Category: Our Globally economy

http://newsroom.blogs.cnn.com/2009/10/05/unemployment-what%e2%80%99s-to-blame/

Unemployment: What’s to Blame?

Posted: 08:44 AM ET

Former Federal Reserve Chairman Alan Greenspan predicts U.S. unemployment could hit 10%.  Currently the nation’s unemployment rate is at 9.8%.

So, what do you think is most responsible from the worsening employment picture: a failed stimulus package, an economy much worse than we knew, employers cutting deeper and hiring more slowly than expected, or something else all together.

Leave us a comment. We’ll share some of them on air in the CNN Newsroom, 11am ET — 1pm ET

So there we are.  A picture and a set of points on why we are where we are with unemployment.  Now what about this idea.

First, there is an issue of Greed.  A small percentage of the global population has accumulated a massive amount of wealth.  I am not here to judge the right or wrong of how they or their ancestors acquired the wealth.  I am here to suggest looking forward. 

1. 100 million dollars a year as a salary to hedge the price of gasoline and contribute to raising the profits and consumer costs associated with oil.
2. $17.2 million to successful sell Visa inc, to the market, earning bankers a significant return.
3. Numerous excesses that programs like Nip/Tuck mimic for Wall Street millionaires.
4. A stock market that has a curve that simply should not have been allowed.  Long term prudent economic management is essential.

 Ponder this.  If equities is suppose to represent the inherent stability of the corporations that employ our neighbors; what happened starting in 2000 and culminating in the bear Stearns collapse in 2007.  Is Wall Street unravelling the growth that began in 1982 and went into a hyperactive phase in 1995, and simply correcting itself. 

What next should represent a step change in how we think about governance, compensation, risk, responsibility and morality.

 What I think a lot of us forget is that our society evolved over millennium and here we are thinking we are so important.  What is important, is being faithful to a common morality, and making sure that we leave something better for our children. 

I agree with the Dali Lama, all we want is peace and happiness.

So what next?

1. Cap salaries for the rich at 2 million per year.
2. Institute a managed health system that still uses the concept of insurance and hedging risk to fund our healthcare system.  
3. Introduce a health management system, with a basement for those that cannot afford even the most basic plan.
4. Re-introduce exercise in the school system and subsidize community gyms and recreational facilities.
5. Re-introduce the luxury tax for non essentials over $30,000 and on things that are not good for you or are excessive.  Say anything not associated with your food,  transportation and housing.
6. Focus on better educating the family practitioners, gynecologists, internist and pediatricians so that they do a much better triage and assessment of appropriate care given available resources with fear of reprisal for taking risks.  If necessary, require an additional year of service at a teaching hospital earning a reasonable income say $120,000.
7. Do a lot of what Congress is already talking about
   1. Strengthen the VA hospital and medical care system
   2. Do not mess with Medicare or Medicaid, until the new system is in place.  Let the people move to the free market approach.
   3. Do not create a Government run insurance system.  Yes to creating a open market, knock down state borders and promote re-introduction of the original Blue Cross Blue Shield concept of a co-operative not for profit solution
8. Focus on regulating the quality of care with a no one left behind principle.
9. Keep the insurance companies out of setting fees.  Manage thje cost of the healthcare system by focusing on competition.  The patient is the client and is to be saught after without offensive advertising.
10. Mandate a National Id card keying off the social insurance number.  Combine it on the Drivers license, as a day one requirement.
11. Focus as a corporate priority on employment being the key indicator of success.  Begin discussions on Right to Work legislation and stimulating more humane approach to managing down costs in a period of economic recession.  Reduce executive wages well before the first person can be let go, without cause.
12. Merge all the work in the fields of governance, risk and regulation into a replacement bill.
13. I could go on.

