Central Perk

duminică, 1 aprilie 2012

Seth's Blog : Monetization and fairness

Monetization and fairness

Years ago, before I wrote Purple Cow, purple was just another color, sitting in the back rows with orange and teal and magenta. The success of that book transformed the way the color was treated, and I watched with surprise and then delight as more and more of the world embraced the notion of purpleness.

At some point, though, creation needs to be rewarded. Writing is a lonely and risky endeavor, and if people are able to blithely take the work of another, we'll soon run out of writers.

Add to this problem the rampant linking that goes online. People are always linking to this blog, for example, without asking first. Not to mention those that might discuss one of my books in a meeting (at a profit-making business, no less!) without permission or payment of royalties.

That's why today (appropriately) I'm reporting the results of several lawsuits I quietly filed over the last year. My lawyers were able to trademark the terms Purple® and Purple Cow®, and beyond that, to get a design patent on the idea of using Purple® in the marketing of a product.

Several entities have already reached a settlement with my firm. On the international front, Radojka Glavonjić, a farmer in Slovenia, is paying an ongoing royalty for publicity and endorsements surrounding his new calf. (Worth noting that it's a bull, actually).

We were unable to reach a settlement with Prince Rogers Nelson, but he has agreed to retitle his hit song Bluish Red Rain.

For those that might accuse me of overreaching, please consider that we took no action at all against this Purple® squirrel.

Critics will be pleased to know that we are granting the US Army a royalty-free license to continue calling it a Purple® Heart.

PS by reading this post, you agree to the shrinkwrap license and terms and conditions that have become used by some in the industry, and thus agree not to use the word Purple® in any conversation or memo or text or tweet without sending me one simoleon each time you do.

I know that you, my loyal readers, will support me as I continue to pursue a fair and honest settlement with others that seek to profit from my insights and risk taking. It is, after all, the only way I can produce this blog without selling a significant number of ads. Though I may add the advertisements anyway, because more is better.

[Please don't email me about this until the second day of April. Thanks.]

• Email to a friend •

sâmbătă, 31 martie 2012

Mish's Global Economic Trend Analysis

Spiegel Says "Even a 1-Trillion Euro Firewall Wouldn't Be Enough"; Mish Says "The Bigger the Bazooka, the More Money Will be Lost"

Posted: 31 Mar 2012 12:57 PM PDT

Eurozone bureaucrats keep upping the ante as to how big a "firewall" is needed. And at every critical juncture, German Chancellor Angela Merkel has proven she is nothing but a liar. With every demand for additional firepower, comes an inevitable cave-in from Merkel supporting the move, no matter what she says in advance.

Meanwhile, the entire idea that firewalls can accomplish anything is ludicrous, given the key point that no currency unions in the absence of fiscal unions cannot and will not work.

I suspect Merkel understands this, merely wanting to get Germany so deep into bailouts step by step, that it will be reluctant to leave the Eurozone.

It is high time the German Supreme court step in and stop this nonsense.

However, nothing can stop Greece, Portugal, and Spain from leaving, and eventually they will. In the meantime, rest assured that every increase in firepower will be additional money of German citizens' pockets. The end-game will be a currency or banking crisis at the worst possible time.

For now, please consider 'Even a 1-Trillion Euro Firewall Wouldn't Be Enough'

European finance ministers meeting in Copenhagen on Friday agreed to boost the euro-zone firewall to over 800 billion euros. The move marks another U-turn on the part of the Merkel administration, which recently dropped its opposition to increasing the fund. German commentators warn that even the new firewall may still be too small.

German Chancellor Angela Merkel and her finance minister, Wolfgang Schäuble, have been accused of crossing many of the "red lines" that they have set for themselves over the course of the euro crisis, making U-turn after U-turn as the crisis escalated. They officially stepped over the latest red line on Friday, when European Union finance ministers meeting in Copenhagen agreed to boost the scope of the euro zone's firewall to over €800 billion ($1 trillion). Berlin had long rejected such an expansion out of hand.

The Nuclear Option

On Thursday evening, in the run-up to Friday's summit, German Finance Minister Wolfgang Schäuble had said he was prepared to combine the existing bailouts with the new permanent mechanism. He said that the €800 billion capacity was "convincing" and "sufficient."
But not everyone shares his view that the sum is enough. On Thursday, French Finance Minister François Baroin called for the permanent euro bailout fund to be increased to €1 trillion, to shore up market confidence and prevent contagion in the euro crisis. "The firewall, it's a little like the nuclear option in military planning, it's there for dissuasion, not to be used," Baroin said in a radio interview.

