Archive for finances
The 10 Biggest Myths About Starting An Internet Business
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You have heard from people saying Internet Business is a waste of time, you will not make any money, there is no real money to be made online, it will never work and so many others negative words coming from people who don’t really understand in this Internet Business industry.
The thing is, it does work. Why some people make a fortune and some don’t even make money at all? Simply because the people who make thousands or millions of cash knew all the lies in this business and they will not trust these lies.
So what is this big internet lies? Below here are the 10 big internet lies that you should know:
Facebook: An Essential New Tool For Small Business Marketing
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The New York Times has just published an excellent article called: “How to Market Your Business With Facebook.” Some small business owners have eagerly jumped on the social media trend, while others like to keep it old school with traditional email marketing. But in this economy, entrepreneurs need to be as creative as possible about reaching new audiences while stretching marketing dollars, if you are lucky to have any. Getting to know Facebook is a great way to hop on social media’s runaway train, which shows no signs of slowing.
Of Facebook’s growing cache as a marketing vehicle, The Times states:
A growing number of businesses are making Facebook an indispensable part of hanging out their shingles. Small businesses are using it to find new customers, build online communities of fans and dig into gold mines of demographic information.
“You need to be where your customers are and your prospective customers are,” said Clara Shih, author of ‘The Facebook Era’ (Pearson Education, 2009). “And with 300 million people on Facebook, and still growing, that’s increasingly where your audience is for a lot of products and services.”
This two-page primer on Facebook marketing is a must for small business owners, even if you are already a regular visitor to Facebook.com. As social media sites make it possible for the average person to reach thousands of customers through a little online elbow grease, the time to utilize Facebook.com to the full is now.
Do you use Facebook to market your small business? Share your success stories or cautionary tales below.
Tom Joyner Morning Show, Roland Martin, Money and Power
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This morning I had the great pleasure of having a conversation with my respected colleagues, Tom Joyner and Roland S. Martin. I have always loved the Tom Joyner Morning Show. My respect for Tom came when I found out that he once commuted daily between Chicago and Dallas in order to host shows in both cities. I appreciate anyone willing to sacrifice to reach their goals. Roland Martin has an equally compelling story about how he was forced into bankruptcy in order to become successful.
The truth is that there are a whole bunch of people who want success, but they usually want it for free. These brothers understand that you usually have to pay a high price to get what you want.
We were discussing the case of Heather Ellis. Heather Ellis is a 24-year old college student now facing 15-years in prison after being accused of cutting line at a Walmart. We are planning a rally for Heather in Kennett, MO on November 16, with thousands coming from around the nation in order to save her life. Tom Joyner, Roland Martin, and Michael Baisden are just a few of the names of brothers and sisters around the nation willing to step up to tell Heather’s story to the public.
After the show was done, I called my assistant and confidant Shauntay, in order to talk about the events planned for the day. Shauntay is a stern reminder to me that you are only as good as the people who work for you, and she is the greatest assistant on Earth. During our conversation, Shauntay asked me, “Did you notice how they seemed to get nervous and rush you off at the end?”
I said, “Yeah, I noticed that. But I don’t blame them, I might have done the same thing.”
Why was I rushed off at the end of the segment? It all has to do with Walmart being one of the key corporate sponsors for the Tom Joyner Morning Show. During the interview, I first mentioned that it was reported as far away as Memphis that Walmart employees were being asked not to discuss the Heather Ellis incident. Tom started to deflect the conversation away from the merchant.
“Well, that could have happened in any store, right?” said Tom.
I then went on to explain that, while it could have happened in any store, there was no getting away from the fact that it happened in Walmart: A Walmart employee was the one who chose not to serve Heather after accusing her of cutting line, the family reports that nearly every Walmart employee involved in the incident has been transferred to another store, and there are Walmart employees on the affidavits filed after the incident took place. There is no way to disconnect Walmart from this incident.
Unlike our supporters in Detroit, who are ready to boycott Walmart and stage a complete “black out” of the store, I have not asked for such a thing. Instead, I’ve only requested that Walmart use its influence to help Heather during her trial. I honestly believe that one sincere phone call from the right executive can make this situation go away. A daughter of a pastor, in college, with no criminal record is hardly the kind of thug that should be rotting away in the penitentiary. Anyone can understand that.
This discussion of The Tom Joyner Morning Show is not a negative reflection on the righteousness of Tom Joyner or his choice of having Walmart as a corporate sponsor (if it were Wells Fargo, then we might have an issue). The incident is reflective of how the power of media is driven by corporate sponsorship. Given that corporate sponsors controlled by the descendants of the historical oppressors of black people are financing most African-American media, the ability to pursue true and meaningful activism is sometimes muted. In other words, nobody disrespects their daddy, especially if their daddy is the one putting food on the table. The life of one black woman is not, to some, worth the loss of millions of dollars in corporate money (I do not agree with this assessment). One of the limitations of capitalism is that it forces us to put a dollar value on human life. I personally think human life has infinite value, and that is why I am fighting for Heather.
Pop-Up Stores Provide Lucrative Alternative For Small Businesses
Posted by: | CommentsSavvy entrepreneurs and larger retailers are opening up temporary stores, or “pop-ups” in empty storefronts, simultaneously boosting their brand and bottom line. The stores can last anywhere from a few days to a few months. And with the U.S. retail vacancy rate at 7.6%, for the third quarter of 2009, compared with 6.4% for the third quarter of 2008, according CoStar Group, Inc.– and the holidays just around the corner– now might be the best time to take advantage of the weak commercial real estate market.
Reebok Easytone Shoes: Sexy Ad Sells, But Is It Sexist? Answer is YES
Posted by: | CommentsFiled under: News
Reebok Easytone Shoes are the hot topic of the hour on sites as diverse as gossip and business blogs. The flavor of the Reebok Easytone debate is not over the shoes themselves — which Wallet Pop has confirmed are actually comfortable. It is over the sexy ads and Web site that promote Easytone shoes by heavily depending on close-ups of a model’s butt, breasts and body. See one of the ‘shocking’ Reebok Easytone ads below, and judge for yourself:
The model in the picture above (from another ad for Reebok Easytone shoes) is attractive, but I would not want a pair of sneakers that made my bottom so flat. Is that kosher to add to the fury being unleashed by those who find this marketing campaign beyond poor in taste? I hope as an actual woman who loves to exercise, my opinion counts. I have heard much more random perspectives on Web sites that suggest that anyone who complains about a woman‘s body being ogled in an ad is probably fat and ugly anyway — as if the nature of the Reebok Easytone Shoe commercials are justified by other people’s flab. From a business perspective, this mantra of justification is being repeated everywhere: Sex sells, sex sells, sex sells. But does any excuse justify the promotion of female objectification that continues to run rampant in our society?
