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It bothers me to watch the hordes at the farmer's market, swooping in to each booth, grabbing a sample and walking away. The thin slices of handmade rye bread, or the perfect strawberries or the little glasses of juice--all of them disappear into the hands of people who have no intention of buying.
Sure, someone stops and buys now and then, which is why the farmers keep offering the samples. To them, it's merely a cost of doing business, a relatively inexpensive way to keep prospective customers coming. I'm not sure I could do it--the people afraid to look me in the eye, all that slinking around, and most of all, the profits walking out the door, over and over again. Enough thin slices makes a loaf.
This is vexing, even to someone who merely makes ideas. Watching people sneak endless tastes with no intention of making a purchase--sometimes I gasp at the audacity.
The distinction in the digital world is profound. In the digital world, the more free samples you give away, the better you do. The miserly mindset that afflicts the merchant watching inventory walk out the door at the market is counterproductive in the digital world. That's because more free samples cost you nothing.
The scarce resources in the connection revolution are connection, attention and trust, not molecules, atoms or strawberries.
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Mish's Global Economic Trend Analysis |
Posted: 10 May 2012 08:46 PM PDT In a special conference call this evening Jamie Dimon, CEO of JPMorgan disclosed a "trading loss" of at least $2 billion from a failed hedging strategy. The strategy "morphed over time" and it was "ineffective, poorly monitored, poorly constructed and all of that," said Dimon. Last month, he denied there were any problems, most likely hoping they would go away or he could cover them up. Instead, Dimon went to the confessional. Bloomberg has additional details in JPMorgan has trading loss of at least $2 billion, reputation hit. The April Wall Street Journal report said a trader in JPMorgan's Chief Investment Office, nicknamed the 'London Whale' had amassed an outsized position that had caused hedge funds to bet against his position. In the bank's earnings conference call in April, Dimon called the concern "a complete tempest in a teapot."Reflections on the Volcker Rule Interestingly, Dimon says this should not be an excuse to implement the Volcker Rule (a ban on proprietary trading). The problem, he said, was with the execution of the hedging strategy. That's his opinion. Here's mine. I believe banks should be banks and not hedge funds. I believe "too big to fail" means too big period. And finally I believe this should cost Dimon and the entire board their jobs. That said, if we would just end fractional reserve lending and the mammoth leverage it allows (and end FDIC insurance right along with it), we would not be discussing this kind of monumental greed coupled with monumental stupidity in the first place. Mike "Mish" Shedlock http://globaleconomicanalysis.blogspot.com Click Here To Scroll Thru My Recent Post List Mike "Mish" Shedlock is a registered investment advisor representative for SitkaPacific Capital Management. Sitka Pacific is an asset management firm whose goal is strong performance and low volatility, regardless of market direction. Visit http://www.sitkapacific.com/account_management.html to learn more about wealth management and capital preservation strategies of Sitka Pacific. |
Posted: 10 May 2012 03:00 PM PDT The latest LPS HPI Release suggests home prices are flattening out if not bottoming. Data is from February. Highlights
LPS HPI Chart U.S. home prices (black line) have declined since April 2009 at a slower rate than immediately following the market peak. The rate was slowest for April 2009 through April 2010, as indicated in the figure. Prices at the current level match those seen in June 2003. The seasonally adjusted LPS HPI (blue dashed line) shows the trend changes even more clearly. Cautious Optimism or Another Low-Volume Failure? From the Report ... Lender Processing Services, Inc., a leading provider of technology, data and analytics for the mortgage and real estate industries, today announced that its LPS Applied Analytics division updated its home price index (LPS HPI) with residential sales concluded during February 2012.The report is along the lines I stated in New American Dream is Renting; Reflections on Renting Houses, Cars, Books, Clothes; Will Rentership Fuel the Next Boom? What About Home Prices? When sentiment on houses reaches the widespread belief "It's Better to Rent", prices are bottoming. I expressed that thought on numerous occasions since 2005. This is how I currently see things, and arrows in red represent my calls in real rime. click on chart for sharper image Bottoming Process Some cities are further from the bottom than others, but it is likely some cities have now finally bottomed. That said, I do not think home prices are going much of anywhere "in general" because there is still years of shadow inventory and years of foreclosures to work through. Moreover boomer demographics suggest much downsizing is ahead (and who will boomers sell