Supplemental RSS Feed, Daily Email, Special Bulletins

Showing posts with label recession. Show all posts

Thursday, May 20, 2010

Advice for the "Wal-Mart Demographic"

(originally published in The Mind of Adam J. Kovitz)

In their recent article "Why Wal-Mart's sales should have everyone worried" on CNNMoney.com, contributing writer Kit R. Roane talks about the large retailers recent decline in sales as an economic indicator of the nations health, citing that many of the "Wal-Mart Demographic" can't get to the store because they can't afford the gas. Even the CEO of Wal-Mart's rival Target, Gregg Steinhafel, is bracing for shaky times and "occasional setbacks".

Roane states that given this plus the facts that currently 40% of the current surge in retail sales are due in part to 20% of the wealthiest Americans and that there is more money to spend with more people walking away from their homes, "You can't build a sustainable consumer-led economy with that kind of material. And the setbacks mentioned by Steinhafel could be more prolonged if the Wal-Mart demographic doesn't start putting more skin in the game."

With this in mind, I wanted to offer some helpful tips to the Wal-Mart Demographic (and you know who you people are) to put more "skin in the game" to kick-start this economy back to its former grandeur:

1.) Stay in your homes: Follow the example of the politicians you elected and those CEOs of large corporations who pay them and "stay the course" - you don't see them running away from their failed enterprises, do you? Remember...home running is for baseball players only and a captain always goes down with his ship.

2.) Look at alternative methods of transportation: So you can no longer take your Hummer out for a Sunday drive. Consider buddying-up with your neighbor (the one with the roomy Honda Civic and three kids) and carpool. This way you share the cost of gas, the experience and the whining kids. Another idea is to find a Wal-Mart close to your local hospital. A quick call to 911, a fake heart attack or aneurysm and one ambulance ride will get you close (at least one way). You may just have to hike back to the hospital and call a sympathetic friend or family member to pick you up. I suggest explaining the new George Foreman grill, the abdominator, the over the toilet rack and the ficus tree as "convalescence gifts".

3.) Look at alternative food sources: By now you might be asking, "Adam...all this advice is priceless, but if I'm doing my part to feed the U.S. economy how do I feed my family?" I suggest hunting. For too long it's been only for sport, but consider it's origins...hunting began as a means for people to feed themselves. And, no...I don't expect city-dwellers to break set their bows and arrows upon any 12-point bucks - one must look at the food sources around. I have often referred to pigeons as "city chickens" and there is certainly a reason why. Rats and cockroaches are abundant in cities and if they can eat them on TV shows like Survivor, we can too.

For those vegetarians out there, I humbly submit dirt as an alternative food source. Speaking of "source", think of the delicious fruits and vegetables you eat...from where do they get their nutrients? From the minerals in the soil! CAUTION: residents in the gulf states may want to wash all soil of crude oil first before eating.

Lastly, although it is taboo, there is something to be said for cannibalism. In fact many of the tribes that still practice cannibalism see the eating of ones enemy as a doorway to taking their power. And who holds the real power in the United States? That's right...politicians and CEOs of large corporations. I understand folks from the banking and oil industries are particularly tasty and ripe after record-breaking profitable quarters. Keep in mind the old adage...nothing says "thank you" more than eating the ones that made this all possible.

So the next time the economy gets you down, keep in mind that we all must do our part to help it along. I believe that our greatest president, George W. Bush, when faced with the beginnings of our current economic decline stated that the American People were among the most resourceful in the world and that we can pull out of these tough times.

So to all the growing members of the Wal-Mart demographic, I urge you to get off your cellulite-laden backsides, put your tin foil-lined thinking caps, get innovative and get to your local Wal-Mart store as quickly as possible. Let's get this economy jump-started while we have a fighting chance...

...and if one of you can pick me up at the hospital on the way before my "ulcer" starts "acting up" again, that would be great.

- Adam

For no apparent reason whatsoever, I am including one of my favorite songs by one of my favorite bands, Jethro Tull.

Started as a blues rock foursome in 1967 by guitarist/flutist Ian Anderson, the band gained prominence in the 1970's with their unique sound labeled as progressive rock and their 1971 album, Aqualung.

From progressive rock in the early Seventies to folk rock in the late Seventies, the song "Dun Ringill" (a reference to the Iron Age Scottish fort located on the Isle of Skye) from the album Stormwatch is both melodic and foreboding.

