sâmbătă, 2 ianuarie 2016

Seth's Blog : When to charge by the hour



When to charge by the hour

Most professionals ought to charge by the project, because it's a project the customer wants, not an hour.

Surgery, for example. I don't want it to last a long time, I just want it to work. Same with a logo or website design.

Or house painting. The client is buying a painted house, not your time.

One exception: If the time is precisely what I'm buying, then charging by the time is the project. Freudian therapy, say, or a back massage.

Another exception: If the client has the ability to change the spec, again and again, and the hassle of requoting a project cost is just too high for both parties. A logo design, for example, probably starts with project pricing, but if the client keeps sending you back for revisions, at some point, they're buying your time, aren't they?

       

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vineri, 1 ianuarie 2016

Mish's Global Economic Trend Analysis

Mish's Global Economic Trend Analysis


Millions of Foreign Visitors Overstay Visas: Precisely How many? No One Seems to Know; Does Obama Care?

Posted: 01 Jan 2016 03:01 PM PST

In the wake of terrorist activity in Europe and mass shootings in San Bernardino, Calif., that left 14 people dead and 22 wounded, some may be wondering: Are we tracking those in the US on Visas, and if so, how?

The answer, despite Federal laws that require tracking visa entrants, is the U.S. Doesn't Know How Many Foreign Visitors Overstay Visas.
The question from the congressman to the Obama administration official was straightforward enough: How many foreign visitors overstay their visas every year?

The reply was simple too, but not in a satisfying way. "We don't know," the official said.

The testy exchange during a recent congressional hearing between Representative Mark Meadows, Republican of North Carolina, and Alan Bersin, the assistant secretary for international affairs at the Department of Homeland Security, highlights what some law enforcement officials call a critical weakness in the United States foreign visa program.

Nearly 20 years ago, Congress passed a law requiring the federal government to develop a system to track people who overstayed their visas. After the attacks of Sept. 11, 2001, an entry and exit tracking system was seen as a vital national security and counterterrorism tool, and the 9/11 Commission recommended that the Department of Homeland Security complete a system "as soon as possible." Two of the 9/11 hijackers, Satam al-Suqami and Nawaf al-Hazmi, had overstayed their visas.

Since then, the federal government has spent millions of dollars on the effort, yet officials can only roughly estimate the number of people in the United States illegally after overstaying visas.

One widely cited statistic, from a 1997 report by the Immigration and Naturalization Service, puts the number of people who overstay their visas at 40 percent — which now would mean about 4.4 million of the estimated 11 million undocumented residents in the United States. Numerous lawmakers, including the Republican presidential candidates Marco Rubio and Ted Cruz, have used that figure when trying to describe the scope of the problem. But even that number has never been conclusively substantiated.

Federal agencies have not provided a new report to Congress on overstays since 1994, despite the congressional mandate.

In early 2013, Janet Napolitano, then the secretary of Homeland Security, testified before Congress that the agency planned to issue a report on overstay rates by December 2013. The agency did not follow through because officials said they did not have confidence in the quality of the data. Mr. Bersin said last month that the report would be issued in the next six months.

In 2004, lawmakers passed legislation that required Homeland Security officials to accelerate their efforts to create an automated biometric entry and exit data system.

Congress repeated its demand for a biometric exit system in 2007 and set a deadline for 2009. But the deadline passed, with the department putting into place only a handful of pilot programs.

Since then, the department has continued to struggle to meet this requirement. A 2013 report by the Government Accountability Office said the Department of Homeland Security had more than one million "unmatched" arrival records, meaning that those records could not be checked against other information showing that the individuals had left the country, but again the department could not offer a precise number.

Despite the call by some lawmakers for an exit system, airports and the airline industry have balked because it would cost airlines $3 billion, according to a 2013 Homeland Security estimate. The Department of Homeland Security issued regulations in 2008 requiring airports to collect biometric exit information, but carriers have largely ignored the regulation, and there have been no sanctions.
Questions Abound

  • What will the US do if someone doesn't leave who is supposed to? Ignore the problem hoping it goes away? Issue alerts? Round up the illegals and deport them?
  • What about the presumed 4.4 million already here on expired visas?  
  • Is the US prepared for a Trump-like deportation proposal?
  • Is the US comfortable with an Obama-like welcome with no background checks?

Uncomfortable Questions

The above questions are uncomfortable, but must be asked.

Unless there is a comprehensive and workable overall plan, a biometric program will not do much in and of itself but add to expenses and increase delays.

This visa issue further compounds the issue of illegal aliens. Hillary prefers to label the illegals "undocumented".

Those here with expired visas were documented, and they entered the US legally. Both groups are now here illegally, so let's not mince words. The term "illegal" applies in both cases.

Political correctness aside, those who wish to differentiate might consider the phrase "illegal, undocumented alien" as the most accurate description for those who entered the US illegally, with no documents.

Popularity of Trump

Part of the popularity of Donald Trump is that he at least has some semblance of plan. That he doesn't care who his plan offends likely helps his campaign. Whether or not the plan is truly workable doesn't matter for now.

