be the same stocks each day? All we see is that the stock market is increasing or decreasing based on supposedly what the stockbrokers believe as affecting the market, such as an economic crisis, raw material shortages, politics, etc. These stockbrokers are “playing” with our lives. They are giving the illusion that our economy is in a financial crisis based on how the stocks market numbers are being displayed. WE need to take this information with a “grain of salt”. Why don’t we know what stocks are being bought or sold? Because that would eliminate the ability of the stock market to provide the illusion that has made it so famous today. Government and society needs to stop putting so much faith in the stock market as an indicator of the economic condition. If this perception can be changed, then it will lead to recovery. As long as, we are made to believe that the stock market is an indicator of the economic conditions of the world, then we will continue to limit our spending. Stop investing in the stock market. Why provide the stock market with the ability to utilize your funds for the improvement of the wealth of stockbrokers and corporations that have already striped the nation of its dignity and that continue to increase their own coffers with no consideration for the American taxpayer. The stock brokers control our perceptions based on their activities. If they want to continue the fear of economic crisis, then they can sell stocks and the stock market shows a decrease in the value of stocks. If they want to make it seem like the economy is getting better, then they can buy stocks. The stock market needs to be discounted as a basis for economic status as it is controlled by human behavior and not by economic indicators. Strip these stock brokers of their ability to control our lives and begin to develop your own perceptions of the economy. Once you take the stock market out of the equation, you will find that the economy can rebound as businesses begin to use their own forecasting and strategies to improve their economic condition and not rely heavily on the buying and selling of corporate stock that we have no significant information on. Is it GM stock or IBM? We have no idea and thus we become the believers of a cruel joke that never ends.
Want to know more about stock trading: http://www.straightdope.com/columns/read/2116/how-does-the-stock-market-work
“Call 911. The Stock Market is a joke in your town”. The World bases whether the economy is improving on the buying and selling of stocks on a stock exchange. How ludicrous is that. The stock market consists of a combination of corporations and small businesses and their stock volume, along with the value of the stocks. Each day, we watch the stock market and see the ups and downs of how the stocks are faring. STOP!!! We do not have enough information or access to information to determine the validity of this process as a basis for how the economy is progressing. How do we know what stocks are being bought and sold? It could be the same stocks each day? All we see is that the stock market is increasing or decreasing based on supposedly what the stockbrokers believe as affecting the market, such as an economic crisis, raw material shortages, politics, etc. These stockbrokers are “playing” with our lives. They are giving the illusion that our economy is in a financial crisis based on how the stocks market numbers are being displayed. WE need to take this information with a “grain of salt”. Why don’t we know what stocks are being bought or sold? Because that would eliminate the ability of the stock market to provide the illusion that has made it so famous today. Government and society needs to stop putting so much faith in the stock market as an indicator of the economic condition. If this perception can be changed, then it will lead to recovery. As long as, we are made to believe that the stock market is an indicator of the economic conditions of the world, then we will continue to limit our spending. Stop investing in the stock market. Why provide the stock market with the ability to utilize your funds for the improvement of the wealth of stockbrokers and corporations that have already striped the nation of its dignity and that continue to increase their own coffers with no consideration for the American taxpayer. The stock brokers control our perceptions based on their activities. If they want to continue the fear of economic crisis, then they can sell stocks and the stock market shows a decrease in the value of stocks. If they want to make it seem like the economy is getting better, then they can buy stocks. The stock market needs to be discounted as a basis for economic status as it is controlled by human behavior and not by economic indicators. Strip these stock brokers of their ability to control our lives and begin to develop your own perceptions of the economy. Once you take the stock market out of the equation, you will find that the economy can rebound as businesses begin to use their own forecasting and strategies to improve their economic condition and not rely heavily on the buying and selling of corporate stock that we have no significant information on. Is it GM stock or IBM? We have no idea and thus we become the believers of a cruel joke that never ends.
