And the preacher rose and lifted his hands in the air.
"You must renounce debt and the eternal woe of high credit card debt---it is the epitome of hell.
Then he paused.
"You must listen to your leaders when they tell you to keep the economy going and charge this Christmas and keep folks employed. "
Every one in the congregation paused, reflected....and then smiled quietly.
Tuesday, November 25, 2008
Monday, November 24, 2008
Reflection: Is Michigan just a lost Historic District?
Last week something remarkable happened---our US Congress asked the automakers to draw up a business plan that showed how saving the current industry made business sense----that action made the CEO's scurry to their private jets and head back to Michigan.
The bottom line of of the recent events might be that only a bankruptcy court can void the necessary contracts, void the compensation programs for the current ineffective executive staff, and fashion a new vision, of what a non-gasoline based, green, eco-friendly, and sustainable auto industry might look like.
Recently both the auto workers UAW heads and the company heads were heard to mutter, "Not me, Mom" just like two kids in kindergarten-----the situation is way beyond the blame game. It is about painful and quick change, and it will happen soon.
One pundit was heard to mutter lately that maybe one should create a giant historical museum, under the Smithsonian I presume, and mothball a giant area of Detroit for the lost historical site---and bring tourists to see it. Of course they would pay admission. Recently in our fair city, the notion of looking for lost historical districts has gained fashion---the idea is that if one assumes that one is of value and an esteemed destination that people have forgotten to visit---then it follows that one must search for a lost historical district to preserve as a major area of economic development. Hence---maybe we should just mothball Detroit---and place the new high tech automobile development somewhere far, far away where labor and management can begin again...fresh.
The bottom line of of the recent events might be that only a bankruptcy court can void the necessary contracts, void the compensation programs for the current ineffective executive staff, and fashion a new vision, of what a non-gasoline based, green, eco-friendly, and sustainable auto industry might look like.
Recently both the auto workers UAW heads and the company heads were heard to mutter, "Not me, Mom" just like two kids in kindergarten-----the situation is way beyond the blame game. It is about painful and quick change, and it will happen soon.
One pundit was heard to mutter lately that maybe one should create a giant historical museum, under the Smithsonian I presume, and mothball a giant area of Detroit for the lost historical site---and bring tourists to see it. Of course they would pay admission. Recently in our fair city, the notion of looking for lost historical districts has gained fashion---the idea is that if one assumes that one is of value and an esteemed destination that people have forgotten to visit---then it follows that one must search for a lost historical district to preserve as a major area of economic development. Hence---maybe we should just mothball Detroit---and place the new high tech automobile development somewhere far, far away where labor and management can begin again...fresh.
Monday, November 17, 2008
Thursday, November 13, 2008
"Fear of Capital Gains Taxes and other...irrational....fears"
Have you heard anyone who has been worried about capital gains taxes lately?
One of the general strategies of the neocons, was to wait till a crisis occurs .....and then put in the solution column one of the tried and true programs that has been in the wings of the neocon library. Cutting capital gains taxes has always been one of them. The next time you hear someone talk of this ...simply pause and break into laughter.
One of the general strategies of the neocons, was to wait till a crisis occurs .....and then put in the solution column one of the tried and true programs that has been in the wings of the neocon library. Cutting capital gains taxes has always been one of them. The next time you hear someone talk of this ...simply pause and break into laughter.
Help---We've Fallen....and Can't Get UP"-----
Some years ago, one of the hot gifts was a hand held device that seniors could use if they fell and could not get to the phone......the notion of falling and being left alone to die is a giant fear. In the t.v. ads there was a woman who said, "Help, I've fallen and can't get up." The ad was pretty effective. After all----fear is about 10-20 times more powerful an emotion that greed, and in time of crisis, fear is the emotion that comes to the forefront.
