Do you think you'd honk someone if they had a gun rack in the back of their truck? According to GSB Prof Bob Sutton's blog, research has suggested that, counterintuitively, people are in fact provoked by such signs of aggression -- and become more aggressive themselves. And to back it up he proffers a hardcore 1975 academic article from a psychology journal. Or, from a less scientific perspective, recall those words from 2000 years ago: "He that taketh up the sword shall perish by the sword". Or honk.
Medicare's trust fund will spend more than it receives from taxes this year. The event marks the beginning of what Bush administration officials predict is the start of a slide toward possible bankruptcy for Medicare's Part A Trust Fund, which pays hospital expenses for about 42 million beneficiaries.
A report from the Social Security and Medicare Trustees predicts that in 2019 the trust fund would no longer be able to pay all of its bills. That's unchanged from last year's prediction.
WebMD Health News 3/25/08
Related articles:
Medicare Trustees Report Shows Serious Financial Status of Medicare Program
U.S. Department of Health & Human Services News Release (3/25/08)
GSB Research News: Health Care
Status of the Social Security and Medicare Programs
A SUMMARY OF THE 2008 ANNUAL REPORTS
Social Security and Medicare Boards of Trustees
2008 Medicare Trustees Report
U.S. Department of Health & Human Services
Social Security Program Fact Sheet @ Social Security Online
Statistical Tables @ Social Security Online
As I mentioned in an earlier blog entitled IPO Dearth the number of IPOs during the past few months has been slow. So it’s surprising that KKR one of the oldest Private Equity firms (some of the firms actions are chronicled in the book Barbarians at the Gate: The Fall of RJR Nabisco) is jumping in with plans to go public. Other Private Equity firms such as Carlyle Group and Texas Pacific Group have changed their minds after Blackstone shares lost 50% of their value since IPO. KKR is however going public in a very creative way which you can read about in the Reuters article Buyout King Kravis Swaps Privacy for Stock. It is also interesting to note how involved European groups are in this transaction as outlined in the Financial Times article KKR to Go Public Through Fund Merger.
Peter Seng, Bryan Smith and Nina Kruschwitz contend that it doesn’t take a massive government effort to make a difference on the global warming battlefront: it takes a change in business thinking. Sweden has an inspiring story to tell. In 1970 Sweden depended on fossil fuel for 77% of their energy, but now only depends on fossil fuel for 30%. The authors argue that Sweden’s success is the result of what historians call “basic innovation” -- changes in technology and organizations that create new industries, transform existing industries and ultimately reshape societies. Will the United States be next?
Read the complete article The Next Industrial Imperative in strategy+business, published by Booz Allen.
Gas prices fell below $3.70 a gallon yesterday at some central Ohio stations as the drop at the pump kept pace with the rapidly falling price of crude oil.
"We think it's going to harden out at $3.50 and not go below that," said Gary Lewis, general manager of the Dayton-based gas-price Web site GasPriceWatch.com.
Source: The Columbus Dispatch@dispatch.com
Mapquest's National Gas Prices page reports the lowest and the highest prices nationwide as follows:
the lowest:
#1 CHEVRON 201922 - CHEVRON
Regular: $2.98 (7/22/2008)
565 E MAIN ST, COLQUITT, GA
#2 ON CUE EXPRESS #103
Regular: $3.44 (7/23/2008)
5920 S WESTERN AVE, OKLAHOMA CITY, OK
#3 COLEMAN'S CAR TECH
Regular: $3.48 (7/23/2008)
118 HAMILTON ST, CALHOUN CITY, MS
and the highest:
#1 CANTWELL FOODMART - CHEVRON
Regular: $5.65 (7/22/2008)
MILE 211 GEORGE PARK HWY, CANTWELL, AK
#2 Highest Price $5.61
PEBBLE BEACH, CA
#3 Highest Price $5.16
SPRING VALLEY, NY
The “locavore” movement encourages consumers to buy from farmers’ markets or even to grow or pick their own food, arguing that fresh, local products are more nutritious and taste better. In the New York Times there is an article talking about "lazy locavores" which are people who want to eat locally but pay other people to plant an organic garden in their back yard and also till, weed and harvest the garden.This in itself has spawned a new business for people who want to get their hands dirty, literally.
