The future of athletics?

Marion Jones was recently stripped of her Olympic gold medals for her use of steroids.  It is terrible our talented athletes are being punished for using technology to enhance their performance.  Society has long accepted many advances in sports/athletics.  Newer shoes, caffeine, B12, light weight materials for bicycles, and helmets in football are all perfect examples of mainstream technologies that enhance performance.  Athletes should be use any technology available to increase their level of achievement.  Athletes have been able to break records because of technology in the past and should continue to do so.  There are risks involved by using these drugs but they are rewarded very heavily in the forms of multi-million dollar contracts.  Professional sports could be amazing and potentially tap into new markets of viewers, which would drive revenues even more through increased demand.  I, for one, would love to see the amazing heights that could be reached in these enhanced sports.  12 foot basketball hoops, 500 foot fences in baseball, 3 minute miles- who wouldn't love it?

US goes Green?

I'm an avid car lover and have noticed something very strange about the upcoming cars for next year.  After reading this article, I saw that many of the cars were the opposite of "green."  Almost every company came out with a line of hybrids parked right beside their newest gas-guzzling horsepower machine.  All the media is telling us the American consumer is demanding more efficient "green" cars but the supply tends to show automakers forecast strong sales in their less-efficient cars.  It is very interesting to see the difference in what automakers are projecting and what the media shows as popular.  It seems as though talk of "green" is still merely lip service.  

Recession Recession Recession - yadi yadi yada

Are you tired and scared of the recession that is going to be hitting us pretty soon? Do you think this two consecutive quarters of negative economic growth (which economists define it as recession) would throw us in recession? Do you feel threatened that this credit crunch problem, troubled housing market is going to throw out in "great recession" that we are just not used to seeing anymore? Well, worry not guys - because we would most likely not face recession. Even if we are in recession - we wouldn't even know it/feel it.
This website - http://www.american.com/archive/2007/december-12-07/the-great-recession-of-2008 - believes that the economic relief package incentives that Bush has sent would stimulate the economy and prevent a recession. Many economic forecasters expect a growth, the weak US dollar would make American exports more competitive (which would increase economic growth and employment), and the recession thing would not last "several months" to call it as recession. So don't worry guys - we are going to survive - we are going to stick together!

What next? Government-mandated toilet paper?

http://www.worldnetdaily.com/news/article.asp?ARTICLE_ID=59298

This article announces the ban on incandescent lightbulbs which will take full effect in 2014. Wow! When I first heard this announcement I thought it had to be a joke. The government is now in control of what kind of lightbulbs we use. Before you know it they will be mandating the kind of toilet paper we use, how much, and how often.

I understand the underlying reasons for this new regulation: energy conservation. However, it seems that the approach could have been handled differently. For example, energy efficient automobiles, a.k.a. Hybrids, are on the market. There is no law requiring consumers to drive these vehicles rather people choose to drive them because of the energy-saving benefits they provide. They have increased in popularity and become more affordable since their first debut several years ago. More and more people are driving them by choice, not by government mandate.


Could the same idea be applied to the lightbulbs? Of course! The technology for a more energy-efficient bulb is already in effect: the compact fluorescent bulb. It is available on the market but apparently not being used by consumers as much as the government, power companies, and light bulb manufacturers would like.


Don't get me wrong--I am in favor of energy conservation. My issue with this new mandate is the degree of involvement the government has in our lives. It is not right for every aspect of our lives to be under government scrutiny and control. Consumers will choose compact fluorescent bulbs when the product makes sense by price as well as efficiency.

Supply and Demand for Wii

This article describes the mismatch between supply and demand for Wii game consoles. I wanted to get my husband a Wii game console for Christmas, since my son said they were a lot of fun. I found out that Best Buy did not carry them because they sell out so fast, and that Amazon.com had a restriction on the number of consoles that a customer could buy. I decided that others needed those consoles more than I did this year. I guess Nintendo has been having trouble keeping up with demand since they introduced the Wii earlier this year. The article describes their situation, decisions and reasoning.

Are we in a recession?

If we want to throw this term around loosely, then yes, today's NY Times suggests, our nation currently may be in the grips of a recession. Lately there has been a lot to be said about our "are we, or aren't we" recession. But the discussion could end so easily and with a definitive answer. We learn in our most basic macro textbook that after two consecutive quarters of negative economic growth we then will find ourselves in an actual recession. I've heard the story of Ronald Reagan redefining "depression" and "recession" to help him win the election against Carter, but that was all just slick political posturing.

To be more accurate, what our national economy has recently suffered is merely slow growth, but "slow growth" is boring and doesn't get the same frenzied reaction as "recession". Certainly everywhere we look we see a gloomy picture with the housing, job, and stock markets dropping and oil prices, unemployment, and inflation rising, but luckily we can all take comfort in knowing that we are not, by its standard definition, in a recession.

