Sometimes it's not only what you want to do, but where you want to live that counts in a career. While home offices and the internet have broken down some geographic boundaries, there are still some jobs higher in demand in some regions than others.
It is with that said, high school and college students -- as well as those contemplating a second career -- may want to take a look at the "Hoosier Hot 50" list, which was developed by the Indiana Department of Workforce Development. Of course, it comes with no surprise that demand is high in the medical and computer fields, but there are a few that may catch you off guard.
Here is the list of those and other top-ranking "in-demand" jobs, which is broken down by region here (Greene County is in Region 8 on page 8 of 11):
http://www.in.gov/dwd/files/Hoosier_Hot_50_2009_REGIONS_2008-Dec-12.pdf
For those more entrepreneurial, who may want to try their hand at self-employment, you may look at some of the bidding opportunities available. For example, here's the procurement area of INDOT: http://www.in.gov/serv/indot_bviewer Rest assured, they don't just need asphalt either. I've seen everything from port-a-pots to padlocks being bid out on this website.
Or, maybe you'd like to add an agricultural twist, as there's also been a recent announcement of an ag venture capital fund, which has a home base of Indianapolis, Indiana: http://www.midpointvc.com/ They describe themselves as, "A venture capital fund investing in promising venture stage companies that bring valuable innovations to growing segments of the food & agricultural industries."
There are a lot of opportunities outlined with these, and other websites out there, which may help finish the sentence, "When I Grow Up, I Want to be a…"
****
This blog post by Chris Wathen was also published in his Linton, Indiana based Greene County Daily World blog entitled, "Riddle Me This".
Thursday, December 18, 2008
Tuesday, December 16, 2008
Operation Food Fight - Chris' Throw
In March 2008, I took a field trip to the Greene County Health Department, located in Bloomfield. My mission was to inquire about the restaurant inspections within the Linton area. I wasn't quite sure how this inspection of the records would work, but I found out that I needed to request each inspection file by restaurant name.
So, while at the Health Department, I started down the highway in my mind, naming off the restaurants as I 'passed' them in my mind. A total of 23 were requested. Admittedly, I missed a few. In fact, I missed three eateries I believe.
Having a newly-hired County Sanitarian on staff, and to be fair to the restaurants themselves, I withheld the actual names. As you can see from this previous post, I simply referred to them as, "Establishment 1, 2, 3…" Here's the original post: http://gcdailyworld.com/blogs/chriswathen/entry/17356/
Since that post, Matt Mason http://gcdailyworld.com/blogs/1159/ joined as a "Community Blogger" here on the GCDW website. Of course, his niche is food, cooking, and restaurants, while mine has been mostly business-related items, investing, and some government issues from time-to-time. So, it's a nice overlay of themes for us both when talking about restaurant inspections. You have a little bit of everything wrapped up into one, big proverbial "taco" so to speak: food safety, restaurants, government, business, etc.
Needless to say, it was only time until we'd tackle a follow-up, and that time is finally here.
To change up things this time, however, Matt took a look at the records a few days ago. And he was a bit more aggressive in his research than I, as he tackled the whole county… at least most every restaurant.
See, at the point that I had inquired about the records there were a total of 128 in the county, and we'll assume that figure from March is still applicable today. Of course, that figure includes not only restaurants, but all entities that handle prepared food. So, that figure includes delis, food stands/trailers at special events, as well as gas stations that have one of those hot dog rolling warmer contraptions. Matt tackled mostly the bricks-and-mortar restaurants, sprinkling in a few delis and convenience stores along the way.
There are a lot of different avenues a blogger (or bloggers) can take armed with this information, but we thought the most helpful to the community, as well as the most objective, was to just issue the information as found in the files. The general public can access these same inspection records, as the information contained in the files are public information. Hopefully, a few of you will because the vibe both Matt & I received at the Health Department was that we were the first and second people to ever inquire.
When reading these, please keep in mind that those establishments that no inspection records could be found are just that: no records found. They could be quite clean -- or dirty -- we just don't know without a record of the last inspection. You may also keep in mind that those with violations in the past -- especially a few years ago -- could now be fixed and no longer have an issue… or they still may be issues. Without a recent inspection, we just don't know. Thankfully, many were immediately taken care of, if not within a few days.
So, without further ado, approximately half of the inspections found -- or not found -- are shown below from the December 2008 visit to the Health Department. Matt will fill you in on the rest of them at http://gcdailyworld.com/blogs/1159/entry/22812/
First, let's start with those places without any inspections found in the file. They included: the Bloomfield IGA, Crossroads Café, the Dancing Bear, the Dug Out Bar, the Front Porch, The Grill, Hidden Hills Golf Course, Hunter's Drive-In, J'Lin Catering, Jo Etta's Pizza Villa, Mocha Tan, Pepperoni Grill, Pizza City, Rosie's Diner, Sharon's Place, Subway in Linton, and Value Mart. Again, without an inspection found, we just don't know.
Those having inspections found are listed below, along with the number of total violations cited, and the number of those violations considered "critical" with a short explanation of those:
Angell's Food Center was inspected on 06/27/06. At that inspection, which has now been about 2 ½ years ago, there were 9 violations found with 2 critical. The sanitary solution was found inadequate and food was found to be not date marked. The file shows these were corrected.
Burger King was last inspected 03/18/08, and it was found to have 5 violations at that time. Only 1 was found to be critical, which was no air gap between floor & ice machine in customer self-service area. It was corrected 10 days later.
Casey's in Linton had 3 violations, but 0 critical on its last inspection conducted 02/12/08.
On 08/25/08, there were 2 violations with 1 being critical at China Sea. Raw meat was found stored directly over ready-to-eat foods. This was immediately remedied.
At the Country Porch in Jasonville on 11/25/08, there were a total of 9 violation found. The 2 critical violations were a leaking toilet in the restroom, while utensils and equipment were not being sanitized as the third bay of the sink was inaccessible and had no water available.
The Dairy Queen in Linton had 10 violations with 8 critical on the 09/15/08 inspection. No info was found on if these have been corrected since that time.
There were 2 violations found at El Ranchito on 01/23/08. The 1 critical violation found was that the hot water sanitizing temperature on the dish machine was only reaching a temperature of 131 degrees, but was remedied that same day.
Francisco de Borja Coffee had only 1 violation with 0 found to be critical at its inspection on 04/01/07. Similarly, Hamm's Place had 1 violation with 0 critical on 03/19/08 when it was last inspected.
Jim's Petro Plus had 4 violation found on 02/19/08 with 0 found to be critical.
At its 10/07/04 inspection, Kentucky Fried Chicken had 6 violations with 4 being critical. Those critical violations found were quaternary ammonium sanitizer used at 3-bay sink not at the adequate concentration, spray hose at 3-bay sink was below the flood level rim, a spray bottle with purple liquid at the fry area was not labeled, & heavy-duty degreaser was found stored next to box of bacon bits under the buffet.
La Plaza had 5 violations with 0 critical at its inspection on 10/16/07.
Living Greene had a clean bill of health at its latest inspection on 10/23/08, as did Main Street Café & Deli on 06/03/08. Both are located in Bloomfield and are new establishments there.
The McDonald's in Wal-Mart had 4 violations with 0 critical, although this inspection was conducted some time ago on 02/28/06.
On 02/28/08, the Oodle Inn was inspected and found to have 1 violation, but 0 critical.
Petro Plus Worthington had 4 violations with 0 critical on 08/27/07.
In an August 2006 inspection, Pizza Hut in Linton had 1 critical violation, namely "numerous cockroaches & flies in the dishwashing area".
South Side Express had 2 violations on 02/12/08, but 0 found to be critical.
Stanifer's Twist & Shake in Jasonville had 10 violations in February 2006 with 3 found to be critical. Hopefully, since that time, these have been corrected, although no follow-up was found in file.
Town & Country Services was inspected 08/15/08, and it had only 1 violation with 0 critical.
Finally, Wendy's had 10 violations cited with 2 critical. The toilet in the men's bathroom was not working, and the temperature of the cheese at the drive-thru prep area was at 51.5 degrees F. These were corrected 10 days later on 04/12/08.
It is interesting to note that 29 of the 80 files pulled were inspected by the Health Department in 2008. So, the number of inspections is improving since my last review of the files. For more health inspections, go to Matt's post at: http://gcdailyworld.com/blogs/1159/entry/22812/
***
This blog post by Chris Wathen was also published in his Linton, Indiana based Greene County Daily World blog entitled, "Riddle Me This".
So, while at the Health Department, I started down the highway in my mind, naming off the restaurants as I 'passed' them in my mind. A total of 23 were requested. Admittedly, I missed a few. In fact, I missed three eateries I believe.
Having a newly-hired County Sanitarian on staff, and to be fair to the restaurants themselves, I withheld the actual names. As you can see from this previous post, I simply referred to them as, "Establishment 1, 2, 3…" Here's the original post: http://gcdailyworld.com/blogs/chriswathen/entry/17356/
Since that post, Matt Mason http://gcdailyworld.com/blogs/1159/ joined as a "Community Blogger" here on the GCDW website. Of course, his niche is food, cooking, and restaurants, while mine has been mostly business-related items, investing, and some government issues from time-to-time. So, it's a nice overlay of themes for us both when talking about restaurant inspections. You have a little bit of everything wrapped up into one, big proverbial "taco" so to speak: food safety, restaurants, government, business, etc.
Needless to say, it was only time until we'd tackle a follow-up, and that time is finally here.
To change up things this time, however, Matt took a look at the records a few days ago. And he was a bit more aggressive in his research than I, as he tackled the whole county… at least most every restaurant.
See, at the point that I had inquired about the records there were a total of 128 in the county, and we'll assume that figure from March is still applicable today. Of course, that figure includes not only restaurants, but all entities that handle prepared food. So, that figure includes delis, food stands/trailers at special events, as well as gas stations that have one of those hot dog rolling warmer contraptions. Matt tackled mostly the bricks-and-mortar restaurants, sprinkling in a few delis and convenience stores along the way.
There are a lot of different avenues a blogger (or bloggers) can take armed with this information, but we thought the most helpful to the community, as well as the most objective, was to just issue the information as found in the files. The general public can access these same inspection records, as the information contained in the files are public information. Hopefully, a few of you will because the vibe both Matt & I received at the Health Department was that we were the first and second people to ever inquire.
When reading these, please keep in mind that those establishments that no inspection records could be found are just that: no records found. They could be quite clean -- or dirty -- we just don't know without a record of the last inspection. You may also keep in mind that those with violations in the past -- especially a few years ago -- could now be fixed and no longer have an issue… or they still may be issues. Without a recent inspection, we just don't know. Thankfully, many were immediately taken care of, if not within a few days.
So, without further ado, approximately half of the inspections found -- or not found -- are shown below from the December 2008 visit to the Health Department. Matt will fill you in on the rest of them at http://gcdailyworld.com/blogs/1159/entry/22812/
First, let's start with those places without any inspections found in the file. They included: the Bloomfield IGA, Crossroads Café, the Dancing Bear, the Dug Out Bar, the Front Porch, The Grill, Hidden Hills Golf Course, Hunter's Drive-In, J'Lin Catering, Jo Etta's Pizza Villa, Mocha Tan, Pepperoni Grill, Pizza City, Rosie's Diner, Sharon's Place, Subway in Linton, and Value Mart. Again, without an inspection found, we just don't know.
Those having inspections found are listed below, along with the number of total violations cited, and the number of those violations considered "critical" with a short explanation of those:
Angell's Food Center was inspected on 06/27/06. At that inspection, which has now been about 2 ½ years ago, there were 9 violations found with 2 critical. The sanitary solution was found inadequate and food was found to be not date marked. The file shows these were corrected.
Burger King was last inspected 03/18/08, and it was found to have 5 violations at that time. Only 1 was found to be critical, which was no air gap between floor & ice machine in customer self-service area. It was corrected 10 days later.
Casey's in Linton had 3 violations, but 0 critical on its last inspection conducted 02/12/08.
On 08/25/08, there were 2 violations with 1 being critical at China Sea. Raw meat was found stored directly over ready-to-eat foods. This was immediately remedied.
At the Country Porch in Jasonville on 11/25/08, there were a total of 9 violation found. The 2 critical violations were a leaking toilet in the restroom, while utensils and equipment were not being sanitized as the third bay of the sink was inaccessible and had no water available.
The Dairy Queen in Linton had 10 violations with 8 critical on the 09/15/08 inspection. No info was found on if these have been corrected since that time.
There were 2 violations found at El Ranchito on 01/23/08. The 1 critical violation found was that the hot water sanitizing temperature on the dish machine was only reaching a temperature of 131 degrees, but was remedied that same day.
Francisco de Borja Coffee had only 1 violation with 0 found to be critical at its inspection on 04/01/07. Similarly, Hamm's Place had 1 violation with 0 critical on 03/19/08 when it was last inspected.
Jim's Petro Plus had 4 violation found on 02/19/08 with 0 found to be critical.
At its 10/07/04 inspection, Kentucky Fried Chicken had 6 violations with 4 being critical. Those critical violations found were quaternary ammonium sanitizer used at 3-bay sink not at the adequate concentration, spray hose at 3-bay sink was below the flood level rim, a spray bottle with purple liquid at the fry area was not labeled, & heavy-duty degreaser was found stored next to box of bacon bits under the buffet.
La Plaza had 5 violations with 0 critical at its inspection on 10/16/07.
Living Greene had a clean bill of health at its latest inspection on 10/23/08, as did Main Street Café & Deli on 06/03/08. Both are located in Bloomfield and are new establishments there.
The McDonald's in Wal-Mart had 4 violations with 0 critical, although this inspection was conducted some time ago on 02/28/06.
On 02/28/08, the Oodle Inn was inspected and found to have 1 violation, but 0 critical.
Petro Plus Worthington had 4 violations with 0 critical on 08/27/07.
In an August 2006 inspection, Pizza Hut in Linton had 1 critical violation, namely "numerous cockroaches & flies in the dishwashing area".
South Side Express had 2 violations on 02/12/08, but 0 found to be critical.
Stanifer's Twist & Shake in Jasonville had 10 violations in February 2006 with 3 found to be critical. Hopefully, since that time, these have been corrected, although no follow-up was found in file.
Town & Country Services was inspected 08/15/08, and it had only 1 violation with 0 critical.
Finally, Wendy's had 10 violations cited with 2 critical. The toilet in the men's bathroom was not working, and the temperature of the cheese at the drive-thru prep area was at 51.5 degrees F. These were corrected 10 days later on 04/12/08.
It is interesting to note that 29 of the 80 files pulled were inspected by the Health Department in 2008. So, the number of inspections is improving since my last review of the files. For more health inspections, go to Matt's post at: http://gcdailyworld.com/blogs/1159/entry/22812/
***
This blog post by Chris Wathen was also published in his Linton, Indiana based Greene County Daily World blog entitled, "Riddle Me This".
Wednesday, December 10, 2008
A Follow-Up Post: Good & Bad in the Ugly
It's been a year now, so it's time for some follow-up on a post from last year.
On a Friday back in early-December 2007, I posted about a portfolio of six publicly-traded companies (dubbed "the 6-pack"), along with an additional pick of Anheuser-Busch (the "+1"). http://gcdailyworld.com/blogs/chriswathen/entry/15323/ And boy, this fantasy football-style portfolio has had a violent ride in the stock market over the past 12 months!
That final pick (BUD) became the best of the group, mostly because of the announcement of a take-over of the giant American brewer by Belgian-based InBev. Since that December 7th post, BUD has risen by about 30%, based on the closing price in December '07 & then at close on December 9th, 2008, a simply incredible return given the current and very ugly market.
Overall, the 6+1 portfolio was down about 29% for the year. (It performed a little better if you factor in the dividends received during the period too.) Not too spectacular from that standpoint, I'll admit. Arguably, placing funds in an FDIC-insured bank CD would have returned more, probably somewhere in the 2.5% to 4% range for the same period, depending on the bank, the term, etc. http://gcdailyworld.com/blogs/chriswathe...
But that would not be necessarily comparing apples-with-apples, would it?
Sure, a safe and secure CD would have returned a positive return, but had the market swung the other way, it would not have enjoyed those gains either. That's the general difference between equity and debt investments. With equity, you own piece of the company, so you share in the profits or losses. With a debt investment, or the act of you essentially loaning money to an entity, the return is typically much smaller -- and many times fixed from the beginning, but the principal is better protected. In the case of the bank CD, a debt investment (your money, the bank's debt), it's insured by the FDIC up to a certain threshold, one that has increased from $100,000 to $250,000 in most cases recently.
But back to the issue at hand: the market didn't go higher, you say. Well, that's great if you have an infallible crystal ball, but I don't.
So, let's compare apples-to-apples, and let's look at the returns of the overall market in the same timeframe to see how the 6+1 portfolio fared. The S&P 500 index is often used as a broad representation of the overall stock market, and if one "share" of this index was purchased at the closing price on the same date of December 7th, 2007, it would have lost almost 41%. Ouch!
In any event, comparing the 6+1 portfolio to the overall market via the S&P 500 index, the difference is an out-performance of the market by approximately 12% -- even better with the dividends paid from this higher-paying dividend portfolio factored into the calculation.
Not bad, comparatively-speaking to the S&P index. As always, it's relative to how and what the comparison may be though.
So, there you have it: the good and the bad of this small portfolio in a very ugly market.
***
This blog post by Chris Wathen was also published in his Linton, Indiana based Greene County Daily World blog entitled, "Riddle Me This".
On a Friday back in early-December 2007, I posted about a portfolio of six publicly-traded companies (dubbed "the 6-pack"), along with an additional pick of Anheuser-Busch (the "+1"). http://gcdailyworld.com/blogs/chriswathen/entry/15323/ And boy, this fantasy football-style portfolio has had a violent ride in the stock market over the past 12 months!