Voices Reflect Rising Sense of Racial Optimism

Shel Harris of Brooklyn said the election changed his attitude.

http://www.nytimes.com/2009/04/27/business/27geithner.html?8au=&emc=au&pagewanted=all

Geithner, Member and Overseer of Finance Club

I am reading William D. Cohan’s book “House of Cards” and then I read this extremely long article on the Secretary of the Treasury and his culpability!!!! 🙁

As discussed in an earlier post our President says and I quote

“We cannot go back to an economy that is built on a pile of sand — on inflated home prices and maxed-out credit cards, on over leveraged banks and outdated regulations that allowed the recklessness of a few to threaten the prosperity of us all,”

One of the key-members of the executive branch of our Government was sitting in the fortress down on Wall Street, deep into discussions with everyone that mattered and is responsible for the abyss, crisis, depression that has taken the world into uncharted waters.

How can our President, that does not want to “go back to an economy built on a pile of sand,  hire, support and continue to seek advice from Mr Geithner.  this man was there there, saw the crisis brewing and helped to make it worse.  Now we expect the leopard to change his spots and fix it.  He had his chance when he was president of the NYC Federal Reserve.  If the book I’m reading and this article are accurate he has had his chance and failed.

Please Mr. Obama find someone who is risk adverse, intelligent and not part of the club.

http://www.nytimes.com/2009/04/28/business/28auto.html?th&emc=th

G.M.’s Latest Plan Envisions a Much Smaller Automaker

Over the last months countless articles and news commentaries have discussed the plight of the US auto makers.  Bankruptcy, restructuring and foreign buyouts are all on the table as the US Government pushes Chrysler and General Motors to fix itself or get fixed.

One item that keeps appearing and as I think back over the last years, starting when Asian auto makers built factories here in America, I am constantly amazed to see that the UAW is not part of the solution.  I appreciate that their role is to protect the interests of their members.  Yet they simply  focus on protecting the lavish pensions (developed when Detroit was ever so profitable) that these individuals are “entitled” to.

I have a profound respect for much of the work the union movement has done to protect the American worker and to assure them that they are paid a fair wage, work in reasonably safe conditions and various other initiatives that escape my mind.

What disturbs me these days is that we complain about Outsourcing and the migration of jobs to India, Malaysia, in years past Ireland and countless other countries willing to work for less than the American worker and do those jobs that are “Beneath Us”.  Why we have the human resources, just look at the current rate of unemployment.  When it is zero then OK let’s outsource.

As the spokesperson for American workers and hoping they are aware that we cannot practice isolationist policies and impose tariffs and taxes to protect American jobs.  I worry that they are not out there working with business and the government to protect those jobs or better yet grow the n umber of jobs while still exploiting the virtues of technology and the goal to reduce the end cost to the consumer, their members.

Instead they slow down progress.  They do not take the lead in driving for quality and do not help to make sure what we build or do with American hands and minds is the best that can be made or provided anywhere.

In the article, what I am once again reminded of is the fact that they insist that the “Pensions” be protected 9screw the stockholders and debit holders.  i do not see them thinking about the fact that the future of our children is at risk.  Jobs will continue to go to where it is less expensive to produce and where equally skilled people demonstrate a willingness to work to put food on their tables.

The unions are one of the great strengths of America.  At this time of economic turmoil, where greed is at the core of our housing crisis, the introduction of high risk derivatives and a truly expensive health care system.  They should be leading the workforce to understand that the American dream never was intended to guarantee anyone everything and that the American dream was built on hard-work, prudent investment and quality.

If we can return to these roots and focus on quality, hard-work and assuring the future of America for our children, then we will see an upturn in the market and a return to full employment where immigrants are seen as a positive influence and not illegals stealing American jobs.

At the same time Management is equally responsible for our plight.  Sub-prime mortgages, derivatives, short sighted corporate planning and yes greed leads them also to be UN-American.  They are to focused on the next analyst briefing and their quarterly results and make sure they could sell more for less.  So they purchase materials produced by non Americans.   They do not insist on an equitable balance between pay, quality and work.  Then to make matters worse they insist that they are paid millions of dollars, the Government then bail them out when they make stupid decisions; for what?

We are all in this together and although we know that communism and socialism does not work.  Capitalism only works when we do right by everyone and devise a fair distribution of wealth: based on ability, hard work and ingenuity.