Sure, on the one hand, Reebok has shoes to sell and the Easytone looks pretty boring without the sexy marketing. PopEater blog is correct in the assertion that this over-the-top approach to using sex is in getting the world clicking. And, no, Reebok is in no way solely responsible for the impact the images of women it creates has on the world. Yet, the fact is that statistic after statistic show women are not taken seriously enough in America to attain equal levels of power and wealth as men.
Does one Reebok Easytone ad make all the difference in the ongoing reality of gender inequality? No. But it does seem to say that the most important thing a woman can do is tone her butt, rather than building a powerful mind. If we keep encouraging the idea (even incrementally through advertising) that being hot is the end-all, be-all for women, men will never stop seeing women as mere playthings, and girls might be discouraged from trying to be more.
I am all for hotness, fitness and being sexy. But what about being in control, independent and cool? There is a way to display these traits while portraying a woman with her own power. Think Madonna. Look at Marylin Monroe, who was one of the first producer-stars in Hollywood history. Or Tina Turner, a woman who grows more sexy and stronger with age, and need I say richer. These Reebok Easytone ads take away all the nuance and complexity of a truly sexy, strong and emancipated woman. For this reason alone, I encourage the women they are trying to reach not to buy. Your time would be better spent building up your total identity, not just your bottom half. Women, let’s show these culture creators what real economic empowerment looks like by voting “NO” on Reebok Easytone with our dollars.
Rihanna and Chris Brown: The Financial Value of Rihanna’s Pain
Posted by: | CommentsFiled under: Professional Profiles, Celebrity News, Dr. Boyce Money
I hated what Chris Brown did to Rihanna. I was angered, disappointed and irritated by the fact that many are quick to forgive egregious behavior on the part of celebrities, and a hit song can forgive all sins. At the same time, celebs are just like the rest of us, full of complexities that the world may never come to understand. Rihanna has walked away from Chris and she is now telling the entire world how bad of a man he is, and we’re all taking her side.
The problem for Rihanna, however, is that her actions aren’t making much sense.
The truth is, clearly, that Rihanna could have used this incident as a teachable moment and then moved on with her life. But that wouldn’t be nearly as profitable as doing a media tour attacking Chris.
The point here is clear and quick:
A personal tragedy is usually leveraged in order to sell a book or album: Did you notice how tennis star Andre Agassi revealed his drug addiction when his book was released? What about when Mackenzie Phillips announced that her father, well-known performer John Phillips, molested her as a child? Stories like this are a great way to get people to read your book or buy your records. Notice that it took Rihanna several months to start talking about Chris Brown in public. That was probably because she had to finish up her tracks. By the way – her album is scheduled for release in a few days. The Chris Brown story will be the primary driver of her album sales.
Now, I am a finance Professor and a capitalist. Well, I am mostly capitalist, to a point. I can understand why Rihanna’s handlers are milking the cow till the udders fall off. The story is interesting and like hungry kids in a candy store, we are salivating to find out more about what happened. But the truth is that we only know most of what occurred, not everything: All we really know is that they got into a fight and Chris won. But we also know that Chris lost the war because he is the one who got arrested. Is there anything else we need to know? Is there anything new that Rihanna is telling us other than vague and “clearly objective”(LOL) things like “his eyes had no soul.” What the heck does that mean anyway?
While we can respect Rihanna’s decision to use this situation as a chance to build her brand (similar to when Juanita Bynum was allegedly beaten by her husband and then declared herself to be “the face of domestic violence”), the truth is that we probably shouldn’t fall for the hype. We should realize that this was an unfortunate situation,with many lessons to be learned about domestic violence in the black community. Rihanna will sell her records, and Chris will have to rebuild his own brand. But at the end of the day, this media whirlwind created by Rihanna is, for the most part, an opportunity to not only punch back at Chris, but a chance to make a little dough in the process.
As the rapper TI might say, “It is what it is.”
Dr. Boyce Watkins is a Professor at Syracuse University and author of the book, “Black American Money.” To have Dr. Boyce commentary delivered to your email, please click here.
BE 100s Bank Acquires Home Federal Savings
Posted by: | CommentsLiberty Bank and Trust of New Orleans acquired Detroit-based Home Federal Savings Bank after the bank was shut down by the Office of Thrift Supervision (OTS) Nov. 6.
Boost Your Credit Score
Posted by: | CommentsThe rules for boosting credit have not changed in light of the new Credit CARD Act. “The rules have stayed the same: Pay bills on time, keep credit card balances low, and avoid bankruptcy and foreclosure,” says LaToya Irby, credit and debt management expert for About.com.
Boost Mobile President Matt Carter: His Sprint to the Top
Posted by: | CommentsFiled under: Interviews, Professional Profiles, Personal finance, Careers
Boost Mobile President Matt Carter tells why $50 cell phone service is a deal most people won’t refuse.
As a kid in Boston, MA, Matt Carter looked up to the local post office clerk. Today an entire company looks for his stamp of approval before any decisions are finalized. The first African American president of a major telecommunications company, Carter leads Boost Mobile, a division of Sprint Nextel. As president, he is responsible for the business’ marketing, product development and finance teams. Despite hailing from the City of Champions, leading Boost to a whopping $600 million in new revenue – in less than two years – was no easy feat. The telecommunications brand was in an oversaturated niche market and lagging in the race against its competitive set when Carter took the helm. Carter recently talked to Black Voices about how he was able to revitalize the failing brand, and shared his insights on how African Americans can compete in corporate America. Matt wants us to know why it’s still important for black business people to create a league of our own to compete in — as we win in new fields.
What led you to Sprint?
I started my career off in marketing. I had worked for Bristol Meyers and Coca-Cola in New York in a variety of marketing positions on a global basis. I got recruited by Sprint three years ago to run their customer management group and when the new CEO came aboard he tapped me to go run Boost Mobile, a division of Sprint. I’ve been at Boost for 18 months, really focusing on revolutionizing the wireless industry.
What made you accept the position as President of Boost Mobile?
It brought together all of my experience in leadership, marketing, sales and technology. In addition, at that point in my career I was ready to lead a major division of a company.
What are some of the challenges of your position?
Typically when you’re coming in, you’re a change agent, but it didn’t take me long to help them understand that they needed to evolve. I had to put my foot down – a skill I learned from being the oldest child in a large, loving family. I let them know that the path we were on would lead to extinction. We had to figure out how to grow this business, and decided to create a brand that would be the advocate for the consumer. We realized that at the end of the day people are looking for simplicity. Think about it. The one bill you open up with trepidation every month is your wireless bill. You think you’re paying $49, but that turns into $65. So that was the opportunity: Let’s simplify it. So, we created a flat fee system of $50.
What experiences helped equip you for such a powerful role?