That final pick (BUD) became the best of the group, mostly because of the announcement of a take-over of the giant American brewer by Belgian-based InBev. Since that December 7th post, BUD has risen by about 30%, based on the closing price in December '07 & then at close on December 9th, 2008, a simply incredible return given the current and very ugly market.
Overall, the 6+1 portfolio was down about 29% for the year. (It performed a little better if you factor in the dividends received during the period too.) Not too spectacular from that standpoint, I'll admit. Arguably, placing funds in an FDIC-insured bank CD would have returned more, probably somewhere in the 2.5% to 4% range for the same period, depending on the bank, the term, etc. http://gcdailyworld.com/blogs/chriswathe...
But that would not be necessarily comparing apples-with-apples, would it?
Sure, a safe and secure CD would have returned a positive return, but had the market swung the other way, it would not have enjoyed those gains either. That's the general difference between equity and debt investments. With equity, you own piece of the company, so you share in the profits or losses. With a debt investment, or the act of you essentially loaning money to an entity, the return is typically much smaller -- and many times fixed from the beginning, but the principal is better protected. In the case of the bank CD, a debt investment (your money, the bank's debt), it's insured by the FDIC up to a certain threshold, one that has increased from $100,000 to $250,000 in most cases recently.
But back to the issue at hand: the market didn't go higher, you say. Well, that's great if you have an infallible crystal ball, but I don't.
So, let's compare apples-to-apples, and let's look at the returns of the overall market in the same timeframe to see how the 6+1 portfolio fared. The S&P 500 index is often used as a broad representation of the overall stock market, and if one "share" of this index was purchased at the closing price on the same date of December 7th, 2007, it would have lost almost 41%. Ouch!
In any event, comparing the 6+1 portfolio to the overall market via the S&P 500 index, the difference is an out-performance of the market by approximately 12% -- even better with the dividends paid from this higher-paying dividend portfolio factored into the calculation.
Not bad, comparatively-speaking to the S&P index. As always, it's relative to how and what the comparison may be though.
So, there you have it: the good and the bad of this small portfolio in a very ugly market.
***
This blog post by Chris Wathen was also published in his Linton, Indiana based Greene County Daily World blog entitled, "Riddle Me This".
Tuesday, December 9, 2008
Chief of Running Companies into the Ground
Since a post back in September on the subject, I ran across another interesting website at http://gcdailyworld.com/blogs/chriswathen/entry/20991/ that shows executive compensation at some of America's largest companies.
The American Federation of Labor and Congress of Industrial Organizations (AFL-CIO), which describes itself as a federation of a number of national and international labor unions, has developed the "Executive PayWatch Database" on its website for many of America's top Chief Executive Officers (CEOs). The database can be viewed and searched here: http://www.aflcio.org/corporatewatch/pay...
Many of the companies that are now arguably the biggest causes of the current credit crisis compensated their leaders extremely well. For example, total compensation in 2007 for these CEO's is reported on the site as follows:
Martin J. Sullivan, American International Group Inc. (AIG): $14,330,736
Daniel H. Mudd, Fannie Mae: $11,648,409
Richard S. Fuld, Lehman Brothers Holdings Inc.: $34,382,036
To put this into perspective, the median U.S. household income is approximately $50,000, as shown here in an August U.S. Census Bureau press release: http://www.census.gov/Press-Release/www/releases/archives/income_wealth/012528.html So, these three executives noted above made about 233 to 688 times the amount of the 'average' U.S. household.
With the current economy, in general, and the financial state of the companies above, something doesn't seem right, does it?
***
This blog post by Chris Wathen was also published in his Linton, Indiana based Greene County Daily World blog entitled, "Riddle Me This".
The American Federation of Labor and Congress of Industrial Organizations (AFL-CIO), which describes itself as a federation of a number of national and international labor unions, has developed the "Executive PayWatch Database" on its website for many of America's top Chief Executive Officers (CEOs). The database can be viewed and searched here: http://www.aflcio.org/corporatewatch/pay...
Many of the companies that are now arguably the biggest causes of the current credit crisis compensated their leaders extremely well. For example, total compensation in 2007 for these CEO's is reported on the site as follows:
Martin J. Sullivan, American International Group Inc. (AIG): $14,330,736
Daniel H. Mudd, Fannie Mae: $11,648,409
Richard S. Fuld, Lehman Brothers Holdings Inc.: $34,382,036
To put this into perspective, the median U.S. household income is approximately $50,000, as shown here in an August U.S. Census Bureau press release: http://www.census.gov/Press-Release/www/releases/archives/income_wealth/012528.html So, these three executives noted above made about 233 to 688 times the amount of the 'average' U.S. household.
With the current economy, in general, and the financial state of the companies above, something doesn't seem right, does it?
***
This blog post by Chris Wathen was also published in his Linton, Indiana based Greene County Daily World blog entitled, "Riddle Me This".
Monday, December 8, 2008
FOR SALE: Cubs Baseball
According to the Tribune Company's last 10-Q filing with the SEC in November 2008, the Cubs baseball team is up for sale and will likely be 'disposed of' in 2009. See this link for more info: http://corporate.tribune.com/tribune_sec/investors_test.php?page=secfilings
After all, it has been no secret that the Tribune Co., owner of the Cubs team, has seen better times, financially-speaking. In November, Standard & Poor's cut the company's ratings even deeper into 'junk' territory, citing financing difficulties. More recently, some rumors are swirling that the company may even seek out bankruptcy protection, if things do not turn around in the very near term.
Given the company's financial difficulties, many wonder if the sale of the Cubs will even bring 'fair market value' for its owner? Of course, their now 100-year title drought for a World Series win could also factor into the final price tag.
***
This blog post by Chris Wathen was also published in his Linton, Indiana based Greene County Daily World blog entitled, "Riddle Me This".
After all, it has been no secret that the Tribune Co., owner of the Cubs team, has seen better times, financially-speaking. In November, Standard & Poor's cut the company's ratings even deeper into 'junk' territory, citing financing difficulties. More recently, some rumors are swirling that the company may even seek out bankruptcy protection, if things do not turn around in the very near term.
Given the company's financial difficulties, many wonder if the sale of the Cubs will even bring 'fair market value' for its owner? Of course, their now 100-year title drought for a World Series win could also factor into the final price tag.
***
This blog post by Chris Wathen was also published in his Linton, Indiana based Greene County Daily World blog entitled, "Riddle Me This".
Thursday, December 4, 2008
Business Scam
Business owners should be on the look out for a new scam, which may present itself in your mailbox soon. The letter has the appearance of an official government request to handle certain business paperwork, citing fictitious laws and requesting a fee for these services. The Indiana Secretary of State issued the following 'Scam Alert' recently:
http://www.in.gov/sos/pdfs/ScamAlert.pdf
***
This blog post by Chris Wathen was also published in his Linton, Indiana based Greene County Daily World blog entitled, "Riddle Me This".
http://www.in.gov/sos/pdfs/ScamAlert.pdf
***
This blog post by Chris Wathen was also published in his Linton, Indiana based Greene County Daily World blog entitled, "Riddle Me This".
Monday, November 24, 2008
A New Grinch This Christmas
As of late, we read many examples of corporations filing the big 'B' in various newspapers and online. In August, I discussed how clothing retailer Steve & Barry's had filed for bankruptcy, but were still expected to remain open in their Terre Haute location. Word has it now that they will be closing this location. Linens-N-Things and Circuit City both filed for bankruptcy, too, recently.
These better-known examples, with locations in nearby Terre Haute & Bloomington, raise some interesting questions as we approach the Christmas season…
In these and other stories, we find that banks have loaned millions of dollars to corporate borrowers both secured -- and unsecured -- who go bankrupt. Often, I've heard people comment, "Well, the bank had it comin' if they didn't have any collateral to back these loans." Yet, do you know who else is an 'unsecured' creditor, who might be left holding the bag if a company files for bankruptcy?
Perhaps, you! (That puts a different perspective on things, doesn't it?)
'Tis the season for giving, and soon billions of dollars will change hands via gift cards. If you are in possession of a gift card, you may feel pretty insecure this holiday season as several retailers file for bankruptcy protection or otherwise go out of business. In fact, this Christmas, it could be said the Grinch comes in a different form: corporate bankruptcy!
See, when a corporation files bankruptcy, a gift card holder is deemed an 'unsecured creditor' and is thrown in the mix behind the secured creditors. While some companies continued to honor the cards, others haven't, while yet others have added 'strings' to redeem them. There seems to be no set of rules when it comes to gift certificates & cards in a corporate bankruptcy that I've found.
I suppose you could file a creditor claim in the company's bankruptcy, but it seems hardly worth the paperwork for a few bucks on a card -- and no assurances anything would ever come of it anyway.
As you may recall, I wrote about gift cards last year about this time: http://www.magiccoalcity.blogspot.com/ Then, the issue was different, but the end result was the same: people losing money on gift cards.
As the pitfalls mount against gift cards, maybe it's just best to stick with cash in a card if nothing else…
***
This blog post by Chris Wathen was also published in his Linton, Indiana based Greene County Daily World blog entitled, "Riddle Me This".
These better-known examples, with locations in nearby Terre Haute & Bloomington, raise some interesting questions as we approach the Christmas season…
In these and other stories, we find that banks have loaned millions of dollars to corporate borrowers both secured -- and unsecured -- who go bankrupt. Often, I've heard people comment, "Well, the bank had it comin' if they didn't have any collateral to back these loans." Yet, do you know who else is an 'unsecured' creditor, who might be left holding the bag if a company files for bankruptcy?
Perhaps, you! (That puts a different perspective on things, doesn't it?)
'Tis the season for giving, and soon billions of dollars will change hands via gift cards. If you are in possession of a gift card, you may feel pretty insecure this holiday season as several retailers file for bankruptcy protection or otherwise go out of business. In fact, this Christmas, it could be said the Grinch comes in a different form: corporate bankruptcy!
See, when a corporation files bankruptcy, a gift card holder is deemed an 'unsecured creditor' and is thrown in the mix behind the secured creditors. While some companies continued to honor the cards, others haven't, while yet others have added 'strings' to redeem them. There seems to be no set of rules when it comes to gift certificates & cards in a corporate bankruptcy that I've found.
I suppose you could file a creditor claim in the company's bankruptcy, but it seems hardly worth the paperwork for a few bucks on a card -- and no assurances anything would ever come of it anyway.
As you may recall, I wrote about gift cards last year about this time: http://www.magiccoalcity.blogspot.com/ Then, the issue was different, but the end result was the same: people losing money on gift cards.
As the pitfalls mount against gift cards, maybe it's just best to stick with cash in a card if nothing else…
***
This blog post by Chris Wathen was also published in his Linton, Indiana based Greene County Daily World blog entitled, "Riddle Me This".
Thursday, November 13, 2008
County-by-County Education & Earnings
The Indiana Chamber of Commerce has recently published some state-wide maps with interesting county-by-county data, regarding educational levels of the current and available Hoosier workforce. Below you'll find links to these county-county maps for the State of Indiana:
These three maps show educational attainment by age category:
http://www.indianachamber.com/images/CountyMaps/PercentAdultsAssociateDegreeorHigher.jpg http://www.indianachamber.com/images/CountyMaps/1824NoHighSchoolDiplomaCty.jpg
http://www.indianachamber.com/images/Cou...
These maps show the increase in earnings from high school degrees to more advanced degrees:
http://www.indianachamber.com/images/CountyMaps/AssociatesDegreeIncrease.jpg
http://www.indianachamber.com/images/Cou...
This map shows the percentage of adults, who have high school diplomas or less, earning under what is deemed a 'living wage' for families in their research:
http://www.indianachamber.com/images/CountyMaps/1864inFamilyEarningLessThanLivingWage.jpg
***
This blog post by Chris Wathen was also published in his Linton, Indiana based Greene County Daily World blog entitled, "Riddle Me This".
These three maps show educational attainment by age category:
http://www.indianachamber.com/images/CountyMaps/PercentAdultsAssociateDegreeorHigher.jpg http://www.indianachamber.com/images/CountyMaps/1824NoHighSchoolDiplomaCty.jpg
http://www.indianachamber.com/images/Cou...
These maps show the increase in earnings from high school degrees to more advanced degrees:
http://www.indianachamber.com/images/CountyMaps/AssociatesDegreeIncrease.jpg
http://www.indianachamber.com/images/Cou...
This map shows the percentage of adults, who have high school diplomas or less, earning under what is deemed a 'living wage' for families in their research:
http://www.indianachamber.com/images/CountyMaps/1864inFamilyEarningLessThanLivingWage.jpg
***
This blog post by Chris Wathen was also published in his Linton, Indiana based Greene County Daily World blog entitled, "Riddle Me This".
Terre Haute Has No Mayor
Wow! Terre Haute is now without a Mayor!
One of my interests is keeping up with current court cases around the State of Indiana, and a truly interesting one was found, which I thought I'd share. In fact, the Court of Appeals opinion was just published earlier today.
It deals with the November 2007 mayoral election in Terre Haute. Duke Bennett beat incumbent Kevin Burke in that election, which Burke then challenged in court. Burke argued that Bennett was ineligible to run for mayor because of his employment as operations director at the Hamilton Center. Since the Hamilton Center receives federal funding for some of its programs, it limits the political activity of employees, his legal team argued.
The Court of Appeals agreed today.
To read the actual court opinion, here is the link:
http://www.in.gov/judiciary/opinions/pdf/11130801ebb.pdf
***
This blog post by Chris Wathen was also published in his Linton, Indiana based Greene County Daily World blog entitled, "Riddle Me This".
One of my interests is keeping up with current court cases around the State of Indiana, and a truly interesting one was found, which I thought I'd share. In fact, the Court of Appeals opinion was just published earlier today.
It deals with the November 2007 mayoral election in Terre Haute. Duke Bennett beat incumbent Kevin Burke in that election, which Burke then challenged in court. Burke argued that Bennett was ineligible to run for mayor because of his employment as operations director at the Hamilton Center. Since the Hamilton Center receives federal funding for some of its programs, it limits the political activity of employees, his legal team argued.
The Court of Appeals agreed today.
To read the actual court opinion, here is the link:
http://www.in.gov/judiciary/opinions/pdf/11130801ebb.pdf
***
This blog post by Chris Wathen was also published in his Linton, Indiana based Greene County Daily World blog entitled, "Riddle Me This".
Wednesday, November 5, 2008
Mood Swings & Madness
If you've opened up your 401(k) or other investment statement recently, I'll bet it wasn't pretty. So, it's very timely that the Greene County Community Learning Center offers an informational workshop, instructed by Randall Brown of Edward Jones, to address the current bear market.
The informational workshop will provide tips on how to weather the current market, along with tools for safeguarding your assets in such a turbulent time in the world of investments. This FREE workshop entitled, "Riding the Roller Coaster: Mood Swings & Madness in Today's Market" will be held on Monday, November 10, 2008, from 6:30-8:30 P.M.
Call the Community Learning Center at 659-3862 to reserve your space. Mr. Brown makes some good presentations, and I'm sure you won't be disappointed. As a former investment rep for Edward Jones myself, I can tell you there are a lot of very good workshops and seminars available through the local offices.
***
This blog post by Chris Wathen was also published in his Linton, Indiana based Greene County Daily World blog entitled, "Riddle Me This".
The informational workshop will provide tips on how to weather the current market, along with tools for safeguarding your assets in such a turbulent time in the world of investments. This FREE workshop entitled, "Riding the Roller Coaster: Mood Swings & Madness in Today's Market" will be held on Monday, November 10, 2008, from 6:30-8:30 P.M.
Call the Community Learning Center at 659-3862 to reserve your space. Mr. Brown makes some good presentations, and I'm sure you won't be disappointed. As a former investment rep for Edward Jones myself, I can tell you there are a lot of very good workshops and seminars available through the local offices.
***
This blog post by Chris Wathen was also published in his Linton, Indiana based Greene County Daily World blog entitled, "Riddle Me This".
Monday, November 3, 2008
Debt Drowns, Cash Floods
Americans have used their homes as ATM machines for many years. And as home values have declined lately, their ability to refinance their way out of cash crunches has vanished.
But wait, there's a new type of debt in town: credit cards!
While not exactly new, there is new focus on credit cards and their rampant use. In fact, several sources report that the 'average' American today carries roughly a $10,000 total balance on one or more credit cards. So, while access to funds through home loans may have dried up due to issues with collateral values recently, an increase in unsecured credit card debt may now be occurring.
Well, let me re-state that: IT IS OCCURING!
According to the Federal Reserve, credit card debt is well on its way toward $1 trillion dollars. Now, that's a lot of debt! Sure, it may be a nationwide total, but that's a lot of vapor. It's vapor because it's unsecured -- or without backing of any collateral.
And that is almost even more worrisome.
It's worrisome because where is all of this money going? What is it being used to purchase? While taking out a home loan, the property serves as collateral. With that you can say, here is what I bought. It's tangible. But what is unsecured credit card debt purchasing?
Is it gasoline as it has recently sky-rocketed, although calming down as of late?
Is it food, clothes, electronics, housewares, & furniture?
None of which typically serve as good collateral because they're consumable… well not exactly… perhaps 'disposable' or 'depreciative' would be better words to use here.
I suppose the disconnect for me, as a banker, is useful life of the product purchased vs. time said amount is financed. Moreover, are we still paying on debt for a product when it now sits in a landfill somewhere? I'm thinking the answer to that question is more often than not: yes!
In any event, despite arguments on the actual useful life of a GI Joe with the Kung-Fu grip, unsecured debt is rising to pretty substantial levels. After all, how many lifetimes would it take to count a trillion dollars if counted dollar-by-dollar? (I'm sure one of you out there have done the calculations. How about it per moenia urbis?)
So, it's a negative trend we can surmise, which begs the question, " Is this the next shoe to drop credit-wise in America?"
Perhaps.
