No good news for the President. Unemployment remains historically high and nothing in the foreseeable future will change things. The hardest hit are the "legally protected groups" -- minorities, high school graduates and older workers. This is not unusual.
Congress has mandated all sorts of special rights for these "protected" groups and as a result they will be the last to be hired and will only be hired when the economy is truly frothy. All of the "unprotected" groups, mainly white males between 18 and 40 years of age, will do much better. They are cheaper to hire, easier to fire, and less likely to sue for a workplace grievance. It's as if we designed our labor laws to favor white males and to penalize minorities and others. Whether by design or not, that is certainly the end result.
Obama's dream was to expand government and have the government hire those who support him politically. To some extent, Obama's dream was fulfilled by the Stimulus Act of 2009. But, alas, the public woke up and have called for the expansion of government to end. Bereft of ideas, Obama is now complaining that ordinary Americans simply are not smart enough to understand his policies!
The Obama Administration is now granting waivers to companies who plan to drop health care insurance for their employees. More than 120 large companies, including McDonald's, have now received government-granted waivers from the onerous requirement of Obamacare. What this means is that Obama decides who must obey the new law and who gets away with ignoring it. So much for the rule of law.
The bankruptcy (literal and figurative) of the Obama Administration is on display daily as key Administration figures desert the sinking ship. The tsunami is coming. 24 more days until November 2nd.
Saturday, 9 October 2010
Friday, 8 October 2010
Where is my MEATBALLS?
Once in awhile, I'll dine-in at this famous fast food restaurant. However, this time it surprised me!!!
As normal, I order a plate of meatball spaghetti with tomato sauce, which is nice in taste. Without thinking, I straight away started my meal once it was on my table. Regrettably, I should have taken a photo (for the sake of proof). I remembered that it should be 4-5 meatballs previously, instead of 2 meatballs currently.
4 vs 2 (50% missing!!!)
4 vs 2 (50% missing!!!)
Where is my MEATBALLS ???
Without arguing for the missing meatballs, I wondering why the said fast-food company did it that way? After 2 minutes, I come out with my own conclusion.
- The pretty waitress ate it while on the way of serving me. (2 meatballs in a mouth?)
- This is a company way to improve profit margin.
Reason number 2 seems to be more logic. Recently, the said company reporting better quarterly results with higher net profit was recorded. How to increase net profit per customer basis?
- Value-up or cross-sell other products to a customer
- Cutting the costs
Due to the fact that they failed to convince me to value-up, cutting cost (meatballs) is the best way. Although profit is the most important things in any business, please earn it in proper ways, not by undermining the benefits of customers.
Please give me back my MEATBALLS !!!
Please give me back my MEATBALLS !!!
Leave China Alone
The level of the Yuan (the Chinese currency) is not even remotely a cause of the economic problems that the US faces. Appreciating the Yuan (and devaluing the dollar), a program advocated by Tim Geithner, is silly policy. The US has a miniscule savings rate and as long that is the case, we will have a huge trade imbalance (almost by definition, since whatever investment activity occurs in the US must have the savings provided from some external source).
It is becoming a bedrock of American economic polical life to blame someone else for our own foolish policies. By blaming others, you never face up to reality.
The cold, hard truth is that Obama's policies have damaged the prospects for a US economic recovery. It is not clear that Obama cares one way or another. He seems focused on other matters. But, Americans care. We will eventually have an economic recovery with permanently higher levels of unemployment. This will be the Obama economic legacy -- economic stagnation and slow economic growth.
Hopefully, after November 2nd, we can begin to remove some of the roadblocks to economic growth that the Obama team has put in the way of the economy. Most of the country would like to return to the bad old days of prosperity, even if Obama prefers not to.
It is becoming a bedrock of American economic polical life to blame someone else for our own foolish policies. By blaming others, you never face up to reality.
The cold, hard truth is that Obama's policies have damaged the prospects for a US economic recovery. It is not clear that Obama cares one way or another. He seems focused on other matters. But, Americans care. We will eventually have an economic recovery with permanently higher levels of unemployment. This will be the Obama economic legacy -- economic stagnation and slow economic growth.
Hopefully, after November 2nd, we can begin to remove some of the roadblocks to economic growth that the Obama team has put in the way of the economy. Most of the country would like to return to the bad old days of prosperity, even if Obama prefers not to.
Tuesday, 5 October 2010
New Fund: OSK-UOB Capital Protected Asia Gaming & Hospitality Fund
With the Asian economies leading in the run up to the global economic recovery, it is expected that the gaming and hospitality sector in Asia would be positioned for growth. Supported by a stead fast growing population and rising income, the gaming and hospitality sector in Asia is thus expected to flourish.
On such expectation OSK-UOB offer investor a new fund that will seek to capitalize on the expected growth of this sector in the Asian region, particularly in Macau and Singapore whilst protecting* investors' capital.
This is a 4-year close-ended capital protected* fund which aim to provide regular income over the medium term whilst protecting investors' capital* on the maturity date.
This fund is suitable for investors who:
- have a low risk tolerance;
- seek capital protection*;
- share our view on the growth potential of the Asian gaming and hospitality sector during the run up to the world economic recovery;
- have a medium term horizon (4-year);
- seek regular income
Min Investment : Rm 1,000
Sales Charge : 2.50%
* This capital protected fund is provided through investments in ZNIDs and not by a guarantee.
Monday, 4 October 2010
Why Malaysian market keeps going up?
Recently, I personally have a chance to met up with some businessman from different industries.
When we chat about business, they said "very competitive la".
