Hi Everyone:
The biggest news story this past week has been about AIG and the bonuses it paid out. I feel I would be remiss if I did not include this as this weeks topic.
I am going to start with a synopsis of the facts about AIG:
1) AIG stands for American International Group, Inc.
2) AIG started out as an insurance company and became a very profitable, well run and well respected company.
3) AIG then added hedge fund on top of their core insurance business by:
-Issuing insurance for mortgage-backed securities.
-Issuing insurance on debt held by other banks around the world.
4) When the housing bubble burst, AIG was left holding the bag for billions and billions of dollars for claims that it couldn't afford to pay.
5) The housing bubble burst first here in the United States, then it spread like a wildfire across the world.
6) The claims then multiplied exponentially until AIG was for all intent and purposes was broke and unable to pay out the claims.
My first reaction to the AIG mess was where was the common sense factor in the determination to insure those mortgage-backed securities? People in the housing, banking, insurance and investment industries know full well that the housing market has peak and valley cycles and that the peak cycle the world had seen for so long had to turn into a valley (sooner rather then later). Who would want to voluntarily insure sub-prime mortgages in the first place? It is painfully obvious that greed trumped common sense. Decisions based on greed almost always ends in failure. If common sense had been used, AIG would still be a healthy and profitable company. No hedge fund, no problem.
So far, AIG has received $170 billion in taxpayer money to keep it afloat for the moronic decisions upper management made. The government says that AIG is to big of a company to let it go into oblivion. Now as we all have just learned, AIG paid out hundreds of millions dollars in bonuses. Let's examine those facts:
-Contracts were made to retain the moronic employees who either: 1) made the decision to insure those now toxic mortgage-backed securities, 2) were at the helm that led to the downfall of a once great company and/or 3) were the top salespeople of those toxins.
-$218 million in bonuses were paid out not $165 million, to a total of 73 executives.
-7 executives received $4 million.
-1 executive received $6.4 million.
-Here's the kicker....................11 of those executives who received the bonuses are no longer employed by AIG.
Here are my questions and thoughts that come to mind regarding this:
-When the American taxpayer now owns 80% of AIG, who do they think they are in giving these bonuses of taxpayer money?
-If your company is broke, it is time to break the contracts and don't make any bonus payments.
-Bonuses are customarily paid when an employee meets or exceeds stated goals.
-Why give retention bonuses to employees who sank the ship?
-Why give retention bonuses to employees who are no longer even employed? Where is the retention? No retention, no bonus, period!
AIG has shown that its incompetence has ruled supreme and it just seems to get worse week by week. I just wish that other companies are seeing the err of AIG's ill fated decisions and that they make decisions with common sense as a major factor and not just greed.
Talk to you next week.
Sunday, March 22, 2009
Sunday, March 15, 2009
Sticky Prices
Hi Everyone:
This week's topic is sticky prices. You may be wondering what are sticky prices? Sticky prices is a new terminology for what has happened to the price of just about everything we buy as consumers today.
As I mentioned last week, last year the price of oil/gasoline went through the roof and then came the ramifications that went along with it. One of those ramifications is now called sticky prices. We are all painfully aware of how many companies have increased their product prices. The following are just a few examples of sticky prices:
Example 1) When a garbage or oil/propane company adds a monthly fuel surcharge to your monthly bill. This charge is supposed to cover the added expense of the increase in gasoline/diesel costs to deliver their product to your home.
Example 2) When any type of manufacturing company increases the cost (due to the increase of the cost of the energy needed to produce and package the product) of their product to the retailer who in turns passes on the increases to the consumer.
Example 3) When a manufacturing company (in this example a food manufacturer) decreases the amount of their product from say 16 ounces to 12 ounces and charges the same amount as they did before the decrease. Now this started with coffee years ago and has now proliferated to almost every product in your local grocery store.
Sticky prices are when the price you pay for something increases but then the price does not go back down. So what happened to the cost of these products to us, the consumers, when the cost of energy decreases? The cost of a barrel of oil has dropped approximately $100 to $47 per barrel, as of Friday, 3/13/09. If the theory holds any truth that the price of whatever goes up with the increase cost of energy, what happened when the price of the cost of energy decreased? In this example.............................ABSOLUTELY NOTHING! The prices remain the same! That is what sticky prices are. They are stuck at the higher price or the same price with less product, which translates into a price increase.
So why are the prices not decreasing? The answer is a difficult one. First of all, companies do not like to decrease prices on a whole, except for temporary promotional sales. Secondly, since we are in a recession, a lot of consumers have less money to spend and consequently do not buy as much. When consumers buy less, companies sell less and then they lay off employees. Laid off employees obviously can not buy as much as they did when they were employed. This is a vicious cycle that seems to have no end in sight.
So what is the answer? Two examples come to mind....... Walmart and McDonald's. These two companies have actually done well in this recession. Why? Walmart's business plan has always been to sell products for less. In a recession, people who may never have been in a Walmart, now shop there because of their lower prices. McDonald's food prices have value that consumers seem to be able to afford.