Fed Rx

The stock market is currently in turmoil.  The country hasn't seen sustained losses like this in many years.  The housing disaster, fickle oil prices, and the falling dollar have caused investor uncertainty, causing the market to suffer the consequences.  The market has fallen 2,000 points in a couple of months causing fear of a recession and a decrease in stock prices as demand for stocks falls.  In a recent article, by Michael Sivy from Money Magazine (found here), a new perspective is provided about the Fed's ability to influence and affect not only rates but the stock market in general.  He states that the markets do much better in times where the Fed cuts rates.  Market returns usually hover around 12% but rise to 17.4% during times of rate cuts.  As the Fed prepares to bail out the groaning economy by perhaps lowering rates again, equity investors can expect to see greater returns in the near future.  

It seems the lower rates obviously help businesses and decrease demand for debt instruments.  This shift in preference by the investing market leads to a more successful stock market for those willing to invest in such uncertain times.  While this change may be great for investors, it is truly sad that our economy must rely on intervention to save us from our own stupidity.  Bernanke, in yesterday's address to the budget committee, stated something to the effect that it is not the job of the Fed to protect investors from their own decisions. 

Recession's Hidden Virtues

This article explains three of the main driving forces that may lead us into our next recession, the collapse of housing, increase in oil prices, and the credit crunch. I feel that a recession is very hard to predict. It seems that it could happen any time in a number of ways. There are so many different people telling me their opinion regarding recessions, that I am having a hard time deciding for myself what I think will happen. When we look at what has happened to our economy in the past we can analyze what happened and then explain why, but it is impossible to predict the future economy accurately because the variables are constantly changing as the world evolves. I don't think anyone knows what is going to happen; we can only make an educated guess.

Don’t Blame The Burgers

This article talks about the many law suits that overweight kids and adults have brought against fast food chains for being unhealthy. Many of them have stirred a response from the restaurants that now offer healthy choice or low calorie options. It is so ridiculous that obese people even stand a chance of winning a law suit for overeating at a restaurant. I can’t believe that the idea to create such a law suit even exists. It is not fair to blame another for your own stupid mistakes. What’s next, are they going to raise taxes on fatty foods to prevent us from eating them? This is a joke.

Off Shoring and Beyond

This article makes it sound like off shoring is the way to go and I tend to agree. We all hate calling in for assistance with a problem and having to talk to someone from India who is hard to understand, but what is worse, talking to SOMEONE who is hard to understand, or leaving a message with a voice operated recording? At least the person with the accent is there to help you. I feel that is the lesser of two evils. What do you think?

A New and Improved iPhone

This BusinessWeek article claims that the CEO of AT&T mentioned at an event that AT&T will be releasing a new, faster iPhone. This is the number one complaint of iPhone users, and the demand has brought AT&T and Apple to the point of releasing a new 3G version, which will be supposedly much faster than the current iPhone.
It seems like on most iPods that the new release is close to double the size, so my question or thought is why is Apple only increasing the Internet speed from 2.5G to 3G? Wouldn't something like 5G really blow the new sales out of the water. I just think that the new speed won't be fast enough to produce the sales that AT&T and Apple are looking for.

Google Planning Online Storage Service

This article here informs us that Google plans to provide online storage for personal files such as word processing documents, digital music and photos. The service lets users access their files anytime through the Internet regardless of which computer or mobile device they use.

This means that mobility features and applications will progress rapidly to utilize this new potential. Currently, unless you have your files on a server like this, you must bring all of your files with you wherever you go (if you need to access them). Popularity for multi-purpose hand held devices, PDA's, laptops, and cell phones will offer internet connections more abundantly, at greater speeds, and with broader application.

Potentially, productivity will increase as we are more and more connected to and dependent on the internet in our daily lives. Google is smart to be pioneering in this manner such a service as the majority of the market will look to their services for their online data storage solutions. This will prevent competitors from gaining a significant market share while continuing to spread the blanket of Google's breadth and depth in the market.

Google truly has an aggressive strategy to become part of the daily activities of every person on the internet, but I worry that their aggressiveness will someday come under the attack of anti-monopolistic lawsuits and regulation.

Online Holiday Shopping

Blessed be Black Friday, Cyber Monday, and now Green Monday. This article here talks about the phenomenon noticed a few years ago that the Monday after Thanksgiving saw a sharp rise in online sales, presumably because everyone that goes back to work on the Monday after Thanksgiving wishes to buy the items online that they couldn't procure during the Black Friday madness. Ebay is now predicting that another anomaly will occur the Monday of the second week of December as procrastinators for Christmas presents will realize that they need to order their items in time to be shipped and received before Dec 25th.

To retailers, this time of year is like the Super Bowl of shopping. Most of the proceeds made in a calendar year for many retailers will occur during the holidays. As a result, retailers are all pining to collect as much from as many customers as possible, so some strange and otherwise abnormal pricing schemes and strategies take place.

I propose that even though the Black Friday participants feel that they are getting phenomenal deals, that they all suffer from the winner's curse, and that part of the price paid by them for their goods is not easily accounted for like loss of sleep, waiting in large lines, or fighting that cranky fat lady for the last copy of Pirates of the Caribbean on sale for $5.99.