Although released in 1979, the video was made in 1981.

Enjoy!

Jethro Tull - Dun Ringill

The National Networker Companies™

“Empowering Emerging Enterprises”

Membership in TNNWC’s Global Interactive Cooperative Business Community is free of charge and entitles you to receive both The National Networker Newsletter and The BLUE TUESDAY Report, as well as access to our unparalleled Suite of Business Services.

Join Us! Simply click on http://bit.ly/JoinTNNWC

Visit our website at http://www.TheNationalNetworker.com

Tuesday, January 26, 2010

TNNW Survey #5 Results: The Economic Recession/ Recovery in the U.S.

TNNW Survey #5 Results : The Economic Recession/Recovery in the U.S.

In its most recent public survey, The National Networker asked readers about the reasons for the U.S. recession, the parties responsible, the effectiveness of the government and the banks in bringing about a positive turnaround, our true current economic status and where our economy is headed. We received in excess of 100 responses. Here are the questions, the responses and the TNNW analysis.

The Survey Questions:

1. Do you believe that the worst is over, and that the US economy is on the road to recovery?

2. What do you think that the true (actual) US unemployment rate is?

3. Do you believe that banks are becoming more aggressive in terms of extending credit to consumers and to businesses?

4. Is your business or practice experiencing an increase in customer or client business at present?

5. Do you believe that the Federal Reserve System, The Treasury Department and the White House are being truthful with respect to the economic situation of the United States?

6. Do you believe that the Federal Reserve System, The Treasury Department and the White House are being responsible and proactive with respect to their handling of the economic situation of the United States?

7. What do you believe that the greatest single cause of the recession was (or is)? [Note: this question, as the others, offered multiple choices for answers, but also included an "open comment" box for readers to elaborate on their beliefs and to add their own individualized insights. Multiple choice questions are easily formatted and easily answered, but they tend to "force" answers in one direction or another (depending upon how they are worded by the survey designer), and do not allow for some very interesting commentary. Our "open comment" box provided an opportunity for our readers to think and respond outside of the box.]

The Survey Responses:

Respondents' Comments In The Open Box (NOTE: These Comments Have Not Been Edited ):

