The current federal funds interest rate of 2 percent, which followed the April 30 quarter-point slash, might have to go even lower to provide adequate stimulus for the economy, Coy writes in this jargon-free, neatly argued essay. Although recession fears have eased, new rumblings of inflation are giving rate-setters the jitters despite scant evidence of rising prices in sectors other than fuel and food, and no overall increase in the money supply. More significantly, financial services companies, hit hard by the credit crisis, are still not confident enough to expand lending policies necessary to rev up economic growth. Expect another cut.
Posted 9:39, 7 May 2008
Apple has traditionally focused its products on educational and personal users, but Mac is now in a position to snag a slice of the corporate pie. Many employees have convinced their bosses to switch to Macs for good, especially as the popular iPhone becomes more corporate-friendly, and if Steve Jobs made the slightest effort to cater to corporate interest, Apple could smooth-talk its way into companies where Vista has disappointed and frustrated users. Burrows logically doesn't posit a complete Mac takeover, but he makes a solid case for a direction that Apple could grow in, if it felt like taking that step in the future.
Posted 9:22, 7 May 2008
Hamm estimates that one billion people worldwide will starve or suffer severe malnutrition as food prices skyrocket and supplies dwindle. Though more affluent countries can still afford to purchase food (and fuel, in the form of corn and sugar), people living on less than $1 per day have lost even that tiny purchasing power. For answers Hamm points to the World Trade Organization, which is working to lift trade restrictions so that poor countries can export food and gain technologies such as hardy hybrid seeds. This is a subject more suited to an in-depth examination than the cursory treatment it receives here.
Posted 9:16, 7 May 2008
In response to a reader question, the business gurus explain that the most important thing to do when business turns sour is to avoid showing fear. That doesn't mean misleading employees, rather remaining in control. The two keys are transparency (keeping everyone informed with both good news and bad) and differentiation (having the courage to emphasize the projects that work rather than trying to be 'fair' to everyone). And managers should always remember that knowledge is the greatest weapon against fear. The couple offers advice that is clear, concise, and useful.
Posted 11:08, 29 April 2008
This abstract was written by
John Lister
and edited by Brijit.
With a price that starts at $499, HP's Mini-Note 2133 is an affordable newcomer in the field of miniature notebook computers. While Lenovo's Thinkpad, Asus' Eee PC, and Apple's Air notebook cater to early adapters with ample disposable income, the Mini-Note joins the One Laptop Per Child project's XO mini as a full-fledged laptop aimed primarily at the education and business market. But Wildstrom wonders if the price is low enough to drive demand. After several weeks of use, his answer is a tentative yes -- with the caveat that faster processors and thoughtfully scaled-down software will go a long way toward growing the market.
Posted 11:00, 29 April 2008
This abstract was written by
Laura White
and edited by Brijit.
Just how business savvy was Google's decision to acquire YouTube in 2006? YouTube ad formats may not scale as well as search advertising blockbusters AdWords and AdSense, but Google ad exec Tim Armstrong remains optimistic that the currently unprofitable video site is making headway as a revenue stream. While Fine expresses the occasional misgiving about web video's monetization model, he clearly (and convincingly) feels YouTube doubters would be wise to heed a saying from the Google corporate culture: "Don't bet against the Internet."
Posted 10:57, 29 April 2008
This abstract was written by
Laura White
and edited by Brijit.
Forget Web 2.0 -- this year’s internet buzzphrase is "cloud computing." While, predictably, there’s no consensus definition, the term broadly applies to any computing done remotely on somebody else’s machinery. For the consumer it involves applications such as Google searches (where the actual processing of results is done on Google’s servers); for businesses it can take the form of renting space on remote servers, which can be processing data from multiple clients, making it more cost-effective. Hamm’s piece is no doubt technically accurate, but it does a poor job of explaining just what, if anything, is supposed to be new here.
Posted 10:47, 29 April 2008
This abstract was written by
John Lister
and edited by Brijit.
Think luxury retail brands are buffeted from economic woes? While retailers such as Coach and Burberry have seen recent sales exceed expectations, Pressman cites a wealth of statistics that show that share prices have fallen at a number of high-end brands, and could still fall lower. Strangely, given the initial positive news about the company, Coach is mentioned as one of the companies that could suffer most. While there is likely an easy explanation for this, Pressman doesn't give one, marring an otherwise informative and readable article.
Posted 10:46, 29 April 2008
Prosper works as the eBay of lending, bringing together individuals with money to lend and those needing to borrower, taking a cut from the middle (though technically Prosper makes and then resells the loan). It works more like a Dutch auction, with lenders bidding the interest rate they'd require (capped at 36 percent in most states) and the lowest winning; most loans are split between multiple bidders. The downsides for lenders are the risks of default (which happens on average in 4 percent of cases, roughly similar to the credit card market) and the fixed three-year terms of loans. Feldman usefully explains the risks and benefits from personal experience.
Posted 10:44, 29 April 2008
This abstract was written by
John Lister
and edited by Brijit.
Porter's piece profiles former MCI manager Walter A. Pavlo, Jr., convicted of money laundering in 2001, who makes his living lecturing on white-collar crime at companies and universities. Pavlo's speaking circuit reflects a trend among business schools eager to instill the values of corporate ethics in their students. But while many students and professors cite Pavlo's tale as an irreplaceable real-world example of the consequences of white-collar crime, others wonder what message it sends to compensate ex-cons to tell their stories. Nevertheless, "Scared Straight" for the MBA set seems a novel and memorable way to set future CEOs on the right track.
Posted 10:43, 29 April 2008
This abstract was written by
Laura White
and edited by Brijit.