The primary alternative seems to be blanket amnesty for those already here combined with no background checks on refugees coming in.

Is there a middle ground somewhere? or not?

Mike "Mish" Shedlock

California Referendum Would Force Politicians to Wear Logos of Donors

Posted: 01 Jan 2016 10:59 AM PST

In California, citizens can propose a referendum on anything if they gather enough signatures.

John Cox, a wealthy attorney who made a fortune in real estate, is tired of politicians who are bought and owned by corporate interests.

He is putting up $1 million to gather signatures for a referendum that would Force Politicians to Wear Donor Logos.
A wealthy Republican wants to require unprecedented transparency in California by forcing state politicians to plaster their suits and dresses with the logos of their top 10 donors -- and voters fed up with those politicians may actually get the chance to vote on the idea in November.

The unusual dress code is offered in a proposed ballot initiative that backers say likely will be cleared for signature collection within the next week or two. Then, 365,880 valid signatures will have to be submitted for a spot on the ballot.

Initiative sponsor John Cox, an attorney who owes his fortune to real estate, says he doesn't foresee a challenge in the threshold, which is relatively low due to poor 2014 voter turnout. Cox says he expects a boost from popular anti-establishment sentiment reflected in the presidential race.

Cox says he's seeking the endorsements of GOP presidential front-runner Donald Trump and Democratic candidate Sen. Bernie Sanders, both of whom have rallied passionate supporters in part by denouncing their rivals as indentured servants to corporations and other wealthy donors.

"It's going to be immensely popular," Cox says. "We have a system under which people who want something from government fund the campaigns of the people who make those decisions. In any other solar system that would be considered corrupt."

"It actually would raise some fascinating issues if it were to be applied," says George Washington University law professor Jonathan Turley. "Politicians could challenge the law as applied in how the determination is made of the top donors when most money may come from individuals," he says, as "lobbyists often donate as individuals rather than as representatives of their companies or clients."

Timothy Zick, a law professor at the College of William and Mary, is more skeptical of the initiative's ability to survive a legal challenge. The idea, he says, "strikes me as a textbook case of invalid compulsory speech."

But Cox says he can't imagine who would want to have their name on any such lawsuit, and says that finding donor information online is too arduous.
Cut out the Middleman

I have commented on more than one occasion about waste inherent in the current system.

Since lobbyists write virtually every piece of legislation, my sarcastic proposal was to cut out the middlemen by directly electing lobbyists. At least we would have some bit of honesty.

Cox's referendum would accomplish nearly the same thing.

Truth in Lending Extension

Although Fed members are appointed, not elected, how about JP Morgan, Citigroup, Bank of America, and National Association of Realtors (NAR) logos on Janet Yellen and Ben Bernanke?

Mike "Mish" Shedlock

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Seth's Blog : Expectations



Expectations

Lower the expectations that you'll find an easy way out.

Raise your expectations for what you can contribute.

Lower your expectations for how effective that next shortcut is going to be. 

Raise your expectations about what technology can do for you if you patiently push it.

Lower your expectations about how an angry fight can help you win something you care about.

Raise your expectations for how much consistent daily action can transform your status quo.

Lower your expectations of finding a fairy godmother.

But raise them about the power of concrete goals that keep you from hiding.

{Level up. Everything I write about hinges on the idea that we are capable beings. Capable of making decisions, of taking responsibility, of raising and lowering our expectations.

As we move into a new year, today's a perfect day (in many countries, a legal holiday) dedicated to thinking about levelling up, about what it means to make new choices about what we will do next.

That's why today is a good day to tell you that we've opened applications for the fourth session of the altMBA workshop. 

altMBA alumni work at companies large and small, unknown and famous, but what what they all have in common is that they've made a choice. They've acknowledged that they are capable of levelling up, and they have.

You will learn to see differently and more important, to help others take action.

It's your turn. I hope you'll take a look before our deadline on Wednesday.}

Happy new year.

       

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joi, 31 decembrie 2015

Mish's Global Economic Trend Analysis

Mish's Global Economic Trend Analysis


Expect a Huge Jump in Layoffs in 2016; Eye on Initial Unemployment Claims: Have they Bottomed?

Posted: 31 Dec 2015 12:53 PM PST

I have a watchful eye on initial unemployment claims. They have been trending higher (unexpectedly of course) since mid-October.

Initial Claims 2015



Econoday economists were surprised by the jump.
Initial jobless claims unexpectedly jumped 20,000 to 287,000 in the December 26 holiday week, the highest level since the July 4 holiday week. The Econoday consensus expected an increase of 3,000 to 270,000. The 4-week moving average was up 4,500 to 277,000 in the December 26 week, the highest since the July 18 week. The level of continuing claims increased 3,000 to 2.198 million in the December 19 week. The seasonally adjusted insured unemployment was unchanged at 1.6 percent in the December 19 week. It should be noted that readings in this report can be volatile during the holiday weeks.
Long-Term Perspective



A long-term chart shows the claims are still at historic lows dating all the way back to the 1970s. Does that imply there is little cause for concern?

