Category: Business

Another one of the few who saw the crisis coming.

Steve Keen – Associate Professor of Economics & Finance at the University of Western Sydney.

I know didly squat about economics.  I know a lot about the effect of economics in the sense of government policies, of inflation and debt, international trade and much more only in how they have impacted me over a lifetime of working, buying homes, raising a family, running a couple of businesses and now contemplating retirement.  I can sum up my personal strategy – LUCK!  I have been lucky.  The other Post out today shows an example of that luck.

Frankly, economists haven’t figured widely in my role call of people that I admired, probably because I don’t really understand what they are talking about.  (That’s why this Blog has a real live economist as part of the team, to help educate me and all the rest of the readers who come to this Blog!)

The other Post on this subject spoke of David Kauders, who clearly saw it coming.  Now here’s an economist who also saw it coming, Steve Keen.

Read more about Steve Keen

Growth of eBooks

Expansion or replacement of the traditional book?

My guess is that most people still value the convenience and sheer pleasure of holding and reading a traditional paper book.  It is difficult to think of a more pleasurable activity than browsing the shelves of a book-store or library.  But the eBook also is carving out a valuable niche, it appears.

Thus it was a delight to come across a ‘store’ devoted to eBooks.  Based in Paris, that virtual store is called Mobipocket.  New to me but, perhaps, not to many others (I can sometimes be a little behind the new technology drag-curve!)

Nevertheless, a veritable labyrinth of virtual book shelves with prices often well below print prices.  Here’s the WikiPedia background.

By Paul Handover (who has no commercial interest in promoting Mobipocket, not even a cent is earnt if you click through.)

The smallest hint of oil surplus leads to a real fall in oil prices

The fragility of the economy shows in many areas.

Last Thursday, the mere hint of a fairly insignificant surplus in U.S. oil reserves pushed down current oil prices and energy-related futures and other speculative plays.

Oil prices have fallen sharply as weak US home sales data and high US oil inventories prompted doubts about a potential recovery in fuel demand. Source: BBC News, 24th September.

Can you imagine the reaction to an announcement of a new source of U.S. oil reserves?  Or of renewed off-shore drilling capacity?  Relaxed EPA standards? Additional refinery capacity?Oil field

Our energy prices would be cut in half and we’d be so much less likely to war with oil-rich nations on whom we now depend for the functioning of our economy and who, indirectly or not, limit our economic and personal freedoms.

By Sherry Jarrell

Starting a business

Looks like a nice series from USA Today newspaper.

Just happened to be staying in a hotel last week that offered free copies of USA Today.  Too mean to buy my own copies!

Anyway, that Monday was the start of a small business entrepreneur’s series running for 6 weeks.

Don’t worry if you missed the paper version, all available online.  Week One is here, Week Two here.  Bookmark it if you want to follow all 6 weeks – seems well thought out and mostly relevant to both sides of the Pond.

By Paul Handover

Unemployment, Part Three

How much is “too much” Unemployment?

How much unemployment “should” our economy have?  How much unemployment is too much, and how much is just right?  How high does the unemployment rate have to go before significant changes are made in government policy and approaches?

The question of the optimal level of unemployment has generally been answered by reference to the so-called “natural rate” of unemployment.  The natural rate of unemployment is measured as the long-run average rate of actual unemployment in an economy over time; it is a “trend line,” as seen in this graph below:

unemployment3

Read more of this Essay

More on that ‘passion’ word!

Passion may be the key to many, many areas of success.

Following John’s Post on Sunday about passion, two other items passed my virtual desk that seemed to resonate with the theme.

The first was my regular Sunday ‘newsletter’ from Philip Humbert.  Sometime it comes across as a bit too good to be true but that may be a little bit of cultural mismatch from an Englishman’s eyes. Philip describes himself as a “Personal Success Coach!” and offers a free weekly newsletter that is worth trying out.

Anyway, to the point of this Post.

Read more about Passion

Understanding unemployment, Part Two

Examining unemployment in more depth.

In an earlier post, I explained how the reported U.S. unemployment rate, which was 9.6% in August of 2009, is unemployedmeasured. This post will explore the reported unemployment rate in more depth, distinguishing between the short-term, temporary sources of unemployment and the long-term, more structural, and troubling aspects of the unemployment rate.

The 9.6% U.S. unemployment rate remains the same next month if no one changes their employment status.  But the rate also remains unchanged if the same number of people hired get fired.  In truth, the U.S. unemployment rate nets out enormous flows of people into and out of the labor force and, for those in the labor force, between being employed and unemployed.

A representative month in the unemployment statistic tells the story.

Read more about unemployment

Sunday smile … and passion in business

First impressions, reliable or not?

This joke that I received recently might amuse you:

Light travels faster than sound. This is why some people appear bright until you hear them speak.

That happens! In some cases, you might have preferred to retain the first impression and wish that they had never spoken!

But sometimes, this “don’t judge a book by its cover” effect can work in the opposite direction; as a result, I nearly missed out on enjoying a passionate presentation.
Read more about passion!

Unfamiliar territory for stockmarkets

Stockmarkets in very foreign territory

On August 6th, a Post was published on this Blog with the title of This is going to end in tears!

It was prompted by an article by Karl Denninger and a footnote piece from Dave Rosenberg of Gluskin Sheff.

Also included were the US and UK prices for 4th August (about 7am MT) more for my own curiosity than anything else.  They were:

Dow Jones 9295, S&P 500 1,001, NASDAQ 2002, FTSE 100 (now closed) 4671.

By comparison, here are the figures for these markets (all closed at time of writing) for the 18th September.

Dow Jones 9820, S&P 500 1,068, NASDAQ 2133, FTSE 100 5173.

Well another fascinating muse from Mr Rosenberg was in this morning’s inbox and important extracts are below:

Read Rosenberg’s comments

What not to say

John Lewis joins Learning from Dogs

On September 3rd, a Post was published about John.  Anyone who read that Post will understand the pleasure that both John and I got from being re-connected.  Subsequent chats since that Post have shown that there are many parallels in the way that we think, see the world, and speculate as to what, really, is going on!  It was inevitable that I would ask John to join Learning from Dogs and, when I did, John’s immediate ‘yes’ was proof indeed that this was the right thing for us.  A strong desire to do something is always important.

John’s first Post shows that he will be welcomed by all who read this Blog.

Paul

Read John’s first Post