Political Uncertainty Puts Freeze on Small Businesses

Very Good Wall Street Journal Article about why small businesses are not hiring or may be laying off. Think this is a common reason businesses are not taking advantage of the economy to expand market share. The uncertainty of the new health care costs, increasing taxes in 2010 when the Bush tax cuts expire, and political new taxes like Cap and Trade are causing businesses to hold on to cash. The recovery may be slow in the current situation until some direction is clearly coming from Washington.
http://online.wsj.com/article/SB125659324579108943.html
The leaders who can see a way to expand their businesses will be rewarded when the recession ends. How can you affordability grow your business market share now? Your customers will thank you.
Steve Amos

Energy prices have resumed rising

The price of oil is going up and there are several questions why.Oil storage are full and full tankers are sitting outside our harbors. Due to supply, prices should be falling.

In the back of everyone mind should be the situation in Iraq. The nuts running Iraq want to dominate the middle east, and really believe they can bring their mullah back from the 13th century by destroying infidels (Israel) and spreading their religion throughout the world. Russia is not supporting sanctions against Iraq, and may force Israel to attack. If that happens Iraq will mine the waterways and trap 25% of oil tankers from reaching the West. Needless to say prices should spike if this happens.

Add to that US government spending tripling our debt without any job creation. The value of the dollar is falling by design which also drives up prices of commodities. They believe it will make us able to export more, but they have not eased regulations on small businesses. Add to that small businesses are afraid what will happen with the health care bill. No wonder the economy is slow. This does not even include banks and businesses deleveraging, nor consumers reducing spending over job fears and increasing savings.

No wonder oil went from $65 to $80 in the last eight weeks. Gold has crossed $1,000 per ounce and is still rising. The dollar is still easing. Do not see anything stopping these trends in the next six months, or until the Iraq situation and health care is resolved. I bought ETF's in Gold at $950 and Oil at $65 because I expected the dollar to fall.
Steve

PS - see current MarketWatch article below about oil prices.
http://www.marketwatch.com/story/oil-falls-as-api-reports-rise-in-crude-supplies-2009-10-21

Barnes and Nobel Competes

You have to admire what Barnes and Nobel is doing these days. In a weakening economy they have chose to compete. Amazon had better look over its shoulder.

• Barnes and Nobel are offering free electronic readers for use to download. You can read electronic books on PC’s, Mac’s, iPhones, iPod touches, and Blackberries. They even give you a few classic books to get you started.
•  College textbooks are offered up to a 30% discount and with free shipping. Really important in September and January.
• B&N offer free Wi-Fi in their stores, especially the ones with a Starbucks. There is no decrease in books on the shelves, and the stores in Socal are all orderly.
• The membership program is still active with healthy discounts on books.

Would not be surprised to see them sell Sony’s reader to take more share from Amazon Kindell. Would be a natural partnership for Sony.

 

In short it is good to see well run companies innovate.
Steve

 

9/11 showed us who we can be

A very good article about the grace and warmth of people after a disaster. We are much more caring and helpful than people believe. This is from the LA Times.
http://www.latimes.com/news/opinion/la-oe-solnit11-2009sep11,0,5396972.story

Actually went to dig up the original article, and think the LA Times article was more focused (i.e. better). Here it is
Rebecca Solnit, 9/11's Living Monuments
http://www.tomdispatch.com/post/175112/rebecca_solnit_9_11_s_living_monuments

Sorry the links are not working. Copy and paste into your browser. You may have to search www.latimes.com to find the title article.

Know we are meant to be better than the self center children we started out to be. Amazing how much better we can be.
God bless,
Steve

Tough Tech Rugged Gear That Can Survive Almost Any Calamity

A fun article for your Labor day about technology that is not fragile, but meet a MIL spec for strength and durability. Fortunately my job does not require these tools.

http://www.pcworld.com/article/170706/tough_tech_rugged_gear_that_can_survive_almost_any_calamity.html?tk=nl_wbx_t_topstoryn

You may have to go to PCworld.com and search for the article title Tough Tech

After you peruse the high priced I really don't need its, go to the Essential (and Cool) Laptop Gear article to see laptop gadgets like the PLANon DocuPen Color Scanner RC805 and other elite tech gear you probably don't need... :)

http://www.pcworld.com/article/170418/essential_and_cool_laptop_gear.html

Have a great Labor day! I have to get back to working on finding more work.
Steve Amos

A peek into the future

Good article about the near future of technology.

http://www.latimes.com/business/la-fi-cover6-2009sep06,0,6494829.story
Copy and paste or just search "A peek into the future"

I love predictions. It is amazing how wrong we get them. Yet is it shows how we are trying to solve problems all the time.

