MONEY: Pensions are at risk! (Updated)

Sunday, January 18, 2009

http://finance.yahoo.com/news/US-companies-face-409-billion-rb-13997269.html

U.S. companies face $409 billion pension deficit: study
    * Wednesday January 7, 2009, 5:35 pm EST

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NEW YORK (Reuters) – Volatile markets have saddled U.S. companies with a $409 billion deficit on pension plans, reversing a $60 billion surplus a year earlier, and will cut into earnings in 2009, consulting firm Mercer said.

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Put aside the obviously corrupt Enron-type organizations like the State of New Jersey, GM (who wags call “a sick insurance company that happens to make cars”), and the other “captive of union contracts” companies, that make no pretension of even trying to honestlly fund their pension obligations.

This presents a problem for both companies and all of their pensioners. If the company doesn’t make money, the federal Pension Guaranty fund will eventually be saddled with it. Think the Delta pilots getting screwed.

(You weren’t still living in the illusionary world of the “gold watch” era. Were you? Where “companies” felt a moral obligation for the promises they made. Silly rabbit. That went down the drain with all the other ethos that made America great.)

So if you are owed a pension obligation, you better get vocal.

Better yet, like the Social Security Ponzi scheme, plan for it to not be there. It probably won’t!

Sad, but true.

You can only count on the gold coins in your back yard for your “retirement fund”. And then you have to pray you don’t get Alzheimer’s and forget where you buried them.

Argh!

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John Celenza on Facebook commented: “But haven’t pensions always been at risk? Invested as they were in stock. duh.”

My response:

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No, there is risk. And there is gambling. Back in the “gold watch” era companies, like AT&T and IBM, incorporated subsidiaries whose whole job was to pay those pensions. (That prevented things like Delta pilots getting screwed.) They staffeded it with execs nearing retirement to watch the pot. And they took it as a moral obligation to pay those and fully funded them. In IBM’s case, I know they over funded them to be certain. I suspect AT&T did the same thing. Today, it’s completely different. It’s gambling.  Except where there is not even a pretense of doing the right thing, that’s just fraud. imho!

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PLATFORMS: Windoze7 is on the horizon

Saturday, January 17, 2009

http://windowssecrets.com/comp/090108/

Will the Windows 7 RTM make an early entrance?

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The official release of Beta 1 of Windows 7 to the public is widely expected to occur next week. If all goes well with the remaining testing, indications are that the final, RTM (released to manufacturing) version will be available as early as August. Lending support to this theory is the fact that the end-user license agreement of Beta 1, like all recent prerelease versions of Windows 7, states that the software will expire Aug. 1, 2009.

*** end quote ***

With a tip of the hat to the folks at WINDOWSECRETS.COM … …

Why do I feel like I have seen this “morality play” before?

Because we have?

Now everyone will be urged to test and upgrade asap. Hardware won’t support it? It’s an Intel / Microsoft treadmill. Intel needs you to buy more hardware so Microsoft makes fatter OSes. Microsoft needs you to send them money so they need to inflate their OSes with more “features”.

For what?

To do websurfing, email, wp, spreadsheets, and some slides.

Ya gotta be kidding!

If your platform works — which for most home users it does — sit tight.

Windoze cruds up over time. Fact of life. So focus your energy in a “refresh”.

Or move to Linux. With free software.

And. get off the treadmill entirely. It’s not taking you anywhere you want to go. Except to spending more money.

Computing should now be a commodity.

A very cheap one.

imho

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MONEY: Ron Paul on Obama’s “Trillion Deficits for years to come”

Friday, January 16, 2009

http://www.youtube.com/watch?v=HUQo5QQSlys&eurl=http://www.lewrockwell.com/blog/lewrw/archives/024759.html&feature=player_embedded

Guess this is the “change” we were promised?

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POLITICAL: Despise Health Insurance Companies? Just wait!

Thursday, January 15, 2009

http://distributedrepublic.net/archives/2008/12/23/simple-indeed-or-the-audacity-cluelessness

Simple Indeed, or The Audacity of Cluelessness
Submitted by Brandon Berg on Tue, 2008-12-23 21:52

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The International Herald Tribune showcases the astonishing cluelessness of people who are presumably among the best and brightest of Obama’s supporters:

   When a dozen consumers gathered over the weekend to discuss health care at the behest of President-elect Barack Obama, they quickly agreed on one point: they despise health insurance companies.