Even in the economic crisis the US faces ----we seem to be a nation that has fallen....and can't get up....or at least face the obvious-----that when one reviews the lack of dicipline and regulation of the complicated security products that were allowed to go to market---simply bailing out the present trillions, and adding to the leverage will not solve anything if the government does not send a strong signal that there will be a basis of our currency, and that we will not simply move to hyperinflation to bail us out till the next larger crash-----after all, this is all sounding like an old Howard Ruff book, "How to prosper during the coming Bad years."---it was 1979....and the news is sounding like one of his books.
Even in the economic crisis the US faces ----we seem to be a nation that has fallen....and can't get up....or at least face the obvious-----that when one reviews the lack of dicipline and regulation of the complicated security products that were allowed to go to market---simply bailing out the present trillions, and adding to the leverage will not solve anything if the government does not send a strong signal that there will be a basis of our currency, and that we will not simply move to hyperinflation to bail us out till the next larger crash-----after all, this is all sounding like an old Howard Ruff book, "How to prosper during the coming Bad years."---it was 1979....and the news is sounding like one of his books.
"All I Want In LIfe Is My FULL List Price" and other songs"----- A true story.
Back in the early 1980's, one of the most colorful Sales Trainers who covered the national scene was Don Sheehan----Don was a former Dale Carnegie sales star, the top in the nation at one time, who went on his own, and ran what he called "Don Sheehans Courses."
In addition to teaching selling skills, Don, also held Saturday seminars on such things as "Group Selling" etc. He distributed a special packed cassette bundle of 60 cassettes, and even though it has been over 20 years or so, I still have a few cassettes that I still treasure.
In one of the sessions, Don would ask the room of ...well, mostly men, to stand around in a circle. Then... he asked everyone to hold hands....and sing "All I want in life is my FULL LIST PRICE" and go around in a circle singing it. Once you did this for a minute or so on a cold Saturday morn, the memory of the lesson lasts a lifetime. It was the serious recession of 1982---and Don taught that in times of recession, the key to business success was not cutting prices, but being a price leader---offer extras to the service. Be the best in the line of business you were in....but never cut prices just because one felt uncomfortable about the possibility of rejection. VALUE was the key element to focus on,,,and to tell the customer all the advantages of the product.
In the Christmas of 2008 season, as coupons and discounting has reached a fearish pace in all kinds of retailers to the point of market confusion----those seminars of Don Sheehan have come back in my memory. As he used to say, 'Nobody ever survived in business by being the cheapest---it is the sure way to go out of business."
In addition to teaching selling skills, Don, also held Saturday seminars on such things as "Group Selling" etc. He distributed a special packed cassette bundle of 60 cassettes, and even though it has been over 20 years or so, I still have a few cassettes that I still treasure.
In one of the sessions, Don would ask the room of ...well, mostly men, to stand around in a circle. Then... he asked everyone to hold hands....and sing "All I want in life is my FULL LIST PRICE" and go around in a circle singing it. Once you did this for a minute or so on a cold Saturday morn, the memory of the lesson lasts a lifetime. It was the serious recession of 1982---and Don taught that in times of recession, the key to business success was not cutting prices, but being a price leader---offer extras to the service. Be the best in the line of business you were in....but never cut prices just because one felt uncomfortable about the possibility of rejection. VALUE was the key element to focus on,,,and to tell the customer all the advantages of the product.
In the Christmas of 2008 season, as coupons and discounting has reached a fearish pace in all kinds of retailers to the point of market confusion----those seminars of Don Sheehan have come back in my memory. As he used to say, 'Nobody ever survived in business by being the cheapest---it is the sure way to go out of business."
Everybody loves Capital Formation....But nobody wants to SAVE.
Recently I have been reading some local articles in our fair city about economic development---and it seems whenever those two words are uttered, "economic development", it is very necessary to hold a meeting, share lunch with hundreds, and put on a seminar or two, or three or three hundred to examine all the possibilities. And of course generate the support paperwork documenting all the effort of those seminars and meetings for the folks that write minutes so that in the final accounting of things, folks will know undisputedly that the governmental folks..well...did their best.