FCC Regulating Cable

I have a hard time with this article here because the government seems way out of line on this one. The article talks about how the Federal Communications Commission is considering regulating the cable television industry by capping cable company coverage to no more than 30% of all U.S. subscribers and reduce prices that cable TV companies charge customers.

Since when did 'We The People' also include 'We The Cable Subscribers?' Cable television is a private good just like anything else in the world, but the government would like to treat it more like a public good. It is not our responsibility to make sure that every American home gets cheap cable TV.

I am also struggling with the implications that some cable providers have too large of a market share. If there was only one way to get TV and there were few providers, I could see a monopolistic accusation having some teeth, but there are so many other options than cable easily available to the public that the TV market is acting more like a perfectly competitive market than a monopolistic one.

YouTubeU

Andy Kessler said he went through a semesters worth of classes by watching lectures on YouTube. In the article Kessler claims that lectures are free, as we learned in class lectures or the information given in a lecture is a public good. Colleges take the public good and deliver it to you through lectures. Kessler could go through four years of YouTubeU and get nothing. As we know for all our time sitting through lectures at the end we gain a little piece of paper that says to potential employees, hey hire me.

Sex Shop and Negative Externalities

I bet the title enticed lots of you to read this. Chapter 11 discusses externalities. The Salt Lake Tribune had an article about a proposed store that sells lingerie and sex-toys. Apparently lots of people in the area are upset about the store called Blue Boutique coming to the area. Mayor Rocky Anderson supports it and the developer is not backing down from the opposition. It is apparent that those opposed to the store think that there are to many negative externalities that would come along with it. None of the externalities mentioned are monetary but the type of people that it may bring to the area as well as the curiosity it will raise in nearby children seem to be the big concerns. When retailers look to move into an area, there are many externalities that go along with it. I used to live near a small town that Walmart wanted to come to and there was lots of discussion about the externalities both positive and negative that it would bring. After discussion, the positives seemed to outweigh the negatives and Walmart was allowed in. It will be interesting to follow this story and see where it goes.

And I Thought We Had Problems

In a New York Times article, Airbus is trying to cut more costs as it is feeling a great pinch with the weakening U.S. dollar. Why is their situation any different than anyone else? They build their planes by purchasing with the Euro but sell their planes using the dollar. The Euros value is increasing while the dollar is diminishing meaning there sales are lower and their expenses higher, all because of currency values. This is creating a real problem for Airbus.

Price We Pay For Bottled Water

An article in MSN discussed bottled water and how it is a strong part of the American economy. Bottled water costs three times more than gasoline. During its transportation empty space must be left in the trailer, because water weighs so much. This creates high transportation costs. We are taking this water from countries such as Fuji, who cannot even support its own citizens with clean drinking water.
So why do Americans pay so much for this water? It is convenient, we think it is more healthy for us than the stuff that comes out of a tap, and it is a sign of wealth. Bottled water comes in second behind carbonated soft drinks in consumer spending. For the makers and suppliers of bottled water this is great as it costs about the same to bottle and distribute as soda pop, but the marketing cost is 15% of that for soda.
The author mentioned that bottled water is a sign of the strength of the economy. If America goes into the recession that people are thinking could happen, the bottled water industry is sure to suffer. This could also have an impact on the many jobs that the production, storage, and transportation of water provides to the economy. It will be interesting to see if there is a noticeable difference in the market for bottled water in the coming months.

Alibaba.com - Biggest E-Commerce Debut Ever

This article here talks about how Alibaba.com had a 192% increase on their first day of trading in Hong Kong in an IPO that raised $1.7 billion. This is considered record for a mainland web company.

Isn't this a wonderful age that we live in, where intellectual property with practically no physical presence can make such a dramatic affect on the business world? Traditional 'brick-and-mortar' stores have numerous issues and concerns to overcome and constantly monitor, and much of the revenue is taken to sustain the physical plant, inventory, workforce, warehouse, etc. Now, you can get a group of techs together with a good idea, a domain name, and a server with adequate bandwidth, and make millions or even billions of dollars.

How soon will it be until there are a limited number of traditional 'stores' and e-commerce becomes the major marketing presence?

PetroChina vs. Exxon-Mobil

This article here talks about how PetroChina has overtaken Exxon-mobile as the biggest oil company in the world. China has had incredible market growth and is quickly becoming a force to be reckoned with.

How soon will "Made in China" be considered "Made in Japan" or "Made in America" for that matter? Once upon a time, Japanese manufactured items were cheap and the country to be 'used' by more modern and advanced countries to exploit. We have since moved to China, India, and others for this exploitation since Japan has evolved to be a market competitor (take Toyota for example). How long will it take China to step up just as Japan did, and what country will we exploit next? Eventually, won't we run out of 3rd-world countries to make all of our cheap stuff for nothing?