   They also agreed that health care was a right; that insurance should cover “everything,” not just some services; and that coverage should be readily available from the government, as well as from employers.

   “We have to keep the momentum going,” said Hijane, 34, who was a volunteer in the Obama campaign and is active in women’s health advocacy. “We are not lobbyists. We are simple citizens.”

*** end quote ***

Get ready for national health care. Delays, Higher Costs, Rationing, and … … yes, sadly, deaths.

That’s what happens when the Socialists take over.

Sigh.

Need a new category … STUPIDITY!

Anyone want to start an insurance company? No. Me neither!

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RANT: Judge Green’s Bell breakup did more than ruin people’s lives.

Thursday, January 8, 2009

FROM LINKEDIN

News Discussion: AT&T Alumni
Does the AT&T Break UP Still Matter? – NYTimes.com
From: New York Times | December 19, 2008

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   When AT&T grudgingly agreed to break itself up 25 years ago, it was seen as a truly momentous event in the history of the teleco Read more at New York Times »

*** end quote ***

Gene Russell
   * This article was submitted on December 19, 2008 at 09:00 AM PST

*** begin quote ***

I wrote the marketing and financial sections of the Pacific Telephone & Telegraph “Evaluation of Post Divestiture Provision of Customer Premises Equipment” Business Plan while on Jim Moberg’s team reporting to Sam Ginn. Ultimately many of Judge Green’s rules and regulations destroyed a lot of business strength and growth opportunities. For example the newly minted baby Bells were prohibited from manufacturing telephone equipment i.e. CPE. Ultimately we went off shore and created an intense stream of jobs to go away. We went to LG in Korea, some minor players in Hong Kong and ultimately to China. This lightly written and short article needs a much more serious study and review of all aspects of the break up, the restrictive rules imposed by a Judge without a business background. Many people speak about the break up in terms of their personal experience with their phone and phone service. The deeper industrial and corporate wastage and inefficiencies need to be given serous academic review. PhD proposal anyone?

By Gene Russell President and CEO

*** end quote ***

I know first hand the personal disruption this caused. Family and friends were hurt. I landed on my feet. In some ways, much better off. However, those friends and family never recovered. My mom was forced out after 45 years. She was expecting to work for another 5 years. They did give her 2 years pay. But, she was “her job” and never recovered. My friend was bounced around, ill-treated in the spin outs, and basically tossed. He was out for several years trying to find a slot. There went his “retirement”.

As a country, having been at the Labs a few times, that was the country’s crown jewel. That was nuked.

Western Electric, the manufacturing arm, was nuked as well.

A tremendous cost in people, hardware, and potential.

Down the drain by a bureaucrat in a funny dress.

Argh!

Collective stupidity.

Supposedly to save money?

I just shake my head.

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GOLD: Demonstrating the eternal value of commodity money

Tuesday, December 30, 2008

http://news.bbc.co.uk/2/hi/middle_east/7797977.stm

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An amateur British archaeologist has discovered almost 300 gold coins dating from the 7th Century at a dig just outside Jerusalem’s Old City.

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Wonder how much a paper IOU from the then Byzantine Emperor Heraclius would be worth today?

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POLITICAL: Gooferment bailouts mere prolong the inevitable

Wednesday, December 24, 2008

http://www.lewrockwell.com/tucker/tucker115.html

The End of the US Piano Industry by Jeffrey A. Tucker

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Today government is even more arrogant and absurd, and it actually believes that by passing legislation it can save the US car industry. It can subsidize and pay for uneconomic activities, and pay ever more every year. The government can also pay millions of people to make mud pies because mud pies are deemed to be an essential industry. You can do this, but at what cost and what could possibly be the point? Eventually, even the government will have to accord itself to the reality that economics reminds us of on a daily basis.

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It’s hard to envision a sadder time in American History.

The gooferment bailing out the UAW union.

That’s what this is all about.

The unions wield enormous political power.

And, like a parasite, they eventually kill their hosts.

Look at the Teacher’s Union and education. The ports with their union. The railroads with their union. Government workers and their unions.