1.	Banks making big, speculative loans.
2.	too much leverage. too much purchasing on credit. too much mortgaging the future for instant gratification.
3.	Excessive greed on the part of governments, overtaxing, waste and unlimited power.
4.	Government and banks are joined at the hip and continue to be...
5.	Bernanke was asleep at the wheel while the crisis grew. Now they want to have him stick around for another term because they're afraid they'll do more damage by traumatizing the economy with a competent person. This is stupid squared.
6.	All of the above really. And, loans being given to those that could not qualify for them via the government insisting on getting into the free market with the housing acts from the 1990s.
7.	Combo of personal greed and corporate greed with media hype. I don't think it's reasonable to expect the government to regulate our enthusiasm for Horatio Alger situations.
8.	A combination of poor regulation, greed by banks, greed by consumers, and a free-for-all mentality by everybody
9.	And greed and financial ignorance on the part of citizen/consumers
10.	We always want to simplufy everything and blame ONE thing for everything that goes wrong. I do believe that the Outsourcing of jobs is a big factor, fueled by the unquenchable GREED of Corporations!
11.	Greed by gonvernement officials allowing greed by special interets.
12.	Stupidity and disregard for the most elementary risk management practices.
13.	Excess greed across the boards, not just the financial institutions. Competitive capitalism fails when greed becomes the focus. Poor ability for the government to control business because we have a bunch of lawyers governing us with little understanding of the business world and they too are driven too much by greed. First, staying in office - they will do what ever it takes. Second, they capitalize on their position to make more money. I'm afraid that this is more poison than the country can bare.
14.	Poor enforcement of existing regulations, and laws enacted by Congress in the Clinton Administration that encouraged mortgage lending to people who should never been able to get a mortgage.
15.	Too much government spending and intervention for the worse
16.	I blame the Federal Reserve Bank and Congress for "playing dice" with mortgage lending institutions like Freddie and Fannie.
17.	the recession was triggered by the collapse of the financial system. This collaspe is/was directly related to the lending practices encouraged, no, demanded by Fannie Mae and Freddie Mac. Also the refusal of Barney Frank in 2005, ( see the C-Span clip) to accept the independent audit of these two institutions warning of their impending collaspe if their lending and appraising practices were not corrected. But since Mr Frank received political campaign contributions from these institutions he refused to look into and change these practices. I put the blame on him, Bill Clinton (who revised the Act that expanded the practice of the requiring of lending money to people who could not qualify for their loans), and Jimmy Carter (who signed into law the act/bill which first allowed/ required these lending practices).
18.	A combination of the government turning a "blind eye" to corporate greed for the past 20-25 years (not just banking and financial institutions, although they have certainly played a major part in this), outsourcing of jobs and production to other countries so that the United States is no longer the manufacturing power that it once was, and gutting the middle class, rising oil and gasoline prices (again, with absolutely NO regulation by the Federal government), continued underfunding of the educational system in the United States.
19.	All th above
20.	Poor regulation Excessive greed Social engineering gone amuck
21.	Our economy, helped along by inept government oversight, financial market greed (everyone) and a declining base of real economic value (manufacturering) put us on a path of over valuing both property, secutiries and currency. It was bound to burst. Unfortunately, the solutions so far have been directed at all the wrong areas.
22.	Monetary policy which kept rates too low, and created a housing and credit bubble, especially fueled by GSE's like Fannie and Freddie
23.	Question 6 should have an option that permits proactive but ineffective action.
24.	USA needs a balance of regulation, training of people to be more independent and less dependent on jobs. at the same time to learn to work on teams, in collaboration, cooperative entrepreneurship, reduce irresponsible use on non-secured debt
25.	Manufacturing creates wealth. Government re-distributes wealth, but does not create. The USA has forgotten this. USA negotiates trade poorly; other country's protect their industries; we treat them as political pawns to buy democratic friends and lose our jobs. Read "Factory Man" by Jim Harbour.
26.	All of the above
27.	Combination of government requiring banks to make bad loans and penalizing them if they did not do those loans.
28.	Outsourcing and high interest rates on credit cards and criminal level greed.
29.	There is hardly any manufacturing and a little of service industry left in USA to absorb millions of unemployed persons in US. Most of new jobs are being created outside US. This is the time to call it a Depression and not a recession. The only solution to US Economy is to stop or restrict imports and start building manufacturing in USA.
30.	Federal government which has not provided proper oversight to the banking and financial instiutions, new ambitious social welfare programs which increase taxes (further hurting job creation). Foreign wars and aid which spends dollars we don't have and overall failure to recognize the global economy and its impact to the US
31.	Unsound spending habit of people. Lack of education and degree to gain white collar jobs. In banking sectors, people been offered positions not on education, skills or experience but due to contacts and networks- who care if the company goes burst- I fill my pocket kind of thinking.
32.	Federal Reserves artificially low interest rates/loose credit and other policies are the creator of boom and bust cycles. Which leaves the to "big to fail" companies being protected by the government and everyone else paying the bill for their failed policies.
33.	Perfect storm - Asset bubbles caused by inadequate oversight and deregulation in many industries (most notably the recission of Glass-Steagal), worker surplus created by technology, sell off in the past 30 years of America's natural resources, manufacturing base, real estate, and now human capital, and lastly - Greed and wastefulness by all - unions, corporations, and consumers. We pay more in America for in many cases - subpar service, goods, & healthcare - and delude ourselves into thinking things are great.
34.	These and a lack of true statistical knowledge of the real financial picture, which includes over 21 million IRS reported non-employer businesses, and as many as 150 million or more earning income on the side from home using credit. No statistics or mention of the doubling of credit card payment minimums that caused millions of household budgets to go into the red, lowered disposable income, raised credit fees and interest, and contributed to mortgage defaults. Falls under the category of greed, but should be better publicized to correct the problem now and prevent it from happening in the future.
35.	Poor regulation and excessive greed as stated above
36.	I think it was a combination of the first three.
37.	All of the Above including corruption. The seeds planted grew into unfruitful trees. I believe we are on the right track now instituting compassion into the economy as well as creative capitalism and humanitarian entrepreneurship. Time and collaborative innovation with diversity will fix the past.
38.	Not outsourcing or rising oil prices, but the housing/financial crisis, caused by years of mismanagement and unbridled greed, as well as lack of government oversight.
39.	Cheney/Bush Large corporations World Elite clique
40.	All of the above and ownership of the media which was constant persuasion to consumers convincing people they could afford loans they couldn't, resources being overused and funds misspent on wrong priorities, no controls in place and those watching the controls guilty of shirking the responsibility of being the one to blow the whistle instead choosing to pocket the gains within financial institutions and government, mortgage and loan originators taking advantage of ill informed consumers, greed overall, lack of financial knowlege universally, the seeming belief by all that whatever went wrong could be hidden in the big government and not come back to them, the same for the majority of the US population, we didn't listen to our gut, trusted the powers that were to do their duty and ran the hampster wheel thinking it would go on forever and somehow all work out.
41.	All of the above
42.	excessive greed on the part of the American people!
43.	Poor and over- regulation by the government; excessive greed on the part of the federal government and some financial institutions. It's disingenius of our Congressional members to point fingers at banks for falling apart after forcing banks to make loans to people who don't qualify. The bailouts just ran up the national debt to mind numbing numbers. If any citizen printed money like the government is doing - the citizen would be in jail for printing counterfeit (and worthless) bills. I fail to see the difference.
44.	Combination of all the above
45.	The regulations that were in place were not followed or even checked in some cases. The practices of Banks was wrong and irresponsible which took advantage of the less capable to understand complicated financial instruments.
46.	Wild spending by Bush with unjustified tax cuts and no attempt to rein in Wall St speculators.
47.	Employers are not paying a decent wage any longer. My husband has been unemployed and has many years of experience. One company offered him $28,000.00 (salary). They told him, and I quote: "We can pay as little as possible because the market is glutted with people looking for work. Why should we pay more if we don't have to?" Now that is a very sad story! Hard to support a family today on $13.50 per hour if you are a professional.
48.	A combination of the first two answers.
49.	I believe part was greed. The other part is that we have strayed from the principles this country was founded on and became too comfortable during our time of prosperity as a country. We did not pay closer attention to what our government was doing, the people we elected to represent us and the effect of special interest groups. As businesses are reponsible for the bottom line so to must our government.
50.	Lack of prudent financial management on the part of all concerned: excessive debt, unrealistic financial projections, lack of understanding of competition, etc.