One recent article noted a key difference----that capital formation and simply spending money on infrastructure is different--yes. Spending on infrastructure just develops infrastructure and prepares a backdrop to the drama of the actual job creation---which requires capital. Let us say we want to develop a job that pays 30M per year. With interest rates of 3%, what would it take in terms of capital to have enough cash on hand to generate the income to afford the salary, much less the goods or services to be provided. The way I calculate it, it would be a million dollars in capital to provide 30M in income to assure the salary paid. ...for one person employed.
Maybe the math is too conservative....maybe you can find an investment that is guaranteed that produces better than 3% guaranteed---more power to you. The point is that capital formation is required to pay salaries. Everybody loves capital formation.
At the same time. Here is the mystery. Nobody loves to SAVE. Nobody in America is saving. All the piggybanks are broken it seems.
So---what is the conclusion? After all the ranting about job formation, job development, job, job job.......it is all hot air if the powers that be want to spend on infrastructure but never allow the citizens the disposable income or the incentive to save. Without the reality of saving----all the paperwork, all the meetings....yes all those wonderful sharing of feelings and lunches----are just a waste of time.
One recent article noted a key difference----that capital formation and simply spending money on infrastructure is different--yes. Spending on infrastructure just develops infrastructure and prepares a backdrop to the drama of the actual job creation---which requires capital. Let us say we want to develop a job that pays 30M per year. With interest rates of 3%, what would it take in terms of capital to have enough cash on hand to generate the income to afford the salary, much less the goods or services to be provided. The way I calculate it, it would be a million dollars in capital to provide 30M in income to assure the salary paid. ...for one person employed.
Maybe the math is too conservative....maybe you can find an investment that is guaranteed that produces better than 3% guaranteed---more power to you. The point is that capital formation is required to pay salaries. Everybody loves capital formation.
At the same time. Here is the mystery. Nobody loves to SAVE. Nobody in America is saving. All the piggybanks are broken it seems.
So---what is the conclusion? After all the ranting about job formation, job development, job, job job.......it is all hot air if the powers that be want to spend on infrastructure but never allow the citizens the disposable income or the incentive to save. Without the reality of saving----all the paperwork, all the meetings....yes all those wonderful sharing of feelings and lunches----are just a waste of time.
Wednesday, October 29, 2008
OpEd: Reflection: "Controlling the Highs and the Lows"----Easier said than done
One of the classic rules of investing, intoned to all entry level financial professionals, is that one must develop the art of controlling the highs and the lows---and that to be at the top of one's savvy game, one must in fact reverse human emotion ---when there is fear, develop greed....and when there is greed...develop fear.
Why it was only last week, when Warren Buffett, the top gun guru who owns Berkshire Hathaway, and who recently bought GE at 22 and has been telling everybody in America to buy, buy, buy...especially since he has a big position in GE now, and he has even wryly said that it is important for America to buy since otherwise he might not look good----
The only problem----it is a rare person who can reverse human emotions--why recently when a friend owned Apple Computer at 180 and had purchased it only months before at 120, I mentioned that taking profits was good---to which he responded that he was holding for long term and I could tell that he was multiplying it out---why at that rate of increase, he..well..it would be worth a ton...but in the plunge it came down to 80 or so.
On the other side, when the market plunged a week ago I mentioned to a loved one that it might be nice to buy...a little, not the whole S&P, just a little....and even that suggestion was met with...well...glares that telegraphed that that individual thought I might have lost my mind.....
So there it is----the vast disparity between the platitude and the reality---if anyone out there has indeed reversed human emotions, or has a simple way to do it with maybe a combination of taiche, yoga and zen meditation....email me at the Observer at fre2observe@yahoo.com I am all ears.
Why it was only last week, when Warren Buffett, the top gun guru who owns Berkshire Hathaway, and who recently bought GE at 22 and has been telling everybody in America to buy, buy, buy...especially since he has a big position in GE now, and he has even wryly said that it is important for America to buy since otherwise he might not look good----
The only problem----it is a rare person who can reverse human emotions--why recently when a friend owned Apple Computer at 180 and had purchased it only months before at 120, I mentioned that taking profits was good---to which he responded that he was holding for long term and I could tell that he was multiplying it out---why at that rate of increase, he..well..it would be worth a ton...but in the plunge it came down to 80 or so.