I was the oldest of five, so it was instilled in me early on that I had to set the example for everyone. That made me realize the importance of discipline and sacrifice. When you’re the oldest you’re constantly looking out for folks and I carry that with me today; I look out for my team. I also earned a degree in communications from Northwestern and an MBA from Harvard. Plus, I have more than 20 years of experience working with companies like Bristol Meyers and Coca-Cola.
What pivotal moment led you to enter the business world?
My first student loan bill. I was like, “how am I going to pay for this?” I went to Northwestern because I wanted to be a director. When I graduated I did what most kids do: I went to LA and became a waiter. My father couldn’t fathom how I could go to school then wait tables. I felt bad and eventually came home and got a job working as a supervisor at a factory where my mother was employed. I got a good taste of business there. I enjoyed motivating people and I liked competing. I gravitated towards marketing because it coupled my practical and creative sides.
When did your dreams change from wanting to be a mail man, or a job similar to your role models growing up?
When I got to Harvard I realized that I was holding my own. Along the way you start to see that the privileged students are not any brighter or any better, so your confidence level begins to grow and you start thinking bigger. Going to Harvard raised my expectations about the possibilities of what I could do. I thought, ‘I could be the president of the United States.’ That was liberating.
Fierce Wireless magazine named you No. 25 on their list of Most Powerful People in Wireless. You are also the only African American. How does that feel?
I’m very humbled and appreciative of the recognition, but it’s reflective of what the team has done. In addition, I’ve gone through a lot of ups and downs in my career. You’re going to find people who still view your race as a stigma. People will do things to you because you’re not part of the “club.” You have to have the internal fortitude to maintain your composure when you’re faced with things meant to break you.
What’s next for Boost Mobile?
We’re the fastest growing wireless brand; we’ve acquired 1.7 million new customers in the last quarter. People are responding because there’s finally a product out there making things simple — this is not about economics or credit worthiness. We believe that we need to continue to broaden the appeal of our device portfolio. But I can’t reveal the new products that are on the radar.
Your team has taken a product initially created for a niche market and made it mainstream. Did you have to create a different marketing strategy to appeal to the masses?
Boost has a deep legacy in the African American community; we don’t want to abandon that. We want to build on it. Everyone, regardless of your culture, race or sex, is looking for value. So if you can get a $50 plan with unlimited, voice, web and text nationwide [you'll want it]. It has nothing to do with skin color — only the color green.
A lot of marketing campaigns geared towards African Americans perpetuate stereotypes. How do you feel about the use of the typical images of blacks in advertising campaigns?
I’m always bothered by commercials that have people dressed up in the church robes, singing and dancing, like we’re still out of some minstrel show. You certainly have to be sure that there are messages out there that resonate with your target audience, but you’ve got to figure out how to reflect them smartly. You don’t want to turn people away. Our goal was to try to figure out how we could be relevant to a sort of rainbow coalition of clients.
Speaking of marketing, it seems like you’ve been able to be stand out strongly amongst your peers, a great example of self-marketing. Why do you think Sprint recruited you?
You’ve got to be known for doing something. I always look at people’s resumes and they are all over the place. What is your brand? What do you stand for? Mine is deeply rooted in marketing, so I am perceived to be a highly accomplished marketer who also demonstrates the ability to work across a variety of industries. I’ve worked in pharmaceuticals, telecommunications and financial services. My advice is to really be good at something and demonstrate that across a variety of industries so you leave yourself open for other opportunities.
Unemployment is soaring and people are looking for career opportunities in new markets. What is your suggestion for anyone interested in the telecommunications industry?
I don’t see a lot of African American engineers. I think we need more people with technical skills; that’s where the high-paying jobs are, in technical development. The engineers are the new artists and we’re not there.
You have a great job and a successful career, but you’re still working on entrepreneurial ventures, like helping to create Ameritales (a historical cartoon series). Why divide your time?
You can’t expect that you’re going to go work at a company and be there until you retire. We have to be smarter as a group around creating opportunities. African Americans are very creative but we haven’t parlayed it into true economic growth. I don’t know if it’s fear or a lack of mentoring.
What tips do you have for those looking to start their own businesses?
First of all, you must be willing to take a chance. Then, there are three key elements to being a successful entrepreneur:
1. Preparation: People may want to start a company, but don’t know a thing about running one, like how to read a balance sheet or income statement. You should use your time while working for others to gather as many skills as possible.
2. Network: Build a network of people that you will eventually need.
3. Talent: Use all your talents to go out and create something. And don’t limit yourself to things like soul food restaurants and cleaning businesses. We now have a generation of African Americans with more exposure and training. We can create the next Google.
What’s next for you?
I plan to continue to grow, learn and see what the future holds. I’m under no illusion about life in the corporate world. I enjoy what I do today but I’m well prepared for many things.
A trained life coach, S. Tia Brown has spent the last 10 years following her passion for journalism as an editor, writer and TV correspondent. Brown has worked for CNN, E!, MSNBC, the NY Daily News, Essence and Black Enterprise. Most recently she served as Senior Editor for In Touch Weekly magazine. Check out her advice column ‘Do Better, Be Better’ at www.tiabrown.com.
NBA Star Antoine Walker is Broke: Five Lessons We can Learn
Posted by: | CommentsFiled under: Celebrity News, Personal finance
When I went to The University of Kentucky with Antoine Walker during the 1990s, we all knew he was going to be a star. He was headed for great things and would represent his family well. No one would have guessed that he would one day become the poster child for what NOT to do when you earn $110 million dollars.
Antoine is busted, or as my friends would say, “broker than the 10 commandments.” He was recently arrested for not paying $800,000 in gambling debts he owed to a Vegas casino, and that’s when the financial roaches started coming out of the closet.
In the midst of Antoine’s situation, we can all learn lessons. I thought I’d lay out a few for us to consider:
1) Watch who you allow to handle your dough. It might sound good to say that you have an accountant, but the truth is that you are always vulnerable when someone is doing things with your money that you do not understand. Additionally, allowing friends and relatives to have access to your financial accounts is a very bad idea. While I have major issues with Bill Cosby, I was always impressed by the fact that he takes care of his own money. Also, one of the sad realities of NBA athletes is that most of them were not properly educated during college, given wimpy little majors that didn’t interfere with their athletics schedules, so some of them are unprepared to protect the wealth they work so hard to earn. Get an education- you’re going to need it.
2) Don’t judge Antoine Walker harshly, this can happen to anyone. Going broke or going to jail is not just something that happens to bad or irresponsible people. The same is true for a gambling addiction. While we are tempted to attack Antoine Walker for his situation, the truth of the matter is that gambling problems impact hundreds of thousands of people every year: Campuses are being overrun by TV poker challenges and other seemingly harmless, yet financially devastating temptations. If you don’t yet have a gambling problem, be careful not to start one. That’s an easy way to go broke.