Want to know more about stock trading: http://www.straightdope.com/columns/read/2116/how-does-the-stock-market-work
Wednesday, March 25, 2009
Memo to Mr. DeSantis
Memo to Mr. DeSantis
Date: March 26, 2009
To Mr. DeSantis
From: The American Taxpayer
Subject: Resignation
Thank you so much for your resignation letter from AIG. While we applaud your action to resign from AIG, we would also like to express that we are not empathetic with you and the rationale for your resignation. You are upset that after we, the American Taxpayers, provided AIG with billions, not millions, of dollars in bailout monies that we do not see the need for retention bonuses to be paid to “ANY” AIG employee regardless if you were instrumental in the organization’s despicable behavior that has significantly contributed to the financial crisis that the American economy is experiencing. When a company indicates that they are not profitable, then how can they pay bonuses to employees without profit? Think logically. Your complaint is that you are not receiving over $700, 000 in retention bonuses. I can only imagine what your salary must be. While you are crying “foul”, there are American Taxpayers that provided the bailout monies to AIG that are homeless and destitute and you have the audacity (and that is not “of hope”) to contend that Attorney Generals Cuomo and Blumenthal should be embarrassed for threatening to expose you to the American Taxpayers and to place you in the “Hall of Shame” for which you belong. Wise up!!! You have been “playing” on the ignorance of the American Taxpayers for so long that you have actually begun to believe in your own superiority. So as the American Taxpayer that now holds 80% equity in AIG, I accept your resignation and also tender that no letter of recommendation will be offered. I will contest any applications for unemployment benefits and lastly, you have just subjected yourself to the “Hall of Shame”. Your picture and name will be forever remembered by the American Taxpayer as a member of the illustrious group of people that crumbled the American economy and expected a “reward”. With that being said, do not complain if the American Taxpayers continues to harass you or if you are not “snapped” up immediately by another firm, as you will be forever “blacklisted” by the American Taxpayers as an unsavory character that has lived in the “life of luxury” so long that you are out of touch with reality and the Middle Class.
More on Mr. DeSantis resignation: http://news.yahoo.com/s/ynews/ynews_bs272
Date: March 26, 2009
To Mr. DeSantis
From: The American Taxpayer
Subject: Resignation
Thank you so much for your resignation letter from AIG. While we applaud your action to resign from AIG, we would also like to express that we are not empathetic with you and the rationale for your resignation. You are upset that after we, the American Taxpayers, provided AIG with billions, not millions, of dollars in bailout monies that we do not see the need for retention bonuses to be paid to “ANY” AIG employee regardless if you were instrumental in the organization’s despicable behavior that has significantly contributed to the financial crisis that the American economy is experiencing. When a company indicates that they are not profitable, then how can they pay bonuses to employees without profit? Think logically. Your complaint is that you are not receiving over $700, 000 in retention bonuses. I can only imagine what your salary must be. While you are crying “foul”, there are American Taxpayers that provided the bailout monies to AIG that are homeless and destitute and you have the audacity (and that is not “of hope”) to contend that Attorney Generals Cuomo and Blumenthal should be embarrassed for threatening to expose you to the American Taxpayers and to place you in the “Hall of Shame” for which you belong. Wise up!!! You have been “playing” on the ignorance of the American Taxpayers for so long that you have actually begun to believe in your own superiority. So as the American Taxpayer that now holds 80% equity in AIG, I accept your resignation and also tender that no letter of recommendation will be offered. I will contest any applications for unemployment benefits and lastly, you have just subjected yourself to the “Hall of Shame”. Your picture and name will be forever remembered by the American Taxpayer as a member of the illustrious group of people that crumbled the American economy and expected a “reward”. With that being said, do not complain if the American Taxpayers continues to harass you or if you are not “snapped” up immediately by another firm, as you will be forever “blacklisted” by the American Taxpayers as an unsavory character that has lived in the “life of luxury” so long that you are out of touch with reality and the Middle Class.
More on Mr. DeSantis resignation: http://news.yahoo.com/s/ynews/ynews_bs272
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