Who's moving and who's shaking ? Treasury & Risk magazine June 2008 issue has listed its candidates for the 100 Most Influential People in Finance, movers and shakers in the world of big bucks. The list is segmented into sections, such as 'The Financial C-Suite', 'Treasurers', 'Bankers', 'Politicians', 'Risk Management' and others. Some names like Mayor Michael Bloomberg, finance legend Kirk Kerkorian, Representative Barney Frank and Fed Chairman Ben Bernanke are instantly recognizable; others will be new to you. Read more in the issue on the current periodical racks in Jackson Library or online.
Silicon Valley VCs increasingly are looking at investment areas such as energy production and cleantech which require substantial technology. vcj (June, 2008) reports that science driving innovation in these areas isn't coming exclusively out of Stanford University. It's also coming out of Oklahoma State University, Virginia Polytechnic Institute, and Rice University. The number of start-ups jumped nearly 20% in 2006 to 698, according to the Association of University Technology Managers. Reaching the right people has never been easy. An example of one easy way is a campus associate program by Alsop Louie Partners. "Every VC firm on Sand Hill Road is all over Stanford looking for the next Larry and Sergey. So we designed the campus associate program at Berkeley because it was right across the bridge" says Alsop.
Besides hiring an insider to scout out the hottest newly minted entrepreneurs, other ways include the following:
2. Connect with alumni - research shows that the median age of the founders of U.S. technology companies is 39 and that twice as many were older than 50 than were younger than 25.
3. Reach out to university VC programs - popular at many business schools, the best known university-sponsored programs are Cornell's BR Ventures and the University of Michigan's Wolverine Ventures.
4. Tap university-affiliated angel groups such as Bluegrass Angels (affiliated with University of Kentucky), Harvard Angels (Harvard), and Youniversity Ventures (Stanford University, University of Illinois at Urbana-Champaign)
5. Connect with non-profits that help commercialize university tech such as the Southeastern Universities Research Association (SURA).
Source: Thomson Venture Capital Journal June 2008, available at Jackson Library
With all the depressing news about the economy, here's an article about the returns on Love.
The cover theme of American magazine (July/August 2008) highlights the energy crisis, and includes as one of its main stories a piece by former Intel Chairman / CEO and current GSB Faculty member Andy Grove. Titled 'An Energy Policy We Can Stick To', it makes a strong case for electricity, the 'stickiest' form of energy, as the power source of choice. Grove recalls an ominous incident earlier this year when the Saudi oil minister brusquely rejected our President's pleas for increased oil production, suggesting our society is a a critical juncture. He goes on to warn of potential negative political fallout in the global competition for energy if we do not strategize to avoid the wrong path. (A recent editorial by Grove in the Washington Post captures the same sentiment in shorter form.)
The New York Times Magazine (6/29/08) highlights the depopulation of Europe and other places in 'Childless Europe'. The piece by Russell Shorto speculates that birthrates in parts of Europe (and elsewhere) may be in decline because of a discrepancy between progressive hopes fostered among modern women and lingering patterns of pre-modern society which deflate those hopes. This civilizational schizophrenia leads to psychic disillusionment and a reluctance to bear children. Or so Shorto says. Benedict XVI recently lamented "Europe is infected by a strange lack of desire for the future." Is he right? Read more in the issue on our current periodicals rack in Jackson Library, or online.
I have known about Interbrew since I was a little girl living in Belgium. Interbrew was the parent company of Stella Artois (the most popular beer in Belgium at the time) and, later in what was dubbed a merger, bought out AmBev to create InBev. This past week InBev finally announce its takeover bid of Anheuser-Busch. The new company will be called Anheuser-Busch InBev and will be the third largest consumer products company behind Proctor & Gamble and Nestle as stated in the Progressive Grocer article Anheuser-Busch-InBev Deal Likely Hit Wholesalers, Craft Brews Most. Last winter Carlos Brito the former CEO of InBev and recently named CEO of Anheuser-Busch-InBev spoke to students as part of our Global Speakers Series about how he became CEO and what he thinks works as a leader.