3) Stay away from the vices: Drugs, gambling or other costly addictions have led to the financial downfall of many people. In addition to gambling, other vices such as drugs or alcohol can accelerate your path to the poor house. What’s worse is that the temptation to engage in these activities is greater when you have more money to burn. NBA and NFL stars are still quite young, and the idea of giving a 22-year old $10 million dollars a year is a scary thing. Even I would have made terrible mistakes if I’d received that much money so early in life. If you are in a relationship with someone who regularly engages in any of these bad habits, you might want to reconsider that relationship. It can cause you a great deal of trouble later on down the road.
4) Show your love, but put a cap on it: Antoine Walker has shown himself to be a generous man, giving to children and taking care of relatives. The problem is that it’s difficult for anyone to be a one-man welfare machine. I only call it welfare when someone is asking for something for nothing. I find that it is more productive to ask for something before you give something away; put the relative to work on productive activities that will help save you money. It will make both of you feel better in the end. Also, budget your charity to ensure that you don’t go overboard in your giving. Typically, those who are asking you for money today won’t be anywhere around when you are having financial problems.
5) Watch how hard you bling: While “blinging” and “balling” might be incredibly tempting, you should limit the number of status symbols you acquire in order to show your wealth. Antoine Walker has always loved to “do it big,” renting limos for every occasion and not wearing the same suit twice during the playoffs. While he gets a lot of points in style, the truth is that such financial extravagance is not only financially draining, it also makes you a big target. Years ago, when Antoine was robbed of several thousand dollars during a trip to Chicago (and again later at his home in Miami), we can probably assume that the robbers knew they were coming after a wealthy victim.
I am not here to attack Antoine Walker. Instead, my goal is to make his challenges into a true teachable moment. The old model of the black athlete getting rich, staying uneducated, balling out of control and going broke has absolutely got to change. We must aim for something better.
Dr. Boyce Watkins is a finance Professor at Syracuse University and author of the forthcoming book, “Black American Money.” To have Dr. Boyce commentary delivered to your email, please click here.
The Homebuyers Toolkit: Key Players
Posted by: | CommentsBuying a home is a personal decision, but the process is not so private. Generally, you’ll work with about ten people. These include the seller, attorney, real estate agent/broker, home inspector, insurance agent, surveyor, appraiser, mortgage lender, title insurance officer, and an escrow officer. The attorney, real estate agent/broker, and the home inspector are the key players.
Antoine Walker is Broke: Five Lessons We can Learn
Posted by: | CommentsFiled under: Celebrity News, Personal finance
When I went to The University of Kentucky with Antoine Walker during the 1990s, we all knew he was going to be a star. He was headed for great things and would represent his family well. No one would have guessed that he would one day become the poster child for what NOT to do when you earn $110 million dollars.
Antoine is busted, or as my friends would say, “broker than the 10 commandments.” He was recently arrested for not paying $800,000 in gambling debts he owed to a Vegas casino, and that’s when the financial roaches started coming out of the closet.
In the midst of Antoine’s situation, we can all learn lessons. I thought I’d lay out a few for us to consider:
1) Watch who you allow to handle your dough. It might sound good to say that you have an accountant, but the truth is that you are always vulnerable when someone is doing things with your money that you do not understand. Additionally, allowing friends and relatives to have access to your financial accounts is a very bad idea. While I have major issues with Bill Cosby, I was always impressed by the fact that he takes care of his own money. Also, one of the sad realities of NBA athletes is that most of them were not properly educated during college, given wimpy little majors that didn’t interfere with their athletics schedules, so some of them are unprepared to protect the wealth they work so hard to earn. Get an education- you’re going to need it.
2) Don’t judge Antoine Walker harshly, this can happen to anyone. Going broke or going to jail is not just something that happens to bad or irresponsible people. The same is true for a gambling addiction. While we are tempted to attack Antoine Walker for his situation, the truth of the matter is that gambling problems impact hundreds of thousands of people every year: Campuses are being overrun by TV poker challenges and other seemingly harmless, yet financially devastating temptations. If you don’t yet have a gambling problem, be careful not to start one. That’s an easy way to go broke.
3) Stay away from the vices: Drugs, gambling or other costly addictions have led to the financial downfall of many people. In addition to gambling, other vices such as drugs or alcohol can accelerate your path to the poor house. What’s worse is that the temptation to engage in these activities is greater when you have more money to burn. NBA and NFL stars are still quite young, and the idea of giving a 22-year old $10 million dollars a year is a scary thing. Even I would have made terrible mistakes if I’d received that much money so early in life. If you are in a relationship with someone who regularly engages in any of these bad habits, you might want to reconsider that relationship. It can cause you a great deal of trouble later on down the road.
4) Show your love, but put a cap on it: Antoine Walker has shown himself to be a generous man, giving to children and taking care of relatives. The problem is that it’s difficult for anyone to be a one-man welfare machine. I only call it welfare when someone is asking for something for nothing. I find that it is more productive to ask for something before you give something away; put the relative to work on productive activities that will help save you money. It will make both of you feel better in the end. Also, budget your charity to ensure that you don’t go overboard in your giving. Typically, those who are asking you for money today won’t be anywhere around when you are having financial problems.
5) Watch how hard you bling: While “blinging” and “balling” might be incredibly tempting, you should limit the number of status symbols you acquire in order to show your wealth. Antoine Walker has always loved to “do it big,” renting limos for every occasion and not wearing the same suit twice during the playoffs. While he gets a lot of points in style, the truth is that such financial extravagance is not only financially draining, it also makes you a big target. Years ago, when Antoine was robbed of several thousand dollars during a trip to Chicago (and again later at his home in Miami), we can probably assume that the robbers knew they were coming after a wealthy victim.
I am not here to attack Antoine Walker. Instead, my goal is to make his challenges into a true teachable moment. The old model of the black athlete getting rich, staying uneducated, balling out of control and going broke has absolutely got to change. We must aim for something better.
Dr. Boyce Watkins is a finance Professor at Syracuse University and author of the forthcoming book, “Black American Money.” To have Dr. Boyce commentary delivered to your email, please click here.
Jay Z vs. Beanie Sigel: It’s Nothing but Business as Usual
Posted by: | CommentsFiled under: Celebrity News, News
Consider it a strange dream, but I had some thoughts about the Jay-Z beef with the rapper Beanie Sigel. No, I’m not here to talk about keeping street cred. Yeah, yeah, yeah. Half of the artists in the hip hop industry are not nearly as hard or as real as they claim to be. They’re too smart for that. The guys who are really as hard as most rappers claim to be are either in a jail cell or a casket. That’s the truth.