In a recession, there is no common sense to keep prices artificially high. In my opinion, all it will take is for other companies to start lowering their prices and others will follow suit and for companies to end their fuel surcharges Then sticky prices won't be stuck anymore!
Talk to you next week.
This week's topic is sticky prices. You may be wondering what are sticky prices? Sticky prices is a new terminology for what has happened to the price of just about everything we buy as consumers today.
As I mentioned last week, last year the price of oil/gasoline went through the roof and then came the ramifications that went along with it. One of those ramifications is now called sticky prices. We are all painfully aware of how many companies have increased their product prices. The following are just a few examples of sticky prices:
Example 1) When a garbage or oil/propane company adds a monthly fuel surcharge to your monthly bill. This charge is supposed to cover the added expense of the increase in gasoline/diesel costs to deliver their product to your home.
Example 2) When any type of manufacturing company increases the cost (due to the increase of the cost of the energy needed to produce and package the product) of their product to the retailer who in turns passes on the increases to the consumer.
Example 3) When a manufacturing company (in this example a food manufacturer) decreases the amount of their product from say 16 ounces to 12 ounces and charges the same amount as they did before the decrease. Now this started with coffee years ago and has now proliferated to almost every product in your local grocery store.
Sticky prices are when the price you pay for something increases but then the price does not go back down. So what happened to the cost of these products to us, the consumers, when the cost of energy decreases? The cost of a barrel of oil has dropped approximately $100 to $47 per barrel, as of Friday, 3/13/09. If the theory holds any truth that the price of whatever goes up with the increase cost of energy, what happened when the price of the cost of energy decreased? In this example.............................ABSOLUTELY NOTHING! The prices remain the same! That is what sticky prices are. They are stuck at the higher price or the same price with less product, which translates into a price increase.
So why are the prices not decreasing? The answer is a difficult one. First of all, companies do not like to decrease prices on a whole, except for temporary promotional sales. Secondly, since we are in a recession, a lot of consumers have less money to spend and consequently do not buy as much. When consumers buy less, companies sell less and then they lay off employees. Laid off employees obviously can not buy as much as they did when they were employed. This is a vicious cycle that seems to have no end in sight.
So what is the answer? Two examples come to mind....... Walmart and McDonald's. These two companies have actually done well in this recession. Why? Walmart's business plan has always been to sell products for less. In a recession, people who may never have been in a Walmart, now shop there because of their lower prices. McDonald's food prices have value that consumers seem to be able to afford.
In a recession, there is no common sense to keep prices artificially high. In my opinion, all it will take is for other companies to start lowering their prices and others will follow suit and for companies to end their fuel surcharges Then sticky prices won't be stuck anymore!
Talk to you next week.
Sunday, March 8, 2009
Greed
Hi Everyone:
Today's blog is about greed and why is this country in such an economic disaster? I truly believe that the answer to that question is one word answer and that word is ................................GREED! Why greed you may ask? Follow my line of reasoning with just these 2 examples:
Example #1) The price of oil/gasoline. I am sure that you all know that last year, the price of a barrel of crude oil (consequently the price of a gallon of gasoline) rose the fastest ever, in the shortest amount of time, in history. Why? If you had read any online articles or newspapers and/or watched the news on TV (network or cable); the reason for the astronomical price jumps were all basically the same. There were CEO's from Exxon/Mobil and other big oil companies and government officials all saying that it was supply and demand economics. Demand for oil was increasing while the supply of oil on hand was decreasing. We were all told that this was due to the fact that China and India grew from third world countries to industrial powerhouses meaning they used more energy (oil) to run their factories etc. Then their wage earners had more disposable income and were able to buy cars etc. More cars on the road obviously use more gas. Supposedly the OPEC cartel was pumping oil out of the ground as fast as they could, but it wasn't enough. The consequence was the unbelievable increase in the cost of a gallon of gas. Now if you believe all of that BS, have I got a bridge to sell you.
After reading and learning everything I could on why the price of oil increased so much, so quickly, I finally found the true reason. There was and still is enough oil to fuel the world's economy. Using oil as the main source of energy is a subject for another day. But, do you know who owned the most oil shares in this country last year? Exxon/Mobil?-no. BP?-no. Any oil company?-no! The answer is, are you ready for this.................Morgan Stanley! Yes Morgan Stanley the investment house. They saw an opportunity to make an unbelievable amount of money by getting into the speculator market. By speculating on oil futures they went outside the foundation of a free market of supply and demand and artificially increased the price of oil. Other investment houses soon followed suit. Yes the price of oil would still have increased because of China and India but not as fast and definitely not as much.