The other worrisome issue I think today is regular e-mail alerts from the Fed that I receive entitled, "Federal Reserve will offer $150 billion in 84-day credit through its Term Auction". The Fed is absolutely flooding the market with cash. Last December, these e-mails read, "the Federal Reserve will offer $20 billion in 28-day credit through its Term Auction". So, we've leaped from $20 billion to $150 billion!
Hopefully, someone at some point has a big mop to soak up all of this cash being put in the economy, or we're going to need a wheelbarrow of cash to buy a loaf of bread.
***
This blog post by Chris Wathen was also published in his Linton, Indiana based Greene County Daily World blog entitled, "Riddle Me This".
But wait, there's a new type of debt in town: credit cards!
While not exactly new, there is new focus on credit cards and their rampant use. In fact, several sources report that the 'average' American today carries roughly a $10,000 total balance on one or more credit cards. So, while access to funds through home loans may have dried up due to issues with collateral values recently, an increase in unsecured credit card debt may now be occurring.
Well, let me re-state that: IT IS OCCURING!
According to the Federal Reserve, credit card debt is well on its way toward $1 trillion dollars. Now, that's a lot of debt! Sure, it may be a nationwide total, but that's a lot of vapor. It's vapor because it's unsecured -- or without backing of any collateral.
And that is almost even more worrisome.
It's worrisome because where is all of this money going? What is it being used to purchase? While taking out a home loan, the property serves as collateral. With that you can say, here is what I bought. It's tangible. But what is unsecured credit card debt purchasing?
Is it gasoline as it has recently sky-rocketed, although calming down as of late?
Is it food, clothes, electronics, housewares, & furniture?
None of which typically serve as good collateral because they're consumable… well not exactly… perhaps 'disposable' or 'depreciative' would be better words to use here.
I suppose the disconnect for me, as a banker, is useful life of the product purchased vs. time said amount is financed. Moreover, are we still paying on debt for a product when it now sits in a landfill somewhere? I'm thinking the answer to that question is more often than not: yes!
In any event, despite arguments on the actual useful life of a GI Joe with the Kung-Fu grip, unsecured debt is rising to pretty substantial levels. After all, how many lifetimes would it take to count a trillion dollars if counted dollar-by-dollar? (I'm sure one of you out there have done the calculations. How about it per moenia urbis?)
So, it's a negative trend we can surmise, which begs the question, " Is this the next shoe to drop credit-wise in America?"
Perhaps.
The other worrisome issue I think today is regular e-mail alerts from the Fed that I receive entitled, "Federal Reserve will offer $150 billion in 84-day credit through its Term Auction". The Fed is absolutely flooding the market with cash. Last December, these e-mails read, "the Federal Reserve will offer $20 billion in 28-day credit through its Term Auction". So, we've leaped from $20 billion to $150 billion!
Hopefully, someone at some point has a big mop to soak up all of this cash being put in the economy, or we're going to need a wheelbarrow of cash to buy a loaf of bread.
***
This blog post by Chris Wathen was also published in his Linton, Indiana based Greene County Daily World blog entitled, "Riddle Me This".
Saturday, November 1, 2008
Place Your Bets on Gas Prices
In parts of Indiana, I've read that gasoline prices are about $1.80-something a gallon recently. In Linton, I noticed the stations were around $2.15 yesterday.
I, along with everyone else, are left to wonder: will the price continue to go down, or will this be only a short-term phenomenon? And if this does become the new price level -- or even lower -- I wonder how quickly we will all forget how quickly prices can go back up again?
***
This blog post by Chris Wathen was also published in his Linton, Indiana based Greene County Daily World blog entitled, "Riddle Me This".
I, along with everyone else, are left to wonder: will the price continue to go down, or will this be only a short-term phenomenon? And if this does become the new price level -- or even lower -- I wonder how quickly we will all forget how quickly prices can go back up again?
***
This blog post by Chris Wathen was also published in his Linton, Indiana based Greene County Daily World blog entitled, "Riddle Me This".
Friday, October 24, 2008
YOUR FREE CREDIT REPORTS
If you want to look at your credit report from the three primary reporting agencies, you can now do so by visiting this website: http://www.annualcreditreport.com/
You will need to follow the instructions carefully, making sure that you don't click, check mark, or otherwise accept anything for a fee unless you want to purchase it though. For example, the reporting agencies will NOT give you your actual credit score for free. They consider that a proprietary calculation that the agency will charge for showing to you.
They will also try to sell other services, ranging from credit alerts to credit monitoring to identity theft protection, so you will need to just click the 'No, thanks' button, if you only want your free credit reports.
You may do this on an annual basis, and it's a good idea. When you print out your report, check for errors. If you find an error, you'll need to follow the instructions to fix the error with the reporting agency. Those instructions will print along with your credit information.
***
This blog post by Chris Wathen was also published in his Linton, Indiana based Greene County Daily World blog entitled, "Riddle Me This".
You will need to follow the instructions carefully, making sure that you don't click, check mark, or otherwise accept anything for a fee unless you want to purchase it though. For example, the reporting agencies will NOT give you your actual credit score for free. They consider that a proprietary calculation that the agency will charge for showing to you.
They will also try to sell other services, ranging from credit alerts to credit monitoring to identity theft protection, so you will need to just click the 'No, thanks' button, if you only want your free credit reports.
You may do this on an annual basis, and it's a good idea. When you print out your report, check for errors. If you find an error, you'll need to follow the instructions to fix the error with the reporting agency. Those instructions will print along with your credit information.
***
This blog post by Chris Wathen was also published in his Linton, Indiana based Greene County Daily World blog entitled, "Riddle Me This".
Tuesday, October 14, 2008
Quickbooks & Your Business
I saw information on a local seminar earlier today, which I thought may be of use to many small business owners: The Community Learning Center is hosting an "Introduction to Quickbooks" workshop to introduce attendees to the many features of the Quickbooks bookkeeping program.
I can't say enough great things about Quickbooks. This is a very powerful and useful program for your small business. It will not only take away a lot of frustration around tax time, but will also allow you to actively manage your business; and being PRO-active is always better that being merely RE-active in business.
So, if your bookkeeping system consists of a shoebox, STOP! Instead, try this seminar on October 28th from 6:30-8:30PM to see how Quickbooks may help you in your business.
The cost is only $10, but the registration deadline is soon: October 24th.
For more information, including other offerings, see http://www.clcinfo.org/greene_schedule.php
***
This blog post by Chris Wathen was also published in his Linton, Indiana based Greene County Daily World blog entitled, "Riddle Me This".
I can't say enough great things about Quickbooks. This is a very powerful and useful program for your small business. It will not only take away a lot of frustration around tax time, but will also allow you to actively manage your business; and being PRO-active is always better that being merely RE-active in business.
So, if your bookkeeping system consists of a shoebox, STOP! Instead, try this seminar on October 28th from 6:30-8:30PM to see how Quickbooks may help you in your business.
The cost is only $10, but the registration deadline is soon: October 24th.
For more information, including other offerings, see http://www.clcinfo.org/greene_schedule.php
***
This blog post by Chris Wathen was also published in his Linton, Indiana based Greene County Daily World blog entitled, "Riddle Me This".
Tuesday, October 7, 2008
GCBPC: Only About a Week Left!
The deadline for submissions to the 1st Annual Greene County Business Plan Competition is quickly coming to an end -- October 15th to be exact.
For rules and resources, please see http://www.magiccoalcity.blogspot.com/
Good luck to everyone submitting!
***
This blog post by Chris Wathen was also published in his Linton, Indiana based Greene County Daily World blog entitled, "Riddle Me This".
For rules and resources, please see http://www.magiccoalcity.blogspot.com/
Good luck to everyone submitting!
***
This blog post by Chris Wathen was also published in his Linton, Indiana based Greene County Daily World blog entitled, "Riddle Me This".
Thursday, October 2, 2008
Starting a Specialty Food Business
Ever dream about starting your own business? If you own a small farm now, would like to add additional income?
Beginning or experienced entrepreneurs, as well as current farmers, may be interested in an upcoming seminar on October 9th at Apple Hill Orchard in nearby Bruceville, Indiana (about 5 miles north of Vincennes). Attendees will learn about beginning a specialty food or food ingredient business in Indiana.
The workshop costs only $75 per registrant, and it is sponsored by Purdue University's Department of Agricultural Economics & Department of Food Science, the Southeastern Indiana Small Business Development Center, and the Indiana State Department of Health.
For more information, including how to register, the brochure for this workshop may be seen here: http://www.foodsci.purdue.edu/Outreach/feep/brochure.pdf
***
This blog post by Chris Wathen was also published in his Linton, Indiana based Greene County Daily World blog entitled, "Riddle Me This".
Beginning or experienced entrepreneurs, as well as current farmers, may be interested in an upcoming seminar on October 9th at Apple Hill Orchard in nearby Bruceville, Indiana (about 5 miles north of Vincennes). Attendees will learn about beginning a specialty food or food ingredient business in Indiana.
The workshop costs only $75 per registrant, and it is sponsored by Purdue University's Department of Agricultural Economics & Department of Food Science, the Southeastern Indiana Small Business Development Center, and the Indiana State Department of Health.
For more information, including how to register, the brochure for this workshop may be seen here: http://www.foodsci.purdue.edu/Outreach/feep/brochure.pdf
***
This blog post by Chris Wathen was also published in his Linton, Indiana based Greene County Daily World blog entitled, "Riddle Me This".
Monday, September 29, 2008
FIRE SALE: Up To 93% OFF!
It could be a complete dud as an investment, or it could be an amazing buying opportunity!
Investors began selling off shares of National City Bank (NCC), a stock that traded for as high as $27.21 in October 2007, predicting it would be the next bank to fail. Bank officials, however, dispute that they will be the next to fail, citing stronger equity positions than other recently failed banks. Reportedly, the mortgages that this regional bank holds are less concentrated in areas of the country where home prices have fallen the most, such as Florida, southern California, and Nevada.
The current fire sale is up to 93% off the October high, but it's an 'as is' sale, so hopefully the goods aren't broke when you get them home - or fall apart shortly thereafter!
***
This blog post by Chris Wathen was also published in his Linton, Indiana based Greene County Daily World blog entitled, "Riddle Me This".
Investors began selling off shares of National City Bank (NCC), a stock that traded for as high as $27.21 in October 2007, predicting it would be the next bank to fail. Bank officials, however, dispute that they will be the next to fail, citing stronger equity positions than other recently failed banks. Reportedly, the mortgages that this regional bank holds are less concentrated in areas of the country where home prices have fallen the most, such as Florida, southern California, and Nevada.
The current fire sale is up to 93% off the October high, but it's an 'as is' sale, so hopefully the goods aren't broke when you get them home - or fall apart shortly thereafter!
***
This blog post by Chris Wathen was also published in his Linton, Indiana based Greene County Daily World blog entitled, "Riddle Me This".
Thursday, September 25, 2008
DISGUSTING.
It's funny how high-ranking politicians and government officials just conceded this week that we're in a financial mess nationwide. Rewind to the previous week, and they were still telling the American people that everything was fine and our economy was "sound".
Even a young banker from Indiana could see this coming. Not to toot my own horn, but in November 2007, I wrote a blog post entitled, "The State of Our Economy" as seen here: http://gcdailyworld.com/blogs/chriswathen/entry/14766/ In May 2008, another post by the name of "Postage, Mom, & Corn-Fed Beef" ( http://gcdailyworld.com/blogs/chriswathen/entry/18062/ ) warned about stagflation. A month later, in June 2008, I asked who would be caught holding the bag next in the post called "Musical Chairs. Who Will Be Out Next?" as you can see here: http://gcdailyworld.com/blogs/chriswathe...
It's not something I'm especially proud of, nor did I really ever want to say "I told you so," but it appears to be unfolding just as predicted. I guess you tend to think that these high-ranking officials have special privileges, powers, and information -- something beyond the grasp of the 'average Joe' -- but obviously not. Maybe they just need to read the news with some critical thinking involved like this Midwestern banker does.
If you hold politicians on a pedestal, you're going to be disappointed. When I read that the CEO of Goldman Sachs made $70 million last year ( http://www.nypost.com/seven/12132007/business/goldman_ceos_pay_may_be_70m_in_07_56960.htm ) I think, no wonder we have the politicians we do! Why would anyone ever want to be a politician when they can run a company into the ground for $70 million, losing over half of shareholders' wealth? Executive compensation has gone out of control. They could have hired any idiot off the street to do the same at many of these companies for much, much less.
But it gets better! Why work for $70 million a year when you can get fired and collect $68 million?! Chuck Prince, former CEO of Citigroup, made just that to get lost and join the unemployment line, as seen here in this CNN article: http://money.cnn.com/2008/03/07/news/new...
You may have read a few months ago, too, that Countrywide Financial CEO Angelo Mozilo inadvertently hit 'reply' instead of 'forward' to an e-mail asking for help, which was sent to him by a customer facing foreclosure. If not, here's a link to the story in the LA Times: http://articles.latimes.com/2008/may/21/...
To comment on Mozillo's compensation package, using a word from his own inadvertent e-mail reply, I'd say, "Disgusting."
***
This blog post by Chris Wathen was also published in his Linton, Indiana based Greene County Daily World blog entitled, "Riddle Me This".
Even a young banker from Indiana could see this coming. Not to toot my own horn, but in November 2007, I wrote a blog post entitled, "The State of Our Economy" as seen here: http://gcdailyworld.com/blogs/chriswathen/entry/14766/ In May 2008, another post by the name of "Postage, Mom, & Corn-Fed Beef" ( http://gcdailyworld.com/blogs/chriswathen/entry/18062/ ) warned about stagflation. A month later, in June 2008, I asked who would be caught holding the bag next in the post called "Musical Chairs. Who Will Be Out Next?" as you can see here: http://gcdailyworld.com/blogs/chriswathe...
It's not something I'm especially proud of, nor did I really ever want to say "I told you so," but it appears to be unfolding just as predicted. I guess you tend to think that these high-ranking officials have special privileges, powers, and information -- something beyond the grasp of the 'average Joe' -- but obviously not. Maybe they just need to read the news with some critical thinking involved like this Midwestern banker does.
If you hold politicians on a pedestal, you're going to be disappointed. When I read that the CEO of Goldman Sachs made $70 million last year ( http://www.nypost.com/seven/12132007/business/goldman_ceos_pay_may_be_70m_in_07_56960.htm ) I think, no wonder we have the politicians we do! Why would anyone ever want to be a politician when they can run a company into the ground for $70 million, losing over half of shareholders' wealth? Executive compensation has gone out of control. They could have hired any idiot off the street to do the same at many of these companies for much, much less.
But it gets better! Why work for $70 million a year when you can get fired and collect $68 million?! Chuck Prince, former CEO of Citigroup, made just that to get lost and join the unemployment line, as seen here in this CNN article: http://money.cnn.com/2008/03/07/news/new...
You may have read a few months ago, too, that Countrywide Financial CEO Angelo Mozilo inadvertently hit 'reply' instead of 'forward' to an e-mail asking for help, which was sent to him by a customer facing foreclosure. If not, here's a link to the story in the LA Times: http://articles.latimes.com/2008/may/21/...
To comment on Mozillo's compensation package, using a word from his own inadvertent e-mail reply, I'd say, "Disgusting."
***
This blog post by Chris Wathen was also published in his Linton, Indiana based Greene County Daily World blog entitled, "Riddle Me This".
Wednesday, September 24, 2008
Tween Radio? No Thanks!
I can't stand the thought of having to pay for radio on Sirius or XM, but I was almost to that point. Then I discovered a new radio station.
If you share my frustration with the other "local" stations, and you're tired of having tweens pick the same 10 songs to be played over-and-over again (100.7 MIX-FM), or you're just sick of the non-stop commercials (HI-99), take a listen to a world-class rock station: 92.3 WTTS.
Although I still mourn the loss of 107.5 WZZQ from time-to-time, 92.3 has made up for it!
***
This blog post by Chris Wathen was also published in his Linton, Indiana based Greene County Daily World blog entitled, "Riddle Me This".
If you share my frustration with the other "local" stations, and you're tired of having tweens pick the same 10 songs to be played over-and-over again (100.7 MIX-FM), or you're just sick of the non-stop commercials (HI-99), take a listen to a world-class rock station: 92.3 WTTS.
Although I still mourn the loss of 107.5 WZZQ from time-to-time, 92.3 has made up for it!
***
This blog post by Chris Wathen was also published in his Linton, Indiana based Greene County Daily World blog entitled, "Riddle Me This".
Tuesday, September 23, 2008
Comparing Presidential Candidates Tax Plans
Recently, the Washington Post provided a chart of how the two major contenders for the U.S. Presidential election would stack up against each other with their respective tax plans, as shown here: http://www.washingtonpost.com/wp-dyn/con...
The Washington Post chart has been re-drawn above (click here for larger view:
http://chartjunk.karmanaut.com/images/taxplans.pdf ) and overlaid with U.S. census information on median U.S. household incomes, as well those for the median male & female. It also attributes each area to the percentage of U.S. population that it will affect, which is interesting data to show.
The U.S. Census data puts things in perspective, showing the percentages of the population that the candidates' tax policy will affect. Those that re-drew this chart claim that the uppermost income bracket only contains approximately 1,000 people, while the lower brackets contain millions ergo their reasoning for the re-draw to scale.
As you can see, Obama's plan calls for more tax savings in the lower brackets, but this decrease is mostly offset by increasing taxes in the two highest income brackets. The net effect is almost neutral overall with an average cut of $160.
McCain plans to provide more tax breaks to the upper-end of the income levels. Overall, the tax rates for everyone will go down on an average of $1,195, according to the chart.
***
This blog post by Chris Wathen was also published in his Linton, Indiana based Greene County Daily World blog entitled, "Riddle Me This".
