Overbuilding in Spain Leaves Many White Elephants

Posted by & filed under Financial Planning, Governments & Regulators.

Description: Last March, local officials inaugurated a brand new airport in Castellón, a small city on Spain’s Mediterranean coast. They are still waiting for the first scheduled flight. Source: NYTimes.com Date: 06/24/2011 Link: http://www.nytimes.com/2011/06/25/business/global/25iht-transport25.html?ref=business Questions for discussion: Explain the financial planning problems in Spain? How can they be resolved?

Fed – 0% interest fallout

Posted by & filed under Economic Analysis, Governments & Regulators.

Description: Thomas Hoenig, head of the Kansas City Federal Reserve Bank says 0% interest rates lead to inflation and economic imbalances, with an unclear long-term impact. Source: CNNMoney.com – video report Date: 06/01/2011 Link: http://money.cnn.com/video/news/2011/06/01/n_ss_hoenig_gps.cnnmoney/ Questions for discussion: Do you agree with the economic arguments made by Mr Hoenig? What are the consequences for businesses… Read more »

General Motors Said to Weigh Buying Shares From Treasury

Posted by & filed under Company Analysis, Financial Planning, Governments & Regulators.

Description:  General Motors Co. executives have discussed buying shares from the U.S. Treasury Department to reduce the government’s 33 percent stake in the automaker, three people familiar with the matter said. Source: Businessweek.com Date: 06/03/2011 Link: http://www.businessweek.com/news/2011-06-03/general-motors-said-to-weigh-buying-shares-from-treasury.html Questions for discussion: What do you think is the best financial strategy for the company? What is wrong… Read more »

Tyler Cowen, America’s Hottest Economist

Posted by & filed under Economic Analysis, Financial Planning, Governments & Regulators.

Description:  The George Mason University professor has written a bestseller, The Great Stagnation, keeps an influential blog, and reads way too many books. Source: Businessweek.com Date: 05/26/2011 Link: http://www.businessweek.com/magazine/content/11_23/b4231066695798.htm Questions for discussion: Explain the meaning of the title. What is the thesis of his book? Are there items you agree or disagree with? What lessons… Read more »

It Teetered, It Tottered, It Was Bound to Fall Down

Posted by & filed under Financial Planning, Governments & Regulators, Industry Analysis.

Description: This article was adapted from “Reckless Endangerment: How Outsized Ambition, Greed and Corruption Led to Economic Armageddon,” by Gretchen Morgenson, a business reporter and columnist for The New York Times, and Joshua Rosner, a managing director at the independent research consultant Graham Fisher. The book is to be published on Tuesday by Times Books…. Read more »

Preventing Future Flash Crashes all but Impossible

Posted by & filed under Governments & Regulators.

Description: MarketWatch columnist Mark Hulbert says research suggests massive stock slumps such as the “flash crash” can’t be prevented and remain a rare, but consistent feature of all stock markets. Source: Moneywatch.com – video report Date: 05/05/2011 Link: http://www.marketwatch.com/video/asset/preventing-future-flash-crashes-all-but-impossible/0E8C8C79-1A17-45AE-AA67-68B6722D0696 Questions for discussion: What does the research suggest about stock market behavior? How should investors respond… Read more »

Sokol: Berkshire shareholders react

Posted by & filed under Company Analysis, Governments & Regulators, Growth & Valuation, Management Issues.

Description: At Berkshire Hathaway’s annual meeting in Omaha, shareholders have very different opinions about David Sokol. Source: CNNMoney.com – video report Date: 04/30/2011 Link:  http://money.cnn.com/video/news/2011/04/30/n_buffett_sokol_shareholders.cnnmoney/ Questions for discussion: Judging from the interviews with stockholders, do you think the firm’s management is being questioned? Do you think the stock value is being affected? How might this… Read more »

Parties Seeking to Blame Each Other’s Policies for Gas Prices

Posted by & filed under Economic Analysis, Financial Planning, Governments & Regulators, Industry Analysis.

Description:  Congress returns next week to a flaring brawl over oil industry profits and tax breaks, with both parties hoping to capitalize on growing public ire at high gasoline prices. Source: NYTimes.com Date: 04/29/2011 Link: http://www.nytimes.com/2011/04/30/business/30gas.html?ref=business Questions for discussion: Summarize the reasons for concern over rising gasoline prices? How do rising fuel costs affect businesses… Read more »

Silicon Valley Cashes Out Selling Private Shares

Posted by & filed under Company Analysis, Financial Planning, Governments & Regulators.

Description: SecondMarket and its ilk allow investors and employees—including Facebook’s—to convert pre-IPO shares into millions. But is it healthy for startups? Source: Businessweek.com Date: 04/21/2011 Link: http://www.businessweek.com/magazine/content/11_18/b4226070179043.htm Questions for discussion: Summarize the issues raised in the report. What is your view about this behavior? Should it be prohibited?

Americans agree: The rich should pay higher taxes

Posted by & filed under Governments & Regulators.

Description: Hey, rich folks! The American people are putting you on notice. They want you to pay higher taxes. Source: CNNMoney.com Date: 04/22/2011 Link:  http://money.cnn.com/2011/04/22/news/economy/budget_taxes_poll/index.htm Questions for discussion: How do you think an increase to income taxes for those in the top tax brackets would affect their investing decisions? Do you believe it would substantially… Read more »