What got my attention was when Charlamagne Tha God was fired from 100.3, “The Beat” in Philadelphia. I’ve known Charlamagne for years from our work on The Wendy Williams Show, so this made me a little upset. What was even sadder is the allegation that Jay Z may have played a role in getting Charlamagne fired, in large part because Charlamagne conducted an interview with Jay-Z’s new rival, Beanie Sigel. This incident represents more than the standard thuggery that some might see on the surface. Instead, it brings forth a plethora of issues that relate to business, entertainment, money and corporate power. Here are some quick thoughts:
1) Getting Charlamagne tha God Fired? An allegedly weak move, but a lesson on corporate influence. The smartest artist I’ve ever seen in hip hop is 50 Cent. He writes songs about going to the club, but he doesn’t go to clubs. He gets you to bob your head and pop bottles of Vodka and Petrone, but he doesn’t drink himself. Effectively, he knows the power of getting others addicted, while keeping himself from being vulnerable to the very addictions he is using to control you (remember Ice Cube’s famous line, “Don’t get high on your own supply”?). Jay-Z is similar, as he has rejected the ridiculous, “bling yourself to death and then get shot or go to jail” mindset that many rappers seem to possess. Instead, he preoccupies himself with being a businessman, which means he has ultimate control over his fate.
So, in spite of the fact that I am irritated at the very weak and unethical move allegedly committed by Jay Z, the teachable moment here is that the corporate monsters are the ones who control hip hop or any other art form for that matter. Most rappers only work to get a place on the plantation, not to actually own one.
2) The Jay Z beef with Beanie Sigel has been played out thousands of times throughout human history. Ever since the beginning of entertainment, there has always been a natural beef between the sources of capital and the entertainers themselves. Artists are natural risk takers and many of them don’t spend two seconds thinking about the business models that finance their activities. Many artists put their energy into their craft rather than engaging in the boring task of understanding accounting, finance, marketing and distribution. The corporate captains, on the other hand, are not natural risk takers and they are the ones who decide if the show is going to even take place. Given that the corporate chiefs are making the financial choices, and the artists themselves want to push their work out at any cost, there is typically going to be a conflict of interest. The truth, however, is that when these conflicts occur, the artist almost always loses the fight. Those who provide the capital control much of the process.
3) You’ve got to take good care of the people who work for you. Some have criticized Jigga and Diddy for not taking good care of their artists. I am not sure if this is true or not, but I do know that if you are tempted by corporate greed, you can find yourself enslaving people rather than empowering them. The greatest temptation in hip hop is to take advantage of another person’s obsessive commitment to fulfilling their personal dream. Thousands of artists get signed to Draconian contracts that are skewed heavily in favor of the manager rather than the artist. The problem, however, is that when you design business models to exploit other people, you may find that it comes back to hurt you later on down the road.
4) There is a financial value of manufactured beef. This might surprise you, but a lot of so-called “beefs” in hip hop are actually branding mechanisms designed to get media attention to sell records. Ever notice how there are a lot of artists who want to stab and shoot each other one minute and then end up making records together the next? Much of this is due to the fact that the lifeblood of any artist is media access. No media means you don’t eat. Given that artists are effectively hired slaves for the record labels who can be used up and dropped at any moment, they are willing to engage in any desperate ploy imaginable to get the cameras pointed in their direction.
Want to sell some albums? Go out and get arrested. Want to build your brand for “keeping it real”? Get caught in the club with a gun on your hip. Want to keep your job at the record label? Start a beef with a popular artist and get him to respond to you. As hyper-masculine as most hip hop artists pretend to be, the reality is that they are scared little boys on the inside; absolutely petrified that their label is going to find another talented brother from the projects and give him the spotlight they’ve bet their life on. This is not always such a great place to be, which is why any athlete or entertainer needs to get educated.
Hip hop is an enlightened and exciting industry. At the same time, it’s the same corporate machine controlling people of color and distracting us from true power by keeping us engaged solely in the act of entertainment. As much as I might criticize Jay Z for allegedly going after my friend Charlamagne tha God, the truth is that Jigga seems to be the only one who gets it. Hip hop is not about entertainment, it’s strictly business.
If you want to hear an artist’s perspective on all of this, I spoke with the Kansas City rapper, Vigalantee about the beef between Jay Z and Beanie Sigel. Click below to hear the conversation:
Dr. Boyce Watkins is a finance Professor at Syracuse University and author of the book, “Black American Money.” To have Dr. Boyce commentary delivered to your email, please click here.
Jay Z vs. Beanie Sigal: It’s Nothing but Business as Usual
Posted by: | CommentsFiled under: Celebrity News, News
Consider it a strange dream, but I had some thoughts about the Jay-Z beef with the rapper Beanie Sigal. No, I’m not here to talk about keeping street cred. Yeah, yeah, yeah. Half of the artists in the hip hop industry are not nearly as hard or as real as they claim to be. They’re too smart for that. The guys who are really as hard as most rappers claim to be are either in a jail cell or a casket. That’s the truth.
What got my attention was when Charlamagne Tha God was fired from 100.3, “The Beat” in Philadelphia. I’ve known Charlamagne for years from our work on The Wendy Williams Show, so this made me a little upset. What was even sadder is the allegation that Jay Z may have played a role in getting Charlamagne fired, in large part because Charlamagne conducted an interview with Jay-Z’s new rival, Beanie Sigal. This incident represents more than the standard thuggery that some might see on the surface. Instead, it brings forth a plethora of issues that relate to business, entertainment, money and corporate power. Here are some quick thoughts:
1) Getting Charlamagne tha God Fired? An allegedly weak move, but a lesson on corporate influence. The smartest artist I’ve ever seen in hip hop is 50 Cent. He writes songs about going to the club, but he doesn’t go to clubs. He gets you to bob your head and pop bottles of Vodka and Petrone, but he doesn’t drink himself. Effectively, he knows the power of getting others addicted, while keeping himself from being vulnerable to the very addictions he is using to control you (remember Ice Cube’s famous line, “Don’t get high on your own supply”?). Jay-Z is similar, as he has rejected the ridiculous, “bling yourself to death and then get shot or go to jail” mindset that many rappers seem to possess. Instead, he preoccupies himself with being a businessman, which means he has ultimate control over his fate.
So, in spite of the fact that I am irritated at the very weak and unethical move allegedly committed by Jay Z, the teachable moment here is that the corporate monsters are the ones who control hip hop or any other art form for that matter. Most rappers only work to get a place on the plantation, not to actually own one.