The Washington Post chart has been re-drawn above (click here for larger view:
http://chartjunk.karmanaut.com/images/taxplans.pdf ) and overlaid with U.S. census information on median U.S. household incomes, as well those for the median male & female. It also attributes each area to the percentage of U.S. population that it will affect, which is interesting data to show.
The U.S. Census data puts things in perspective, showing the percentages of the population that the candidates' tax policy will affect. Those that re-drew this chart claim that the uppermost income bracket only contains approximately 1,000 people, while the lower brackets contain millions ergo their reasoning for the re-draw to scale.
As you can see, Obama's plan calls for more tax savings in the lower brackets, but this decrease is mostly offset by increasing taxes in the two highest income brackets. The net effect is almost neutral overall with an average cut of $160.
McCain plans to provide more tax breaks to the upper-end of the income levels. Overall, the tax rates for everyone will go down on an average of $1,195, according to the chart.
***
This blog post by Chris Wathen was also published in his Linton, Indiana based Greene County Daily World blog entitled, "Riddle Me This".
Thursday, September 18, 2008
High Gas Prices Raise Even the Price of Cocaine
I found this quite interesting in the news today, as times are tough even for criminals:
Several newspapers around the country are including an Associated Press story about a 18-year-old drug dealer in Portage, Indiana, who allegedly has raised his price for cocaine due to the additional costs of delivery to his clientele. Reportedly, the northern Indiana man told a police informant that he's been charging an additional $25 "fuel surcharge" because of high gas prices, but was promising customers discounts in the future.
Perhaps he was going to buy a Prius…
***
This blog post by Chris Wathen was also published in his Linton, Indiana based Greene County Daily World blog entitled, "Riddle Me This".
Several newspapers around the country are including an Associated Press story about a 18-year-old drug dealer in Portage, Indiana, who allegedly has raised his price for cocaine due to the additional costs of delivery to his clientele. Reportedly, the northern Indiana man told a police informant that he's been charging an additional $25 "fuel surcharge" because of high gas prices, but was promising customers discounts in the future.
Perhaps he was going to buy a Prius…
***
This blog post by Chris Wathen was also published in his Linton, Indiana based Greene County Daily World blog entitled, "Riddle Me This".
Monday, September 15, 2008
Things Are Looking Bad, Really Bad
A financial powerhouse that was founded in 1850 became the latest firm to fall in the midst of the subprime mortgage crisis. Lehman Brothers, filing for Chapter 11 bankruptcy protection earlier today, demonstrates once again that "the bigger they are, the harder they fall." Along with Lehman, in related banking and financial news today, Merrill Lynch was sold to Bank of America for $50 billion in BOA stock, while AIG is reportedly asking the Fed for $40 billion in emergency funding a la Bear Stearns earlier this year.
In a sea of red ink within the financial industry right now, will the Fed cut rates tomorrow?
Given these financial problems, the only good news may be that crude oil hit a seven-month low of $94.13 on word of all of this other bad news; however, Hurricane Ike is making sure the lower crude oil prices aren't necessarily translated to lower 'at the pump' prices. As I drove though Linton this morning, $4-plus gasoline seemed to be the norm.
As Americans' standard of living continues to erode, something has to break at some point. After all, to borrow Ronald Reagan's now-famous line from his 1980 debate with Jimmy Carter, "Are you better off than you were four years ago?" Of course, an old adage, which was popularized by former President Reagan, too, says "A recession is when your neighbor loses his job. A depression is when you lose yours."
***
This blog post by Chris Wathen was also published in his Linton, Indiana based Greene County Daily World blog entitled, "Riddle Me This".
In a sea of red ink within the financial industry right now, will the Fed cut rates tomorrow?
Given these financial problems, the only good news may be that crude oil hit a seven-month low of $94.13 on word of all of this other bad news; however, Hurricane Ike is making sure the lower crude oil prices aren't necessarily translated to lower 'at the pump' prices. As I drove though Linton this morning, $4-plus gasoline seemed to be the norm.
As Americans' standard of living continues to erode, something has to break at some point. After all, to borrow Ronald Reagan's now-famous line from his 1980 debate with Jimmy Carter, "Are you better off than you were four years ago?" Of course, an old adage, which was popularized by former President Reagan, too, says "A recession is when your neighbor loses his job. A depression is when you lose yours."
***
This blog post by Chris Wathen was also published in his Linton, Indiana based Greene County Daily World blog entitled, "Riddle Me This".
Friday, September 12, 2008
Lowering Sales Tax Rate & Eliminating Property Tax?
Lawmakers in Indiana are discussing lowering the sales tax rate and eliminating property taxes. Here's the catch though:
They would apply sales tax to services too. By doing so, more tax money could be created, which could actually lower the sales tax rate overall and supplement enough additional monies to eliminate property taxes. So, you could be paying sales tax on everything from your tax preparation invoice to attorney's consultation to doctor's bill for a minor surgery.
It's been said that if the legislature says, "We have a tax deal for you!" that you better run away as quickly as you can. Listening to the sirens can pull you in and make your tax situation worse in the end; however, it would make the tax system more of a "consumption tax" rather than a property tax system. As I've posted before (click here: http://www.magiccoalcity.blogspot.com/), if you think you own property just skip a few property tax payments and see what happens.
Taxing services (along with goods as is the case now) with an overall lower sales tax rate and potentially eliminating property taxes: good or bad? What do you think? Would a consumption tax be more appealing?
And what other ramifications will come with it? For example, it seems even more accountants will be needed to keep track of the service-based businesses that have never had to track sales tax before. Given the demand for accountants is already very high since accounting standards have been increased in the wake of the WorldCom & Enron scandals, combined with the fact that the education requirements for CPAs have increased in the last 8 years or so, will that drive accountant scarcity to new highs?
***
This blog post by Chris Wathen was also published in his Linton, Indiana based Greene County Daily World blog entitled, "Riddle Me This".
They would apply sales tax to services too. By doing so, more tax money could be created, which could actually lower the sales tax rate overall and supplement enough additional monies to eliminate property taxes. So, you could be paying sales tax on everything from your tax preparation invoice to attorney's consultation to doctor's bill for a minor surgery.
It's been said that if the legislature says, "We have a tax deal for you!" that you better run away as quickly as you can. Listening to the sirens can pull you in and make your tax situation worse in the end; however, it would make the tax system more of a "consumption tax" rather than a property tax system. As I've posted before (click here: http://www.magiccoalcity.blogspot.com/), if you think you own property just skip a few property tax payments and see what happens.
Taxing services (along with goods as is the case now) with an overall lower sales tax rate and potentially eliminating property taxes: good or bad? What do you think? Would a consumption tax be more appealing?
And what other ramifications will come with it? For example, it seems even more accountants will be needed to keep track of the service-based businesses that have never had to track sales tax before. Given the demand for accountants is already very high since accounting standards have been increased in the wake of the WorldCom & Enron scandals, combined with the fact that the education requirements for CPAs have increased in the last 8 years or so, will that drive accountant scarcity to new highs?
***
This blog post by Chris Wathen was also published in his Linton, Indiana based Greene County Daily World blog entitled, "Riddle Me This".
Monday, September 8, 2008
Community Fundraising Jonah Fish Fry
Once again, the local Knights of Columbus is sponsoring their annual Community Fundraising Jonah Fish Fry on Friday, September 19, from 4:00 p.m. to 7:00 p.m. at their clubhouse located across from St. Peter Church at 4th & "E" Streets NE in Linton.
Tickets are $7.00 for adults and $4.00 for children. All of the proceeds go to your choice of organizations listed on the back of the tickets (just circle which one), including any of these:
* St. Peter Youth Group
* Linton National Guard Family Readiness Group
* Linton Junior Class (Prom)
* Cub Scout Pack 499
* Pregnancy Choices
* Greene County Crime Stoppers
* Bloomfield Holy Name Youth Group
* Linton Community Food Pantry
* Boy Scout Troop 407 Lyons
Contact anyone of these groups for tickets, or you should be able to purchase them at the door too.
Linton will play Springs Valley that night with the football game beginning at 7PM, so this is a great pre-game meal, which helps a number of local groups too!
***
This blog post by Chris Wathen was also published in his Linton, Indiana based Greene County Daily World blog entitled, "Riddle Me This".
Tickets are $7.00 for adults and $4.00 for children. All of the proceeds go to your choice of organizations listed on the back of the tickets (just circle which one), including any of these:
* St. Peter Youth Group
* Linton National Guard Family Readiness Group
* Linton Junior Class (Prom)
* Cub Scout Pack 499
* Pregnancy Choices
* Greene County Crime Stoppers
* Bloomfield Holy Name Youth Group
* Linton Community Food Pantry
* Boy Scout Troop 407 Lyons
Contact anyone of these groups for tickets, or you should be able to purchase them at the door too.
Linton will play Springs Valley that night with the football game beginning at 7PM, so this is a great pre-game meal, which helps a number of local groups too!
***
This blog post by Chris Wathen was also published in his Linton, Indiana based Greene County Daily World blog entitled, "Riddle Me This".
Thursday, September 4, 2008
5 Years of High School Under Long Thompson?
Jill Long Thompson and Dennie Oxley, the Democratic candidates for governor and lieutenant governor, respectively, are proposing high school for some Hoosier students go into a fifth year for those who need more time to graduate, saying the plan would improve Indiana's graduation rate.
Yes, it would change the percentages, but I whole-heartedly DISAGREE with this because translated it says we would just be 'lowering the bar' to get more students to pass.
If students are so unmotivated in the first place, how is an extra year going to help? Perhaps they've not found their calling in life yet -- and most high school students haven't -- but what I'm saying is that there be alternative paths to help identify what exactly piques their interests and finds their passion. (Identify & treat the disease, not the symptoms.) After all, schools seem to train students to be good employees, who are all college-bound. That's not always the case.
Some will want to work for themselves. Others will take a vocational route in life, or they will pursue a particular unionized trade. I'm wondering if a poll was taken in the high schools today, could students identify what an electrical, pipefitter, laborer, or iron worker really does? Would they know those unions even exist?
In a related topic, would a poll reveal that they truly understand that geography, work weeks, and willingness to move, live in a big city vs. small town, and work odd hours will directly dictate your happiness in a particular field?
For example, a student wanting to be home every night with their family but has expectations of a long-haul trucking salary may be disappointed later in life. Or, what about an EMT who wants to work 9-5 Monday through Friday? It's probably not going to happen -- at least around small town America. What about a young person, who wants to open and own his or her own restaurant, but has expectations of working only 40 hours a week? Want to be a marine biologist and work in Greene County? Maybe Crane has something available, but I'm guessing that would be limited. It would probably be your only choice of employer too.
Somehow students need more exposure to a variety of jobs and fields, while instructors satisfy the exhaustive curriculum that is required. I'm not sure of the answers here, but a fifth year doesn't appear to be one of them.
***
This blog post by Chris Wathen was also published in his Linton, Indiana based Greene County Daily World blog entitled, "Riddle Me This".
Yes, it would change the percentages, but I whole-heartedly DISAGREE with this because translated it says we would just be 'lowering the bar' to get more students to pass.
If students are so unmotivated in the first place, how is an extra year going to help? Perhaps they've not found their calling in life yet -- and most high school students haven't -- but what I'm saying is that there be alternative paths to help identify what exactly piques their interests and finds their passion. (Identify & treat the disease, not the symptoms.) After all, schools seem to train students to be good employees, who are all college-bound. That's not always the case.
Some will want to work for themselves. Others will take a vocational route in life, or they will pursue a particular unionized trade. I'm wondering if a poll was taken in the high schools today, could students identify what an electrical, pipefitter, laborer, or iron worker really does? Would they know those unions even exist?
In a related topic, would a poll reveal that they truly understand that geography, work weeks, and willingness to move, live in a big city vs. small town, and work odd hours will directly dictate your happiness in a particular field?
For example, a student wanting to be home every night with their family but has expectations of a long-haul trucking salary may be disappointed later in life. Or, what about an EMT who wants to work 9-5 Monday through Friday? It's probably not going to happen -- at least around small town America. What about a young person, who wants to open and own his or her own restaurant, but has expectations of working only 40 hours a week? Want to be a marine biologist and work in Greene County? Maybe Crane has something available, but I'm guessing that would be limited. It would probably be your only choice of employer too.
Somehow students need more exposure to a variety of jobs and fields, while instructors satisfy the exhaustive curriculum that is required. I'm not sure of the answers here, but a fifth year doesn't appear to be one of them.
***
This blog post by Chris Wathen was also published in his Linton, Indiana based Greene County Daily World blog entitled, "Riddle Me This".
Tuesday, September 2, 2008
6th ANNUAL GCEDC GOLF TOURNAMENT
Announcing the...
6TH ANNUAL GREENE COUNTY ECONOMIC DEVELOPMENT GOLF TOURNAMENT
FRIDAY, SEPTEMBER 19TH, 2008 - 10:00 A.M. SHOTGUN START
$50.00 per person Entry Fee includes:
*Green Fees
*Carts
*Lunch
($35.00 per person for Phil Harris Members)
Skill Prizes: longest drive, closest to the pin, longest putt, etc.!
For questions & further info, contact Brianne Perigo @ 847.4500 or admin@gcedc.us
***
This blog post by Chris Wathen was also published in his Linton, Indiana based Greene County Daily World blog entitled, "Riddle Me This".
6TH ANNUAL GREENE COUNTY ECONOMIC DEVELOPMENT GOLF TOURNAMENT
FRIDAY, SEPTEMBER 19TH, 2008 - 10:00 A.M. SHOTGUN START
$50.00 per person Entry Fee includes:
*Green Fees
*Carts
*Lunch
($35.00 per person for Phil Harris Members)
Skill Prizes: longest drive, closest to the pin, longest putt, etc.!
For questions & further info, contact Brianne Perigo @ 847.4500 or admin@gcedc.us
***
This blog post by Chris Wathen was also published in his Linton, Indiana based Greene County Daily World blog entitled, "Riddle Me This".
Monday, September 1, 2008
It's a Wonderful Day in History!
Friday, August 29th, 2008. It's a day on which many great things have occurred:
In 1756, Frederick the Great attacked Saxony, which began the Seven Years' War, and electromagnetic induction was discovered by Michael Faraday less than 80 years later on this day. Famous people, such as English philosopher John Locke was born on 08/29/32 -- 1632, that is. While television host Robin Leach was born this very day in 1941. Pope Pius VI died in 1799, while Swedish actress Ingrid Bergman was born into the world & died on the same day but several years apart in the years 1915 and 1982, respectively.
It's even the first day of Troth, which is the first day of the Egyptian calendar.
Of course, I bring this date up for none of these events, but only to pat myself on the back. (Yes, I know: don't break my arm.)
On this day one year ago, I posted my first blog post to the Greene County Daily World website, as one of the first "community bloggers" to join. After 112 posts -- and 1 deleted one -- later, I'm still here blogging away.
I hope you've enjoyed them over the past year.
So, Happy 1st Anniversary to me!
PS -- I must confess I knew none of the history shown above, but cheated by looking up the date at http://www.wikipedia.org/ Don't tell anyone though.
***
This blog post by Chris Wathen was also published in his Linton, Indiana based Greene County Daily World blog entitled, "Riddle Me This".
In 1756, Frederick the Great attacked Saxony, which began the Seven Years' War, and electromagnetic induction was discovered by Michael Faraday less than 80 years later on this day. Famous people, such as English philosopher John Locke was born on 08/29/32 -- 1632, that is. While television host Robin Leach was born this very day in 1941. Pope Pius VI died in 1799, while Swedish actress Ingrid Bergman was born into the world & died on the same day but several years apart in the years 1915 and 1982, respectively.
It's even the first day of Troth, which is the first day of the Egyptian calendar.
Of course, I bring this date up for none of these events, but only to pat myself on the back. (Yes, I know: don't break my arm.)
On this day one year ago, I posted my first blog post to the Greene County Daily World website, as one of the first "community bloggers" to join. After 112 posts -- and 1 deleted one -- later, I'm still here blogging away.
I hope you've enjoyed them over the past year.
So, Happy 1st Anniversary to me!
PS -- I must confess I knew none of the history shown above, but cheated by looking up the date at http://www.wikipedia.org/ Don't tell anyone though.
***
This blog post by Chris Wathen was also published in his Linton, Indiana based Greene County Daily World blog entitled, "Riddle Me This".
Wednesday, August 27, 2008
News with Regional Ties
I thought I'd comb through some recent business news columns and add some opinions & commentary to the stories with some local ties, so here goes:
If you've been to the mall lately, you may have shopped at a Steve & Barry's. There are a total of nine locations in the great state of Indiana.
Their philosophy has been to simply sell some nice clothes cheaply, but perhaps they've been selling them too cheaply because they're now filing bankruptcy.
Don't let that worry you about where to get your next deal on clothes, though, because there's some hope. A bankruptcy court judge recently approved another company's bid to acquire all of the assets of Steve & Barry's LLC. So, the majority of Steve & Barry's stores should continue to operate, and there are currently almost 300 of them in total to keep you occupied by looking for great deals.
Side note: It must be tough in the clothing industry right now because you'll recall that family-clothing retailer Goody's filed for bankruptcy a short while back, but the store in Linton appears safe from closing thus far. Not all locations fared so well.
Reportedly, in other recent news around the state, Bloomington-based Author Solutions was fined $50,000 for using unauthorized copies of various popular software programs.
As a company that provides self-publishing services to authors, those very people who depend on copyright protections, the company appears very hypocritical with this announcement; however, President and CEO Kevin Weiss said the infringement happened under prior ownership.
It seems to be an exceptionally damaging story, given they're in the copyright business, while infringing upon the copyrights of others, but we'll just have to see how this all unfolds -- and if it ultimately affects their own bottom-line more than just the $50,000 fine levied.
Will authors react or just keep busy writing?
Time will tell.
It comes as no surprise to small business owners that it can be costly to "follow the rules" of government regulations.
