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Articles from the Web

Exxon Raises Spending 11% Even as Rivals Reduce Costs – WSJ.com

Exxon Raises Spending 11% Even as Rivals Reduce Costs – WSJ.com.

You have to be a WSJ subscriber to get the whole article, but believe it or not, I’m happy about something Exxon is doing.  

At the very least, I think it’s somewhat safe to say that Exxon is recognizing that there is a lot of catching-up to do with small, agile companies in terms of green energy (I think that’s way too broad of a term, by the way) and technologies and is going to utilize all of those record-setting profits of the last few years (you know, when gases were at an all-time high?) to do some research.  

$29 billion has to get a company somewhere…

March 5, 2009 Articles from the Web, 2 Read more >

Stocks up despite falling revenues – can we say market volatility?

Continental, AMR soar with falling oil prices – MarketWatch

This makes no sense.  Continental was leading the pack on declining revenues, helping to cause a market-wide drop just a week ago, perhaps less (will look up those links in a bit).  Now, just because oil prices are dropping, the hope for increased profits (or…maybe just decreased losses?) has everyone feeling good about airlines again. 

Perhaps the least examined aspect of this entire crisis is the psychological effect.  Massive volatility like this and the impact market-wide points towards the lack of confidence, the over-emphasis on even small points of positive activity, etc. 

February 12, 2009 2008 Economic Crisis, Articles from the Web, 0 Read more >

Toxic Assets – finally doing something about it

Geithner Unveils Revised Bank Plan – BusinessWeek

Paul Krugman, the economist, wrote a while ago about how one of the factors in any stimulus plan was that government spending alone would not be enough.  The government had to get “toxic assets” (bad mortgages, etc) off of bank balance sheets so that those credit institutions could start lending again.  This is a pretty critical aspect.  Even if it’s just psychological, our lenders are not lending, and our economy is based on 1) consumption and 2) borrowing (because, in general, we never have as much money as we’d like to spend).  The machine just starts to break down at that point.

Jon Stewart, in assessing all the tax problems Obama’s appointments have had, commented that Geithner got through because he’s the only one that can save our economy.  Good first step, IMO.

Oh, btw – key point is that there is going to be a test to see whether banks can really lend or not.  I like requirements for giving out up to $1 trillion.

February 10, 2009 2008 Economic Crisis, Articles from the Web, , , 0 Read more >

Hadron Collider – still time to end the world

BBC NEWS | Science & Environment | Hadron Collider relaunch delayed

Remember how people theorized that the Hadron Collider would, in trying to recreate the big bang (but in a small, controlled manner!) was going to end the world (there was a great article somewhere that debunked those fears but I don’t know where it is…)?  Then it turned on and nothing happened?  Then it broke down?

Well, now they’re fixing it so we got another chance!  Woohoo!

February 10, 2009 Articles from the Web, , 0 Read more >

Just when it seemed Ticketmaster’s monopoly was ending…

Live Nation and Ticketmaster may merge: WSJ – MarketWatch

I still remember when I could buy seats – not lawn tickets – but seats at the major area amphitheater for $30 with a $8 surcharge.  This wasn’t that long ago – maybe 8 years.  Not recent, either, but not forever ago.  Now it’s $75 with a $15 surcharge. 

Live Nation, with a very different (though expensive to them) model, was proving to be a real challenge to Ticketmaster.  Now they are merging.  Yay.

February 9, 2009 Articles from the Web, , 0 Read more >

Panasonic’s “tough love” approach to fighting the recession

Huge Recession-Fighting Cuts at Panasonic – BusinessWeek

Those opposed to a massive stimulus plan for the US might want to look at this article…Panasonic is taking a hyper-aggressive approach to fighting off its losses in profits.  Laying people off, closing plants, and taking a HUGE bath on losses for this year.  $3.85 BILLION this year, though March.  That’s TWICE the size of previous estimates.  This will increase the net loss for the year to $4.2 billion. 

However.  Next year’s savings could top $1 billion.  That’s a remarkable number considering this is a consumer electronics company in a market where people are saving at potentially scary rates (US savings rate should be at 4% right about now, possibly more, which is quite high) and consuming at very low ones. 

This speaks to a few things.  First, taking a bath isn’t necessarily bad.  A gigantic government deficit, unto itself, is not a good thing, but in terms of recession, it’s almost always necessary.  Government spending means government deficit, unless you raise taxes at the exact same time (kinda defeats the purpose, though, if you raise taxes the same amount you raise spending).  If huge deficit right now can mean a faster recovery (which, under sound fiscal management should then pay off that deficit), then that’s quite meaningful.

February 6, 2009 Articles from the Web 1 Read more >