Should we Stimulate Consumption or Creation?

A friend of mine says the US economy depends on people buying junk they don’t need with money they don’t have.  He considers it a Ponzi scheme, not a national economy.  I used to argue the point, but the government sure seems to agree with him. Starting in May, the IRS will issue “rebates” to US citizens as an economic stimulus. They hope Americans will run to the store and spend their tax rebate, creating new profits for companies and new jobs for citizens.

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Categories: Finance

0 comments - Posted by Paul Orfalea at 8:52 AM

Banking Blunders

Georges Clemenceau famously said that war is too serious a matter to entrust to military men. I believe that money is too serious a matter to entrust to bankers, and every few years the bankers prove me right.

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Categories: Finance

0 comments - Posted by Paul Orfalea at 9:04 AM

Rainy Day Role Models

The March 4, 2008, New York Times ran a great article called Unlike Consumers, Companies are Piling Up Cash. Apparently, corporate balance sheets are the brightest spot in the economy right now. Some companies have enough cash on hand to pay off all of their debt. They don’t have to, because they bought the debt cheap. Cheap debt and large cash reserves give the companies tremendous flexibility.

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Categories: Finance

0 comments - Posted by Paul Orfalea at 7:36 AM

Let's Talk About Your Big But...

From Pee Wee’s Big Adventure (Warner Bros. 1985):

Simone:    I know you're right, Pee-wee, but...

Pee-wee:  Everyone I know has a big "but...” C'mon, Simone, let's talk about your big "but…"

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Categories: Corporate Culture | Entrepreneurialism

0 comments - Posted by Paul Orfalea at 8:25 AM