Let's look at the chart another way.



That chart shows recessions sometimes start with year-over-year changes still negative and sometimes not. Moreover, there is a tremendous amount of noise as evidenced by huge swings that did not lead to recession.

Low claims in and of themselves are pretty inconclusive even though huge spikes tend to mark recessions.

Where to in 2016?

Jobs have been strong, but some of us believe part-time jobs and Obamacare artifacts have skewed the numbers. Regardless, jobs are a hugely lagging indicator, even if you believe the numbers.

Since there was a burst of seasonal hiring, it stands to reason there will be a burst of seasonal firing.

With corporate profits under pressure from rising wages, and with many big box retailers struggling, upcoming layoffs are likely to be huge.

Recent PMI reports provide clues as to where things are headed:


Manufacturing is in an outright recession, and services are weakening.  It stands to reason, jobs will follow.

We will find out in the January jobs report, to be released Friday, February 5, 2016.

Mike "Mish" Shedlock

Chicago PMI Crashes, New Orders and Backlogs Plunge to May 2009 Level; Service Economy Headed for a Slowdown?

Posted: 31 Dec 2015 10:48 AM PST

The Unexpected Strikes Chicago Again

It was another disastrous month for the Chicago PMI. Economists expected a bounce back from last month's unexpected dip into negative territory. Instead the numbers reflect what's best described as a two-month crash.

The Econoday Consensus Estimate was a guess of 50 in a range of 48 to 53. The actual reading of 42.9 was far below any economist's estimate.
The December Chicago PMI tumbled to a reading of just 42.9, down 5.8 points. The reading was a fresh 6-1/2 year low and the seventh contraction this year. It also was far below expectations of a breakeven reading of 50.

The biggest contributor to the decline was a 17.2 point plunge in order backlogs, to 29.4, marking their eleventh consecutive month in contraction. December's reading was the lowest since May 2009. The index also was depressed by ongoing weakness in new orders, which contracted at a faster pace, down 5.3 points to 38.8, the lowest level since May 2009. Both production and employment fell into contraction.

The only component to expand at a faster pace was supplier deliveries, although some companies noted that the rise was influenced more by logistics issues during the holiday season and in preparation for Chinese New Year on February 8. The PMI continued to feel the ill effects of general sluggish demand and lower energy prices, which have left their mark on Chicago area companies, along with the stronger U.S. dollar. Moreover, well above normal temperatures has impacted many businesses that rely on cold weather.
Ahead of the release this is what Econoday had to say:
The Chicago PMI is a one of a kind, a regional report that tracks the whole scope of the economy, at least for Chicago. Big swings are the norm but one isn't expected for December with the consensus calling for what would be a small 1.3 point gain for this index to dead even 50, which is about where this index has been trending.
Chicago PMI Index vs. ISM



It does not appear to me the index has been trending around 50 as Bloomberg suggests. The three jumps above 50 are counter-trend in a series that has been weakening for about a year.

Service Economy Headed for a Slowdown?

The Chicago PMI is a bit different because it contains a mix of both manufacturing and service companies. That makes matters worse given economists generally consider the service economy to be in good shape.

Last month when the PMI dipped for the 6th time in 10 months (now 7th time in 11 months), I asked the question Service Economy Headed for a Slowdown?

Here is the pertinent snip: 
Bloomberg proposes the volatility of the report should limit its impact on the month's outlook.

I suggest volatility is a sign of a trend change as well as underlying weakness. And the backlog of orders, one place where there has been consistent contraction for 10 months, does not bode well for future hiring needs.

All things considered, the Chicago PMI is a warning that the service economy may be on its last legs.
Reflections on the Weather

This month, Bloomberg relies on the old standby: the weather.

Damn that weather. It's always too hot, too cold, or too right. This month it was too pleasant.

Heading into the reports, it's pretty clear the economists did not know the Chicago weather was too good, otherwise they would have lowered their forecasts.

Economists only learned Chicago's weather was too good following the PMI release today. Amazingly, economists don't even know about massive snowstorms until economic reports come out weeks later.

Sorry State of Chicago

Weakening services coupled with the biggest property tax hike in history will not do wonders for the Chicago economy.

For more on the sorry state of affairs in Chicago and the state of Illinois as a whole, please see ...


Mike "Mish" Shedlock

Seth's Blog : Fighting entropy



Fighting entropy

It's not easy to run a supermarket. Low margins, high rents, perishable products... Even A&P, once dominant, is now gone.

My new favorite supermarket, by a large margin, is Cid's. 

It's not that he's in a perfect location, or that his store has the advantage of no competition.

How does he do it? Fair prices, great stuff where you least expect it, a staff that cares...

He's in the store, every day. And his son is too.

My only theory is this: He fights mediocrity every single day.

He regularly refuses to compromise when compromise might be easier in the short run.

Mostly, he cares. A lot.

Entropy and the forces of mediocrity push hard. People who care push back.

       

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