The price of oil obviously affects every aspect of our lives. It increases the cost of manufacturing almost everything (including the cost of building houses, roads and bridges), increases the cost of delivering those products to the stores where we purchase them, increases the cost of producing the containers that products come in, increases the cost of driving or using mass transit to get to work and increase the cost to heat our homes, whether or not you used oil, gas or electricity. Those investment firms were greedy to the max and used absolutely no common sense as to the consequences of their actions. That one act of speculating would be a leading factor and the beginning of the free fall of our economy.
Example #2) In the not so distant past, in order to buy house, you had to have the following: a down payment of at least 10%, verifiable income and that the mortgage and taxes combined was no more then a certain percentage of your income ie: 38%.
Nowhere in the history of our banking system were subprime mortgages ever sold until the new millennium. To make matters worse, add to that, the banker/mortgage brokers selling to people who could not afford the eventual payment increases due to their ARMS, (adjustable rate mortgages) that were going to reset in 1,2 or 3 years. How did this happen? Somehow some and definitely not all, bankers and mortgage brokers were able to get the loan applicants to lie about their income amounts on the applications assuring them that their loan would still be approved and therefore they could get a larger mortgage amount then they needed. Banks then went around the laws that stated that they had to have a certain amount of insurance in case a percentage of people defaulted on their loans. The banks then bundled these subprime mortgages and somehow was able to resell them to Wall Street as a good investment. The originators of these mortgages made their money in 2 ways: writing/approving the loans and then reselling them. They wrote so many so fast that there was an incredible amount of money to be made very quickly. Check out what happened to World Bank Savings as an example. Remember that the housing market had not seen a valley in the normal peak and valley (up and down) cycles that always happens with home values in many, many years. People somehow forgot history and thought that the value of their homes was always going to increase and never decrease. Those who tend to forget history tend to repeat it.
Now I do not place all of the blame on the banks and mortgage brokers alone. I also place blame on the people who either signed false income statement loan apps (per the advice of whoever) or people who didn't take the time to read, understand and ask questions regarding what they were about to sign. It takes two to tango and if people had really taken the time to read everything before they signed on the dotted line, I believe that there would be a lot less foreclosures.
The combination of my 2 examples were and are a deadly duo that was sure to send our economy into a tail spin, the likes of which we have not since in 75 or so years! I personally think that the banks and mortgage brokers that engaged in the subprime mortgages should be indicted and convicted for the crimes that they have perpetrated upon the American people who now have to pay for their greed and stupidity. I wish that the lack of use of common sense in these instances could also be a crime. If these companies had only used one ounce of common sense, I truly believe that the economic mess we find our country in would not be as bad and might only be a footnote, like the recession of 2001 or 1990-91, instead of being compared to the Great Depression of 1929-1933 and beyond. When will companies learn. Maybe now! Common sense rules and greed drools to paraphrase.
Talk to you next week.
Today's blog is about greed and why is this country in such an economic disaster? I truly believe that the answer to that question is one word answer and that word is ................................GREED! Why greed you may ask? Follow my line of reasoning with just these 2 examples:
Example #1) The price of oil/gasoline. I am sure that you all know that last year, the price of a barrel of crude oil (consequently the price of a gallon of gasoline) rose the fastest ever, in the shortest amount of time, in history. Why? If you had read any online articles or newspapers and/or watched the news on TV (network or cable); the reason for the astronomical price jumps were all basically the same. There were CEO's from Exxon/Mobil and other big oil companies and government officials all saying that it was supply and demand economics. Demand for oil was increasing while the supply of oil on hand was decreasing. We were all told that this was due to the fact that China and India grew from third world countries to industrial powerhouses meaning they used more energy (oil) to run their factories etc. Then their wage earners had more disposable income and were able to buy cars etc. More cars on the road obviously use more gas. Supposedly the OPEC cartel was pumping oil out of the ground as fast as they could, but it wasn't enough. The consequence was the unbelievable increase in the cost of a gallon of gas. Now if you believe all of that BS, have I got a bridge to sell you.
After reading and learning everything I could on why the price of oil increased so much, so quickly, I finally found the true reason. There was and still is enough oil to fuel the world's economy. Using oil as the main source of energy is a subject for another day. But, do you know who owned the most oil shares in this country last year? Exxon/Mobil?-no. BP?-no. Any oil company?-no! The answer is, are you ready for this.................Morgan Stanley! Yes Morgan Stanley the investment house. They saw an opportunity to make an unbelievable amount of money by getting into the speculator market. By speculating on oil futures they went outside the foundation of a free market of supply and demand and artificially increased the price of oil. Other investment houses soon followed suit. Yes the price of oil would still have increased because of China and India but not as fast and definitely not as much.
The price of oil obviously affects every aspect of our lives. It increases the cost of manufacturing almost everything (including the cost of building houses, roads and bridges), increases the cost of delivering those products to the stores where we purchase them, increases the cost of producing the containers that products come in, increases the cost of driving or using mass transit to get to work and increase the cost to heat our homes, whether or not you used oil, gas or electricity. Those investment firms were greedy to the max and used absolutely no common sense as to the consequences of their actions. That one act of speculating would be a leading factor and the beginning of the free fall of our economy.
