Category: Running a Business for Fun and Profit

This morning, I was watching CNBC again (no, I don’t know why I torture myself so), when Mark Haines rather annoyedly announced the next segment. It seems that immigration is down — both legal and illegal — and as a result, farmers are having trouble getting the migrant agricultural workers they need to bring in the crops.

Whatever shall they do?? Build a crazy machine to do it??

Well here’s an idea. It seems that the unemployment rate among Americans who can legally work in this country is at the highest level since the Reagan Administration. Crazy talk I know, but how about hiring an American to shit in harvest your crop? Don’t tell me this is “a job Americans won’t do,” because Mike Rowe would do it. Oh I know, you would actually have to pay a decent wage. And you would also actually have to take steps to encourage a safe workplace. That’s show-biz. 

Nope, it’s much easier to gripe about how we can’t get our normal supply of people who are willing to be exploited at sub-minimum wage jobs in rough conditions with no overtime pay. Or maybe build a crazy machine to do it. 

In closing: a quarter million bucks is a lot of money; incipient SBA fail!; poor hedgies cutting jobs (I hear there’s work as a migrant crop picker!); can you find the logical problem with this sentence? “Nearly half of college freshmen who drink alcohol spend more time drinking each week than they do studying….”; by way of follow up, even the feds admit E-Verify has problems; life lessons; turns out not all terraists are Muslim or even Brown; and finally, don’t get me wrong, I’m not generally anti-Cramer (I’ve corresponded with him), but taking on a comedian as if he were a journalist when your own hands aren’t squeeky clean was a big huge mistake. Stick to making stock calls and pie, Jim.

On this day, we found out that the 4th quarter of 2008 had a 6.2% contraction of GDP, far worse than originally thought, the worst performance since the Reagan Administration. For the record, that happened on Mr. Bush’s watch.  Stocks ended at a 12 year low (in fairness, during the Clinton Administration, but turing an uptrend). Yesterday we learned that the number of banks the FDIC is keeping a special eye on is up to 252. Good news, there was not an announced bank failure this afternoon, so the tally for the year stands at “lucky” 13. Update: I stand corrected. It’s up to 16. 

Before the opening of trading this morning, it was announced that the Feds were going to convert preferred shares to common shares of CitiGroup, and end up owning up to 36% of the company. Citi officials added, however, that they would still control day-to-day operations. Price per share promptly tanked. 

Now let me make sure I understand this properly. Citi is so bad off that they need thousands of millions of dollars. They are so big they can’t be allowed to fail. They need to be rescued by the Feds. But never fear, the idiots who got them into this mess will still be in charge. 

No wonder there was “dissatisfaction” with the deal.

I’m with Wired on this, we need “radical transparency now“. To the extreme.

In closing: A few choice paragraphs on higher education; America’s worst intersections — is one near you?; CSM asks “Archeological Park or Ethnic Cleansing?”;  One in Four Americans put off medical care because of the cost; Homo erectus (“upright humans”) appear to have walked upright (good thing we don’t have to change the species name); I love this paragraph “I kind of love the Hoover Institution.  It has all the trappings of being an academic think tank, but none of the actual academics, rigor, intelligence, relevance or inquiry that would normally follow something academic in nature.”; How ironic that a President breaking down the barriers of racism would preside over a nation with “growing hate groups” (seriously, what the heck is with these people?).

Sure, it’s a huge day. But there are things that are happening outside of Washington DC.  There are a lot of really good sites covering what’s going on there, including The Moderate Voice (where you will find a small and rather fluffy item I wrote on the incredible job the White House residential staff does moving one First Family out and the next in).

Nope, there’s stuff going on elsewhere.

There are two huge automotive news items that deserve attention.  The first is that Fiat is planning on purchasing a rather large stake in Chrysler as part of a “strategic alliance“. More: 

Under terms of a pact that is being hammered out, Fiat is likely to take a 35% stake in Chrysler by the middle of this year. It would have the option of increasing that to as much as 55%, these people said.

Fiat, the stronger of the two, wouldn’t immediately put cash into Chrysler. Instead it would obtain its stake mainly in exchange for covering the cost of retooling a Chrysler plant to produce one or more Fiat models to be sold in the U.S., these people said. Fiat would also provide engine and transmission technology to help Chrysler introduce new, fuel-efficient small cars, they said.

Critics of this plan say it is nothing more than trying to make two small, struggling car companies into one large, struggling car company. You remember Fiat, right?  They stopped importing cars to the United States over 20 years ago. However, they have been public about their deliberations to build a US factory for just over a year now.

And that’s not the only big automotive story of the day. 