In fact, testimony given by Thomas M. Sullivan, who is the Chief Counsel for Advocacy for the U.S. Small Business Administration, to a U.S. House of Representatives Subcommittee recently on July 30th, focused on the costs to businesses for "following the rules". These costs are higher for smaller firms than larger ones, too, he reported.
Here is an excerpt from the testimony, including some interesting tidbits on small business nationwide:
"Small businesses are extremely important to the U.S. economy. Economic data shows that 99.7% of firms that have employees are small businesses. Small businesses employ over half of the more than 145 million American workers. The small business sector is the primary engine of job creation, growth and innovation. Despite the importance of small business to our country's economic strength, the 2005 Advocacy-funded study by W. Mark Crain, The Impact of Regulatory Costs on Small Firms, found that, in general, small businesses are disproportionately impacted by the total federal regulatory burden. The overall regulatory burden was estimated by Crain to exceed $1.1 trillion in 2004. For small firms, employing fewer than 20 employees, the annual regulatory burden in 2004 was estimated to be $7,647 per employee -- which is 45 percent greater than the $5,282 per employee burden estimated for firms with more than 500 employees."
So, as most news articles would have it, there's a lot of negative stories.
Lastly, to end on a high note, there is one bright spot here in Indiana, and it's in forestry and hardwood sales. They are supposedly holding up pretty well in the midst of national recession. A lot of people may not realize but several trees are logged from Greene County land and "exported" out of the county ultimately. It's a pretty big crop for the area, and it provides several jobs to the community.
***
This blog post by Chris Wathen was also published in his Linton, Indiana based Greene County Daily World blog entitled, "Riddle Me This".
If you've been to the mall lately, you may have shopped at a Steve & Barry's. There are a total of nine locations in the great state of Indiana.
Their philosophy has been to simply sell some nice clothes cheaply, but perhaps they've been selling them too cheaply because they're now filing bankruptcy.
Don't let that worry you about where to get your next deal on clothes, though, because there's some hope. A bankruptcy court judge recently approved another company's bid to acquire all of the assets of Steve & Barry's LLC. So, the majority of Steve & Barry's stores should continue to operate, and there are currently almost 300 of them in total to keep you occupied by looking for great deals.
Side note: It must be tough in the clothing industry right now because you'll recall that family-clothing retailer Goody's filed for bankruptcy a short while back, but the store in Linton appears safe from closing thus far. Not all locations fared so well.
Reportedly, in other recent news around the state, Bloomington-based Author Solutions was fined $50,000 for using unauthorized copies of various popular software programs.
As a company that provides self-publishing services to authors, those very people who depend on copyright protections, the company appears very hypocritical with this announcement; however, President and CEO Kevin Weiss said the infringement happened under prior ownership.
It seems to be an exceptionally damaging story, given they're in the copyright business, while infringing upon the copyrights of others, but we'll just have to see how this all unfolds -- and if it ultimately affects their own bottom-line more than just the $50,000 fine levied.
Will authors react or just keep busy writing?
Time will tell.
It comes as no surprise to small business owners that it can be costly to "follow the rules" of government regulations.
In fact, testimony given by Thomas M. Sullivan, who is the Chief Counsel for Advocacy for the U.S. Small Business Administration, to a U.S. House of Representatives Subcommittee recently on July 30th, focused on the costs to businesses for "following the rules". These costs are higher for smaller firms than larger ones, too, he reported.
Here is an excerpt from the testimony, including some interesting tidbits on small business nationwide:
"Small businesses are extremely important to the U.S. economy. Economic data shows that 99.7% of firms that have employees are small businesses. Small businesses employ over half of the more than 145 million American workers. The small business sector is the primary engine of job creation, growth and innovation. Despite the importance of small business to our country's economic strength, the 2005 Advocacy-funded study by W. Mark Crain, The Impact of Regulatory Costs on Small Firms, found that, in general, small businesses are disproportionately impacted by the total federal regulatory burden. The overall regulatory burden was estimated by Crain to exceed $1.1 trillion in 2004. For small firms, employing fewer than 20 employees, the annual regulatory burden in 2004 was estimated to be $7,647 per employee -- which is 45 percent greater than the $5,282 per employee burden estimated for firms with more than 500 employees."
So, as most news articles would have it, there's a lot of negative stories.
Lastly, to end on a high note, there is one bright spot here in Indiana, and it's in forestry and hardwood sales. They are supposedly holding up pretty well in the midst of national recession. A lot of people may not realize but several trees are logged from Greene County land and "exported" out of the county ultimately. It's a pretty big crop for the area, and it provides several jobs to the community.
***
This blog post by Chris Wathen was also published in his Linton, Indiana based Greene County Daily World blog entitled, "Riddle Me This".
Historical Gold Mine Found in Linton!
A downtown Linton building has a lot of historical significance I found out when I began talking with (and finally even met with) a Butler graduate student, named Donny Jones. It seems he has uncovered a gold mine of sorts, a historical gold mine that is.
Until his research began to shine light again on a historic Linton event, the moment had been buried in a thick layer of dust over time. Today, the building, located at 75 South Main Street in Linton is home to several small businesses. In 1919, however, it housed the New Home Telephone Company.
On April 28th of that year, five-hundred people besieged the building, demanding the dismissal of eight "scab" operators, who had replaced thirteen striking young women from Linton, the story goes. The Indiana National Guard became involved, special agents were sent, thousands of union workers united, and Linton was even declared to be under martial law, the paper states.
It's a very, very interesting bit of labor history, and it all happened in downtown Linton, Indiana! But I won't spoil any more of the story, so to read the published paper in the Journal for the Liberal Arts & Sciences, you can follow the link here: http://www.oak.edu/JLAS/Articles/Fall2008/Jones+(SU08).pdf
***
This blog post by Chris Wathen was also published in his Linton, Indiana based Greene County Daily World blog entitled, "Riddle Me This".
Until his research began to shine light again on a historic Linton event, the moment had been buried in a thick layer of dust over time. Today, the building, located at 75 South Main Street in Linton is home to several small businesses. In 1919, however, it housed the New Home Telephone Company.
On April 28th of that year, five-hundred people besieged the building, demanding the dismissal of eight "scab" operators, who had replaced thirteen striking young women from Linton, the story goes. The Indiana National Guard became involved, special agents were sent, thousands of union workers united, and Linton was even declared to be under martial law, the paper states.
It's a very, very interesting bit of labor history, and it all happened in downtown Linton, Indiana! But I won't spoil any more of the story, so to read the published paper in the Journal for the Liberal Arts & Sciences, you can follow the link here: http://www.oak.edu/JLAS/Articles/Fall2008/Jones+(SU08).pdf
***
This blog post by Chris Wathen was also published in his Linton, Indiana based Greene County Daily World blog entitled, "Riddle Me This".
Tuesday, August 26, 2008
BBQ, Chili, & LMF
Not to trample into Matt's food blog territory, but over the weekend, I had the opportunity to sample some of the Rotary's pulled-pork barbeque, and I just have to tell you all: it was fantastic! Bob Waters and his Rotary Club comrades have done an amazing job with this. (Some hot sauce that they had on hand is the only thing that takes it closer to perfection.)
You'll have the chance to purchase these BBQ sandwiches at the Linton Music Festival this coming Labor Day weekend -- Friday, Saturday, and Sunday have full line-ups of artists and bands. Bob says they'll be preparing a whopping 400-some pounds of the barbeque alone, so there should be plenty available. (I'm told Angell's will have several more pounds of pork ready to cook, if they should need it.)
I did not get a chance to sample the Rotary's three-time award-winning chili, but I have no doubt it will once again be very good. They will make it available at the LMF as well.
So, your ears won't be the only thing happy this Music Fest weekend, but your taste buds will be singing for joy too!
***
This blog post by Chris Wathen was also published in his Linton, Indiana based Greene County Daily World blog entitled, "Riddle Me This".
You'll have the chance to purchase these BBQ sandwiches at the Linton Music Festival this coming Labor Day weekend -- Friday, Saturday, and Sunday have full line-ups of artists and bands. Bob says they'll be preparing a whopping 400-some pounds of the barbeque alone, so there should be plenty available. (I'm told Angell's will have several more pounds of pork ready to cook, if they should need it.)
I did not get a chance to sample the Rotary's three-time award-winning chili, but I have no doubt it will once again be very good. They will make it available at the LMF as well.
So, your ears won't be the only thing happy this Music Fest weekend, but your taste buds will be singing for joy too!
***
This blog post by Chris Wathen was also published in his Linton, Indiana based Greene County Daily World blog entitled, "Riddle Me This".
Monday, August 25, 2008
Sunday Beer & Blue Laws
A group is currently lobbying for Sunday alcohol sales in Indiana, and they claim to have over 10,000 signatures on a petition thus far.
These Sunday no-no regulations, known as Indiana's blue laws, prohibit alcohol sales, as well as the sale of cold beer at drug, grocery, and convenience stores; however, the group, Hoosiers for Beverage Choices, believes they are unfair. Dollars from Sunday alcohol sales are currently being raked in by restaurants and sporting events, that are not affected by these laws, yet grocery stores and other retailers are denied entry to the game, they say.
Here's a sampling of three facts they provide on their website, which is located at http://www.beveragechoices.com/ :
*Indiana is one of only fifteen states that completely prohibits the carry-out sale of alcoholic beverages on Sundays.
*Since 2002, thirteen states have repealed laws restricting alcohol sales on Sundays.
*Indiana is one of only three states that prohibits retailers from selling alcohol on Sunday, yet allows restaurants, taverns, and numerous sports and community events to sell alcohol by the drink on Sunday.
(A little research showed that those three states are Connecticut, Georgia, and Indiana... an unlikely trio.)
So, this is an argument that is economically-driven. In fact, industry news reports that alcohol sales in general can account for between 10 to 20% of an average restaurant's annual revenue, as there's no denying that the mark-up on drinks is substantial. Certainly, other retailers are looking for some of those dollars to be spent in their own retail establishments.
But is it actually a better scenario to allow Sunday retail sales, or will there be other negative ramifications from it?
Blue laws have an interesting past, trying to "enforce moral standards, particularly the observance of Sunday as a day of worship or rest, and a restriction on Sunday shopping," as this Wiki entry states at http://en.wikipedia.org/wiki/Blue_law In an age of many retailers being open on Sundays, is it hypocritical to enforce no Sunday beer, while the Wal-Marts of the world in many rural areas appear to be the after-church gathering places for many shoppers?
All interesting questions, that's for sure.
***
This blog post by Chris Wathen was also published in his Linton, Indiana based Greene County Daily World blog entitled, "Riddle Me This".
These Sunday no-no regulations, known as Indiana's blue laws, prohibit alcohol sales, as well as the sale of cold beer at drug, grocery, and convenience stores; however, the group, Hoosiers for Beverage Choices, believes they are unfair. Dollars from Sunday alcohol sales are currently being raked in by restaurants and sporting events, that are not affected by these laws, yet grocery stores and other retailers are denied entry to the game, they say.
Here's a sampling of three facts they provide on their website, which is located at http://www.beveragechoices.com/ :
*Indiana is one of only fifteen states that completely prohibits the carry-out sale of alcoholic beverages on Sundays.
*Since 2002, thirteen states have repealed laws restricting alcohol sales on Sundays.
*Indiana is one of only three states that prohibits retailers from selling alcohol on Sunday, yet allows restaurants, taverns, and numerous sports and community events to sell alcohol by the drink on Sunday.
(A little research showed that those three states are Connecticut, Georgia, and Indiana... an unlikely trio.)
So, this is an argument that is economically-driven. In fact, industry news reports that alcohol sales in general can account for between 10 to 20% of an average restaurant's annual revenue, as there's no denying that the mark-up on drinks is substantial. Certainly, other retailers are looking for some of those dollars to be spent in their own retail establishments.
But is it actually a better scenario to allow Sunday retail sales, or will there be other negative ramifications from it?
Blue laws have an interesting past, trying to "enforce moral standards, particularly the observance of Sunday as a day of worship or rest, and a restriction on Sunday shopping," as this Wiki entry states at http://en.wikipedia.org/wiki/Blue_law In an age of many retailers being open on Sundays, is it hypocritical to enforce no Sunday beer, while the Wal-Marts of the world in many rural areas appear to be the after-church gathering places for many shoppers?
All interesting questions, that's for sure.
***
This blog post by Chris Wathen was also published in his Linton, Indiana based Greene County Daily World blog entitled, "Riddle Me This".
Thursday, August 21, 2008
Just Say "Yes" to Quiet Naysayers
Constructive criticism is one thing, but naysayers are another. As well-intentioned as they may be, or not, they ultimately spoil many people's dreams, hopes, and ambitions. While naysayers may be people you completely despise to even your best friend or close relative, they all have one thing in common: they tell you why something won't work.
Sometimes they can be very convincing, and the negativity they spew is so infectious that even the most positive people give up at times. That's the really sad part.
So, listen carefully to the next group you are in to see what is REALLY being said. Are ideas being presented that overcome the "we can't ever achieve THAT" mentality by asking "HOW can we achieve that?"
It's interesting to see how every situation can become quite different when "How?" is asked, rather than just focusing on reasons why we supposedly can't do this-or-that. Often times, when "How can we do this?" is asked, there are even better solutions found, ones with more win-win scenarios for everyone involved.
Back in March, I outlined how we, as a community, should be thinking outside the box in my opinion: http://www.magiccoalcity.blogspot.com/ After all, we have a lot of assets essentially parked on the sidelines earning nothing... or next to it.
Even more so, though, we need more people to just say "Yes!" to quiet naysayers because we have too much to lose to let a few squawkers overrule the "silent" majority.
Admittedly, I've been a part of positive groups and negative groups, and I like the positive ones much, much better.
They accomplish so much more too.
***
This blog post by Chris Wathen was also published in his Linton, Indiana based Greene County Daily World blog entitled, "Riddle Me This".
Sometimes they can be very convincing, and the negativity they spew is so infectious that even the most positive people give up at times. That's the really sad part.
So, listen carefully to the next group you are in to see what is REALLY being said. Are ideas being presented that overcome the "we can't ever achieve THAT" mentality by asking "HOW can we achieve that?"
It's interesting to see how every situation can become quite different when "How?" is asked, rather than just focusing on reasons why we supposedly can't do this-or-that. Often times, when "How can we do this?" is asked, there are even better solutions found, ones with more win-win scenarios for everyone involved.
Back in March, I outlined how we, as a community, should be thinking outside the box in my opinion: http://www.magiccoalcity.blogspot.com/ After all, we have a lot of assets essentially parked on the sidelines earning nothing... or next to it.
Even more so, though, we need more people to just say "Yes!" to quiet naysayers because we have too much to lose to let a few squawkers overrule the "silent" majority.
Admittedly, I've been a part of positive groups and negative groups, and I like the positive ones much, much better.
They accomplish so much more too.
***
This blog post by Chris Wathen was also published in his Linton, Indiana based Greene County Daily World blog entitled, "Riddle Me This".
Tuesday, August 19, 2008
She Has THAT Disease?
Imagine you find out that your next door neighbor really is crazy. After all, she's on a number of medications for anxiety and depression, among others. Did you know so-and-so's little girl is on birth control, and John down the street really has THAT disease? You always knew Mrs. Smith was older than she said, and here's her birth date just to prove it! Oh, she has a drug problem too. And Tim fathered a little girl with that woman? Surely not!
How do you know all of this?
Well, your family physician just threw away about a dozen boxes in his dumpster in the back alley. Upon closer examination, you find record-upon-record in these boxes, detailing the names, addresses, social security numbers, birth control methods, medications, employment histories, insurance payments, and health problems of many or your neighbors, friends, and people in town.
A ridiculous thought, right? Would a physician do such a reckless thing with your privacy?
It's actually a true story in nearby Bloomington, Indiana. Reportedly, last October, this exact scenario of medical records spilling out of a trash bin behind Dr. J.B. O'Donnell's Bloomington office was found by a person passing by, who contacted the Herald-Times. The newspaper later published a story and notified officials about the matter.
According to the agreement filed this month in the Monroe Circuit Court, the physician will be fined a measly $1,250 by the state for dumping these sensitive medical records. He also agreed to post information about the security breach on his website for a mere 30 days.
Although state officials promised if he does this type of thing again that he will be in a lot more hot water and face much larger fines, does the current punishment really send a message of how serious this matter could have been?
Do you often wonder (or even ask) how your personal information is handled -- and disposed of -- when you're filling out an application or form? It doesn't necessarily need to be confined to medical records either. The example could be expanded to all businesses, organizations, and groups.
It's something to think about.
***
This blog post by Chris Wathen was also published in his Linton, Indiana based Greene County Daily World blog entitled, "Riddle Me This".
How do you know all of this?
Well, your family physician just threw away about a dozen boxes in his dumpster in the back alley. Upon closer examination, you find record-upon-record in these boxes, detailing the names, addresses, social security numbers, birth control methods, medications, employment histories, insurance payments, and health problems of many or your neighbors, friends, and people in town.
A ridiculous thought, right? Would a physician do such a reckless thing with your privacy?
It's actually a true story in nearby Bloomington, Indiana. Reportedly, last October, this exact scenario of medical records spilling out of a trash bin behind Dr. J.B. O'Donnell's Bloomington office was found by a person passing by, who contacted the Herald-Times. The newspaper later published a story and notified officials about the matter.
According to the agreement filed this month in the Monroe Circuit Court, the physician will be fined a measly $1,250 by the state for dumping these sensitive medical records. He also agreed to post information about the security breach on his website for a mere 30 days.
Although state officials promised if he does this type of thing again that he will be in a lot more hot water and face much larger fines, does the current punishment really send a message of how serious this matter could have been?
Do you often wonder (or even ask) how your personal information is handled -- and disposed of -- when you're filling out an application or form? It doesn't necessarily need to be confined to medical records either. The example could be expanded to all businesses, organizations, and groups.
It's something to think about.