Example #2) In the not so distant past, in order to buy house, you had to have the following: a down payment of at least 10%, verifiable income and that the mortgage and taxes combined was no more then a certain percentage of your income ie: 38%.
Nowhere in the history of our banking system were subprime mortgages ever sold until the new millennium. To make matters worse, add to that, the banker/mortgage brokers selling to people who could not afford the eventual payment increases due to their ARMS, (adjustable rate mortgages) that were going to reset in 1,2 or 3 years. How did this happen? Somehow some and definitely not all, bankers and mortgage brokers were able to get the loan applicants to lie about their income amounts on the applications assuring them that their loan would still be approved and therefore they could get a larger mortgage amount then they needed. Banks then went around the laws that stated that they had to have a certain amount of insurance in case a percentage of people defaulted on their loans. The banks then bundled these subprime mortgages and somehow was able to resell them to Wall Street as a good investment. The originators of these mortgages made their money in 2 ways: writing/approving the loans and then reselling them. They wrote so many so fast that there was an incredible amount of money to be made very quickly. Check out what happened to World Bank Savings as an example. Remember that the housing market had not seen a valley in the normal peak and valley (up and down) cycles that always happens with home values in many, many years. People somehow forgot history and thought that the value of their homes was always going to increase and never decrease. Those who tend to forget history tend to repeat it.
Now I do not place all of the blame on the banks and mortgage brokers alone. I also place blame on the people who either signed false income statement loan apps (per the advice of whoever) or people who didn't take the time to read, understand and ask questions regarding what they were about to sign. It takes two to tango and if people had really taken the time to read everything before they signed on the dotted line, I believe that there would be a lot less foreclosures.
The combination of my 2 examples were and are a deadly duo that was sure to send our economy into a tail spin, the likes of which we have not since in 75 or so years! I personally think that the banks and mortgage brokers that engaged in the subprime mortgages should be indicted and convicted for the crimes that they have perpetrated upon the American people who now have to pay for their greed and stupidity. I wish that the lack of use of common sense in these instances could also be a crime. If these companies had only used one ounce of common sense, I truly believe that the economic mess we find our country in would not be as bad and might only be a footnote, like the recession of 2001 or 1990-91, instead of being compared to the Great Depression of 1929-1933 and beyond. When will companies learn. Maybe now! Common sense rules and greed drools to paraphrase.
Talk to you next week.
Sunday, March 1, 2009
Customer Service
Hi Everyone:
This weeks topic is one that I am sure you have all experienced, but not in a good way.
I have had the unfortunate mispleasure of visiting two of those home improvement, big box stores (rhymes with cheapo); twice in the last couple of weeks. The weird part is that one visit was in New York State and the second visit was in New Jersey. The customer service was basically the same at both. They have the couldn't care less attitude. Everyone is a shopper and you all know how you would like to be treated when you are shopping and need some help. Maybe even be treated as a valued customer; especially in these hard economic times that we are currently living in when money is so tight. Consequently, even the employees at these big box stores are customers themselves, somewhere, someplace, so you would think that customer service would be their first priority knowing that they also know how they would like to be treated but.........................NOOOO!
During my first visit, I found it difficult to find the item that I needed. After walking up and down a few aisles, sometimes more then twice, my first reaction was to find an employee. Problem number one: there is never an employee around when you need one. That was my case. So I walked around the same vicinity again in hopes of finding an employee. As I turned into a new aisle I spotted an employee at the other end walking towards me. As I got close, I asked the employee if he (it was a man) could help me find the item I was looking for. Without even stopping, the employee told me that this was not his department. I had stopped and as he continued walking away from me I asked if he could find an employee who could help me? Do you know what his response to me was? Nothing, absolutely nothing. He never responded to me. I guess that a potential paying customer was not important to him. Maybe that employee should remember who makes it possible for him to receive a paycheck. Problem number two: being told that it wasn't the employee's department. Problem three: not even offering to help me find an employee who could.
I then walked all the way over and down to the Customer Service Department to request their assistance in finding an employee who could help me. Although I should have mentioned the incident to the Customer Service Department, I didn't since I had already wasted too much time. I had been in the store for almost 30 minutes and by this time all I wanted was to get my items and get the hell out of dodge. After waiting about 5 minutes for my turn, there were two customers in front of me; the customer service employee did call for an employee to come to the Customer Service Department. It took another 8 minutes, but the employee did come and was able to help me find what I was looking for.
So you would think end of story right? Wrong! I went to the check out and as usual, there was only one employee operated check out open but had a long line. The 4 automated check outs were open with only one customer at each one. I picked a check out and waited. The customer in front of me didn't have a lot to check out (hence the reason why I picked that one) but there was some kind of problem in her ability to pay and she needed the assistance of the one employee who oversees all 4 automated check outs. The employee was able to help the customer and then it was my turn. I only had 2 items to check out and neither one would scan into the system. I then turned to ask for help from the overseer, but he was busy with another customer and then another. I had to wait my turn for help from the employee. It took over one hour for me to purchase my 2 items. I would have loved to have gone to one of those small hardware stores instead of the big box stores, but guess what? They have all closed since the big box store opened and the little guys couldn't compete.