'Shifting Sand Dunes'

Opposition parties in Germany were quick to make political capital out of the Merkel administration's many U-turns during a debate on the euro rescue fund and the European fiscal pact in the German parliament, the Bundestag, on Thursday. "Your red lines have, in reality, become shifting sand dunes," Frank-Walter Steinmeier, floor leader for the center-left Social Democratic Party (SPD), said to widespread applause.

In December, Merkel argued, entirely convincingly, that boosting the euro bailout fund was the wrong course to take. After all, she said, it would reduce the pressure on crisis-stricken states to push through reforms. There was also the question of whether the creditor countries, including Germany, were in danger of being overwhelmed by ever-higher guarantees." "Now, the fund is indeed being expanded, and the coalition government's former concerns have suddenly disappeared. Instead, the administration is attempting to conceal its own U-turn with highly flawed arguments.

The left-leaning Die Tageszeitung focuses on the calls to boost the ESM to €1 trillion:

"One trillion euros is a lot of money, and yet even this huge sum will not be enough. But again, that's nothing new. For months, calculations have been doing the rounds that show that at least €1.5 trillion will be needed. The only interesting question left is how long it will take France and Germany to acknowledge this reality."

No Amount is Enough

For reasons noted at the top, no amount of money (that can reasonably be provided) would be sufficient. After all, there is a limit to what German citizens and taxpayers can stand. Besides,money alone cannot fix structural problems.

Finally, the "nuclear" option is nothing more than former US treasury Hank Paulson's "Bazooka" theory in disguise.

Bazooka Theory vs. Actual Results

"If you have a bazooka in your pocket and people know it, you probably won't have to use it." Paulson said at a Senate Banking Committee hearing. The reference was in regards to Fannie Mae and Freddie Mac.

Paulson believed that if he had the power to bailout Fannie Mae, the market would react to that possibility and no bailout would be necessary.

Now taxpayers have wasted close to $200 billion bailing out Fannie and Freddie bondholders (mainly PIMCO and foreign banks).

Flashback February 12, 2010: EU Leaders Deploy 'Bazooka' to Repel Attack on Greece

German Chancellor Angela Merkel and her counterparts yesterday pledged "determined and coordinated action" to support Greece's efforts to regain control of its finances. They stopped short of providing taxpayers' money or diluting their own demands for the country to cut the European Union's biggest budget deficit.

"It's like Paulson's bazooka," said Nielsen, Goldman Sachs's chief European economist in London. "It's a difficult balancing act -- saying something comforting to the market without committing money and hoping the market will take their word for it."

After a three-month long plunge in Greece's bonds amid speculation it was facing the threat of default, euro-region leaders yesterday ordered the country to slash its budget deficit and warned investors they would be willing to defend the country from speculative attack if necessary.

"This is not money for free," said Luxembourg Prime Minister Jean-Claude Juncker, who heads the group of euro-area finance ministers. "This is a strong commitment imposed on Greece."

How Well Did That Idiotic Bazooka Move Work Out?

Bazooka theory does not work, nor did threats to investors that the ECB and EMU would be willing to defend the country from speculative attack if necessary.

The same holds true today. The Bigger the Bazooka, the More Money Will be Lost.

Mike "Mish" Shedlock
http://globaleconomicanalysis.blogspot.com
Click Here To Scroll Thru My Recent Post List

Violence, Firebombings Erupt as Spain Announces €27 Billion Deficit-Cutting Plan; Spanish Economy Will Implode; Spain Headed for Bond Revolt and Bailouts

Posted: 30 Mar 2012 11:35 PM PDT

My friend Bran who lives in Spain writes ...

Hello Mish

Here are thoughts from the last couple of days on the strikes, protests, and violence in the wake of more austerity plans by Prime Minister Mariano Rajoy.

Pro-government news played down the strike to a virtual non-event, giving much criticism of the unions methods and exaggerations. Reality however, is that there is enough support by strikers to shape future politics, especially as austerity starts to bite.

The unions have promised to step up protests. The Indignado 15 Million Movement also protested, but separately from the unions.

One comment stuck out - German Chancellor Angela Merkel said the protests did not represent Spain. Maybe she was trying to be reassuring, but she is taking sides against maybe a million or so people of a foreign population, not very wise at best and otherwise agitating.