Have you noticed that it has become more and more difficult to read through a long article? Do you think and work in 'bullet points'? You are not alone. According to an article in the July/August issue of the Atlantic Magazine, "Is Google Making Us Stupid", the Internet has changed the way we process information. There has been no long term study, but short term studies suggest that people use a form of 'skimming' when reading non-fiction, jumping from one source to another and rarely reading past two pages before moving to another site. The author contends that although we are reading more today, the way we read can impact our ability to analyze and interpret nuances in the text. You can read the full story online or in the print copy in the periodical display rack of Jackson Library -- although I must warn you, the article is 6 pages long.
Now, did you get all that, or were you skimming ?
After a visit to the magnificent Canyons -- Bryce, Zion, and the North Rim of the Grand Canyon, it seemed logical to spend a day in Las Vegas with good food, shopping, and entertainment. That was just what I did. The city seemed to be ever expanding despite the current U.S. economy. I decided to do some checking after returning to work to find out exactly what is the story with Sin City. So here I found this article in SCT Shopping Center Today, June 2008. Despite signs that cause for concern such as the following:
• the city lost 20,000 residential construction jobs,
• a record high of 6,152 pre-foreclosure filings in March,
• hotel rates dropped 5.1% in February,
• retail vacancies jumped to 5% for the 1st quarter,
• McCarran International Airport showed declines in passenger traffic
• the Cosmopolitan Resort and Casino, partially built in the heart of the Strip, is now
in foreclosure on a $760 million construction loan from Deutsche Bank,
• Crown's $5 billion casino is off the drawing board and the land is up for sale
Some major projects, many with foreign ownership, are moving forward:
• General Growth Properties' Summerlin Centre will be open in 2009
• MGM Mirage's $8 billion CityCenter also opens in 2009
• The Plaza, a $6 billion hotel casino is going forward
News from other sources include:
The National Association of Realtors reported that one in five Realtors has sold a home to a foreign buyer in the past year.
Land values in downtown Las Vegas have quadrupled to about $8 million an acre in the last four to five years as investors recognized potential in an area largely ignored by local developers.
International investment has reached suburban projects such as Sullivan Square, Harcourt Developments of Ireland has committed $800 million in construction financing for the project.
The new carrier Virgin America is flying to Las Vegas and set its competitors in motion. Futhermore, the Sunday Tribune reported on the property prices on the strip are about EUR1,400 a square foot, and as you move out, properties can be found from EUR190,000. And what about the tax breaks between Las Vegas and Ireland? Nevada has no state income, inheritance, estate or corporate taxes but there is a 7.5% sales tax.
Generally speaking, the "smart money" is buying in Las Vegas right now and some of that capital is coming from overseas, said Charles Clawson, president of Noble Title in Las Vegas.
"With the dollar so weak, foreign investors have much greater purchasing power than they might normally have," he said. "That greater purchasing power, combined with the distressed real estate market, makes real estate investments in Las Vegas very attractive to foreigners." -- ReviewsJournal.com
Although the Grasso compensation package story is so five minutes ago it’s interesting to hear what the finance and investment industry is saying in the aftermath. The $187.5m pay packet is described as “He earned every penny” or as “Pay Dirt”. Whichever side of the debate you stand on the controversy over CEO compensation has revived the conversation over compensation and the compensation gulf that separates CEO’s from other employees.
I was actually going to write about the Forbes magazine 'Celebrity 100' list ... but such fluff fades in comparison to the news that Warren Buffett has just donated over 500,000 Class B shares of Berkshire Hathaway to three charitable foundations. Most of this $2 billion total goes to the Gates Foundation. Sorry, but this morally blows out of the water anything I had to say about 100 "celebrities". Congratulations, Mr Buffett.
The Washington Post reports today in an article entitled Venture-Backed IPO Tally: Zero that no venture backed companies have gone public in the second quarter. Why is this significant? Well as the National Venture Capital Association states “venture-backed companies … represent a critical job creation engine for the United State economy”. The news release goes on to synthesize a survey of NVCA membership. Read more about the survey in IPO Drought Creates Capital Market Crisis for Start-Up Community.
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