Summary - Fed & Treasury Pitch Pay Rules, But Will They Work?

The article, Fed & Treasury Pitch Pay Rules, But Will They Work? details the new compensation rules for executives at banks and other financial institutions set forth by the Federal Reserve and Treasury. The new regulations by the Feds are broad so that they will affect every bank. The new proposals by the Treasury only affect the seven institutions that received large amounts of taxpayer aid. The Feds new rules are not "hard-and-fast" because every institution is different and they believe that the pay practices reflect that. The Feds also want to inform the bank holding companies how they plan to assess their pay practices. The Treasury's new rules is to police the pay for each firms top five executives and the next 20 highest-paid employees. While a better approach may be to adjust each executives pay to his or her duties, consultant Pearl Meyer believes this is a start.

Summary - The Economy: Beware the Bottlenecks

The article, The Economy: Beware the Bottlenecks discusses the different potential outcomes of deflation and inflation during an economic recession. According to Peter Coy, the author of the article, inflation is not a problem because sellers want to get rid of excess inventory. However, experts believe that more bottlenecks similar to this could form causing prices to increase and the Federal Reserve to increase interest rates before we can sustain a recovery. James B. Bullard, President of the Federal Reserve Bank of St. Louis has seen this before in the 1970s and doesn't want it to occur again. Bullard states that the Federal Reserve "overestimated the amount of unused productive capacity in the system" causing high inflation. Economists believe that the scarier thing would be deflation. Factories are closing at record pace and automakers have been reducing capacity at a pace not seen since World War II. In the end, the Fed must be prepared to counter both, inflation and deflation.

Can Apple Spoil Microsoft's Day?

http://www.businessweek.com/magazine/content/09_43/b4152000782247.htm?chan=rss_topStories_ssi_5

Peter Burrow's article Can Apple Spoil Microsoft's Day? discusses how Apple plans to try and lure PC users away from Microsoft beginning on October 22. October 22 is the official release date of the brand new Windows 7 OS. Apple is hoping to capitalize on Windows 7 in the next year because many consumers who purchase computers running the Windows Vista OS will recollect how poorly the OS was constructed and in turn, switch to the brand new Snow Leopard OS from Apple. As usual, Apple plans to advertise their machines as being virus-resistant, more current, etc.

PC makers are not too concerned with another attempt by Apple to steal customers. Analyst Stephen Baker of researcher PC Data points out that PC's are much cheaper than Apple's. PC makers will also be able to sell new products such as netbooks, etc. that are both cheap and run the new Windows 7 OS.

As a PC user myself, I find it hard to believe that Apple will have great success over the next year in taking customers away from Microsoft. I have been using the RTM version of Windows 7 Professional since it was released to certain groups in July and have absolutely loved it. While I agree that Vista was a mess, I do not anticipate a herd of PC users going to Macs over one poor OS. Only time will tell whether or not Apple will succeed in their latest venture.

Summary - Wal-Mart's Painful Lessons

The article Wal-Mart's Painful Lessons details the different struggles that Wal-Mart Stores (WMT) have had in achieving success around the globe. While Americans have embraced the low-cost goods and services it provides, other countries in the world have not. One reason Wal-Mart has not succeeded in Japan is that the Japanese equate low-cost products to being inferior products. Wal-Mart has struggled to make a dent in India's $350 billion retail sector due to their government restrictions and because India's predominant retail sector consists of small, family-run businesses. In Russia, Walmart has faced obstacles establishing due to the rampant corruption. Finally, in Chile consumers are resistant to foreign retailers. Wal-Mart is in the early stages of global expansion and it may take awhile to succeed.

Summary - Industrial Stocks: A Smokestack Comeback?

The article Industrial Stocks: A Smokestack Comeback? discusses the new economic data that may indicate that the current recession may be nearing its end. Data provider Capitol IQ reports that industrial stocks are up 27% in the past three months. Only the materials and financial sectors of the market had a better showing in the last quarter. The upcoming third quarter earning reports from the individual corporations may be a better indicator of the current status of the economy. According to Ben Steverman, one indication that investors should be optimistic about the recovery is the increase in freight traffic. Freight traffic is up 37.7% since March. Steverman also suggests that as a whole, the U.S. should export more than it imports due to the weakened state of the greenback. In the end, as long as the manufacturing demand increases, the end of this recession could be over.

Squeezing Every Dime from DVDs

http://www.businessweek.com/magazine/content/09_42/b4151059074777.htm

The article Squeezing Every Dime from DVDs by Ronald Grover and Tom Lowry discusses the different ways that the movie industry in Hollywood is trying to get a "bigger piece of the pie" in terms of DVD monies amid a poor economy. With the economy the way it is, DVD sales have been declining and DVD rentals have been increasing. Time Warner, owner of Warner Bros', states that they want "better economics" from their current deal with Netflix. Redbox, a cheap per day rental system with kiosks around the country is also beginning to feel the wrath of Hollywood. They are being pressured into sharing a higher percentage of rental fees, limiting the number of titles available in each kiosk, and having to wait 45 days before new releases can be rented.

Executives in Hollywood and the DVD industry believe that DVD sales will increase when the economy rebounds but are also preparing for a future without physical discs. The different movie companies have begun trying different ways to release their products in order to find a more profitable system of delivery. Industry analysts believe that by Christmas, the popular website YouTube may be able to offer digital movie rentals straight from their website.

As a movie lover, I do agree that the DVD industry may be hurting a bit due to the economy. At the same time, executives in Hollywood have to realize that your average American citizen is also hurting for the very same reason. Personally, I have always rented DVDs first and will only purchase a copy for myself if I enjoy the movie afterwards. I believe that if the movie industry is successful in their efforts against Netflix, Redbox, etc., they may irreparably harm their image with the public and then even fewer will purchase DVDs again once the economy reverses course.

Websites

Good Website
http://www.twelvehoursinacity.com/
*Not overly jumbled with ads, useless information, etc.
*A little bit on the long side (more of a blog website)
*Good layout
*Easy to navigate

Bad Website
http://www.miauk.com
*Cluttered
*Bright, flashing lights
*Hurts the eyes
*Poor choice of font
*Makes you want to punch whoever created the homepage for being incredibly stupid