Analysis and Commentary:

The statistics (as percentages) speak for themselves. The "open box" responses above (randomly selected out of 94 total responses), speak largely of recklessness, greed, lawlessness, straying from the American Work Ethic (i.e., work hard, save your money, and buy what you can afford), irresponsibility and immorality on the part of many parties. No one is completely blameless, but the government, banks and large corporations were constantly mentioned and repeatedly villified. It is interesting to note that given the opportunity to freely fix blame, fewer than 10% of our respondents chose to put the blame on a particular political party or one one specific political administration.

Our thanks go out to all of the wonderful folks who chose to respond, to speak their minds, and to educate us.

The unspoken question (but we shall speak it anyway), is...What do we, as individuals and as a society, do now?

Faithfully,

Douglas Castle

*Coming Soon! TNNW Survey #6 -- We promise to make it exciting, controversial and thought-provoking.

Tuesday, December 8, 2009

TNNW SURVEY # 5: The Economic Recession/ Recovery in the US.

TNNW SURVEY # 5: The Economic Recession/ Recovery in the US.

During the course of these past two months, a combination of governmental spokespersons, economic pundits and conservative/ mainstream newscasters have been speaking in optimistic terms about the beginning of a US recovery from its deepest recession since the Great Depression of the 1030's. THE NATIONAL NETWORKER (receive your free membership at http://twitlik.com/IN) wants to know your views about the recession and the "signs" of recovery.

Please take this quick multiple choice survey to give us your professional and personal imput as to what you truly believe.

Expatriates and non-US citizens are welcome to join us in this important poll. We thank you all for your valuable participation and comments.

Click HERE to take Survey #5

QUESTION PREVIEW:

1.     Do you believe that the worst is over, and that the US economy is on the road to recovery?

2.     What do you think the true (actual) US unemployment rate is?

3.     Do you believe that banks are becoming more aggressive in terms of extending credit to consumers and to businesses?

4.     Is your business or practice experienceing an increase in customer or client business at present?

5.     Do you believe that The Federal Reserve System, The Treasury Department and the White House are being truthful with respect to the economic situation of the United States?

6.     Do you believe that The Federal Reserve System, The Treasury Department and the White House are being responsible and proactive in their handiling of the recession issue?

7.     What do you believe that the greatest single cause of the recession was?