Spain Announces €27 Billion Deficit-Cutting Plan

MarketWatch reports Spain Announces €27 Billion Deficit-Cutting Plan

The Spanish government on Friday delivered what it called the biggest fiscal adjustment in the country's democratic history, unveiling a 27 billion euro ($36 billion) deficit-reduction plan that includes sharp spending cuts across government ministries and higher taxes for corporations.

With images of nationwide demonstrations and strikes against labor reforms still fresh, the weight of the budget appeared to fall on big companies and government spending. Labor unions said nearly 1 million took part in Madrid's rally alone Thursday evening.

Corporations will be asked to pay higher taxes this year, and their tax breaks will be reduced while the government said value-added-taxes would not rise. It said tax receipts for VAT would fall 2.6% as a result of weak growth in Spain.

Budget Minister Cristobal Montoro said all ministries would need to reduce their budgets by around 17% this year, which was slightly higher than expected, saving a total of up to €65.8 billion. Salaries for public workers will not be reduced, but will be frozen this year.

Electricity prices will rise 7%, to pay off a €24 billion electricity-tariff deficit that accumulated due to the difference between consumer prices set by the state and producer's costs. Tariffs paid by electricity companies will rise 5%.

Austerity Measures Prompt Spanish Workers To Strike

NPR reports Austerity Measures Prompt Spanish Workers To Strike

Workers walked off the job in Spain on Thursday, halting public transport, closing schools and leaving hospitals with emergency staff only. The general strike was called by unions in response to the conservative government's labor reforms, which let companies opt out of collective bargaining agreements and fire workers more cheaply. But more punishing austerity could still be to come, as Spain tries to whittle down its budget deficit under pressure from Brussels.

Violence Erupts in Spanish Strikes

The Washington Post has a nice 19-image slideshow Violence Erupts in Spanish Strikes. Here are a few images.

March 29, 2012
A demonstrator throws stones next to a burning Starbucks, which was stormed by demonstrators during clashes with police at the general strike in Barcelona. Spanish workers livid over labor reforms they see as flagrantly pro-business staged a nationwide strike Thursday and tried to bring the country to a halt by blocking traffic, closing factories and clashing with police in rowdy demonstrations.
Emilio Morenatti / AP

March 29, 2012
People attend a demonstration in Valencia, Spain, during a national strike.
Jose Jordan / AFP/Getty Images

March 29, 2012
A woman cries after demonstrators smashed a shop window during heavy clashes with police during a 24-hour strike in Barcelona.
David Ramos / Getty Images

Eurozone crisis live: Violence in Barcelona Amid Spanish General Strike

The Guardian has numerous images and videos in its report Eurozone crisis live: Violence in Barcelona Amid Spanish General Strike

Protesters crowd in Madrid's landmark Puerta del Sol square for a closing rally tonight. Photograph: Paul Hanna/Reuters

As many as 900,000 people took part in the march to Madrid's centre square, Puerta del So.

Spanish Economy Will Implode

Labor reforms are badly needed but electricity price hikes of 7%, higher corporate taxes, increased VAT and other tax hikes are not. Spain needs more time not more tax hikes. With unemployment rate already at 23.3% austerity measures are guaranteed to make matter worse, and tax hikes on top of it all will be the nail in the coffin.

Prime Minister Rajoy forecasts the Spanish economy will contract 1.7% and government GDP targets and budgets are based on that. I bet that 3% contraction minimum is in the works if Rajoy enacts the tax hikes and austerity measures as planned.

Things will be much worse if the violence and strikes stay in an elevated state. Unlike the protests a year ago, these strikes have more serious overtones.

Spain Headed for Bond Revolt and Bailouts

The idea that Rajoy will cut the deficit to 5.3% this year and 3% next year are purely Fantasyland proposals.

For now, the bond market has given Rajoy the benefit of the doubt, assuming you call 5.35% on the 10-year bond any kind of "benefit". With the suspension of the LTRO, and a budget targets that cannot possibly be met, look for a substantial move up in Spanish bond yields.

That will also punish any Spanish banks foolish enough to load up on bonds in a misguided carry-trade play. With Spain, nearly everything is worse than the government reports, and the reports are awful.

A bond market revolt and bailout are in the cards this year. Ultimately, Spain will not survive in the Eurozone.

Mike "Mish" Shedlock
http://globaleconomicanalysis.blogspot.com
Click Here To Scroll Thru My Recent Post List

Damn Cool Pics

Birds Talking Together & Kissing

Posted: 30 Mar 2012 08:36 PM PDT

At 'Birds of Eden' bird sanctuary in South Africa, an Indian Ringneck Parakeet and an Alexandrine Parakeet are talking together, and also making out. Plus you have a woman laughing hysterically!