On the other side, when the market plunged a week ago I mentioned to a loved one that it might be nice to buy...a little, not the whole S&P, just a little....and even that suggestion was met with...well...glares that telegraphed that that individual thought I might have lost my mind.....
So there it is----the vast disparity between the platitude and the reality---if anyone out there has indeed reversed human emotions, or has a simple way to do it with maybe a combination of taiche, yoga and zen meditation....email me at the Observer at fre2observe@yahoo.com I am all ears.
Tuesday, October 28, 2008
Thursday, October 23, 2008
Sunday, October 19, 2008
Sermons of Fr. Kevin Dooley now on Mediafly
The various podcasts of The Evansville Observer as well as the Sermons of Fr. Kevin Dooley are now distributed on Mediafly as well as the Itunes network. They are free to all.
Click on the post to see the listing.
Click on the post to see the listing.
Sermon of the Week: October 19, 2008
Fr. Kevin Dooley: St. Paul's Church: Sermon of the Week: "Give to God the things that are God's"----what does that encompass?
Monday, October 13, 2008
"We're All in this Together" and other funny stories
Whenever total strangers appear out of the blue, maybe bankers, and such, opine the words "After all, we're all in this together," I just know----there is a little something funny goin on. After all, if they wanted a loan, ok. I would understand. But an outright theft disguised as a friendly bonding exercise is totally out of place.
Then when banking executives and high placed derivitave types explain that we are all in this mess together---I have to stop them and say: NO. You made a big mistake and you are outta here. You did fraud and misjudgement on your own time.
Then when banking executives and high placed derivitave types explain that we are all in this mess together---I have to stop them and say: NO. You made a big mistake and you are outta here. You did fraud and misjudgement on your own time.
Sunday, October 12, 2008
"Faith is just for Old Guys"---a true story
Recently I have been working at a local catalog firm in the sales department for the Christmas season----and last week, I loaned one of the classic Evansville Observer pens to one of my co-workers when her pen ran dry.
A minute or so later, I saw her looking at the Observer site, and she exclaimed ,"Wow, you even have sermons on here---old guy stuff."
I just smiled. After pausing a moment, I replied:
"Ya. I guess so. And sometimes young guy stuff too. It depends."
Over the years I have always noticed how the youngsters get to Confirmation and then are never seen again---usually till their first born when they as new parents get a larger view of their position in the larger universe. The birth of a first born can do that.
Still. There is a decided slant in the demographics of modern churchgoers to the older ages.
Last week, as I reviewed the essentials of banking, and the highly leveraged world it is---I reflected on how much faith is the very building block of success of our banking system----and the loss of it is a very scary event.
The loss of faith last week has shaken the very world financial system, and I hope that those in leadership regain not only the faith of the everyday citizen, but I hope that they are worthy of that faith. We certainly need it. It ain't just for "old guys."
A minute or so later, I saw her looking at the Observer site, and she exclaimed ,"Wow, you even have sermons on here---old guy stuff."
I just smiled. After pausing a moment, I replied:
"Ya. I guess so. And sometimes young guy stuff too. It depends."
Over the years I have always noticed how the youngsters get to Confirmation and then are never seen again---usually till their first born when they as new parents get a larger view of their position in the larger universe. The birth of a first born can do that.
Still. There is a decided slant in the demographics of modern churchgoers to the older ages.
Last week, as I reviewed the essentials of banking, and the highly leveraged world it is---I reflected on how much faith is the very building block of success of our banking system----and the loss of it is a very scary event.
The loss of faith last week has shaken the very world financial system, and I hope that those in leadership regain not only the faith of the everyday citizen, but I hope that they are worthy of that faith. We certainly need it. It ain't just for "old guys."
Sermon of the Week: 10-12-2008
Fr. Kevin Dooley: St. Paul's Church: October 12, 2008. Rich food and first class wine....no Thunderbird. The very best.....plan on it.
Monday, October 6, 2008
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