***
This blog post by Chris Wathen was also published in his Linton, Indiana based Greene County Daily World blog entitled, "Riddle Me This".
Go Grandma! Go!
An AP story circulating tonight states that an 85-year-old woman, who lives in Point Marion, Pennsylvania, held a would-be burglar at gun-point. To further pour salt in the wound, she forced the 17-year old thief-in-training to call the police himself while she kept him in her sights the article went on to say.
The full story can be seen here: http://news.yahoo.com/s/ap/20080820/ap_o...
All I have to say is: Go Grandma! Go!
It's certainly a news story that makes you smile! There is some justice in the world.
***
This blog post by Chris Wathen was also published in his Linton, Indiana based Greene County Daily World blog entitled, "Riddle Me This".
The full story can be seen here: http://news.yahoo.com/s/ap/20080820/ap_o...
All I have to say is: Go Grandma! Go!
It's certainly a news story that makes you smile! There is some justice in the world.
***
This blog post by Chris Wathen was also published in his Linton, Indiana based Greene County Daily World blog entitled, "Riddle Me This".
Monday, August 18, 2008
GCBPC: Frequently Asked Questions
Since posting the other day http://gcdailyworld.com/blogs/chriswathen/entry/19858/ I've fielded some questions, regarding the GREENE COUNTY BUSINESS PLAN COMPETITION. Of these, I've decided to post some of the more common ones here:
Q: WHAT IS A BUSINESS PLAN ANYWAY?
A: A business plan is a written description of a company you may wish to start. In it, you will describe what the business will provide customers, who the customers will be, how you will market the products or services you will be selling, and other details of your idea. Traditionally, business plans are developed to communicate these ideas to potential investors, bankers, or business partners. Ideally, they are a 'living document' because they will change over time, as you begin, develop, and change the business. If you ask, few business owners actually end up with the business exactly as they first envisioned it. They may stumble upon a different set of customers, who they didn't realize were in need to their product or service, new products or offerings not first identified, or a completely different method of marketing, as examples.
Q: CAN JUST ONE PERSON ENTER OR CAN A GROUP OF PEOPLE?
A: Yes, either. As in business, sometimes it's just a sole proprietorship. At other times, a partnership or group is involved and makes more sense.
Q: WHAT AGES CAN APPLY?
A: Any ages can apply. In fact, in the era of the internet, many young entrepreneurs have done quite well in real-life business.
Q:DO YOU HAVE TO LIVE IN GREENE COUNTY TO APPLY?
A: Not necessarily. Applicants can be from out of the area, as long as they plan to open and run the business they describe within Greene County.
Q: WHAT PRIZES ARE AVAILABLE TO THE WINNER(S)?
A: We continue to get pledges for more prizes from local companies each day, so stay tuned for updates. All of the prizes are aimed to help a beginning business get a smooth start should they decide to begin their business. For example, we have everything from a free advertising package to a company logo design to a business website to scholarships for entrepreneur workshops pledged so far. If you'd like to discuss pledging items or services toward this county-wide competition, you may e-mail gcbpc@yahoo.com
Q: WHAT RESOURCES ARE AVAILABLE?
A:There are many resources available to you, including the local Chambers of Commerce, the Greene County Economic Development Corporation, local banks, and others. Check with any of these for more information on how to develop a business plan. Most of these organizations have websites, too, which can be quite helpful and full of links to other information. No one form or style of business plan is 'correct' as each have 'pros & cons' to their overall outline. Look at several templates, if you so choose, and select items you feel are best for your particular business idea.
Best wishes & good luck!
***
This blog post by Chris Wathen was also published in his Linton, Indiana based Greene County Daily World blog entitled, "Riddle Me This".
Q: WHAT IS A BUSINESS PLAN ANYWAY?
A: A business plan is a written description of a company you may wish to start. In it, you will describe what the business will provide customers, who the customers will be, how you will market the products or services you will be selling, and other details of your idea. Traditionally, business plans are developed to communicate these ideas to potential investors, bankers, or business partners. Ideally, they are a 'living document' because they will change over time, as you begin, develop, and change the business. If you ask, few business owners actually end up with the business exactly as they first envisioned it. They may stumble upon a different set of customers, who they didn't realize were in need to their product or service, new products or offerings not first identified, or a completely different method of marketing, as examples.
Q: CAN JUST ONE PERSON ENTER OR CAN A GROUP OF PEOPLE?
A: Yes, either. As in business, sometimes it's just a sole proprietorship. At other times, a partnership or group is involved and makes more sense.
Q: WHAT AGES CAN APPLY?
A: Any ages can apply. In fact, in the era of the internet, many young entrepreneurs have done quite well in real-life business.
Q:DO YOU HAVE TO LIVE IN GREENE COUNTY TO APPLY?
A: Not necessarily. Applicants can be from out of the area, as long as they plan to open and run the business they describe within Greene County.
Q: WHAT PRIZES ARE AVAILABLE TO THE WINNER(S)?
A: We continue to get pledges for more prizes from local companies each day, so stay tuned for updates. All of the prizes are aimed to help a beginning business get a smooth start should they decide to begin their business. For example, we have everything from a free advertising package to a company logo design to a business website to scholarships for entrepreneur workshops pledged so far. If you'd like to discuss pledging items or services toward this county-wide competition, you may e-mail gcbpc@yahoo.com
Q: WHAT RESOURCES ARE AVAILABLE?
A:There are many resources available to you, including the local Chambers of Commerce, the Greene County Economic Development Corporation, local banks, and others. Check with any of these for more information on how to develop a business plan. Most of these organizations have websites, too, which can be quite helpful and full of links to other information. No one form or style of business plan is 'correct' as each have 'pros & cons' to their overall outline. Look at several templates, if you so choose, and select items you feel are best for your particular business idea.
Best wishes & good luck!
***
This blog post by Chris Wathen was also published in his Linton, Indiana based Greene County Daily World blog entitled, "Riddle Me This".
Thursday, August 7, 2008
GREENE COUNTY BUSINESS PLAN COMPETITION
The 1st ANNUAL GREENE COUNTY BUSINESS PLAN COMPETITION
"Creating the business owners of tomorrow by fostering ideas today"
Recently, Greene County was selected as a pilot community for the Home Town Competitiveness initiative in Indiana, which is modeled after the highly successful program from Nebraska. One of the four "pillars" is "Youth," while a second pillar is "Entrepreneurship". Inspired by these, the 1st ANNUAL GREENE COUNTY BUSINESS PLAN COMPETITION will help to uncover Greene County's most promising entrepreneurs.
The contest is open to any legal, U.S. residents with a plan to operate a business within or based from Greene County, Indiana. The mission of this start-up business plan contest is to encourage entrepreneurs in the creation, start-up, and early-growth stages of local businesses in Greene County, which will have a positive effect on those aged 1 to 35 in our community. For this competition, a "start-up business" is defined as a new business within the community, not having generated any sales to date.
So, do you have an outstanding business idea? If so, you may be eligible to compete for recognition and prizes in the 1st ANNUAL GREENE COUNTY BUSINESS PLAN COMPETITION. Participants have the chance to win prizes, including valuable products and services that will help them launch their businesses, although there is no obligation for winners to implement their plan. More importantly, the winner(s) will be featured in publications and introduced to local groups for feedback and potential networking opportunities with established businesspeople.
The deadline for submissions is October 15th, 2008. Entrants must complete a business plan, along with submitting the name(s) and contact information of an attorney, accountant, banker, teacher, potential investor, or business person, who has helped, discussed, or advised them on the business plan in some way. No set form or style of business plan is required; however, the plan MUST address the following categories, and each will be judged for perceived viability, clarity, and conciseness by a special panel of judges:
Operations: Describe the business in sufficient detail to allow the reader to understand what product or service the proposed company will provide, what goal(s) the company intends to achieve, and what skills and resources will be needed. Entries may include non-profit or for-profit entities. Each plan should seek methods for the company to be self-sustaining within three to five years of starting.
Sales & Marketing: Describe how the company will market and sell its products or services, along with the anticipated costs associated with the plan. This may include descriptions of various media, strategies, pricing and product placement to be used, as well as special audiences or market niches, if any.
Financing: Describe the company's start-up and operating costs used for the first year, how much total capital will be needed, and how these specific monetary needs will be funded. The proposed business should require not more than $100,000 total to begin, whether through debt, equity, or a combination thereof.
Local Impact: Describe how this company will positively affect the local economy and its way of life. Although would-be entrepreneurs in any industry may participate, the business may not promote, sell, or use any product or service, which is adult-oriented, including but limited to tobacco, alcohol, or gambling, among others. Businesses may not discriminate against any race, religion, gender, or other governmentally-protected group.
Youth Component: Although there is no age limits on participation in the business plan competition, participants must explain what positive impact or effects from the proposed business are expected on youth in the community. Describe how the company will employ, train, sell to, or purchase from those aged 1 to 35 in the local community.
Entries must be electronically submitted in Word or PDF formats to the GREENE COUNTY BUSINESS PLAN COMPETITION at gcbpc@yahoo.com All of the decisions made by a simple majority of the panel of judges are final.
Some helpful links:
http://www.htccommunity.org/
http://www.in.gov/ocra/2351.htm
http://www.isbdc.org/home.aspx
http://www.score.org/template_gallery.ht...
Some definitions & background info:
http://en.wikipedia.org/wiki/Non-profit
http://en.wikipedia.org/wiki/Marketing
http://en.wikipedia.org/wiki/Niche_market
http://en.wikipedia.org/wiki/Capital_%28finance%29
http://en.wikipedia.org/wiki/Shareholder...
The competition has been endorsed by the Greene County Chamber of Commerce Coalition, the Greene County Economic Development Corporation, the Community Learning Center, and the Bloomfield & Linton Rotary Clubs.
Business sponsors include: the Greene County Daily World, Poseidon Graphics, Kegan's Kandy Web Services, and Linton Office Leasing, LLC.
***
This blog post by Chris Wathen was also published in his Linton, Indiana based Greene County Daily World blog entitled, "Riddle Me This".
"Creating the business owners of tomorrow by fostering ideas today"
Recently, Greene County was selected as a pilot community for the Home Town Competitiveness initiative in Indiana, which is modeled after the highly successful program from Nebraska. One of the four "pillars" is "Youth," while a second pillar is "Entrepreneurship". Inspired by these, the 1st ANNUAL GREENE COUNTY BUSINESS PLAN COMPETITION will help to uncover Greene County's most promising entrepreneurs.
The contest is open to any legal, U.S. residents with a plan to operate a business within or based from Greene County, Indiana. The mission of this start-up business plan contest is to encourage entrepreneurs in the creation, start-up, and early-growth stages of local businesses in Greene County, which will have a positive effect on those aged 1 to 35 in our community. For this competition, a "start-up business" is defined as a new business within the community, not having generated any sales to date.
So, do you have an outstanding business idea? If so, you may be eligible to compete for recognition and prizes in the 1st ANNUAL GREENE COUNTY BUSINESS PLAN COMPETITION. Participants have the chance to win prizes, including valuable products and services that will help them launch their businesses, although there is no obligation for winners to implement their plan. More importantly, the winner(s) will be featured in publications and introduced to local groups for feedback and potential networking opportunities with established businesspeople.
The deadline for submissions is October 15th, 2008. Entrants must complete a business plan, along with submitting the name(s) and contact information of an attorney, accountant, banker, teacher, potential investor, or business person, who has helped, discussed, or advised them on the business plan in some way. No set form or style of business plan is required; however, the plan MUST address the following categories, and each will be judged for perceived viability, clarity, and conciseness by a special panel of judges:
Operations: Describe the business in sufficient detail to allow the reader to understand what product or service the proposed company will provide, what goal(s) the company intends to achieve, and what skills and resources will be needed. Entries may include non-profit or for-profit entities. Each plan should seek methods for the company to be self-sustaining within three to five years of starting.
Sales & Marketing: Describe how the company will market and sell its products or services, along with the anticipated costs associated with the plan. This may include descriptions of various media, strategies, pricing and product placement to be used, as well as special audiences or market niches, if any.
Financing: Describe the company's start-up and operating costs used for the first year, how much total capital will be needed, and how these specific monetary needs will be funded. The proposed business should require not more than $100,000 total to begin, whether through debt, equity, or a combination thereof.
Local Impact: Describe how this company will positively affect the local economy and its way of life. Although would-be entrepreneurs in any industry may participate, the business may not promote, sell, or use any product or service, which is adult-oriented, including but limited to tobacco, alcohol, or gambling, among others. Businesses may not discriminate against any race, religion, gender, or other governmentally-protected group.
Youth Component: Although there is no age limits on participation in the business plan competition, participants must explain what positive impact or effects from the proposed business are expected on youth in the community. Describe how the company will employ, train, sell to, or purchase from those aged 1 to 35 in the local community.
Entries must be electronically submitted in Word or PDF formats to the GREENE COUNTY BUSINESS PLAN COMPETITION at gcbpc@yahoo.com All of the decisions made by a simple majority of the panel of judges are final.
Some helpful links:
http://www.htccommunity.org/
http://www.in.gov/ocra/2351.htm
http://www.isbdc.org/home.aspx
http://www.score.org/template_gallery.ht...
Some definitions & background info:
http://en.wikipedia.org/wiki/Non-profit
http://en.wikipedia.org/wiki/Marketing
http://en.wikipedia.org/wiki/Niche_market
http://en.wikipedia.org/wiki/Capital_%28finance%29
http://en.wikipedia.org/wiki/Shareholder...
The competition has been endorsed by the Greene County Chamber of Commerce Coalition, the Greene County Economic Development Corporation, the Community Learning Center, and the Bloomfield & Linton Rotary Clubs.
Business sponsors include: the Greene County Daily World, Poseidon Graphics, Kegan's Kandy Web Services, and Linton Office Leasing, LLC.
***
This blog post by Chris Wathen was also published in his Linton, Indiana based Greene County Daily World blog entitled, "Riddle Me This".
Wednesday, August 6, 2008
Free Money For Artists
Recently, Lt. Governor Becky Skillman announced that up to $75,000 is available in the form of Indiana Artisan Trail Development Grants to develop "thematic trails" that will promote Indiana artisans and tourism.
Skillman is quoted as saying, "These trails will direct visitors to areas with hand-made products and stimulate entrepreneurship, particularly in rural areas."
Grant requests up to $10,000 will be considered. Those looking to apply for funds must submit a letter of intent by August 15, while the completed applications are due October 15.
The application packet, along with additional information, can be found online at http://www.in.gov/indianaartisan/comm_re...
According to the application, examples of eligible costs include, but are not limited to:
1.Planning and development of original trail concepts or significant enhancement of existing ones
a.Inventory of local artisans
b.Documentation of artisan stories for marketing purposes
c.Creation of an incentive/frequent-user program
d.Development of unique trip packages/itineraries related to the trail
e.Consulting services;
2.Marketing
a.Website development
b.Trail promotion material
c.Advertising and public relations efforts
d.Podcasting and other social media efforts
e.Indiana Artisan signs and other branded materials for retail display;
3.Signage/interpretive panels; and
4.Site enhancement.
***
This blog post by Chris Wathen was also published in his Linton, Indiana based Greene County Daily World blog entitled, "Riddle Me This".
Skillman is quoted as saying, "These trails will direct visitors to areas with hand-made products and stimulate entrepreneurship, particularly in rural areas."
Grant requests up to $10,000 will be considered. Those looking to apply for funds must submit a letter of intent by August 15, while the completed applications are due October 15.
The application packet, along with additional information, can be found online at http://www.in.gov/indianaartisan/comm_re...
According to the application, examples of eligible costs include, but are not limited to:
1.Planning and development of original trail concepts or significant enhancement of existing ones
a.Inventory of local artisans
b.Documentation of artisan stories for marketing purposes
c.Creation of an incentive/frequent-user program
d.Development of unique trip packages/itineraries related to the trail
e.Consulting services;
2.Marketing
a.Website development
b.Trail promotion material
c.Advertising and public relations efforts
d.Podcasting and other social media efforts
e.Indiana Artisan signs and other branded materials for retail display;
3.Signage/interpretive panels; and
4.Site enhancement.
***
This blog post by Chris Wathen was also published in his Linton, Indiana based Greene County Daily World blog entitled, "Riddle Me This".
Wednesday, July 30, 2008
Extreme Makeover: Foreclosure Edition
America has fallen in love with the TV show named "Extreme Makeover," which is an ABC production where a family struggling to make ends meet receives a new home, complete with fabulous furnishings. The building materials, labor, appliances, and even a vacation for the family to be out of town during the construction is all donated by show sponsors, contractors, and the local community. The episodes tend to be a tear-jerking journey of the family's past woes and a celebration of their new start, surrounded by the outpouring of giving in their community to them.
Call me negative, but I've always asked myself what happens to the family when they get their new property tax bill. After all, they've taken a typically very distressed property, torn it down, and built a mini-mansion in it's place. It may be looking a gift horse in the mouth, but it's a very real issue nonetheless.
Well, a recent news article forwarded to me took my thought process a bit further: what happens when this family goes out and mortgages their new mini-mansion and can't pay the monthly bill?
Think it doesn't happen? It happens:
http://www.wsbtv.com/news/16980412/detai...
As feel-good as the TV show may be, there's still a story to tell after the production lights have dimmed… and it's not always pretty.
Perhaps, the show is the equivalent of giving a person an aspirin for a headache when the real problem is a brain tumor. In other words, the new home may be a solution to the symptoms, not the true underlying issues.
Instead, maybe the family really needs health insurance, assistance with food or daycare, or additional training or education to land that better-paying job. Each situation would be different, that's for sure, but these may be some of the true underlying issues -- not the need for a mini-mansion -- however great a gift that may be.
***
This blog post by Chris Wathen was also published in his Linton, Indiana based Greene County Daily World blog entitled, "Riddle Me This".