Back in Japan, Akio Toyoda is preparing to become the CEO of the compnay his grandfather founded, Toyota.  This is in the wake of falling sales, particularly in the United States. Toyota may even annouce it’s first yearly loss ever.  Toyoda-san is fluent in English, having been a VP of American operations and a MBA from an American college. (Note:  Crown Princess Masako is Harvard educated; Crown Prince Naruhito has a graduate degree from Oxford.) He has also been an executive in the company’s Chinese interests. It will be interesting to see how his international experience influences the company going forward. 

In closing: checklists save lives; so does Tom Colicchio; the Great College Hoax; and finally, seriously, I wish the very best for our new President, his family, his administration, and our country.

By now, many words have been typed about the Big Three Bailout, also known as the “screw the UAW plan” or alternatively, the “Help Cerberus Make it’s Numbers plan“. Seriously, if a “competitive wage” meant “we’re going to give you the same pay they get in the Toyota plant”, nobody would have an issue with it, but it’s clear that what is meant is a more drastic slashing of wages and benefits.  

Alas, it looks to me (and many others) like the only “plan” Ford, Chrysler, and GM have for becoming profitable in the future is to “spend less money“:  cut wages, cut employment rolls, renegotiate with suppliers, cut expenses in everything but the executive suite.  Nothing as innovative as making cars people want to buy and selling them for a reasonable sum of money, nothing like trying to lobby for Medicare For All and instantly — using their own numbers — cut $1500 from the price of making a car. 

I think it says a lot that Ford is just saying “No, thanks.  We don’t need money on those terms.”

In an interesting wrinkle, Honda is threatening to pull out of Japan! The CEO is frustrated with a government that isn’t doing anything to help exporters. The way things are still headed, I bet they can buy some nice, idle car plants near Detroit.

The auto industry is not the only American manufacturing interest, merely one of the biggest.  Manufacturing as a whole in this nation is “tanking hard.” Some might say that is because we can’t compete globally.  And when they do, they imply that either wages are too high or taxes and other regulations are too onerous. However, the bottom line is that without manufacturing, we won’t have the basis for a sound economy. We can’t run a country on selling one another lattes and cheap goods from overseas. The “service economy” is a giant pyramid scheme built on the idea that, well, we don’t have to build anything. The truth is that if we can’t create anything of value, all our money will eventually go the the countries that can.

Maybe we can start by selling more efficient busses to the world.

In closing: How does electronic voting compare to, say, a Vegas slot machine?; Drillers have close encounter with molten magma, find novel way for scientists to study volcanism; and sadly, Christmas tree thefts are on the rise. I still personally don’t get the charm of having a “real” Christmas tree sitting in your home.  It’s messy, it requires care, it’s flamable, some people are allergic to them, and then you have to figure out how to get rid of the thing after Christmas. I’d rather plant one outside!  Oh, and yes, I have planted multiple trees. 

Happy Solstice. It’s gonna be a long night.

A lot has been said over the last few days about the idea of bailing out the American automotive industry. I’m still having a really hard time getting around the idea of “why should we bail out a business that has been killed by bad management?” On the other hand, some of the problem is health care costs.  But then again, why haven’t the CEOs and stockholders of the Big Three advocated a true universal healthcare system that couldhave fixed the problem a decade or more ago?  But the gripping hand is: maybe they could try building quality cars in attractive, safe designs with good fuel efficiency and enough “giddyap” to be satisfying on the onramp (somehow, Honda and Volkswagen have that down, among others).  Then there are the arguments “for” a bailout:  if we don’t it could cause not just a recession but a full-on depression; nobody likes it but they’re “too big to fail” (which I still treat as “too big to be allowed to exist”); and my personal favorite, the automakers themselves think things will magically get better by 2010.  I’ll gladly pay you Tuesday for a hamburger today!

The auto industry desperately needs several things. First, a break-up of big companies into a bunch of smaller players.  Second, true universal health care.  Third, to stop believing in magic and change their ways, including rejecting all the “we can’t do that!” thinking.  Maybe they can study the Asian and European automakers and figure some things that work better than what they’ve been doing.

They could start by learning a few things from the 50 worst cars ever made.

In closing: Advice from Mr. Bush to Mr. Obama; a cheery Christmas thought, real (bad) retail sales; thanks to Ding for pointing out some people who really are pro-life, even the kind after birth; almost half of all primary care doctors would leave medicine if they thought they could; if you are stumped for Thanksgiving, here’s some side dish ideas; or perhaps you’d prefer cake in a mug.

This summer, I have been trying to buy a new swimsuit. The word “trying” should probably alert you to the fact that I have — so far, anyway — failed.

I’ve been working out, toning up, actually have regular access to a pool. Since I have not purchased a new swimsuit in about 5 years, I thought this was not only the time, but that I should really try and get a bikini. I have not found anything acceptable, and frankly have only found about 2 things worth even taking back to the fitting room. I don’t know who is designing these darn things, but they need a serious talking-to.

