Obama Promises More for Small Business

Government and Economy Obama Promises More for Small Business President Barack Obama promised to lower mortgage costs, offer job-creating loans for small businesses, get credit flowing and rein in free-spending executives as part of his plans for the second installment of the financial bailout. Last Act of the Bush SBA In one of its last acts, the Bush SBA did a surprising thing by putting off the implementation of the new women-owned small business procurement program. Management and Financial Issues [Read Full Article]


White House Pushes Bailout as Senate Republicans Balk

Government and Economy Economy shrinkage Rate is 3.8% in Q4 The economy shrank at a rate of 3.8% at the end of 2008, the worst showing in a quarter-century, the result of consumers and businesses throttling back their spending. Obama: Bailout Will Deal With Executive BonusesThe White House promises that the upcoming financial plan will clamp down on the salaries and bonuses paid to Wall Street executives from companies receiving taxpayer money. Republican Senators: We Will Fight... [Read Full Article]


Attack of the Zombie Debtors

In financial lingo, zombies are debtors that have little hope of recovery but manage to avoid being wiped out thanks to support from their lenders or the government. Zombies suck life out of an economy by consuming tax money, capital, and labor that would be better deployed in growing companies and sectors. Meanwhile, by slashing prices to generate sales, zombie companies can drag healthier rivals into insolvency. —BusinessWeek You would think that once was enough, that the failure of the first round was obvious, but no, Congress has done it again. They have released the second half of Paulson’s $700 billion and that shuffling sound you are hearing is the sound of zombies, coming at the smell of freshly-spilled money. According to Peter Coy, writing for BusinessWeek: “The Bush Administration has already ladled out billions o... [Read Full Article]


The Final Word on Economic Stimulus

Insanity: Doing the same thing over and over again and expecting different results. — Albert Einstein That, as much as anything coming from the psychiatric community, sums-up insanity. It is the delusion, the break with reality, that provides the force of Einstein’s definition. What he is saying is that for Action X there is Result A and that you can perform Action X (assuming that nothing go wrong in the execution) a hundred or a thousand or a million times and you will always get Result A. It is like gravity. You can stamp your feet, argue and intellectualize against gravity all you like and it won’t matter a bit. Gravity works. The Physics of Economics – Tax Cuts Economics is another sphere where we have empirical evidence that certain things work and certain things do not. When President-elect Obama announced that 40% of his new economic stimulus plan involved tax cuts on business and individuals, his aides admitted t... [Read Full Article]


Happy New Year from America's Best Companies

Government and Economy Bush Signs Pension Funding Relief MeasureThe Worker, Retiree and Employer Recovery Act of 2008 was passed by Congress this month as part of an effort to aid employers facing large pension funding obligations due to the plunge in investment values. Ohio minimum wage to rise New Year's Day Some of Ohio's lowest-paid workers will receive a modest raise Thursday, when the state's minimum wage increases from $7 to $7.30 per hour. Management and Financial Issues Outsourcing Could Increase... [Read Full Article]


Clinton Insider Gets Commodities Post, Automakers Get $17.4 Billion

Government and Economy Obama Names Clinton Insider to Commodities PostGary Gensler, a former Clinton Treasury official, has been picked by President-elect Obama to regulate the same financial instruments he defended in the nineties, instruments that helped to create the subprime mortgage crisis. Stabilizing the Automotive Industry The text of Treasury Secretary Paulson's statement on stabilizing the automotive industry. President Bush: Automakers to get $17.4BCiting danger to the national economy, the Bush administration came to the resc... [Read Full Article]


Small Business Brief for 11/24

Politics and Government Obama Nominates Geithner for Treasury CHICAGO (AP) - President-elect Barack Obama has chosen Timothy Geithner to be his treasury secretary. Geithner is president of the New York Federal Reserve Bank, and has been working with the Bush administration on ways to solve the credit crisis. Obama Aims to Create 2.5 Million Jobs to Abate Crisis President-elect Barack Obama said he aims to save or create 2.5 million jobs in a two-year plan to stimulate an economy facing a “crisis of historic proportions.” [Read Full Article]


Small Business Brief for 11/21

Politics and Government Bush Promotes Action Plan For Global Crisis President George W. Bush, fighting to get ahead of the growing global financial crisis, hopes to win more converts for an action plan designed to demonstrate that governments have the will and the means to halt the turmoil. Unions Sure Card Check Bill Will Pass The government-affairs director of the AFL-CIO said he is certain that organized labor's top priority—a law that would make it much easier for unions to organize businesses both large and small—will pass Congress and be signed by President Barack Obama. [Read Full Article]