Can you spell "Disconnect?"

Have we not been talking about recession? a.k.a. deflation?
Well, take a look at the new GDP numbers... for 07, 08, 09... Have you noticed that they have continuously lowered the forecasts quarter after quarter!
Then take a look at the Unemployment rate.... a possible 4.8% to 4.9%
If you listen to Goldman Sachs, they are bearish on 2008. They are forecasting GDP just shy of 2.0%, Unemployment possibly as high as 5.5% and Fed Fund Rate at 3%

Talk about disconnect.

Rate cut hopes rise as Fed cuts growth outlook - Nov. 20, 2007"The Fed's new outlook"

http://www.cnbc.com/id/15840232?video=600348587

Fwd: The End of Exceptionalism

In review of Mr. Fareed Zakaria's report on "The End of Exceptionalism," Mr. Zakaria highlights many factors that would lead us to believe that the United States has lost/losing their exceptionalism. However, I believe that the paradigm is shifting in the way business is being conducted in the United States and the world. As globalization continues to progress and integrate countries, there are additional factors that need to be considered for setting standards in globalization. 

• Our Judicial System
• Our Labor Laws
• Our Financial Reporting Requirements

In regards to "Closing the Gate" is it not our right as a country to know everyone going threw our borders! The French and the Germans have been battling this for centuries!

In review of the countries that welcome us; Nigeria, Bangladesh, India and Brazil, do we not often stimulate their economies. More importantly, these economies are emerging or are in an industrial progression. If we can not protect our borders, establish order and sustain a balanced economy, our nation would crumble to the ground. (Has history not taught us that?) 

With the survey of the United States lagging in social approval or acceptance of "civil unions" or "gay marriage," I would imagine, though we are lagging, we are still increasing year after year. The significance of the data would illustrate our continuous progress to embracing social diversity. Though, the data may illustrate a lagging or lower increase rate, I believe that our personal freedoms give us the liberty to build awareness and remove any restrictions on a person's religion, sex, race or personal relationship. As we have in the past, overcome those hurdles that divided our nation.

In the statement, "Two out of three Americans believe in protecting the environment even if it slows economic growth. The number is about the same for the French and the Japanese. " Would it be fair to say that we are exceptional with U.S. private equity efforts in establishing "Green Funds' (Investments that demonstrate social responsibility, alternative energy, etc).  Are they not a reflection of exceptional efforts? Since 1973, a great U.S. company, Timberland has been enabling consumers and employees to give back to the earth. This is a company that is able to make a profit and give back to the world! 

I concur with your highlight on the spread of capitalism! If like anything else, not taken to an extreme can be a good thing! But, we as a nation enable the entrepreneur, even if they are not from the United States. We pride on giving people the opportunity and to chance their dreams. Capitalism and the entrepreneur spirit will change the paradigm and promote innovation. In part of globalization, this must spread beyond our borders.

In the Race for 2008, our next President must be prepared to face the change of how does America continue to be the exceptionalist in our global economy. If we were to look at the global players, I can not envision any other country to lead the global revolution than the United States of America.

As we come to closure with 2007 and enter 2008, which we believe a pivotal year for the world, I think your report enhances the importance of our next election and the decision we all have to make a year from now!

We need a person that can lead our nation in this globalization revolution. 

EAD 11/22/07

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Fareed Zakaria - Newsweek

To come full circle, capitalism, our diversity, the entrepreneur spirit and vision of prosperity will enable us as a nation to lead the paradigm shift in the globalization revolution.      

The United States has always thought of itself as exceptional, but nowadays we are standing apart for the wrong things.

  

Read more…

As Freddie Mac Posts Huge Loss, Investors Cling to Hope for Rate Cut

The question is not if the Feds are going to cut the rate but if they are going to cut 0.50%!

Oh ya, Happy Thanksgiving!

NEW YORK, Nov. 20 -- Wall Street finished an extremely volatile session mostly higher Tuesday after investors, still nervous about mortgage-related problems at the country's major lenders, decided to interpret comments from the Federal Reserve as suggestive of another interest rate cut.

Read more…

Is this Extortion? T-Mobile Offers IPhone Without Contract

Not for nothing but this is Extortion 101! Not that I would know anything about extortion. Except for reviewing the difference between bribery and extortion in my ethics class!