The problems as I see it are these: since the economy is in the toilet, (including this company's bottom line) in the infinite wisdom of this company, they have 1) most likely laid off employees to try to improve their bottom line, 2) since they have fewer employees they should cross train employees to work in multiple departments and 3) retrain and keep retraining their employees until they get the significance of the fact that customer service is vitally important and they always come first. It is painfully obvious to me that common sense is dead with this company. Management should be aware. Bottom line rules and customers loose! But without customers, stores close and then employee loose!
Now the second visit was to the same chain big box store, but this time it was in New Jersey. The person I was with needed to use a battery operated handicapped cart. We first checked to see if it was plugged in, it wasn't. She then sat down and turned the key to check the meter to see if the battery was fully charged, it was. We then took off to look for the items she needed. The cart was surprisely fast and someone had even written in black magic marker on the rear "speedy". We went to where the item is located at the New York and Conneticut stores that I visit. Of course it wasn't there. We found an employee who told us that the item was at the other end of the store in the outdoor section. We were able to find that item and the other ones that she needed without help, thank goodness. But about 15 feet back into the store the cart died. I checked the cart but it was dead. I tried to push it but the wheels were in a locked position. The cart died in the middle of the aisle. We then had to slowly walk the rest of the way. On my way out of the store I went to customer service and told the employee that the cart had died and was in the middle of the aisle. Her response and only response was, "oh well". She couldn't have cared less if she wanted to.
Again, where has common sense gone? Management and employees know that customer service is important, but a customer service employee saying oh well? Common sense is so important, get with it people.
This weeks topic is one that I am sure you have all experienced, but not in a good way.
I have had the unfortunate mispleasure of visiting two of those home improvement, big box stores (rhymes with cheapo); twice in the last couple of weeks. The weird part is that one visit was in New York State and the second visit was in New Jersey. The customer service was basically the same at both. They have the couldn't care less attitude. Everyone is a shopper and you all know how you would like to be treated when you are shopping and need some help. Maybe even be treated as a valued customer; especially in these hard economic times that we are currently living in when money is so tight. Consequently, even the employees at these big box stores are customers themselves, somewhere, someplace, so you would think that customer service would be their first priority knowing that they also know how they would like to be treated but.........................NOOOO!
During my first visit, I found it difficult to find the item that I needed. After walking up and down a few aisles, sometimes more then twice, my first reaction was to find an employee. Problem number one: there is never an employee around when you need one. That was my case. So I walked around the same vicinity again in hopes of finding an employee. As I turned into a new aisle I spotted an employee at the other end walking towards me. As I got close, I asked the employee if he (it was a man) could help me find the item I was looking for. Without even stopping, the employee told me that this was not his department. I had stopped and as he continued walking away from me I asked if he could find an employee who could help me? Do you know what his response to me was? Nothing, absolutely nothing. He never responded to me. I guess that a potential paying customer was not important to him. Maybe that employee should remember who makes it possible for him to receive a paycheck. Problem number two: being told that it wasn't the employee's department. Problem three: not even offering to help me find an employee who could.
I then walked all the way over and down to the Customer Service Department to request their assistance in finding an employee who could help me. Although I should have mentioned the incident to the Customer Service Department, I didn't since I had already wasted too much time. I had been in the store for almost 30 minutes and by this time all I wanted was to get my items and get the hell out of dodge. After waiting about 5 minutes for my turn, there were two customers in front of me; the customer service employee did call for an employee to come to the Customer Service Department. It took another 8 minutes, but the employee did come and was able to help me find what I was looking for.
So you would think end of story right? Wrong! I went to the check out and as usual, there was only one employee operated check out open but had a long line. The 4 automated check outs were open with only one customer at each one. I picked a check out and waited. The customer in front of me didn't have a lot to check out (hence the reason why I picked that one) but there was some kind of problem in her ability to pay and she needed the assistance of the one employee who oversees all 4 automated check outs. The employee was able to help the customer and then it was my turn. I only had 2 items to check out and neither one would scan into the system. I then turned to ask for help from the overseer, but he was busy with another customer and then another. I had to wait my turn for help from the employee. It took over one hour for me to purchase my 2 items. I would have loved to have gone to one of those small hardware stores instead of the big box stores, but guess what? They have all closed since the big box store opened and the little guys couldn't compete.
The problems as I see it are these: since the economy is in the toilet, (including this company's bottom line) in the infinite wisdom of this company, they have 1) most likely laid off employees to try to improve their bottom line, 2) since they have fewer employees they should cross train employees to work in multiple departments and 3) retrain and keep retraining their employees until they get the significance of the fact that customer service is vitally important and they always come first. It is painfully obvious to me that common sense is dead with this company. Management should be aware. Bottom line rules and customers loose! But without customers, stores close and then employee loose!