Living in New York City: Expectations Vs Reality

Posted: 30 Mar 2012 07:55 PM PDT

Most people who want to move to NYC have this big impression that life here is filled with plenty of opportunities, glamour, and celebrities who are just dying to hang out with you in night clubs. While some of this can be true, most of the time, your expectations are nothing like the reality of actual city life. This hilarious visualization taken from Buzzfeed features a collection of expectations vs reality. From your future apartment to your career, hit the thumbs to check out this humorous look at the real NYC.

Passing the Buffett Rule So That Everyone Pays Their Fair Share

Your Daily Snapshot for
Saturday, March 31, 2012

Passing the Buffett Rule So That Everyone Pays Their Fair Share

President Obama calls on Congress to pass the Buffett Rule, a principle that ensures that millionaires and billionaires do not pay less in taxes as a share of their income than middle class families pay -- as a matter of fairness.

Watch the President's weekly address:

President Barack Obama tapes the Weekly Address in the Library of the White House, March 29, 2012. (Official White House Photo by Lawrence Jackson)

Weekly Wrap Up

Your quick look at this week on WhiteHouse.gov:

From Dartmouth to the World Bank: On Friday, the President named Dr. Jim Yong Kim – president of Dartmouth college, co-founder of Partners in Health and global health and development expert – as his choice to head the World Bank. “[Despite] its name, the World Bank is more than just a bank,” the President explained. “It’s one of the most powerful tools we have to reduce poverty and raise standards of living in some of the poorest countries in the planet.”

Nuclear Security Summit: Just after midnight on Saturday morning, President Obama boarded Air Force One and departed for a trip to South Korea. His three-day trip included a tour of the DMZ and a meeting with U.S. troops stationed at the border; a talk with students at Hankuk University; and a series of bilateral and trilateral meetings with foreign leaders -- including President Hu Jintao of China, President Nursultan Nazarbayev of Kazakhstan, and President Dmitry Medvedev of Russia.

All Right, Let’s Plant!: Students and Girl Scouts from across the country joined the First Lady on the South Lawn Monday for a sunny afternoon planting the White House Kitchen Garden.

Big Data, Big Deal: On Thursday, the Obama Administration announced the “Big Data Research and Development Initiative, "which promises to help accelerate the pace of discovery in science and engineering, strengthen our national security, and transform teaching and learning.

Facebook Timeline: The White House’s Facebook timeline launched on Friday, now providing both the latest news and a glimpse into history. The timeline highlights special moments from our rich history, including all forty-four presidential inaugurations, FDR’s first “fireside chat,” and the launch of the first White House website.

West Wing Week: Your video guide to everything that's happening this week at 1600 Pennsylvania Avenue. Watch here.

Stay Connected

This email was sent to e0nstar1.blog@gmail.com
Manage Subscriptions for e0nstar1.blog@gmail.com
Sign Up for Updates from the White House
Click here to unsubscribe | Privacy Policy
Please do not reply to this email. Contact the White House

The White House • 1600 Pennsylvania Ave NW • Washington, DC 20500 • 202-456-1111

Seth's Blog : How much for a really small slice?

How much for a really small slice?

When the hardware store sells you a single screw for a dime, shouldn't they just give it to you? Especially if you're a good customer?

Shouldn't that singer (you bought all her albums) return the love? You're only asking for a few seconds, a hug, a handshake, an autograph...

It's easier than ever to break your offering into smaller bits, into pieces that are part of the whole but are tiny on their own.

Add up enough small slices and that's the whole cake. Asymmetry is the rule now, not the exception.

Small slices can't be free in the long run, not if that's the only kind of slice there is.

Either you need to figure out how to sell your small slices, or you need to invent some big slices that are obviously worth what you need to sell them for.

• Email to a friend •

duminică, 1 aprilie 2012

Seth's Blog : Monetization and fairness

Monetization and fairness

More Recent Articles

sâmbătă, 31 martie 2012

Mish's Global Economic Trend Analysis

Mish's Global Economic Trend Analysis

Damn Cool Pics

Damn Cool Pics

Passing the Buffett Rule So That Everyone Pays Their Fair Share

Seth's Blog : How much for a really small slice?

How much for a really small slice?

More Recent Articles

Pagini

Persoane interesate

Arhivă blog

duminică, 1 aprilie 2012

More Recent Articles

sâmbătă, 31 martie 2012

More Recent Articles

Pagini

Persoane interesate

Arhivă blog

Subscribe to