Saturday, February 28, 2009

Just a Thought: Chartered Success

My other passion other than personal financial empowerment is education reform. Here and Harlem, public charter schools and public magnet schools have a niche, although currently they have to share resources (buildings) with other public schools. Leaders are working to help charter schools move into their own buildings to prevent divisiveness in the student body. However, some areas, like the community of Watts in Los Angeles, have bigger struggles. The following is a clip from Reason.TV: (Facebookers, you'll have to click through to the main site)...




I think that public charter and magnet schools could help improve a community in innovative ways. When people move into a community, one of the biggest factors is the quality of schools. Parents will often look over a neighborhood if they don't like the caliber of schools offered. Often, lower-income communities have lower-quality schools that will have a very difficult time improving because of a reduced tax base. By introducing charter/magnet options into a community parents from a wider range of incomes will move into communities, adding to the tax base. This could theoretically funnel resources into all the schools in the neighborhood/zone and can encourage info-sharing between schools so that they can all improve.

Friday, February 20, 2009

What Does "Credit Freeze" mean?

Good afternoon readers!

What follows below is perhaps the best explanation of the credit freeze (and what caused) I've seen to date. It's very balanced, explaining how some Wall-street exuberance and some Main-Street irresponsibilty all played a part in this economic decline we're experiencing. Check it out, and shoot some questions/comments my way. Have a terrific weekend.




The Crisis of Credit Visualized from Jonathan Jarvis on Vimeo.

Sunday, February 15, 2009

A Few Thoughts, Week Ending February 14th..

So Microsoft is considering opening it's own stores. Let me make a prediction what's going to happen: at the store opening, people will be in awe of how pretty it looks, the excellent product placement, and consumer-friendly features, and when they go to check out, the registers won't be able to make change. There will be an immediate issue of a ChangeMaker.Sys patch. Once installed, you get correct change, but then you won't be able to get out of the store because the exit doors won't open, forcing people to go out of the entrance doors, slowing traffic flow. But people will live with it rather than going to deal with the pretentious folks at the Apple Store down the street.

Friday the 13th and Valentine's Day (in my mind) are approaching the same point in my life--arbitrary days on the calendar. Not that I don't like celebrating V-Day, it just feels weird picking a special day to do something for a special someone.


As I progress through this whole wedding-planing thing, we're admittedly a little worried about getting everything together--especially the cost. Before you think you have to go into the red 20,000 for your special day, check out this article from Bankrate. Our most contentious point? Definately #2.

If you have a cold, this report says blowing your nose improperly can really make things worse.

OK, so if the Recession Monster swallowed your job (or will), you may be enticed to look at those "Work at Home" ads more intensely. Know what you're getting into.These guys are at their best when they can take advantge of your emotions.

I'll have something else up later this week.

Monday, February 09, 2009

Will Executive Pay Caps Work?

I think it will, and here's why.

As a reminder, the Obama Administration has proposed a new approach to the companies seeking bailouts: Top executives at these companies must cut their pay to $500,000 (excluding stock) The average reader may think "That's a nice piece of change!" until you realize that these cuts are very, very deep. However, extraordinary circumstances warran extraordinary ideas. Obama's plan is creating, at least on the surface, even conservative political allies on this idea:



"In ordinary situations where the taxpayers' money is not involved, we shouldn't set executive pay," said Sen. Richard Shelby of Alabama, the top Republican on the Senate Banking Committee.

"But where you've got federal money involved, taxpayers' money involved, TARP money involved, and the way they have spent it, with no accountability, is getting close to being criminal." Source


Supporters of his move on executive pay included the leader of the Republicans in the U.S. House of Representatives, John Boehner. Many Republicans in the Democrat-controlled Congress have been resistant to government bailouts, even when fellow Republican Bush was president.


"I think if anybody is looking to the taxpayer to help bail their company out, these kind of executive compensation limits are appropriate," Boehner said.

Republican Representative Mike Pence, who said he had opposed the finance sector bailout to begin with, said, "maybe it is going to wake up American business -- that there is a cost when you invite the 800 pound gorilla of government into your boardroom." Source


I think executive pay restrictions is a good way to make the private industry think twice before heading to the feds for public funds. But there's more--as I mentioned above, the 500,000 cap excludes stock. The Obama Administration wants to allow companies to pay their top executives past the 500,000, but it has to be in frozen stock. By frozen, I mean they cannot cash out that stock until they pay the government back, then all caps (including the salary) will be lifted. How is this "good"? Well, if the executives has enough strategy to turn around a company, the stock price will most likely rebound, and the CEO is rewarded for..let's say it together now...PERFORMANCE!

Wednesday, February 04, 2009

A Few Thoughts

(cross-posted at Wealth Weekly and Swords Crossed)

8,000 more job cuts were announced as of today. Coupled with Macy's 7,000 cuts yesterday we're up to 15,000 and it's only the third day of February.

- In a not-too-unrelated story, the American savings rate is up to 2.9% of income. Read this article entitled "Americans Saving More, Spending Less" and watch in horror as they tell you why this is a bad thing.

- Dear DC Elites: Pay. Your. #$@%Taxes....and don't wait until you get caught to do so. Signed, The American People.

- And finally, let's try a hypothetical. Imagine that you work for GM or Chrysler, paid hourly on the line. Now when you get home, you check the mail and discover that the Company offers you a $20,000 and BRAND NEW CAR!!! Oh, and you have to quit your job. In this economy. You call your co-workers and discover all the hourlies have been extended the same offer. Would you do it? Ok, now stop imagining and read this.

Tuesday, February 03, 2009

Pilot: Wealth Weekly Plus

So I'm thinking of adding a new dimension to the site. In keeping with my theme, I would still like to put in at least one article every week to improve your knowledge of the personal finance world. But to drive more interest, I want to add other topics to the site this year and I'll probably add shorter, but more frequent posts. Some of the other topics include articles of interest, education reform,and stronger topics on economic-related ideas.

In addition, we will be cross-posting on a site I frequent very often--Swords Crossed. so consider the next few posts over the next few weeks as our pilot in expanding the scope of the site. If you've been a long time reader, let me know if you think.