Posts in month: March, 2008

New York Times wrote;
French Company Is Said to Buy Maker of Absolute Vodka
By ANDREW ROSS SORKIN
Pernod Ricard and Vin & Sprit, the parent company of Absolute Vodka, are expected to announce the transaction, which may be worth more than $7 billion, on Monday.
Doubt Cast on 2 Drugs Used to Lower Cholesterol
By ALEX BERENSON
The drugs Vytorin and Zetia may not work and should be used only as a last resort, The New England Journal of Medicine and a panel of cardiologists at a major cardiology conference said on Sunday.
A Nervous Wall St. Seems Unsure what’s next?
By JULIE CRESWELL
Most everyone wants to know when the financial crisis will end. So far the markets are whispering an answer that no one wants to hear.
To read full article, follow this link

How businesses, economic and financial flow today?Let us see and analysis ourselves before some crucial decision are taken.
Reuter; Before the Bell wrote:
Treasury set to announce regulatory overhaul
March 31, 2008 07:53 AM ET
WASHINGTON (Reuters) – Treasury Secretary Henry Paulson will reveal in full sweeping new plans on Monday for streamlining a hodgepodge of regulation faulted for permitting the U.S. mortgage crisis to balloon into a full-blown economic threat.
In my opinion, the mortgages problem in USA has been taken by their authority. In economic perfective, TIME LAG is uncertain time, short time or long run. no body knows. Market always find itself on equilibrium. Government (legal authority) has permitted and allow million dollar to solve this problem, in the short run the impact wasn’t worked. Let equilibrium find its self.
Housing secretary to resign: report
March 31, 2008 07:58 AM ET
WASHINGTON (Reuters) – The U.S. housing secretary will resign Monday morning under pressure after accusations of improper allocation of federal contracts, the Wall Street Journal reported in its Monday edition.
Weak dollar not at odds with policy: ex-US official
March 31, 2008 02:13 AM ET
HONG KONG (Reuters) – The dollar is likely to remain under pressure for the next few months at least, but its weakness is not inconsistent with the Bush administration’s strong dollar policy, former U.S. Treasury undersecretary Tim Adams said on Monday.
Credit crunch to cut global ad spend growth: Zenith
March 31, 2008 06:26 AM ET
LONDON (Reuters) – Spending on advertising in North America and Western Europe is expected to grow by 3.8 percent this year, lower than an earlier forecast of 4.4 percent, as the credit crunch saps confidence, a report said.
Credit Crunch (Property Crisis) is a very sensitive factor cause or impact to global economic. Asian Crisis was caused by Property Crunch. United Kingdom has been pull down and not cleared at all, America still down in credit crunch, Asia never surrender and scare with the power of credit crunch (problem in mortgages-property credit crisis).
To read all of this news, follow this link to read

Debt is an obligation in future. While future is uncertain condition, debt becomes uncertain condition in future also. You just make some prediction and analysis your ability to payback your debt based on some indicators such as your income (salaries), your sales, and interest rate. In macro economic we see that retail economic (micro economic is fundamental affected to debt. When FED cuts interest rate, macro economic analysis said that businessmen will turn to get credit because lower interest rate, macro economic is refreshing.

Example, if FED increases interest rate, businessmen stay at home, credit become low. Macro and micro economic run stagnant.

Another example; when interest rate raise, and oil price also raise, businessmen have loss. Profit down significant and they cut employees, fired some staff. Imagine one of the employees is you? Or as businessmen, you are the one which close your business because loss is higher than fix cost.

Those reason impacts to debt, as employees (personal payday or loan) you are in trouble in payback ability as well as businessmen, you close your company (business) than your debt is in trouble too.

Sharing your problem in Debt Consolidation Care!

If someone has a problem, she/he will find a friend to tell the problem. The case also happens to you. Sharing your debt, everything about debt in the Consolidation. Many unique debt cases are cleared there. You can share about everything, or find your related cases. You can asking and request to expert and to all Debt Consolidation members about your problems.

I do think you case isn’t alone. You think that you have unique case and no one has like you, by joining debt Consolidation care you can open your mind that you aren’t alone. Don’t shy with your debt. People sometimes shy and don’t want sharing their debt problem. In debt Consolidation care you can share everything include there the best creditor (lender), bad credit offers, asking Debt Community and all about financial problems.