Call me negative, but I've always asked myself what happens to the family when they get their new property tax bill. After all, they've taken a typically very distressed property, torn it down, and built a mini-mansion in it's place. It may be looking a gift horse in the mouth, but it's a very real issue nonetheless.
Well, a recent news article forwarded to me took my thought process a bit further: what happens when this family goes out and mortgages their new mini-mansion and can't pay the monthly bill?
Think it doesn't happen? It happens:
http://www.wsbtv.com/news/16980412/detai...
As feel-good as the TV show may be, there's still a story to tell after the production lights have dimmed… and it's not always pretty.
Perhaps, the show is the equivalent of giving a person an aspirin for a headache when the real problem is a brain tumor. In other words, the new home may be a solution to the symptoms, not the true underlying issues.
Instead, maybe the family really needs health insurance, assistance with food or daycare, or additional training or education to land that better-paying job. Each situation would be different, that's for sure, but these may be some of the true underlying issues -- not the need for a mini-mansion -- however great a gift that may be.
***
This blog post by Chris Wathen was also published in his Linton, Indiana based Greene County Daily World blog entitled, "Riddle Me This".
Tuesday, July 29, 2008
What We Think, What They Think
Americans have the tendency to only care about what we have to say about ourselves, our nation, and our economy.
It's useful from time-to-time to gain another perspective, though, by reading some newspapers abroad. For example, here's a link to what they're saying about the U.S. economy in the United Kingdom: http://www.guardian.co.uk/business/useconomy Other counties' perspectives of the U.S. will surely gain more importance to us as the U.S. economy becomes more tied to the global marketplace.
It also brings to mind that developing nations in the world could very well take huge leaps forward by jumping over steps in our own evolution of things.
(Think: telegraph => telephone => wireless & cellular)
As a nation, we have had to evolve through the various technological advances in telecommunications, expending vast amounts of capital and effort towards infrastructure to support these now archaic methods. Developing nations can jump right to cell towers and never have to install the vast amount of copper and fiber lines that we have had to develop.
Americans may have blazed the path, but still have the R&D bill to show for it.
***
This blog post by Chris Wathen was also published in his Linton, Indiana based Greene County Daily World blog entitled, "Riddle Me This".
It's useful from time-to-time to gain another perspective, though, by reading some newspapers abroad. For example, here's a link to what they're saying about the U.S. economy in the United Kingdom: http://www.guardian.co.uk/business/useconomy Other counties' perspectives of the U.S. will surely gain more importance to us as the U.S. economy becomes more tied to the global marketplace.
It also brings to mind that developing nations in the world could very well take huge leaps forward by jumping over steps in our own evolution of things.
(Think: telegraph => telephone => wireless & cellular)
As a nation, we have had to evolve through the various technological advances in telecommunications, expending vast amounts of capital and effort towards infrastructure to support these now archaic methods. Developing nations can jump right to cell towers and never have to install the vast amount of copper and fiber lines that we have had to develop.
Americans may have blazed the path, but still have the R&D bill to show for it.
***
This blog post by Chris Wathen was also published in his Linton, Indiana based Greene County Daily World blog entitled, "Riddle Me This".
Friday, July 25, 2008
WHERE ARE WE NOW?!
A while back, I wrote about the virtues of applying for community block grants, and how Greene County as a whole could really improve with a few. OK, so I was exceptionally sarcastic on my post: http://www.magiccoalcity.blogspot.com/ Nonetheless, where are we now four months later?!
Call your County Commissioners, County Council, City Council, Mayors, and Town Boards. If we can have up to three of these Community Block Grants open at one time, and each can be for up to $500,000, then does Greene County have its applications in?
I'm not even suggesting at this point that we even have WON three grant applications, but HAVE WE EVEN APPLIED for these monies?!
Sadly, I think not.
Why???
Please hold your elected officials accountable by asking the simple question: "Why not?" You're paying in taxes, so why aren't we applying to get to get some of these monies back??
When someone has a good reason why we're not even applying for them, I'd be glad to listen. How great would $1.5 million dollars coming into our community to make a true difference every year be?!
***
This blog post by Chris Wathen was also published in his Linton, Indiana based Greene County Daily World blog entitled, "Riddle Me This".
Call your County Commissioners, County Council, City Council, Mayors, and Town Boards. If we can have up to three of these Community Block Grants open at one time, and each can be for up to $500,000, then does Greene County have its applications in?
I'm not even suggesting at this point that we even have WON three grant applications, but HAVE WE EVEN APPLIED for these monies?!
Sadly, I think not.
Why???
Please hold your elected officials accountable by asking the simple question: "Why not?" You're paying in taxes, so why aren't we applying to get to get some of these monies back??
When someone has a good reason why we're not even applying for them, I'd be glad to listen. How great would $1.5 million dollars coming into our community to make a true difference every year be?!
***
This blog post by Chris Wathen was also published in his Linton, Indiana based Greene County Daily World blog entitled, "Riddle Me This".
Thursday, July 24, 2008
A Piggy Bank, Not a Cash Cow
Investments in real estate have been quite lucrative for many people, but before you buy several properties to begin your own real estate empire, there is a lot to consider.
Expectations should be set because not all properties work the same way. For example, residential rental property has its own set of "pros and cons" just like commercial property has its own. Unfortunately, there are many misconceptions. For one, many people mistakenly buy single-family residential dwellings with the expectation they will be "cash cows" stuffing big denominations in their pockets each month, but they typically work more like "piggy banks" instead, creating a savings account of sorts in the form of equity.
How do I know this? As a banker, I've seen borrowers do this time-and-time again. Some are successful with the right mind-set from the start, while others learn and adjust along the way, eventually becoming successful too. Another group winds up selling everything at a loss to get rid of the problems they didn't anticipate.
In fact, that seems to be the key: setting good expectations.
To illustrate, let's work backward to find out what amount of rent charged per month will make you break-even at "one-to-one" debt service coverage after expenses. That is banker-speak for what amount of rental income will be enough to cover the monthly mortgage payment and other normal expenses with the only "profit" being some principal amount paid down on the property each month. (As you may already know, a portion of each mortgage payment is directed toward the interest due and the remaining amount toward paying down the principal of the loan.)
The median single-family residence in Linton is valued at approximately $50,000, according to the 2000 Census and another recent housing study conducted for the city in 2005. For this price, the property will most likely be a two-bedroom home with one bathroom and situated on one city lot. (If you'd like to view current homes on the market, you can go to http://www.realtor.com/ and enter the city and state or zip code to search.)
For simplicity, we will finance this hypothetical home with a bank that will loan 100% of the purchase price, assuming we made an excellent purchase and it appraises for more. (This is not likely now due to current nationwide credit crunch, but even if this isn't the case, shouldn't the investor make at least as much as a bank would for lending the money to the project? So, using this argument, we will use a 100% loan on the property.)
Using a 7.5% interest rate (non-owner occupied homes are typically higher interest than owner-occupied property) and an amortization period of 360 months, the monthly payment will be about $350. Again, for simplicity, we will assume the home will not need any remodeling or repairs and is immediately available to rent. (This is very unlikely, too, but we will keep everything simple.)
The property tax on the home should be "market-based" and we just paid $50,000 for it. Applying the 3.66% tax rate (2006 payable 2007 rate) for the City of Linton to the $50,000 assessed value, the annual property tax bill will be $1,830. (Remember: there is no homestead or mortgage exemption available for rental property, but the new property tax relief MAY help this figure to go down in the future. I say "may" because the caps placed on rental property in 2009 will be 2% of assessed value. Remember, though, that property taxes are not only based on the rate, but the assessed values, so assessed values could go up overall.)
Maintenance will run, say, $500 per year. This arbitrary figure will cover a variety of miscellaneous items, such as fixing holes in the walls, replacing light bulbs missing or burned out when the tenant leaves, fixing a leaky toilet from time-to-time, and covering any winter heating costs or summertime lawn mowing fees when the property is vacant.
For argument's sake, the property and casualty insurance will run about $400 per year, but of course this can be impacted by many things, such as credit scores, past losses, deductibles, etc.
We will use only one month of "vacancy" expense for the year. If you are unfamiliar with this term, "vacancy" is defined as the money lost due either to renters not paying us, paying us with bad checks that are never collectable, or the property is simply empty and not rented to anyone for a time. Sometimes this is referred to as "vacancy & collection" expense, which is probably more accurate.
At this point, you should be starting to realize that the check each month from the tenants -- if you even get it -- is far from pure profit. Even if the expenses thus far are covered, you may be actually paying for the renter to stay there in the long run if you are not careful because of yet another important consideration: reserves.
When we talk about "reserves" it means those "big-ticket" items that will need to be replaced in future years, such as the roof, floor coverings, HVAC system, and exterior that will eventually need new paint or siding. Inexperienced landlords often overlook this important consideration, which can be a very costly mistake for them when these items eventually fail. After all, even though they are not monthly outgoing expenses, there will come the day that they will need to be replaced. If money is not collected and set aside, where will the money come from to replace the roof or any other expensive repairs or replacements?
(The alternative is bad, too, if these items are not maintained because the overall appearance of the property goes downhill -- and so does the quality of renter -- leading to more vacancy and collections expenses. Think: slumlord.)
An estimate of some of these major items is shown below, showing the item, estimated useful life in years, estimated cost to replace based on size of example property, and annual allocation (which will be further divided down into a monthly allocation later):
Roof - 20 - $ 4,000 - $ 200
Exterior - 20 - $ 2,500 - $ 125
Floor Coverings - 10 - $ 3,000 - $ 300
HVAC System - 20 - $ 4,000 - $ 200
Other - 20 - $ 1,000 - $ 50
Total Annual Allocation => $ 875
Keep in mind, too, that these are only estimates, as there are a wide variety of materials, brands, service providers, etc.
Total everything mentioned above on a monthly basis, such as $350.00 mortgage payment + $152.50 property taxes + $41.67 maintenance expense + $33.33 insurance + $72.92 reserves + $59.17 vacancy expense, and you will need to charge $710 per month (rounded) to just cover the loan payments and other expenses!
The only "profit" in this example besides the $10 (shown below) would be the principal that is paid down on the loan ("the piggy bank"), which in the first year will be less than $461 for the year, if all of the assumptions above go as planned. (Keep in mind if your vacancy rate goes up to two months, for example, even this profit is completely erased -- and then some.)
To illustrate how a simplified, annual income statement would look when everything goes "as planned" on the above-described property, please see below. Amounts in parenthesis ( ) signify a negative amount or a loss:
INCOME STATEMENT
Gross Income ($710 / month) - $ 8,520.00
Vacancy (1 month) - $ (710.00)
Gross Profit - $ 7,810.00
Insurance - $ (400)
Property Taxes - $ (1,830)
Maintenance - $ (500)
Net Operating Income - $ 5,080.00
Interest Expense (1st Year) - $ (3,734)
Estimated Reserves - $ (875)
Income After Expenses - $ 471.00
Principal Paid (1st Year) - $ (461)
Cash in Pocket - $ 10.00
Although the discussion and figures above may be discouraging, especially the amount of cash in your pocket after everything is accounted for, it is really meant to be thought-provoking.
Sure, from time-to-time, you may be money ahead from these calculations, but just then your a/c unit may go out...
A person must plan very well and do several calculations before jumping into real estate investing. However, the funny thing is, you don't have to be a landlord or renter to use these calculations. This is essentially what it costs to own a home (like the one in the example) long-term. After all, shouldn't you as a homeowner be building equity in your own home, just like the investor would? Or, are you treating your home like an ATM?
One last thought:
If this example was a business building that you owned and operated your business out of, are you really making money off of your business? To find out, you must separate out your real estate "business" from your actual business because, as an owner-occupant, you are really in two lines of business, whether you realized that or not. A business person should be maintaining his/her building, while setting aside reasonable reserves for the big ticket items that will eventually fail, plus make an income from their time and toil in his/her business too.
***
This blog post by Chris Wathen was also published in his Linton, Indiana based Greene County Daily World blog entitled, "Riddle Me This".
Expectations should be set because not all properties work the same way. For example, residential rental property has its own set of "pros and cons" just like commercial property has its own. Unfortunately, there are many misconceptions. For one, many people mistakenly buy single-family residential dwellings with the expectation they will be "cash cows" stuffing big denominations in their pockets each month, but they typically work more like "piggy banks" instead, creating a savings account of sorts in the form of equity.
How do I know this? As a banker, I've seen borrowers do this time-and-time again. Some are successful with the right mind-set from the start, while others learn and adjust along the way, eventually becoming successful too. Another group winds up selling everything at a loss to get rid of the problems they didn't anticipate.
In fact, that seems to be the key: setting good expectations.
To illustrate, let's work backward to find out what amount of rent charged per month will make you break-even at "one-to-one" debt service coverage after expenses. That is banker-speak for what amount of rental income will be enough to cover the monthly mortgage payment and other normal expenses with the only "profit" being some principal amount paid down on the property each month. (As you may already know, a portion of each mortgage payment is directed toward the interest due and the remaining amount toward paying down the principal of the loan.)
The median single-family residence in Linton is valued at approximately $50,000, according to the 2000 Census and another recent housing study conducted for the city in 2005. For this price, the property will most likely be a two-bedroom home with one bathroom and situated on one city lot. (If you'd like to view current homes on the market, you can go to http://www.realtor.com/ and enter the city and state or zip code to search.)
For simplicity, we will finance this hypothetical home with a bank that will loan 100% of the purchase price, assuming we made an excellent purchase and it appraises for more. (This is not likely now due to current nationwide credit crunch, but even if this isn't the case, shouldn't the investor make at least as much as a bank would for lending the money to the project? So, using this argument, we will use a 100% loan on the property.)
Using a 7.5% interest rate (non-owner occupied homes are typically higher interest than owner-occupied property) and an amortization period of 360 months, the monthly payment will be about $350. Again, for simplicity, we will assume the home will not need any remodeling or repairs and is immediately available to rent. (This is very unlikely, too, but we will keep everything simple.)
The property tax on the home should be "market-based" and we just paid $50,000 for it. Applying the 3.66% tax rate (2006 payable 2007 rate) for the City of Linton to the $50,000 assessed value, the annual property tax bill will be $1,830. (Remember: there is no homestead or mortgage exemption available for rental property, but the new property tax relief MAY help this figure to go down in the future. I say "may" because the caps placed on rental property in 2009 will be 2% of assessed value. Remember, though, that property taxes are not only based on the rate, but the assessed values, so assessed values could go up overall.)
Maintenance will run, say, $500 per year. This arbitrary figure will cover a variety of miscellaneous items, such as fixing holes in the walls, replacing light bulbs missing or burned out when the tenant leaves, fixing a leaky toilet from time-to-time, and covering any winter heating costs or summertime lawn mowing fees when the property is vacant.
For argument's sake, the property and casualty insurance will run about $400 per year, but of course this can be impacted by many things, such as credit scores, past losses, deductibles, etc.
We will use only one month of "vacancy" expense for the year. If you are unfamiliar with this term, "vacancy" is defined as the money lost due either to renters not paying us, paying us with bad checks that are never collectable, or the property is simply empty and not rented to anyone for a time. Sometimes this is referred to as "vacancy & collection" expense, which is probably more accurate.
At this point, you should be starting to realize that the check each month from the tenants -- if you even get it -- is far from pure profit. Even if the expenses thus far are covered, you may be actually paying for the renter to stay there in the long run if you are not careful because of yet another important consideration: reserves.
When we talk about "reserves" it means those "big-ticket" items that will need to be replaced in future years, such as the roof, floor coverings, HVAC system, and exterior that will eventually need new paint or siding. Inexperienced landlords often overlook this important consideration, which can be a very costly mistake for them when these items eventually fail. After all, even though they are not monthly outgoing expenses, there will come the day that they will need to be replaced. If money is not collected and set aside, where will the money come from to replace the roof or any other expensive repairs or replacements?
(The alternative is bad, too, if these items are not maintained because the overall appearance of the property goes downhill -- and so does the quality of renter -- leading to more vacancy and collections expenses. Think: slumlord.)
An estimate of some of these major items is shown below, showing the item, estimated useful life in years, estimated cost to replace based on size of example property, and annual allocation (which will be further divided down into a monthly allocation later):
Roof - 20 - $ 4,000 - $ 200
Exterior - 20 - $ 2,500 - $ 125
Floor Coverings - 10 - $ 3,000 - $ 300
HVAC System - 20 - $ 4,000 - $ 200
Other - 20 - $ 1,000 - $ 50
Total Annual Allocation => $ 875
Keep in mind, too, that these are only estimates, as there are a wide variety of materials, brands, service providers, etc.
Total everything mentioned above on a monthly basis, such as $350.00 mortgage payment + $152.50 property taxes + $41.67 maintenance expense + $33.33 insurance + $72.92 reserves + $59.17 vacancy expense, and you will need to charge $710 per month (rounded) to just cover the loan payments and other expenses!
The only "profit" in this example besides the $10 (shown below) would be the principal that is paid down on the loan ("the piggy bank"), which in the first year will be less than $461 for the year, if all of the assumptions above go as planned. (Keep in mind if your vacancy rate goes up to two months, for example, even this profit is completely erased -- and then some.)
To illustrate how a simplified, annual income statement would look when everything goes "as planned" on the above-described property, please see below. Amounts in parenthesis ( ) signify a negative amount or a loss:
INCOME STATEMENT
Gross Income ($710 / month) - $ 8,520.00
Vacancy (1 month) - $ (710.00)
Gross Profit - $ 7,810.00
Insurance - $ (400)
Property Taxes - $ (1,830)
Maintenance - $ (500)
Net Operating Income - $ 5,080.00
Interest Expense (1st Year) - $ (3,734)
Estimated Reserves - $ (875)
Income After Expenses - $ 471.00
Principal Paid (1st Year) - $ (461)
Cash in Pocket - $ 10.00
Although the discussion and figures above may be discouraging, especially the amount of cash in your pocket after everything is accounted for, it is really meant to be thought-provoking.
