Archive for the 'Economy' Category
02.28.09 State of the Black Union: Making America As Good As it’s Promise
Some of the most influential thinkers, entertainers, and political leaders of our time gather each year to discuss the State of the Black Union during Black History Month. Presented annually in February by Tavis Smiley Presents, the symposium was created to educate, enlighten and empower America by bringing people together and engaging them in thoughtful dialogue, leading the way to constructive action.
If you (and your colleagues) are interested in volunteering for the Los Angeles Professional Network @ the State of the Black Union, pls contact us at info@LAProfessionalNetwork.com
U.S. unemployment hits 16-year high: 7.2%
The Labor Department says 524,000 jobs were lost in December, bringing the total for 2008 to 2.6 million. ‘The jobs market is still in a free-fall,’ one economist says.
By Maura Reynolds (LA Times)
Reporting from Washington — The nation’s unemployment rate soared to its highest level in 16 years last month, reaching an eye-popping 7.2% as businesses slashed their payrolls by 524,000 jobs in December, the government reported today.
All together, 2.6 million jobs were lost in 2008 — 75% of them in the last four months — and 11.1 million workers are now unemployed, the Labor Department said. And that’s not counting millions more who have reluctantly taken part-time work instead of full-time jobs or have become so discouraged they stopped looking for a new job.
The Fed Reserve cut target for key rate to record low
Associated Press | WASHINGTON — The Federal Reserve has cut its target for a key interest rate to the lowest level on record and pledged to use “all available tools” to combat a severe financial crisis and prolonged recession.
The central bank on Tuesday said it had reduced the federal funds rate, the interest that banks charge each other, to a range of zero to 0.25 percent. That is down from the 1 percent target rate in effect since the last meeting in October. Many analysts had expected the Fed to make a smaller cut to 0.5 percent.
Federal Reserve Chairman Ben Bernanke and his colleagues also pledged to use “all available tools” as they struggle to contain a financial crisis that is the worst since the 1930s and a recession that is already the longest in a quarter-century.
The Fed also made clear that it intends to keep the funds rate at extremely low levels.
“The committee anticipates that weak economic conditions are likely to warrant exceptionally low levels of the federal funds rate for some time,” the central bank’s panel that sets interest rates said in a statement.
The Fed’s decision is expected to be quickly matched by a reduction in banks’ prime lending rate, the benchmark rate for millions of business and consumer loans. Before the Fed announcement, the prime rate stood at 4 percent.
The Fed has never pushed its target for the federal funds rate as low as zero to 0.25 percent. The lowest target rate before had been 1 percent, a level seen only once before in the past half-century.
Given how low interest rates are, the central bank said it planned to use a variety of unconventional methods to flood the banking system with credit and drive interest rates lower.
“The Federal Reserve will employ all available tools to promote the resumption of sustainable economic growth and to preserve price stability,” the Fed said.
Rick Caruso’s Montecito project wins crucial backin for resort
Supervisors in Santa Barbara County vote to approve the L.A. developer’s proposal to refurbish the 15-acre seaside hotel into a luxury resort.
By Catherine Saillant (LA Times)
It was a project that nearly slipped out of developer Rick Caruso’s grasp. But after many delays, Los Angeles’ builder of uber-malls this week won approval for his first foray into resort development.
Caruso’s plan to transform the aging Miramar Hotel from a Montecito eyesore into a 192-room luxury seaside hotel won the backing of the Santa Barbara County Board of Supervisors.
The go-ahead came after months of contentious hearings and nearly two years after Caruso bought the 15-acre coastal property east of Santa Barbara. The process included multiple hearings at which opponents attacked the project before the Montecito Planning Commission.
Video Gaming is recession-proof? Not really
Electronic Arts, the world’s largest game publisher, expecting disappointing holiday sales, says it will cancel some projects as well as reduce its workforce by more than the 6% announced in October.
By Alex Pham (LA Times)
Once considered impervious to a stormy economy, the video game sector is starting to show signs of strain.
Electronic Arts Inc., which produces such franchises as the Sims and Madden NFL, said Tuesday that it probably would miss sales and profit targets for its fiscal year because of disappointing holiday sales in North America and Europe.
Recession Hits Sports: NFL Layoffs Announced
It may be hard to believe that professional sports in America are now feeling the recession. The Yankees are still willing to shell out $160 million dollars to pitcher CC Sabathia. And you’d think TV ad budgets for sports will stay steady. Presumably, more fans will tune in for a distraction from all of the negative financial news. People are still paying for diversions and treating one’s family with tickets to the game is a lot cheaper than hopping on a plane.
Yet even the mighty NFL today announced 150 job cuts. Apparently football’s finance’s are still strong but uncertainty over 2009 is prompting the league to play it conservative.
Where Do They Want More Entrepreneurs? Try Nigeria
There are not just Americans and Europeans sitting at the entrepreneur table in the 21st century. Today, entrepreneurs are connecting around the globe for opportunities.
Turns out Nigeria is one of the fastest growing economies on the planet. The International Monetary Fund expected GDP growth over 9% this year and forecasts at least 8% gains in 2009. Most of the boom is due to oil and commodities. Fortunately Nigerians seems to recognize that diversifying the economy beyond oil is necessary to move forward as a nation.
President Yar’Adua has proposed support for companies outside the oil sector in his 2009 budget. But for Nigeria’s media, talk is cheap. They are demanding explicit plans to help entrepreneurs.
Working With Versus Working FOR
It’s simple. Change your mindset from working FOR your company to working WITH your company. Employment is a partnership, not an obligation, no matter how bad the economy is.
The first thing any non-stock holding employee has to accept is that no matter where you work and how much you make, you’re being undervalued…at least financially. No company in the world (except ones that get 700 billion dollar tax payer bail outs from the government) can pay you more than the value you are creating for them. Even if you were earning $250,000 a year, you have to be making at least twice that for the company in revenue for it to stay in business.
Most people say that they “work for” a company. Though the difference between working FOR a company and working WITH a company is verbally minute, the mindset shift is huge. Check out the mental differences between someone who works WITH versus someone who works FOR and see where you are on the spectrum. People who work FOR companies in times like these are vulnerable whereas people who work WITH them have a stronger position.
Economy could make it hard for L.A. Live to be the life of the downtown party
Expectations for the high-end entertainment complex have been high since work began three years ago, but the downturn is putting more pressure on it to be a success.
By Cara Mia DiMassa (LA Times)
When L.A. Live, the $2.5-billion entertainment district across from Staples Center, first broke ground in September 2005, downtown Los Angeles was riding high, and the sky seemed the limit.
Block by block, decades of grime were being replaced by trendy eateries, loft dwellers and their dogs. Thirty-two skyscrapers were in the planning phases. And L.A. Live, with clubs, restaurants, convention-center hotels and a 30,000-square-foot Grammy museum, was being called Times Square West.