2) The Jay Z beef with Beanie Sigal has been played out thousands of times throughout human history. Ever since the beginning of entertainment, there has always been a natural beef between the sources of capital and the entertainers themselves. Artists are natural risk takers and many of them don’t spend two seconds thinking about the business models that finance their activities. Many artists put their energy into their craft rather than engaging in the boring task of understanding accounting, finance, marketing and distribution. The corporate captains, on the other hand, are not natural risk takers and they are the ones who decide if the show is going to even take place. Given that the corporate chiefs are making the financial choices, and the artists themselves want to push their work out at any cost, there is typically going to be a conflict of interest. The truth, however, is that when these conflicts occur, the artist almost always loses the fight. Those who provide the capital control much of the process.
3) You’ve got to take good care of the people who work for you. Some have criticized Jigga and Diddy for not taking good care of their artists. I am not sure if this is true or not, but I do know that if you are tempted by corporate greed, you can find yourself enslaving people rather than empowering them. The greatest temptation in hip hop is to take advantage of another person’s obsessive commitment to fulfilling their personal dream. Thousands of artists get signed to Draconian contracts that are skewed heavily in favor of the manager rather than the artist. The problem, however, is that when you design business models to exploit other people, you may find that it comes back to hurt you later on down the road.
4) There is a financial value of manufactured beef. This might surprise you, but a lot of so-called “beefs” in hip hop are actually branding mechanisms designed to get media attention to sell records. Ever notice how there are a lot of artists who want to stab and shoot each other one minute and then end up making records together the next? Much of this is due to the fact that the lifeblood of any artist is media access. No media means you don’t eat. Given that artists are effectively hired slaves for the record labels who can be used up and dropped at any moment, they are willing to engage in any desperate ploy imaginable to get the cameras pointed in their direction.
Want to sell some albums? Go out and get arrested. Want to build your brand for “keeping it real”? Get caught in the club with a gun on your hip. Want to keep your job at the record label? Start a beef with a popular artist and get him to respond to you. As hyper-masculine as most hip hop artists pretend to be, the reality is that they are scared little boys on the inside; absolutely petrified that their label is going to find another talented brother from the projects and give him the spotlight they’ve bet their life on. This is not always such a great place to be, which is why any athlete or entertainer needs to get educated.
Hip hop is an enlightened and exciting industry. At the same time, it’s the same corporate machine controlling people of color and distracting us from true power by keeping us engaged solely in the act of entertainment. As much as I might criticize Jay Z for allegedly going after my friend Charlamagne tha God, the truth is that Jigga seems to be the only one who gets it. Hip hop is not about entertainment, it’s strictly business.
If you want to hear an artist’s perspective on all of this, I spoke with the Kansas City rapper, Vigalantee about the beef between Jay Z and Beanie Sigal. Click below to hear the conversation:
Dr. Boyce Watkins is a finance Professor at Syracuse University and author of the book, “Black American Money.” To have Dr. Boyce commentary delivered to your email, please click here.
Is Health Care Reform Going to Cost you More or Less Money?
Posted by: | CommentsFiled under: News, The Economy
All of us are confused about health care reform. Many of us support the idea because we support the president. Some of us support health care reform because we know that the current system is terribly flawed. Well, getting informed on the issues might be a great way to ensure that you know what you are backing.
One of the great problems with health care reform is that most Americans can’t trust it in the first place, given that there are so many special interest groups who’ve hooked their fangs into a corrupt and dysfunctional system. Pharmaceutical companies charge incredibly high prices for drugs and work with lawmakers to keep consumers from having other alternatives. Every day, there is a senior citizen moving one inch closer to death because he/she can’t afford their medication. Most of us know that this system has to be altered.
Dr. Elaina George is a prominent Otolaryngologist at the Peach Tree ENT Center in Atlanta Georgia. In the audio below, Dr. George breaks down the health care reform package that is being debated in Congress this week. So, while the news might be muted by the mass shootings that have recently occurred, we should not allow this distraction to keep us from the issues that are going to affect our lives.
Click here to listen to Dr. George.
Dr. Boyce Watkins is a finance Professor at Syracuse University and author of the book, “Black American Money.” To have Dr. Boyce commentary delivered to your email, please click here.
Congress Expands Homeowner Tax Breaks
Posted by: | CommentsIf you were rushing to close on a house before the end of the year, slow down. Congress voted to extend the $8,000 first-time homebuyer tax credit, Thursday.
Fighter Pat Barry Wins Big Purse Right Before Being Homeless
Posted by: | CommentsFiled under: Celebrity News, Personal finance, Dr. Boyce Money
UFC fighter Pat Barry was thanking his lucky stars for his big win against Antoni Hardonk. The fighter won a $120,000 purse for his accomplishment, which was right on time given that he was literally six days away from being evicted from his apartment. Barry’s win was emotional for obvious reasons and nearly everyone in his camp was in shock to hear about his financial situation. What is saddest is that his challenges are not uncommon among fighters in general.
Although Pat Barry hasn’t had the chance to earn millions, many major fighters end up going broke even after their gravy trains have stopped flowing. The outcomes don’t make any sense, given that a bit of financial discipline could have made all the difference in the world. When you earn as much as $10 – $20 million dollars in a payday, you can live a pretty wild financial life and still have money to save. Instead, some athletes seem to want to push the limits and it’s actually uncommon to hear of any boxer who DOESN’T end up in the poor house.
Here are a list of financial demons that plague fighters when they finally hit the big time:
1) The bling: For some reason, athletes and entertainers are expected to live an incredibly extravagant lifestyle. Mike Tyson employed over 200 people and spent millions on items too ridiculous to mention. What’s worse is that Mike Tyson actually owed as much as $38 million dollars at one point. Evander Holyfield’s $10 million dollar, 54,000 square foot mansion was put on the auction block last year after foreclosure. Many athletes go into debt because they are banking on their next payday to get them out of the new financial holes they keep digging for themselves.
2) Bad relationships: Divorce is a great way to go broke. Before Muhammad Ali married his third wife, Lonnie, his previous wife divorced him and took his last $2 million dollars right before Muhammad’s career ended with Parkinson’s disease. It was at that point when he found himself broke and unable to earn additional income. Fortunately, a good woman came into his life and used her MBA from UCLA to liquidate the massive financial value from his brand name. So, as much as black male athletes can be ruined by women, they can also be saved by them. However, a long string of baby’s mamas, bad marriages, draining relatives and expensive arm candy can cost an athlete dearly.
3) The IRS: The IRS is sneaky and has led to the financial demise of many celebs. Even honest, hard working Americans can fall prey to the demon of back taxes. Joe Louis was one great example of a man who made a great deal of money, but found out years later that he owed tax money to the IRS. For the rest of his career, he would wander from one fight to another, with IRS agents waiting in the back room to take the entire purse after the fight. While his career was a great one, he was not a happy man in old age.