When we chat about economy, they said "still very uncertain eh".
When we chat about KL market, they said "why keeps going up ahhhh?".
While newspaper and media are reporting a slew of news regarding Euro debts problems, US high unemployment, Japanese deflation, and China's scary property bubbles, our market charging ahead unobstructed. In contrast, Ringgit is heading to a fresh 13-year high against USD, KLCI is trying to out-beat its highest ever level, surpassing the pre-crisis level now. Although our economy was not as good as pre-crisis, our KLCI did. Why?
Malaysia to gain from world's liquidity...
Taking a macro-economic view, this is all due to the liquidity that the world governments created to rejuvenate their economies out from the 2008 recession. Actually, we are one of the by-products of too much liquidity that was created. Just take yourself as an example.
Would you invest your money to get a better return compare to fixed deposit now?
What would be your investment then?
The answer is quiet clear-cut, YES, I will invest into share market, mutual funds, or property. Definitely not fixed deposit. Right?
Remember, US and other developed countries with great liquidity are having a near record low interest rate (almost zero). Ultimately, it encourages or forced people to invest and spend, instead of "eating" interest in banks.
Then, they channel their money into those high growth countries/region, the one which came out earliest from recession. 2009 we have Australia, New Zealand, and BRIC (Brazil, Russia, India, China). 2010 we have south-east Asian countries, where Malaysia is one of them together with Indonesia.
It's not purely based on our economy, but, liquidity from other countries.
* Hint: What are the most popular mutual funds in the market now? Then, you will know the answer...
Sunday, 3 October 2010
The End of the Obama Agenda
Whatever the outcome on November 2nd, the Obama agenda is finished and cannot be resuscitated. Most of the economic agenda was aimed at pumping up the income of union and public sector employees. The health care system has been trashed and the financial sector lies under the most burdensome regulatory environment in history. Meanwhile ordinary Americans are still losing their jobs, their homes, their credit cards and their health care insurance. No wonder life is tough for Democrats.
The Obama answer to the enormous backlash to his first twenty one months in office is that the public doesn't understand his program. Unfortunately, for Obama the public does understand his program and has been opposed to it from the beginning.
Having nothing to run on but an incredibly unpopular legislative record, the Democrats, actively encouraged by President Obama, are resorting to mud slinging and personal attacks. That's about all they have left. This is the new politics that will be Obama's legacy to the American system.
Obama says that Americans don't understand. Yes, they do. The two biggest lies in the past two years are: 1) No one will lose their health insurance; and 2) We are bending the (health care) cost curve down. It's hard to imagine anyone in America, including folks in the White House, believe those lies anymore.
It is an Administration in shambles. The rats are leaving the sinking ship. The dream is over. Interviewed on public radio, students who lead the charge for Obama in 2008, were unanimous in their view that "Congressional elections aren't cool...I don't even know who my Congressman is...." So the students will sit this one out, but the adults will not sit this one out.
The Republicans will gain 65-70 seats in the House and 8-10 seats in the Senate. The era of Obama is over.
The Obama answer to the enormous backlash to his first twenty one months in office is that the public doesn't understand his program. Unfortunately, for Obama the public does understand his program and has been opposed to it from the beginning.
Having nothing to run on but an incredibly unpopular legislative record, the Democrats, actively encouraged by President Obama, are resorting to mud slinging and personal attacks. That's about all they have left. This is the new politics that will be Obama's legacy to the American system.
Obama says that Americans don't understand. Yes, they do. The two biggest lies in the past two years are: 1) No one will lose their health insurance; and 2) We are bending the (health care) cost curve down. It's hard to imagine anyone in America, including folks in the White House, believe those lies anymore.
It is an Administration in shambles. The rats are leaving the sinking ship. The dream is over. Interviewed on public radio, students who lead the charge for Obama in 2008, were unanimous in their view that "Congressional elections aren't cool...I don't even know who my Congressman is...." So the students will sit this one out, but the adults will not sit this one out.
The Republicans will gain 65-70 seats in the House and 8-10 seats in the Senate. The era of Obama is over.
Friday, 1 October 2010
Lotus: Proton vs Fernandes & co
After racing F1 for barely less than a season, our supposedly 1Malaysia F1 racing team (now known as Lotus Racing Team) are taking their own stance on the Lotus brand. The high-profile brand tussle case has been taken to British court now, in which definitely does not represent the 1Malaysia spirit at all.
Although I'm not a F1 fan, I did watch F1 occasionally. Now, I had switched my channel to the court case, which I think is more interesting than on-the-track sensations. In F1, other than performance, everything is about branding and reputation and $$$. If not, why they dumped in so much money? For the sake of getting a court case?
Behind the scene...
For Proton, they want to rebuild their fragile brand by using Lotus to showcase their expertise internationally.
For Fernandes & co, they want to establish their own brand to oversea especially for AirAsia which flew directly to Europe. And, maybe just participate for fun.
For Fernandes & co, they want to establish their own brand to oversea especially for AirAsia which flew directly to Europe. And, maybe just participate for fun.
Both side will win?
Since I do not know much about law and due to limited information, I would not comment on the court case. But, for sure, there is only one winner who can use the trade mark "Lotus" in the end. And, for sure, the loser will lose all - brand and money and time, but not publicity. Oops, publicity is essential for branding too...
Since I do not know much about law and due to limited information, I would not comment on the court case. But, for sure, there is only one winner who can use the trade mark "Lotus" in the end. And, for sure, the loser will lose all - brand and money and time, but not publicity. Oops, publicity is essential for branding too...
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