Wireless electricity seems like a side effect failure, but there are great places to use it. Especially how difficult it is to run some wires. RUF seems too costly. There is a better chance for cars to use other software technologies which do not require the infrastructure.

N + 3 Aviation and Nanotechnology do seem like the future. There is a tremendous need for both of these technologies.

Just my guess about these technologies. What is yours?
Steve Amos

Health Care Analysis NY Times

Have been watching the health care debate with interest. The truth is we have had free health care provided in Los Angeles for 8 days, and the demand is immense.

We also have unemployed who can not afford the Cobra coverage provided by the company, and companies who can not afford the cost to keep all employees with high insurance prices.

I am not assured that changing the debate to health insurance care is correct. Most insurance companies work hard to keep prices affordable and I have never had any trouble beyond filling out the form.

I also see No cost containment, nor limiting litigation liabilities in the House bill. Frankly there is no sense the government is going to not expand spending tremendously beyond the initial plans.

What I would like is portability of my plan, and preexisting conditions covered. As far as what is politically possible, I really enjoyed reading intelligent commentary. I recommend:

A Public Option Isn’t a Curse, or a Cure
By RICHARD THALER
August 15, 2009

http://www.nytimes.com/2009/08/16/business/economy/16view.html?hpw

Copy and paste the link in your browser,
Steve Amos

Manufacturing Recovery?

Forbes has a good article by Joshua Zumbrun on the state of manufacturing. Needless to say my industry has been hard hit by the recession. Unemployment is up 17% in manufacturing.

However signs of a bottom are occurring. The average workweek in the sector rose from 39.4 hours to 39.8 hours from June to July. This has been falling for about a year. In addition, only 52,000 more people joined me in job hunting for manufacturing jobs. Needless to say, if it is you it feels worse.

The cash for cars program may actually get some manufacturing to increase next month. However, that should be only a short shot, and the cars that would be sold later are just coming sooner.

Read the article from the link below, and you will see the mixed message. But the trend is getting better.
Steve
http://www.forbes.com/2009/08/06/manufacturing-recession-unemployment-business-beltway-manufacturing.html

PS - Forbes is known for changing links, so you may have to search for "Manufacturing Recovery?" or Joshua Zumbrun

Microsoft Marketing and Advertising

John Dvorak has a very good article commenting on Microsoft’s advertising. (See link below) His main point is Microsoft is only advertising for lowest price versus Apple. Microsoft doesn’t sell laptops, they sell software. This is a recipe for disaster. Low price means low margins. It also means low respect and lower profits.

I much preferred the ads with the kids and adults showcasing their talents on a PC. “I am a PC” was that slogan. It at least showed why you want a PC.

Not sure the advertising was working. Apple makes superior hardware with software that is convenient to use. Look at how easy it is to integrate your iPhone and iPod with your Mac. All these affordable apps make owning and synchronizing multiple machines easy so your time is productively spent.

Now Microsoft is no slouch in software. Apple is now able to make us of multi-core chips. Microsoft developed this capability with multi-core chips three years ago (more or less). Second the biggest U.S. gains in productivity came when businesses starting using Microsoft Windows machines with Office. How many businesses have not used this combination? Microsoft is still superior for large corporations. Their server and pc software is productive to manage for IT. They improve and service their customers well. Updates are ready regularly to keep your computer safe and sound.

Microsoft is not the greatest innovator for software. Others often came up with ideas how to use computors. Microsoft is the integrator of software supreme. Buy what you need, and Microsoft will take care of you. Really when you look at their marketing for many years they were leaps ahead of any competitors. Who else would a business work with?

When Microsoft focuses on business benefits and advantages for small pc owners and business they market successfully. What advantages? How about more programs for any purpose available. Why does Apple offer programs to mimic Windows? Because you can’t get everything for a Mac. My business card scanner is one application that won’t transfer to a Mac. In fact even though Apple offers compatible programs to Office, most small business owners will buy Office for the Mac just to make sure.

Let’s get back to your business. How are you Marketing and Advertising Your Business? Are you showcasing your advantages and benefits for your customers? Let’s focus on benefits. It is not you offer a product or service, it is how the customer benefits from buying your product or using your service. This is what you have to do for your marketing to succeed.

Also check out John Dvorak’s good article. Very good read.
Steve

Apple vs. marketing on 'best price'
http://www.marketwatch.com/story/apple-vs-marketing-on-best-price

The Bernanke Market

More commentary By ANDY KESSLER in the Wall Street Journal. Favorite line in the article: "But I think what really bothers the market is that the structural problems that got us into trouble in the first place still exist."

http://online.wsj.com/article/SB124762005061042587.html

Happy reading,
Steve