4) A lack of education: A lack of money management ability and inadequate financial literacy plagues many wealthy entertainers and athletes. Growing up in poverty doesn’t exactly endow you with an extensive understanding of trust funds, estate planning, stocks and bonds. One of the great tragedies for NFL and NBA athletes is that many of them attend universities that simply hand the athlete a degree without forcing the athlete to get an education. But there is an old saying that “a fool and his money will soon part ways.” Even if you are incredibly wealthy, you have simply made yourself into a sucker for those who are smart enough to take that money from you.
5) The leaches: The easiest way to get a pack of new friends is to have a lot of money. In addition to the friends who suddenly find you to be a fascinating human being, you’ve got managers, lawyers, agents, homeboys and baby’s mamas who want their cut. It is not uncommon for a celebrity to have to give away as much as $700,000 out of every million dollars he/she earns. Everybody wants a piece of your pie until you are down and out; at that point, you become yesterday’s news.
I don’t think that any athlete should live like a miser, that’s no fun. Instead, why not simply save 20% of your income and party with the rest? That would give you a nest egg for retirement and allow you to pay the bills after you’ve fought your last fight. What’s saddest is that every boxer says they are going to retire young and none of them ever do. It’s time to stop living the same story over and over again.
Dr. Boyce Watkins is a finance Professor at Syracuse University and author of the book, “Black American Money.” To have Dr. Boyce commentary delivered to your email, please click here.
Haiti Competes for Grant to Tackle Deforestation
Posted by: | CommentsWith less than two weeks until voting ends for the fifth annual BBC World Challenge ’09, volunteer ambassadors for the love ‘N Haiti project banded together last week in New York to gather votes for the global competition.
Financial Expert Learns Hard, Valuable Lesson After ID Theft
Posted by: | Comments“I felt violated and victimized,” Harrine Freeman says of the day her purse was stolen from the passenger seat of her locked car at a Hyattsville, Maryland gas station in late July. No one at the busy corner station offered much information after the thief smashed a window and sped off with her house keys, checkbook, driver’s license, car insurance, vehicle registration, nearly $100 in cash, as well as her credit, ATM, and health insurance cards.
Costco Accepts Food Stamps: Trend at Wholesale Clubs, Grocery Stores
Posted by: | CommentsFiled under: Personal finance, News, The Economy, Savings, Budget
Leading wholesale retailer Costco has announced that it will now accept food stamps in its stores nationwide. This news comes as a shock to many, who see Costco as catering to elite shoppers. Yet, this should not be surprising as more Americans than ever are using government assistance to feed their families — 10 million people have gone on food stamps in the last two years alone. This is leaving shopping clubs like Costco and Sam’s scrambling to attract an entirely new realm of consumer, who may not be technically “poor.”
Up until recently, some wholesale clubs were skeptical poor people would be willing to pay the $50-a-year membership fee or would be interested in buying food in the bulk quantities for which the stores are famous.
But now, in this economy, stores are battling for every dollar and see a big potential market in the growing ranks of food-stamp recipients. From warehouse clubs to supermarkets and mom-and-pop groceries, stores are retraining their cashiers and hanging new signs to welcome such customers.
”Certainly this economy was a wake-up call,” Costco chief financial officer Richard Galanti recently told investors. ”It is not just very low-end economic strata that are using these.”
… The U.S. Department of Agriculture said nearly 200,000 retailers nationwide now accept food stamps, 20 percent more than in 2005.
Executives at Costco are finding that poorer families are actually eager to pay the $50 dollar membership fee to take advantage of the fact that the company now accepts food stamps. And the retailer believes that poorer families will actually save more money in the end by buying in bulk, even if the initial investment seems high.
If you need to join the ranks of the 39 million Americans on food stamps (also known as Electronic Benefits Transfers), there is no reason to be ashamed. In fact, now is a better time than ever to seek out government assistance in buying food if you need it. The social stigma attached to food stamps is essentially gone as so many people are in need, and now more companies than ever are rising to meet the needs of this customer. You might be surprised to learn that you qualify.
Learn how to apply for food stamps, or about the WIC program, and click below to learn about some of the thousands of retailers that accept EBT. Check your local retailers for more shopping options.
Major Retailers That Accept Food Stamps
Republicans Make Significant Gains After Long Drought
Posted by: | CommentsSuddenly being Republican is a whole lot more satisfying than it has been for a long time. On Tuesday, the Grand Old Party won gubernatorial races in Virginia and New Jersey, largely with the help of the very Independent voters who gave President Barack Obama his historic victory in 2008.
One Year Later: Why My First Vote Won’t Be My Last
Posted by: | CommentsIn 2000, I had my first taste of the democratic voting process. I was in the 6th grade and we were learning about how the voting process works by watching and reporting the presidential race between Al Gore and George W. Bush. We did lots of research on their platforms, policies and backgrounds. It was so exciting to see the process in action. By unanimous vote, Al Gore was my class’ pick for president. In our eyes,he couldn’t lose; logic and fairy-tale endings were on his side. Boy, were we in for a rude awakening from our dream of American democracy.
Secretary Causes Pepsico to lose $1.2 Billion Dollar Lawsuit
Posted by: | CommentsFiled under: Dr. Boyce money, News
It’s not easy to work for me: I can be demanding, overly focused and intense about everything I do. I believe that reaching extraordinary goals requires you to always put forth extraordinary effort. Many interns have come and gone, after realizing that they can’t keep up with our crazy pace. The ones who make it through the storm become invaluable parts of my family; like body parts or internal organs. I truly can’t live without them.
That is why I cringed when I saw the recent story about how Pepsico lost a $1.26 Billion dollar judgment because the secretary forgot to pass the paperwork onto the appropriate people. As a result, the company lost the lawsuit on a default judgment for failing to appear in court.
Apparently, it was a simple oversight that could have happened to anyone. But I am sure that the secretary is in hot water and probably even fired. Cases like this are reminders of some important principles you should remember when you are in business for yourself or working for another person.
1) Trust is everything. For me, trust starts on the first day of the job interview. If someone arrives late, that means that I can’t even trust them to get to meetings on time. If I can’t trust you to get to meetings on time, then there is no way on earth that I am going to trust you with a valuable contract. Consistency builds trust. You must always find a way to be consistent when working with or working for other people.
2) You are only as good as the people who represent you. This statement implies two things: That you should get good people around you and that you should respect those who work for you. Hiring lazy relatives or friends who aren’t disciplined enough to do the job is a recipe for disaster. I have plenty of friends with whom I have good relationships, but I would never do business with them because I know that some of them are unreliable. Those who I choose to be part of my team are not reminded that I am the “big boss.” Instead, I let them know that I am in charge, while showing appreciation for their efforts every chance I get. Being respectful of others is how you truly earn respect without having to step on people in order to maintain power. If you rule with an iron fist, your subordinates will eventually plot to destroy you.