Natural Management, An Art and Science

All educations; science, biology, mathematics, law, art and design, computers, doctor, goes to one goal, make money to survive. Yeah! Economic is also included to those education. Those educations go to one goal, Make money based on its core, after make money, buy some food, and eat growth, reproduction and death in the end.
An example below can explain my topic.
A lawyer, after passes his formal education; gets back to his place (town) and open a firm (lawyer office). He hires some staff. Let us see. In university, in university, he didn’t teach about how to manage a firm, specifically he didn’t teach about how to manage formal business.
Not only the lawyer, most people from another basic formal education (except economic, business, management program) have a problem if running a formal business. Accounting reporting, management plans, calculating and analysis cost are difficult for them.
Maybe the lawyer has hired an accounting and manager to run his business or help him to manage the firm, but he must understand about them all. Don’t let your staffs run the business and you don’t know at all because you haven’t business basic.
Actually management is natural and art. Human know well about it. Simple example, if he can manages his time it means he manage it base on his natural talent.
Modern and legal business need more than talent although history teaches us that many success stories came from people without formal and legal business education. If those people are born with management talent, they didn’t need to get scholar in business education. Otherwise people have some trouble in management talent; he must take or enter to business formal study to sharp his talent in business.
Back in topic!
If a lawyer doesn’t have business management talent, it is natural because he came from different core study. Chemistry also did. When he pass his formal education, back to his town and become an entrepreneur, open a business. He actually blinds about business, how to manage his business, how to bring or manage his business in modern way.
To anticipate those cases and problems, many scholars after pass their scholar, continue their formal school in business and management, how to manage a professional business. That is the new trend.
An MBA program is an example. If chemistry is hired in a company and his carrier is good and rose. He has opportunity to be manager or director even president director. A problem goes to him (we assume that he doesn’t have good natural talent in business or management). Can stakeholders give the opportunity to him?
To prepare those things, the chemistry (follow the trend) must get his MBA; because MBA is the criterion for legal company (many state companies use it and also some private companies) to get high position in managerial staff.
My friend said to me when he passed from university. I would like to get my master in MBA so my carrier doesn’t put on hold in staff or mechanical engineering. I think my carrier can goes to top carrier, Managerial or Director. MBA or something similar is an absolutely requirement for me so I have get my MBA.
While you have natural managerial talent, you couldn’t did like my friend in some cases but you must did it because legal formal requirement.
In my opinion for my last opinion:
Management or managing a formal business needs a professional business talent. Management is an art and science. As an art is based on natural talent otherwise as a science is based on formal education and both skill are good and have the same level.
You have some optional to manage your business; hire staff (economic background) to fill their specialist position. You also increase your business talent with reading a professional managerial book, read success story businessmen or get your formal economic background.

As net exporter oil in the past; Indonesian becomes net importer now! Why! They export too many in the past so the reserve is close and limited, moreover isn’t enough to meet internal demand on oil for house.
In this section, I would like to share my opinion about my supporting with government decision.
Many countries aren’t oil producers. They import everyday. While oil price raises upper $ 100 USD per barrel, they continue and still import. Oil is expensive so their government doesn’t give subsidies. The people have been enduring living in this condition. The people live without subsidies. Read more »

Thank You Mr. Fed for your intervention on market failure; Cut the interest and allowed home loans
Adam Smith said No Intervention Please from Government! Market will be equilibrium again by Invisible Hand. Hello Mr. Smith, Who is the Mr. Invisible Hand? One I ask to Adam Smith, George Soros doesn’t believe to Invisible Hand. He doesn’t believe to free fight enterprise, free competition. He doesn’t believe that the miracle of invisible hand come from France Language.
Who is Mr. Invisible Hand? Market, demand and supply? No, John Maynard Keynes didn’t believe that. So who is the Mr. Invisible Hand? Christianity Thought said that business is evil, so businessmen must be cleaned by charity.
When market gone failure in 1930 an, Invisible hand didn’t come. Invisible hand is not real. So who replace Mr. Invisible Hand? Government? Yes Government is Mr. Invisible Hand. He came in the big recession.
Now, he came back, Government (Central Bank of course) back to clear all market failure. Fed has done it in near. When American Economy gone crazy, world economy also gone failure. American economy is the leader, and we (others economy is only follow) are behind. Fed back again after in January fed cut the interest rate. Fed backs again to stabilize American economy so we can breathe again. Through What Fed stabilizes American economy?
Let us see the failure first so we can analysis and suggest what is fed tool?
World turn to recession, high unemployment, and business doesn’t work well; flying oil price, stock declined significantly, Politic problem in Tokyo, Recession in property credit in United States and many more problems caused market failure.
In America, The most problem is Business Property; specifically failure in Home loans crash. Fed come likes Jesus and allowed millions dollar to help. Stabilize, and refresh American problem.
More detail about those cases, market failure, read related post below.
An additional opinion, Market Failure in American is also caused by Mr. Bush because he make his American economy as second target, otherwise Iraq is his first target so my predict the next American president comes from Republicans.
Recommendation Post:

FED cuts interest again on NYtimes.com
The reduction of the benchmark interest rate to 2.25 percent was less than investors had been hoping for, though it was one of the deepest in Fed history
The Fed cut the fed funds rate by 3/4 point to 2.25%. Ron Insana, of Insana Capital Partners, and CNBC’s Erin Burnett, Steve Liesman, Bob Pisani and Rick Santelli share their analysis. Read full article on CNBC news.
Bond gurus Bill Gross, of PIMCO, and Ken Volpert, of Vanguard, react to the Fed’s decision to cut a key rate by 3/4 point.
Fed cuts key interest rate on Los Angeles Times.com
By Peter G. Gosselin
In a forceful move to contain the growing credit crisis, the central bank slashes its benchmark interest rate by three-quarters of a percentage point to 2.25%.
Rate cut aims to push fearful investors to take risks
By Tom Petruno and David Colker
The Fed’s intent is to coax money from low-yielding accounts back into stocks.
WASHINGTON/NEW YORK (Reuters) – The Federal Reserve slashed U.S. interest rates on Tuesday, boosting Wall Street, which was already higher on stronger-than-expected investment bank earnings. on reuters.com