Pet peeve one is that bottoms are almost universally adorned with buckles, bows, or ruffles. Just what every woman wants, is to make her butt look bigger! Sure, go ahead, put those bows right out there on my hips, add a couple inches to them. Oh, and look, the bow makes the fit adjustable — or gives a perfect opportunity for Bad Boys to harass you at the public pool. It’s two, two, two inconveniences for the price of one! Look, even if you are trying to attract Sir Mix-a-lot, he’s a smart guy and isn’t going to be fooled by a bit of fabric.

Peeve two is metal decorations. Sometimes these are on the aforementioned hip-enlarging brigade. Sometimes it is holding the top together. Sometimes it even includes little dangly bits that are supposed to be attractive somehow. You know what they are to me? Something that will get blazing hot in the sun. Oh yeah, perfect thing to put on a swimsuit! Maybe the designers didn’t notice, but most people go to the pool on hot, sunny days.

What the heck were they thinking? At least the guys who decided to put school supplies on sale for super-low prices in July (before anybody even gets their school supply lists) have a sort of mad genius going for them; the people who buy early will be back for the things they didn’t know they needed.

In closing, CBS televising video games (bye bye EGLN, so long EREV); why you should digitize your old photos; Hillary proves she cares more about corporate interests than American interests; didn’t I tell you people were filing for disability when finding a “decent” job was too hard?; thanks to Jill for pointing out someone else who understands that universal health and mandatory health insurance are different things; caffeine + exercise = lower risk of skin cancer (but that’s not an excuse to skip sunscreen!); and finally, why have there only been 2 Medals of Honor awarded in Iraq — both posthumous?

Many of you — well those of you who have read the “About” page anyway — know that until recently I lived in a town North of Seattle. Relatively few of you knew that I lived in a little seaside town known for its ferry landing and lighthouse, nestled next to a small city called Everett. In my back yard you could see dozens of bird species alone over the course of a year, and if you watched carefully while driving around town, it was really not unusual to see Bald Eagles. One nesting pair lived near a friend of mine, another pair lived a mile or so down the road in the woods that bordered the airport.

By airport, I do not mean a little hunk of tarmac where a dozen guys keep their private planes. When you hear that a major foreign dignitary or high-ranking federal official is in Seattle, chances are they landed at this airport, Paine Field. This facility was used for military aircraft in World War II, and is capable of landing, servicing, and allowing departure of Boeing’s biggest jets.

Did I mention that the Boeing factory — the biggest building in the world — was across the highway?

And now your memory is jogged about where you have heard of Everett, Washington: the parade of news and events surrounding the unveiling of the 787 Dreamliner. All this on the amusing date of 7/8/07. Oh, and don’t forget the plane that makes the Dreamliner possible, the gargantuan transport plane called the Dreamlifter. I’m glad they finally got around to putting company colors on that thing; I last saw it in the green primer Boeing uses. Why, it was just almost enough to make me nostalgic. Yes, the sky can really be that blue over Seattle.

Now don’t get me wrong, I do not miss being able to hear Boeing bench-testing new engines, and I can’t honestly say I miss hearing planes every day, even though they were nifty to look at (and the oldest, niftiest planes were generally the loudest). But I can say from a position of authority that newer Boeing hardware such as the 737 and 777 are a lot quieter (and almost certainly more efficient) than older hardware like the 707 and 727. I suspect that the hype is correct that the 787 will be the quietest, most fuel efficient plane they have built to date.

It isn’t just the locals that are excited about the plane. The company already has well over 600 pre-orders, set to begin delivering next year. If you can’t afford to buy one, you can just lease it for a mere $1,000,000 per month.

No surprise that MSNBC/CNBC sent Phil LeBeau out to talk about it on and off all day, and certainly no surprise that Boeing stock ended up on the day yesterday.

I bet traffic on the Speedway was simply insane.

In closing: the Man who Wouldn’t Go Away; sorting us further into haves and have-nots, experts claim the Registered Traveler system speeds up lines, but don’t mention that the extra capacity could be used to speed everyone along; it turns out we can blame Blackwater for Fallujah; follow up, it turns out that more jobs were created that involve the phrase “How can I help you” last month than the total net job creation number; be sure to let your Congresscritters know where you stand on health insurance for children, but I personally think it’s a Good Thing; one of my favorite writers, Dave Johnson, could use some donations; you don’t suppose that the same lousy diet rich in processed foods that has been making us fat might also be making us shorter, do you?; the press has noticed campaign fatigue; tough rhetoric with hard numbers from handy scorecards of where the presidential candidates stand on healthcare; Brad Plumer gives us cleaning up China; and finally, Canada declares Santa must be Canadian, sends ships to “assert sovereignty” (and presumably collect taxes), but hey at least the elves get National Health and CBC.