Sure, from time-to-time, you may be money ahead from these calculations, but just then your a/c unit may go out...
A person must plan very well and do several calculations before jumping into real estate investing. However, the funny thing is, you don't have to be a landlord or renter to use these calculations. This is essentially what it costs to own a home (like the one in the example) long-term. After all, shouldn't you as a homeowner be building equity in your own home, just like the investor would? Or, are you treating your home like an ATM?
One last thought:
If this example was a business building that you owned and operated your business out of, are you really making money off of your business? To find out, you must separate out your real estate "business" from your actual business because, as an owner-occupant, you are really in two lines of business, whether you realized that or not. A business person should be maintaining his/her building, while setting aside reasonable reserves for the big ticket items that will eventually fail, plus make an income from their time and toil in his/her business too.
***
This blog post by Chris Wathen was also published in his Linton, Indiana based Greene County Daily World blog entitled, "Riddle Me This".
Wednesday, July 23, 2008
Entrepreneurship Report Now Available
Back a few months ago, students in the Foundations of Entrepreneurship course at Marian College made a short presentation at the Linton City Council meeting. Along with this presentation, they prepared a written report for the City of Linton.
A hard copy of this report is now available at the Linton Public Library in the "Indiana" section. I dropped it off the other day. So, if you get the chance, be sure to take a look.
Special thanks to Professor Robert Schuttler for making this all possible.
***
This blog post by Chris Wathen was also published in his Linton, Indiana based Greene County Daily World blog entitled, "Riddle Me This".
A hard copy of this report is now available at the Linton Public Library in the "Indiana" section. I dropped it off the other day. So, if you get the chance, be sure to take a look.
Special thanks to Professor Robert Schuttler for making this all possible.
***
This blog post by Chris Wathen was also published in his Linton, Indiana based Greene County Daily World blog entitled, "Riddle Me This".
Monday, July 21, 2008
There's a New Logo in Town
They're rolling out something new -- and it's not new, lower prices this time. It's a new look and logo.
Walmart is changing its logo, and it's getting a lot of press these days for it... at least in the business news headlines. In fact, the company seems to be making a huge deal out of its logo change. They've even set aside a page on their website to chronicle the evolution of their name and logo at http://walmartstores.com/AboutUs/8412.as...
But does it really matter?
Founder Sam Walton spent a lot of money on improving the company's trucking and logistics, and now they are one of the biggest -- and in some people's opinion, the best. He spent lots of money on check-out scanning and computer technology when this was still in its infancy to many competitors' jeers. This enabled the retailer to outperform these peers in later years because, for example, when you check out with six GI Joes with the Kung-Fu grip, it not only rings up your total, but reduces the store's inventory count by six, and orders six more from the distribution center -- all automatically.
I'm just not sure this very frugal founder, who reportedly still drove an old pick-up truck after becoming a multi-millionaire, would have approved such an expenditure. What dropping the hyphen and adding a sunburst will really do for the company's bottom line is a mystery to me. And frankly, I don't think it'll benefit the stockholders -- or the shoppers.
***
This blog post by Chris Wathen was also published in his Linton, Indiana based Greene County Daily World blog entitled, “Riddle Me This”.
Walmart is changing its logo, and it's getting a lot of press these days for it... at least in the business news headlines. In fact, the company seems to be making a huge deal out of its logo change. They've even set aside a page on their website to chronicle the evolution of their name and logo at http://walmartstores.com/AboutUs/8412.as...
But does it really matter?
Founder Sam Walton spent a lot of money on improving the company's trucking and logistics, and now they are one of the biggest -- and in some people's opinion, the best. He spent lots of money on check-out scanning and computer technology when this was still in its infancy to many competitors' jeers. This enabled the retailer to outperform these peers in later years because, for example, when you check out with six GI Joes with the Kung-Fu grip, it not only rings up your total, but reduces the store's inventory count by six, and orders six more from the distribution center -- all automatically.
I'm just not sure this very frugal founder, who reportedly still drove an old pick-up truck after becoming a multi-millionaire, would have approved such an expenditure. What dropping the hyphen and adding a sunburst will really do for the company's bottom line is a mystery to me. And frankly, I don't think it'll benefit the stockholders -- or the shoppers.
***
This blog post by Chris Wathen was also published in his Linton, Indiana based Greene County Daily World blog entitled, “Riddle Me This”.
Sunday, July 20, 2008
Charging Your Way to Tax-Free Living?
I came across an interesting theory on money and credit lately. Of course, it was posted on the internet, a good sign that it should receive some scrutiny...
A guy was thoroughly disgusted with the overall reliance and heavy-use of credit cards among Americans, but he said he knew why that was. After all, he said, the use of credit cards is equivalent to making tax-free money since money from loans is not taxed as earned income is.
[Be forewarned, there's lots of math ahead.]
His example was a person, who makes $30,000 per year could have the same lifestyle as another person making much more (in the $50's) just because the one making $30,000 and charging another, say, $15,000 wasn't having to pay the many taxes (say, 30%, he stated) that come out of one's paycheck on those credit card charges.
It's an interesting theory, one that I'd like to put pen to paper on, so here goes:
For now, let's put aside the fact that you'll have to pay it back someday. If your argument is that the amount charged is "tax-free" income, then only the $15,000 could be used with the 30% tax "inflation" factor shown as (X-0.3X) = $15,000 => 0.7X = $15,000 => X=$21,429 rounded. This amount, in addition to the $30,000 actual salary, would be the equivalent to a person making $51,429, who had to pay taxes on all of it at the said 30% rate.
To get to a point where this fictional person is "making" (or at least enjoying the lifestyle) of twice the amount of his/her actual earnings -- or $60,000 -- you would have to charge $42,857 on the card or cards, which is figured as follows: ($30,000 + (0.7X)) = $60,000 => subtract $30,000 from each side of the equation and => 0.7X = 30,000 => divide both sides by 0.7 => $42,857.
But, alas, you have to pay it back in reality:
So, since most credit cards charge a minimum monthly payment of 1 to 2% of the balance, this would equate to a $429 to $858 per month bill, depending on the card company. This would put this person, who makes $30,000 per year gross in actual compensation, in an immediate 17% to 34% debt-to-income ratio without any other outstanding debt considered.
Most banks, do not want to see any more than a 36% debt-to-income ratio when all debts are considered, although some will go to 40% in special circumstances. Therefore, you could charge that much is one year ($42,857), provided a card company would give a person 1.43 X's his/her annual salary in available credit; however, you'd only last one year charging things at this rate because of creating such a high debt-to-income ratio.
Of course, at that point, you'd be paying back debt on the card(s) for the rest of your life -- or at least 100 months paying even the $858 per month at a 19% interest rate. So, I'm not sure the "tax-free living" theory is exactly worth it, but this little run-through certainly helps to reinforce his disgust about the heavy-use of credit in America today.
It also makes me thankful that HP makes such a great financial calculator to test these theories without much work.
***
This blog post by Chris Wathen was also published in his Linton, Indiana based Greene County Daily World blog entitled, "Riddle Me This".
A guy was thoroughly disgusted with the overall reliance and heavy-use of credit cards among Americans, but he said he knew why that was. After all, he said, the use of credit cards is equivalent to making tax-free money since money from loans is not taxed as earned income is.
[Be forewarned, there's lots of math ahead.]
His example was a person, who makes $30,000 per year could have the same lifestyle as another person making much more (in the $50's) just because the one making $30,000 and charging another, say, $15,000 wasn't having to pay the many taxes (say, 30%, he stated) that come out of one's paycheck on those credit card charges.
It's an interesting theory, one that I'd like to put pen to paper on, so here goes:
For now, let's put aside the fact that you'll have to pay it back someday. If your argument is that the amount charged is "tax-free" income, then only the $15,000 could be used with the 30% tax "inflation" factor shown as (X-0.3X) = $15,000 => 0.7X = $15,000 => X=$21,429 rounded. This amount, in addition to the $30,000 actual salary, would be the equivalent to a person making $51,429, who had to pay taxes on all of it at the said 30% rate.
To get to a point where this fictional person is "making" (or at least enjoying the lifestyle) of twice the amount of his/her actual earnings -- or $60,000 -- you would have to charge $42,857 on the card or cards, which is figured as follows: ($30,000 + (0.7X)) = $60,000 => subtract $30,000 from each side of the equation and => 0.7X = 30,000 => divide both sides by 0.7 => $42,857.
But, alas, you have to pay it back in reality:
So, since most credit cards charge a minimum monthly payment of 1 to 2% of the balance, this would equate to a $429 to $858 per month bill, depending on the card company. This would put this person, who makes $30,000 per year gross in actual compensation, in an immediate 17% to 34% debt-to-income ratio without any other outstanding debt considered.
Most banks, do not want to see any more than a 36% debt-to-income ratio when all debts are considered, although some will go to 40% in special circumstances. Therefore, you could charge that much is one year ($42,857), provided a card company would give a person 1.43 X's his/her annual salary in available credit; however, you'd only last one year charging things at this rate because of creating such a high debt-to-income ratio.
Of course, at that point, you'd be paying back debt on the card(s) for the rest of your life -- or at least 100 months paying even the $858 per month at a 19% interest rate. So, I'm not sure the "tax-free living" theory is exactly worth it, but this little run-through certainly helps to reinforce his disgust about the heavy-use of credit in America today.
It also makes me thankful that HP makes such a great financial calculator to test these theories without much work.
***
This blog post by Chris Wathen was also published in his Linton, Indiana based Greene County Daily World blog entitled, "Riddle Me This".
Thursday, July 17, 2008
I Became a Multi-Millionaire Today!
Friends,
I don't like to brag, but I became a multi-millionaire today.
There's no need to contact me for a loan or a charitable gift because as soon as the money hits my account, I plan to escape to a private island to soak up the sun, sand, and surf.
From now on, my only job will be holding onto and sipping on the many Mai Tai's I'll be ordering from my attentive, private wait staff.
How did I accomplish this vast wealth?
Well, it was easy. I checked my e-mail this morning, and there it was. I've copied and pasted it in its entirety below:
Dear Sir,
As the Executor of the estate of Late Engr.Richard Megson; I seek your humble consent to present you as a next of kin to the sum of $17.1Million belonging to my Late Client who died intestate(without a will).
Upon your acceptance of this offer,i will prepare all necessary documents to support this claims and i assure you that it is completely legal and risk free. Respond for more details.
Yours in service
BARRISTER HENRY BILL.
Lawyer&Solicitor
Seriously, though... people fall for these e-mail scams daily.
There may be several variations, but they all work in the same way: to enrich the fraudster. If I were to contact this person, I'm sure I'd have to wire some money for taxes or a special fee or some sort of bribe for a foreign governmental official. This would be a few thousand dollars, but only a minute fraction of the millions I would be promised to receive, right?
I probably shouldn't have, but back several months ago, I gave in to temptation and actually replied to one and gave them the police department's phone number to contact me. Obviously, the international fraudster was too dumb -- or his English not good enough -- to figure out that he had been sent into the arms of the law because he actually e-mailed back saying that it was a wrong number, as I wasn't at that number.
I guess I can't fault the police -- maybe s/he didn't recognize the Nigerian accent -- but the dispatcher had obviously been mouthpiece-to-mouthpiece over the phone with an international criminal, committing all sorts of punishable crimes. It's too bad you can't cuff people over the telephone lines!
In any event, many people feel it goes without saying that, "if it's too good to be true, it probably is" but I'm going to say it anyway. If you receive one of these e-mails or letters, saying you have some huge inheritance from someone you never heard of, a sizeable foreign lottery winning without actually ever buying a lottery ticket, or some other big prize, just delete it or throw it away.
I probably shouldn't have even replied to the one I just spoke about because s/he probably sold my e-mail address to every spammer out there. Good thing I have good spam filters!
And sadly, I guess there will be no sun, sand, and surf for me, nor a private island or attentive wait staff or endless Mai Tai's either...
***
This blog post by Chris Wathen was also published in his Linton, Indiana based Greene County Daily World blog entitled, “Riddle Me This”.
I don't like to brag, but I became a multi-millionaire today.
There's no need to contact me for a loan or a charitable gift because as soon as the money hits my account, I plan to escape to a private island to soak up the sun, sand, and surf.
From now on, my only job will be holding onto and sipping on the many Mai Tai's I'll be ordering from my attentive, private wait staff.
How did I accomplish this vast wealth?
Well, it was easy. I checked my e-mail this morning, and there it was. I've copied and pasted it in its entirety below:
Dear Sir,
As the Executor of the estate of Late Engr.Richard Megson; I seek your humble consent to present you as a next of kin to the sum of $17.1Million belonging to my Late Client who died intestate(without a will).
Upon your acceptance of this offer,i will prepare all necessary documents to support this claims and i assure you that it is completely legal and risk free. Respond for more details.
Yours in service
BARRISTER HENRY BILL.
Lawyer&Solicitor
Seriously, though... people fall for these e-mail scams daily.
There may be several variations, but they all work in the same way: to enrich the fraudster. If I were to contact this person, I'm sure I'd have to wire some money for taxes or a special fee or some sort of bribe for a foreign governmental official. This would be a few thousand dollars, but only a minute fraction of the millions I would be promised to receive, right?
I probably shouldn't have, but back several months ago, I gave in to temptation and actually replied to one and gave them the police department's phone number to contact me. Obviously, the international fraudster was too dumb -- or his English not good enough -- to figure out that he had been sent into the arms of the law because he actually e-mailed back saying that it was a wrong number, as I wasn't at that number.
I guess I can't fault the police -- maybe s/he didn't recognize the Nigerian accent -- but the dispatcher had obviously been mouthpiece-to-mouthpiece over the phone with an international criminal, committing all sorts of punishable crimes. It's too bad you can't cuff people over the telephone lines!
In any event, many people feel it goes without saying that, "if it's too good to be true, it probably is" but I'm going to say it anyway. If you receive one of these e-mails or letters, saying you have some huge inheritance from someone you never heard of, a sizeable foreign lottery winning without actually ever buying a lottery ticket, or some other big prize, just delete it or throw it away.
I probably shouldn't have even replied to the one I just spoke about because s/he probably sold my e-mail address to every spammer out there. Good thing I have good spam filters!
And sadly, I guess there will be no sun, sand, and surf for me, nor a private island or attentive wait staff or endless Mai Tai's either...
***
This blog post by Chris Wathen was also published in his Linton, Indiana based Greene County Daily World blog entitled, “Riddle Me This”.
Wednesday, July 16, 2008
Pearls Before Breakfast, But For Only Very Few
A short while back, I was reading an article in the Washington Post about Joshua Bell, entitled Pearls Before Breakfast. http://www.washingtonpost.com/wp-dyn/content/article/2007/04/04/AR2007040401721.html If his name sounds familiar, Mr. Bell has ties to nearby Bloomington, Indiana. He is also known as one of the best violinists in the world today. If you choose not to click on the link above to read this lengthy, but very good article, I'll give you the condensed version here:
As a little experiment, Mr. Bell was asked to play in a subway one morning to every day commuters, playing a very rare and valuable Stradivarius violin. He would be dressed in normal street clothes, and there would be no indications, such as signage around him, to let people know who he really was. It would be just an ordinary morning with extraordinary music being played.
Experts were asked beforehand, including Bell himself, how many people would stop to listen. It was also hypothesized that he would receive quite a few donations in his opened violin case during his stint as a street musician. After all, tickets to a Joshua Bell concert are pricey, equating to a tidy sum for him as even measured by the minute played, not hour. In all, there were many guesses, but none as low as was the reality.
In fact, of the thousands of commuters that morning, it was the very rare person who even stopped for a moment. After those conducting this social experiment reviewed the tape from the hidden cameras placed in the subway, the only common theme was that small children always seemed to stop to listen -- at least for a moment until their parents whisked them away.Many people interviewed later had not even noticed there was a "street musician" in the subway that day.
A world-renowned violinist playing extremely difficult compositions on a multi-million dollar musical instrument for free to thousands of people passing by -- and only 7 people even stopped to listen. Total tips in his violin case after playing that morning was a measly $32.17, given by about 27 people, who were almost all on the run. And as the Washington Post writer points out, yes, some gave pennies. Very interesting to say the least.
There may have been pearls before breakfast, but very few even accepted them.
***
This blog post by Chris Wathen was also published in his Linton, Indiana based Greene County Daily World blog entitled, “Riddle Me This”.
As a little experiment, Mr. Bell was asked to play in a subway one morning to every day commuters, playing a very rare and valuable Stradivarius violin. He would be dressed in normal street clothes, and there would be no indications, such as signage around him, to let people know who he really was. It would be just an ordinary morning with extraordinary music being played.
Experts were asked beforehand, including Bell himself, how many people would stop to listen. It was also hypothesized that he would receive quite a few donations in his opened violin case during his stint as a street musician. After all, tickets to a Joshua Bell concert are pricey, equating to a tidy sum for him as even measured by the minute played, not hour. In all, there were many guesses, but none as low as was the reality.
In fact, of the thousands of commuters that morning, it was the very rare person who even stopped for a moment. After those conducting this social experiment reviewed the tape from the hidden cameras placed in the subway, the only common theme was that small children always seemed to stop to listen -- at least for a moment until their parents whisked them away.Many people interviewed later had not even noticed there was a "street musician" in the subway that day.
A world-renowned violinist playing extremely difficult compositions on a multi-million dollar musical instrument for free to thousands of people passing by -- and only 7 people even stopped to listen. Total tips in his violin case after playing that morning was a measly $32.17, given by about 27 people, who were almost all on the run. And as the Washington Post writer points out, yes, some gave pennies. Very interesting to say the least.
There may have been pearls before breakfast, but very few even accepted them.
***
This blog post by Chris Wathen was also published in his Linton, Indiana based Greene County Daily World blog entitled, “Riddle Me This”.
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