Daily Archives: January 1, 2009

The Gasoline Tax And The Renaissance Of The Bicycle

Ford1With the rise of the US automobile industry, the bicycle almost disappeared as a means of transportation in America. It became a 19th Century relic like wooden teeth. The only person in the United States who rides regularly now is racing champion Lance Armstrong.

Emerging nations are also pushing aside the bicycle in favor of the car. In late 2003, the communist government banned the use of bikes on major roads in Shanghai, although satellite spy photos of the city show that this regulation is routinely ignored.

Bicycles were doomed by access to cheap fossil fuels.

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Posted on: January 1, 2009 – 7:31 pm in Regulation

Being A “Most Admired Company” Loses Its Appeal (AAPL)(GE)(BRK)(SBUX)(FDX)(TM)

Cammonopoly_wideweb__430x3250_2Most people who are in business put making a profit above maintaining a good image. They would like their customers to think well of them because it drives sales. But, being a pillar of public admiration is for churches, benevolent associations, and the Knights of Malta.

Fortune thinks corporate reputations are important and goes to a great deal of expense to put out a list of America’s Most Admired Companies.

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Posted on: January 1, 2009 – 7:20 pm in Research, , , , , , ,

Citigroup (C): Cutting Bonuses For The Rich

DataThe average man on the street would view giving up millions of dollars in bonus money for a hard year of work as a tremendous sacrifice.

Vikram Pandit, CEO of Citigroup (C), chairman Win Bischoff, and perennial board member Robert Rubin have all agreed to give up their incentive compensation for 2008. Given that the federal government takes a dim view on bonuses at banks it has bailed out and that Citi’s shares are down 77% this year, it really isn’t much of a concession, and may not even be voluntary. The board probably told the group that they were lucky to still be working.

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Posted on: January 1, 2009 – 8:50 am in Banking, ,

The Music Business Is Doomed, Even If Digital Sales Keep Improving (AAPL)(WMG)

Cammonopoly_wideweb__430x3250Over the last few years, the reporting of revenue from commercial music sales has been a "good news, bad news" deal. Digital downloads of albums and songs keep rising. CD sales keep falling.

Since sales of CDs are more profitable than the digital business, the sum of these parts undermines the music industry’s ability to stay financially viable

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Posted on: January 1, 2009 – 6:06 am in Old Media, ,

Media Digest 1/1/2009 Reuters, WSJ, NYTimes, FT, Bloomberg (GM)(C)(IBM)(TWX)(VIA)(WFC)

NewspaperAccording to Reuters, Wall St. closed its worst year since The Depression.

Reuters reports that GMAC did not hit its goal of trading debt for equity and cash.

Reuters reports that GM (GM) has gotten $4 billion of its bailout money but cash to Chrysler has not been received.

Reuters reports that senior officers at Citigroup (C) will not get bonuses.

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Posted on: January 1, 2009 – 5:40 am in Press Digest, , , , , , ,