Now the second visit was to the same chain big box store, but this time it was in New Jersey. The person I was with needed to use a battery operated handicapped cart. We first checked to see if it was plugged in, it wasn't. She then sat down and turned the key to check the meter to see if the battery was fully charged, it was. We then took off to look for the items she needed. The cart was surprisely fast and someone had even written in black magic marker on the rear "speedy". We went to where the item is located at the New York and Conneticut stores that I visit. Of course it wasn't there. We found an employee who told us that the item was at the other end of the store in the outdoor section. We were able to find that item and the other ones that she needed without help, thank goodness. But about 15 feet back into the store the cart died. I checked the cart but it was dead. I tried to push it but the wheels were in a locked position. The cart died in the middle of the aisle. We then had to slowly walk the rest of the way. On my way out of the store I went to customer service and told the employee that the cart had died and was in the middle of the aisle. Her response and only response was, "oh well". She couldn't have cared less if she wanted to.
Again, where has common sense gone? Management and employees know that customer service is important, but a customer service employee saying oh well? Common sense is so important, get with it people.
Sunday, February 22, 2009
Governor Paterson
Hi All,
I know that I said last week that I would be talking about customer service this week, but sometimes more important issues come up that I can't resist talking about.
For those of you who do not know who David Paterson is; he is the present Governor of New York State. He didn't become the Governor via the normal route by winning an election. He was the Lieutenant Governor under Governor Spitzer who won the last election by a landslide. When Governor Spitzer resigned his position last year, after being caught as a "John" in a prostitution ring, David Paterson became Governor. I do not know a lot about Governor Paterson, but I "assume" he has some intelligence.
When the economic crisis hit this country, it also hit New York State especially hard; since Wall Street is located here. A good percentage (15-20%) of New York State's income comes from Wall Street and when Wall Street hurts, the entire State can go into cardiac arrest. When you combine Wall Street's woes with, not only the brokerage firms, but also the big banks, AIG, the housing meltdown and companies downsizing (leaving hundreds of thousands of people unemployed), it doesn't take a brain surgeon to figure out that New York State has tremendous budget problems to the tune of being short 14 billion dollars and New York State needs life saving measures!
When the economy is good, politicians always seem to be able to increase the size of Government, which in turns means adding more people to the States payroll. But when times are tough, like they are now, Government seems less likely to reduce the payroll in a sizable amount. In New York State's case, in order to balance the budget, Governor Paterson has talked about: increasing taxes on almost everything, all agencies must cut spending by 10%, employees must forgo pay raises and also laying off and/or not filling vacant positions that number only in the hundreds. OK, so I don't know how many people it takes to run New York State, but I do know now that Governor Paterson lacks any common sense.
Why and how? Governor Paterson has decided that 17 of his aides should get a pay raise averaging 16.7%. Now averages can be very deceiving. Why? Well one of his "confidential assistants", Cassie Prugh, had her salary increased from $85,721 to $125,000. That is an unbelievable and astounding increase of 46%. Do any of you know anyone who is getting that kind of an increase in this day and age?............ I thought not. What the hell is wrong with this Governor? Oh yeah I know, he has no common sense and these pay raises prove it. The Governor now has a huge media storm brewing because of this and deservedly so.
As I said in my first blog, just by using common sense, anyone can make the correct decision that is also fair and just. Governor Paterson is obviously lacking common sense!
Talk to you next week.
I know that I said last week that I would be talking about customer service this week, but sometimes more important issues come up that I can't resist talking about.
For those of you who do not know who David Paterson is; he is the present Governor of New York State. He didn't become the Governor via the normal route by winning an election. He was the Lieutenant Governor under Governor Spitzer who won the last election by a landslide. When Governor Spitzer resigned his position last year, after being caught as a "John" in a prostitution ring, David Paterson became Governor. I do not know a lot about Governor Paterson, but I "assume" he has some intelligence.
When the economic crisis hit this country, it also hit New York State especially hard; since Wall Street is located here. A good percentage (15-20%) of New York State's income comes from Wall Street and when Wall Street hurts, the entire State can go into cardiac arrest. When you combine Wall Street's woes with, not only the brokerage firms, but also the big banks, AIG, the housing meltdown and companies downsizing (leaving hundreds of thousands of people unemployed), it doesn't take a brain surgeon to figure out that New York State has tremendous budget problems to the tune of being short 14 billion dollars and New York State needs life saving measures!
When the economy is good, politicians always seem to be able to increase the size of Government, which in turns means adding more people to the States payroll. But when times are tough, like they are now, Government seems less likely to reduce the payroll in a sizable amount. In New York State's case, in order to balance the budget, Governor Paterson has talked about: increasing taxes on almost everything, all agencies must cut spending by 10%, employees must forgo pay raises and also laying off and/or not filling vacant positions that number only in the hundreds. OK, so I don't know how many people it takes to run New York State, but I do know now that Governor Paterson lacks any common sense.