their mansions to?) Finally, generation Y has far different attitudes than boomers regarding wealth, debt, and possessions and will carry those attitudes for a long time having seen firsthand the trouble their parents and grandparents got into with too much debt, and how they are in the same boat with student debt. Mike "Mish" Shedlock http://globaleconomicanalysis.blogspot.com Click Here To Scroll Thru My Recent Post List Mike "Mish" Shedlock is a registered investment advisor representative for SitkaPacific Capital Management. Sitka Pacific is an asset management firm whose goal is strong performance and low volatility, regardless of market direction. Visit http://www.sitkapacific.com/account_management.html to learn more about wealth management and capital preservation strategies of Sitka Pacific. |
Hard Times for Bookies: UK Bookmakers Suspend Betting on a Greek Euro Exit Posted: 10 May 2012 10:49 AM PDT Hard times for bookies: NewsMax reports UK Bookmakers Suspend Betting on a Greek Euro Exit Want a flutter on Greece leaving the eurozone? It may already be too late. A surge in bets has forced Britain's biggest bookmakers William Hill Plc and Ladbrokes Plc to suspend betting on the odds of Greece dropping out.It's a safe bet the Euro will not go away in 2012. But Laying 33-1 odds is not my cup of tea. The bets on 2015 are more interesting. The euro is highly likely to be around in some form, even if not as a national currency. Mike "Mish" Shedlock http://globaleconomicanalysis.blogspot.com Click Here To Scroll Thru My Recent Post List Mike "Mish" Shedlock is a registered investment advisor representative for SitkaPacific Capital Management. Sitka Pacific is an asset management firm whose goal is strong performance and low volatility, regardless of market direction. Visit http://www.sitkapacific.com/account_management.html to learn more about wealth management and capital preservation strategies of Sitka Pacific. |
Posted: 10 May 2012 09:54 AM PDT The quote of the day goes to Marc Faber, publisher of the Gloom, Boom & Doom report. Faber says "I do not have a high opinion of the U.S. government, but the bureaucrats in Brussels make the government in the U.S. look like an organization consisting of geniuses." Marc Faber spoke with Bloomberg TV's Betty Liu also stated "The market will have difficulties to move up strongly unless we have a massive QE3 and if it moves and makes the high above 1422, the second half of the year could witness a crash, like in 1987." Link if video does not play: Marc Faber on U.S. Equities, Economy, Euro Zone Transcript from Bloomberg Faber on whether he still thinks that profit margins will shrink and record profits seen will be no more for U.S. corporations:Mike "Mish" Shedlock http://globaleconomicanalysis.blogspot.com Click Here To Scroll Thru My Recent Post List Mike "Mish" Shedlock is a registered investment advisor representative for SitkaPacific Capital Management. Sitka Pacific is an asset management firm whose goal is strong performance and low volatility, regardless of market direction. Visit http://www.sitkapacific.com/account_management.html to learn more about wealth management and capital preservation strategies of Sitka Pacific. |
More Anecdotes From China on Plastics, Metalworking, Unused Roads, Vacant Housing Posted: 10 May 2012 07:54 AM PDT Reader Steve responded to Chinese Architect Comments on "Dark Apartments", Vacancies, Residential Malinvestment with anecdotes of his own on Plastics, Metalworking, Unused Roads, Vacant Housing. Steve writes ..... Hello MishMike "Mish" Shedlock http://globaleconomicanalysis.blogspot.com Click Here To Scroll Thru My Recent Post List Mike "Mish" Shedlock is a registered investment advisor representative for SitkaPacific Capital Management. Sitka Pacific is an asset management firm whose goal is strong performance and low volatility, regardless of market direction. Visit http://www.sitkapacific.com/account_management.html to learn more about wealth management and capital preservation strategies of Sitka Pacific. |
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Damn Cool Pics |
Posted: 10 May 2012 06:35 PM PDT Sleep under the stars without the fear of getting gobbled up by a bear or infested with creepy crawlies at the Attrap Rêves in Marseille, France. Small bubbles are designed by designer Pierre-Stephane Dumas, they allow you to stay in the room, but at the same time as though and in the open air. The bubbles are small and cozy, about 13 feet in diameter. Some are fully transparent, while others allow a little more privacy and are half opaque. Staying the night in a bubble will cost you upwards of 109 euros, while tasty meals are provided at the nearby lodge-style restaurant. |
Posted: 10 May 2012 06:09 PM PDT This infographic is about how more and more women are carrying concealed weapons. For instance, in the Gallup poll from late last year it showed that 23% of women own a gun. And it's not just buying guns. The National Shooting Goods Association indicated that target shooting among females is up 46.5% from 2001 to 2010. So, perps beware these women are armed and dangerous. Click on Image to Enlarge. Via: visual.ly |
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