But seriously, no contract and pay almost double for a service? There is just something wrong with this model! Since this is announce in Berlin, I think Vodafone has a chance to watch the market, scope out DT and figure out what they are doing wrong. Then implement a better solution to meet the market demand. This will create an opportunity in a saturated market.  130% of the people in Europe have a cell phone. Yup, 130%!!! This includes babies and old people (haha, over 65). So what is the next gen for the carriers and the phone providers? PDAs, iPhone-like devices... AND (Drum roll!!!!!) VOIP/Cell technology!

This could be a costly mistake for DT if they do not get this right! A market with 130% saturated population creates a hostile environment to keep the consumers.

BERLIN -- Deutsche Telekom AG's mobile unit said Wednesday it would offer Apple's iPhone without a contract to comply with a court injunction, but consumers that opt out of a two-year contract will pay more than twice as much for it.

Read more…

On the Money at Treasury

As I often write about Big Ben (a.k.a.  Chairman Mr. Ben Bernanke), today I am highlighting his partner on the currency side of the house!

If this is your first time hearing his name, Mr. Henry M. Paulson Jr. has an exclusive background with over 30 years at Goldman Sachs. He is not your average ball player! To be quite honest, I prefer listening to him talk than Big Ben! Unfortunately, he does not have the global economic impact like Big Ben. 

Well, here is the bottom line, he is the man who is looking for a plan! Besides the credit/housing crunch, Hank has to figure out what to do with the U.S. dollar!

This is clearly a mess! The EURO was at $1.47!!!! Yes,  $1.47 the BP is over $2.10. The pressure is on Hank with global growth and U.S. economic depreciation! DEPRECIATION!!!!!!!

In our spiral towards a recession, Big Ben and Hank are trying to figure out how to get our ship to point north, east, south or west! Basically, they are trying to figure out which way we should go! As long it is in the opposite direct of a recession.

When Henry M. Paulson Jr. took the helm of the Treasury Department 16 months ago, he spoke in soaring terms about shaping America's competitive destiny. At his confirmation hearing, not a single question focused on the housing market or the mortgage industry.

Read more…

MUST SEE! Very Inspirational

To change the tune, you must see this clipping! It is absolutely
fantastic and inspirational!
The world is filled with opportunities! If is up to you to seize the
moment!
http://youtube.com/watch?v=1k08yxu57NA

Housing Turmoil Squeezes Freddie Mac

The saga continues with the latest from Freddie Mac posting losses!

It just never ends!

We are seeing more and more public and private firms posting losses due to the credit crunch! 

Now there are talks of oil hitting $200/barrel. All institutions have been affected and every American is feeling the pain.

As the leading economy based on short term gains, I fear that we have neglected the impact to long term strategic planning!

In essence, Mr. Bernanke is trying to pull in the animal into the cage! Unfortunately, he is blindfolded and does not know if it is a bull or a bear!

As the market has indicated over the last few weeks, we really do not understand the external forces that are dictating our economic stability. 

The Hit List:

Citi

BoA

Wachovia

JPM-Chase

Freddie Mac

As Freddie Mac posted a $2 billion quarterly loss, housing woes also hit the homebuilder D.R. Horton, which posted a loss, and H&R Block, whose chief executive resigned.

Read more…

Internet gambling dispute could cost U.S. billions

Yes folks, Internet Gaming is a big deal! Actually a very big deal for consumers (the gambling junkie) and the corporations that host businesses over seas!

WASHINGTON - With time running out, the tiny Caribbean island nation of Antigua and Barbuda holds the cards in a dispute over Internet gambling that could ultimately cost the United States billions of dollars.

Read more…

Harvard professor uses poker to teach life lessons

Imagine going to school and the course of the day was "no limit poker," and the person with the most chips get an "A!" This would definitely change the dynamics in a classroom but is there some truth poker and life?
Is there a relationship in conducting business and playing poker?
There is a strong argument to be made in the article!
Where does virtual gaming fit in academia? And how does the simulation account the emotional and psychological aspect.
Harvard professor uses poker to teach life lessons - The Boston Globe