Why and how? Governor Paterson has decided that 17 of his aides should get a pay raise averaging 16.7%. Now averages can be very deceiving. Why? Well one of his "confidential assistants", Cassie Prugh, had her salary increased from $85,721 to $125,000. That is an unbelievable and astounding increase of 46%. Do any of you know anyone who is getting that kind of an increase in this day and age?............ I thought not. What the hell is wrong with this Governor? Oh yeah I know, he has no common sense and these pay raises prove it. The Governor now has a huge media storm brewing because of this and deservedly so.
As I said in my first blog, just by using common sense, anyone can make the correct decision that is also fair and just. Governor Paterson is obviously lacking common sense!
Talk to you next week.
Sunday, February 15, 2009
Shopping
Hi everyone,
Last weeks blog was a serious one, so this weeks topic is on the lighter side.
Last week I was shopping with my wife at one of those big box stores. The store was busy with a lot of people. We were walking kind of briskly, down the middle of the main aisle, about 2 1/2 to 3 feet behind a middle aged woman who was also walking briskly. My wife and I were talking about stuff when out the blue, the woman in front of us just stopped in the middle of the aisle for no apparent reason. I almost walked right into her and had to do some fancy footwork to avoid knocking into her. The woman, realizing her mistake, apologized profusely and then said she was not paying attention when she stopped. I responded to her that it was ok and we proceeded with our shopping.
Now this isn't the first time this kind of thing has happened to me. I am sure the following has happened to almost everyone. During grocery shopping trips, (I try to avoid geriatric day) it is almost a given that someone, be it a man or a woman, will be pushing a cart down the aisle in front of you ,when they abruptly stop right in front of you. They are always oblivious as to whether or not someone is behind them. I know this because they then proceed to look at the shelves to pick out whatever item(s) they are seeking without looking in my direction.
Also at the grocery store, there are those people who have "parked" their cart at an angle, in the middle of the aisle as they look for whatever item a few feet away from the cart. Sometimes when I am in a hurry, I will move the cart out of my way and I then I always get the "stare", as in, how dare you touch my cart. Other times, when I am not in a hurry, I will wait to see how long it takes the person to realize that they have blocked the aisle and for them to move the cart and then apologize.
Finally, there is the person who thinks that it is ok to push the grocery cart, at an unreasonable speed at the end of the aisle and turn into the main aisle without slowing down to see if anyone is coming. I can't count how many times I have almost hit someone.
All these people have 1 thing in common, they have no common sense. WHERE HAS COMMON SENSE GONE?
Stay tuned for next weeks blog about customer service. Again, it is something we have all experienced and wished we hadn't.
Thanks for reading and let your friends know about my blog.
Last weeks blog was a serious one, so this weeks topic is on the lighter side.
Last week I was shopping with my wife at one of those big box stores. The store was busy with a lot of people. We were walking kind of briskly, down the middle of the main aisle, about 2 1/2 to 3 feet behind a middle aged woman who was also walking briskly. My wife and I were talking about stuff when out the blue, the woman in front of us just stopped in the middle of the aisle for no apparent reason. I almost walked right into her and had to do some fancy footwork to avoid knocking into her. The woman, realizing her mistake, apologized profusely and then said she was not paying attention when she stopped. I responded to her that it was ok and we proceeded with our shopping.
Now this isn't the first time this kind of thing has happened to me. I am sure the following has happened to almost everyone. During grocery shopping trips, (I try to avoid geriatric day) it is almost a given that someone, be it a man or a woman, will be pushing a cart down the aisle in front of you ,when they abruptly stop right in front of you. They are always oblivious as to whether or not someone is behind them. I know this because they then proceed to look at the shelves to pick out whatever item(s) they are seeking without looking in my direction.
Also at the grocery store, there are those people who have "parked" their cart at an angle, in the middle of the aisle as they look for whatever item a few feet away from the cart. Sometimes when I am in a hurry, I will move the cart out of my way and I then I always get the "stare", as in, how dare you touch my cart. Other times, when I am not in a hurry, I will wait to see how long it takes the person to realize that they have blocked the aisle and for them to move the cart and then apologize.
Finally, there is the person who thinks that it is ok to push the grocery cart, at an unreasonable speed at the end of the aisle and turn into the main aisle without slowing down to see if anyone is coming. I can't count how many times I have almost hit someone.
All these people have 1 thing in common, they have no common sense. WHERE HAS COMMON SENSE GONE?
Stay tuned for next weeks blog about customer service. Again, it is something we have all experienced and wished we hadn't.
Thanks for reading and let your friends know about my blog.