And, don’t make the mistake that the Union is looking out for its members.

Sure, they do from time to time, but that’s to preserve the illusion.

Example, State of New Jersey hasn’t contributed to the pension plan for several administration. It’s under funded by 3T$. Think the Union has grabbed the politicians by their privates and insisted. No, they are all in bed together.

Example, UAW hasn’t insisted that Automakers align the executive’s interest with the worker’s. It’s a scandal that a CEO makes more than the line worker in salary. CEO’s shouldn’t make more than a 1$/year anytime. Give them stock options that vest in 5 year increments (i.e., 5, 10, 15, 20, 25, 30, …). Then stand out of the way as the thinking shifts to long term value.

Example, the Delta bankruptcy screwed all the retired pilots. Hear anything about that?

Unions are an institution that needs to be reinvented.

Where’s my “union” for bloggers?

Argh!

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PRODUCTIVITY: Leaders empower their people

Thursday, December 18, 2008

http://execunet.blogspot.com/2008/12/best-email-of-day-award.html  

Tuesday, December 09, 2008
The Best Email of the Day Award

*** begin quote ***

…Goes to Peter Clayton, producer/host of Total Picture Radio. It needs no further commentary from me as it eloquently speaks for itself. Good on ‘ya Peter.

“Capital goes where it’s welcome and stays where it’s well treated.” Walter B. Wriston

Dear Dave,

When “The Citi Never Sleeps” ad campaign was first launched in 1978, Walter Wriston was running the place, and the motto had real meaning. Wriston was highly regarded, as was the institution he lead. Citibank / Citicorp was a cherished brand by its employees and a respected competitor in the financial services industry. Citibank had a unique, authentic, brand identity

*** and ***

According to David, “82% of shareholder value is intangible.” According to John, one-third of all shareholder value is attributed to “brand.
“So here’s an idea I’d like your help with: If we could find 24,000 Citibank employees willing to donate $10 each into a fund to “keep the trains running,” it might give the employees of this beleaguered institution something to be proud of, and smile about. I bet through Twitter, LinkedIn, Xing, and Facebook we could mobilize enough Citibankers to take up the cause. Next year, the Holiday Trains at Citigroup Center exhibit could be “In memory of Walter B. Wriston.” The fund could be set-up as an old-fashioned “Christmas Savings Account.”
*** end quote ***

Dave always finds the great challenging ideas. Worth every nickel of my free RSS subscription.
It is clear that the current crop of “leaders” isn’t worth the power to blow them over. Poof! They’re gone. Gone; absconding with the salary, bonus, options, perks, and benefits. (I laffed at the Ford guy taking a $1/year! If the Congress MYOBed and Ford had to do Chapter 11, he could wave “bye” to his stock and options.)
It’s sad that “leaders” are so dishonest.
The time of large corporations is so OVER!
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Jobsearch: Maybe “repair” is important in jobsearch opportunities?

Wednesday, December 17, 2008

http://www.pennyjobs.com/pp/public/Articles.aspx?aid=244

Repair Business On the Rise
Curtis Ophoven
12/1/2008

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Over the thanksgiving holiday, I got the chance to talk with many of my aunts and uncles about the economy.

*** and ***

If your business is looking for growth, consider adding a department to repair or fix older products – even your competitor’s products. In many cases products can be fixes cheaper then they can be replaced.

*** end quote ***

Perhaps, we need to “aim” differently.

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MONEY: H.R. 2755: Federal Reserve Board Abolition Act

Sunday, December 7, 2008

http://www.lewrockwell.com/huff/huff24.html

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You might also ask your US Representative to co-sponsor the Bill to Abolish the Fed. So far Ron Paul’s Bill has no co-sponsor. What does that tell us?

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[JR: That politicians are happy with the blank check that the current system provides them? ]

http://www.govtrack.us/congress/bill.xpd?bill=h110-2755

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Federal Reserve Board Abolition Act – Abolishes the Board of Governors of the Federal Reserve System and each Federal reserve bank.

Repeals the Federal Reserve Act.

This bill is in the first step in the legislative process. Introduced bills go first to committees that deliberate, investigate, and revise them before they go to general debate. The majority of bills never make it out of committee.

*** end quote ***

Arhhh!

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