Monday, February 9, 2009
Intro to Is Common Sense Dead and digital TV
Today is the start of a new blog called: Is Common Sense Dead? The Merriam-Webster dictionary defines common sense as: sound and prudent judgment based on a simple perception of the situation or facts. That definition is as simplistic (no pun intended) as it gets in describing a thought process that seems to be sorely missing in in today's world. I am not suggesting that everyone is missing common sense; but there does seem to be an awful lot of people out there who are clueless. I have met and worked with some very intelligent people who can perform their job supremely, but still lack common sense and consequently make some bad decisions that affect not just them but others as well.
In most circumstances, using common sense can dictate what is the correct decision to make. It seems to me that this world would be a much better place to live and work and with less stress if more people used common sense. To my knowledge, common sense is not a course of study in Colleges, Universities or even at the High School level. So if it is not taught in schools, common sense must be learned by life experiences.
Is Common Sense Dead? will be a weekly, (hopefully posted each Sunday) and will cover topics about the lack of common sense from the mundane to the serious. Politicians and their decisions will also be discussed but not as a party affiliate, but rather their lack of use of common sense in the decisions they make. I hope you find this blog interesting. If it helps you use more common sense in your personal and business lives I have accomplished something good.
Today's very first topic is the transition from analog TV to digital TV transmission. Unless you have been living in another country, you are aware that we have been inundated with Public Service Announcements that the cutoff date for analog TV transmission is February 17, 2009. If your household uses older analog TV's (non-digital sets) and an antennae or rabbit ears to receive over the air, free TV, you have to purchase a converter box in order to receive the new digital transmissions. No converter box no TV reception as of 2/18/09.
I read in the newspaper last week that Congress had overwhelmingly voted for a postponement of the transition to digital TV until June 12, 2009. On the face of it, this seems to be a good thing since there are supposedly millions of households who have yet to purchase the converter boxes. This was due to either being on the waiting list for up to two government $40 off coupons (supposedly Uncle Sam ran out of money for the coupons to subsidize the cost) or elderly people who do not understand what the transition is all about and don't know how to hook up the converter boxes or even people who might have been to lazy or procrastinated in purchasing the converters.
It seems that in Congress' infinite wisdom of approving the postponement, it gave TV stations the options to stick with to the original date of 2/17/09 or wait until 6/12/09. WHAT?????!!!!!!!
That means that some TV stations will switch to digital transmissions on 2/18/09 and other TV stations will wait until 6/12/09. Consequently, there will be some areas in this country where people will have no TV reception as of 2/18/09. IS COMMON SENSE DEAD? Where is the common sense in making that decision? There are some people who use their TV as the only connection to the outside world. If Congress saw fit to postpone the transition, there should have been a no options clause and make the transition 6/12/09 period. This may mean that there might be an additional cost to TV stations, but why not just shut down the digital transmissions until June 12.
In most circumstances, using common sense can dictate what is the correct decision to make. It seems to me that this world would be a much better place to live and work and with less stress if more people used common sense. To my knowledge, common sense is not a course of study in Colleges, Universities or even at the High School level. So if it is not taught in schools, common sense must be learned by life experiences.
Is Common Sense Dead? will be a weekly, (hopefully posted each Sunday) and will cover topics about the lack of common sense from the mundane to the serious. Politicians and their decisions will also be discussed but not as a party affiliate, but rather their lack of use of common sense in the decisions they make. I hope you find this blog interesting. If it helps you use more common sense in your personal and business lives I have accomplished something good.
Today's very first topic is the transition from analog TV to digital TV transmission. Unless you have been living in another country, you are aware that we have been inundated with Public Service Announcements that the cutoff date for analog TV transmission is February 17, 2009. If your household uses older analog TV's (non-digital sets) and an antennae or rabbit ears to receive over the air, free TV, you have to purchase a converter box in order to receive the new digital transmissions. No converter box no TV reception as of 2/18/09.
I read in the newspaper last week that Congress had overwhelmingly voted for a postponement of the transition to digital TV until June 12, 2009. On the face of it, this seems to be a good thing since there are supposedly millions of households who have yet to purchase the converter boxes. This was due to either being on the waiting list for up to two government $40 off coupons (supposedly Uncle Sam ran out of money for the coupons to subsidize the cost) or elderly people who do not understand what the transition is all about and don't know how to hook up the converter boxes or even people who might have been to lazy or procrastinated in purchasing the converters.
It seems that in Congress' infinite wisdom of approving the postponement, it gave TV stations the options to stick with to the original date of 2/17/09 or wait until 6/12/09. WHAT?????!!!!!!!
That means that some TV stations will switch to digital transmissions on 2/18/09 and other TV stations will wait until 6/12/09. Consequently, there will be some areas in this country where people will have no TV reception as of 2/18/09. IS COMMON SENSE DEAD? Where is the common sense in making that decision? There are some people who use their TV as the only connection to the outside world. If Congress saw fit to postpone the transition, there should have been a no options clause and make the transition 6/12/09 period. This may mean that there might be an additional cost to TV stations, but why not just shut down the digital transmissions until June 12.
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