3) Excuses need not apply. There are two types of people in this world: those who deliver excuses and those who deliver results. All of us run into obstacles, but the most effective people are the ones who find a way around those obstacles to get the job done. Those who regularly deliver a basket of excuses to somehow exclude them from their assignment are going to be replaced by someone who simply gets the job done. The truth is that in the world of business, even if you have a good excuse, the client is going to still take their business away from you. That’s just the truth.
4) Learn to forgive. My most trusted partners and subordinates have made horrible mistakes and cost me money in the process. While my first temptation was to raise the fire of hell, I realized early on that this was not the best long-term solution. Instead, I simply ate the loss and assertively pursued a joint remedy for the problem at hand. Having power doesn’t mean that brute force tactics are always the best strategy. You might lose someone valuable if you don’t know when to show compassion. A good employee already feels bad enough about their mistake; you don’t have to rub it in further.
I am not sure how Pepsico is handling the situation with the secretary, since some excuses are simply unforgivable. But while we can all understand being outraged by losing a billion dollars, we should also know not to sweat the small stuff.
Dr. Boyce Watkins is a finance Professor at Syracuse University and a leading African American keynote speaker. To have Dr. Boyce commentary delivered to your email, please click here.
Layaway Plans – 2009
Posted by: | CommentsFiled under: The Economy, Budget
It’s that time again when the stores will be crowded with thousands of consumers all vying for the same toy, special sweater, hottest electronic device. How do you plan to purchase it?
The current crumbling economy has sparked interest in a form of retail purchasing that became popular in the early 1900s, that of Lay Away. How does it work? It’s simple. You, the consumer would like to buy something but don’t have the money. All you do is make installment payments on the merchandise. The merchant stocks your item away until your last payment. You receive it once your tab is paid in full. Of course this is different than a credit card purchase which allows you to take home your intended product and make payments while using it.Although stores like Walmart did away with this form of procurement years ago, Kmart stayed in the game. Stores currently offering layaway plans are:
- Burlington Coat Factory
- Kmart
- Marshalls (at select locations)
- TJ Maxx (at select locations)
- Benny’s (New England)
- Sears ( through December 23)
- Cato – (offering 30-day plans)
- Men’s Wearhouse
- Boscov’s
- Value City Furniture Stores
- Footlocker (at select locations)
- Best Buy
- Toys-R-Us
Plan on taking advantage of this service? Be sure to READ THE FINE PRINT.
1. Get a copy of the store’s layaway policies
2. Understand ALL of the policies – schedule of payments, rules regarding late fees, refund and exchange policies, markdowns on sale items, etc.
3. Keep a good record and all receipts of payments (in case there are any disputes later).
Until you make all the payments, the store has your merchandise AND your money. For this reason, I prefer to use cash, debit or credit cards OVER layaway, any day. Assuming I can pay off the balance in a short period of time. It’s true, credit card companies charge interest, therefore depending on the length of time it takes you to pay off the debt and the interest charged, your purchase which was originally on sale could potentially cost you much more in the end. However, I just can’t bear the thought of someone using MY money while I have nothing to show for it. Also, sad to say in these critical times retailers are closing doors for good, left and right. If you have something on layaway, on which you’ve been faithfully making payments and the store closes, you’re out your goods as well as your cash. Of course the choice is yours.
If you know of other stores, please let us know in your comments.
Backtalk with Judith Jamison
Posted by: | CommentsWorld renowned choreographer, dancer, and author Judith Jamison has broken many barriers in her career. As artistic director of Alvin Ailey American Dance Theater, Jamison became one of only a handful of women in the world to direct a major dance company when she assumed leadership in 1989. As a dancer, she gained international recognition for her performances of the tour de force solo “Cry” and “Pas de Duke.” In 2007 Black Enterprise recognized the trailblazer with its Women of Power Legacy Award, which honors women whose accomplishments have helped redefine the standards of success for women of color in a variety of fields.
Economic Recovery Definition: Is the Economy Really Getting Better?
Posted by: | CommentsFiled under: News, The Economy
What is the definition of an economic recovery? This is the hot finance topic of the week. As the White House unrolls a PR plan to try and demonstrate that the recession is over thanks to the administration’s efforts, the question of how to exactly define economic recovery is causing confusion. Let’s look at the facts and try to determine an economic recovery definition.
President Obama has claimed that 650,000 jobs have been created or saved through his stimulus plan. The Dow increased by 200 in response to the good news. Plus, the economy grew last quarter for the first time in a year at a rate of 3.5%. Modest, but good. There is also the increase in home sales reported in September. And even Ford posted a profit of nearly $1 billion this year, which came as a surprise to the business community. But do these positive reports illustrate that our economy is set for permanent stability?
Home Sales Up
Chart shows seasonally adjusted annual rate of pending U.S. home sales
AP
Chart shows seasonally adjusted annual rate of pending U.S. home sales
AP
In this Wednesday, Oct. 21, 2009 photo a sign for a home under contract is seen in Philadelphia. The volume of signed contracts to buy previously occupied homes rose for the eighth straight month in September as buyers scrambled to take advantage of a tax credit for first-time owners that expires at the end of this month.(AP Photo/Matt Rourke)
AP
In this Wednesday, Oct. 21, 2009 photo a sign for a home under contract is seen in Philadelphia. The volume of signed contracts to buy previously occupied homes rose for the eighth straight month in September as buyers scrambled to take advantage of a tax credit for first-time owners that expires at the end of this month.(AP Photo/Matt Rourke)
AP
Chart shows new home sales for the past 13 months, seasonally adjusted
AP
Shea Homes townhouses are seen at the Victoria Gardens development in Rancho Cucamonga, Calif., Tuesday, Oct. 27, 2009. The number of buyers snapping up new homes dipped unexpectedly last month as the effects of a temporary tax credit for first-time owners started to wear off. (AP Photo/Damian Dovarganes)
AP
Chart shows new home sales for the past 13 months, seasonally adjusted
AP
In this photo made Oct. 26, 2009, a new development of townhouses is seen in Wakefield, Mass. Sales of new homes dropped unexpectedly last month as the effects of a soon-to-expire tax credit for first-time owners started to wane.(AP Photo/Lisa Poole)
AP
In this photo made Oct. 26, 2009, a new development of townhouses is seen in Wakefield, Mass. Sales of new homes dropped unexpectedly last month as the effects of a soon-to-expire tax credit for first-time owners started to wane.(AP Photo/Lisa Poole)
AP
New home models are shown in Homestead, Fla., Tuesday, Oct. 27, 2009. Sales of new homes are expected to post their sixth consecutive monthly gain as builders reap the benefits of a tax credit for first-time owners that expires at the end of next month. (AP Photo/Alan Diaz)
AP
Some say no. Increases in car and home sales have been spurred by federally-backed incentives like the $8,000 first time homebuyer tax credit and the cash for clunkers program. These increases don’t stand on their own as signs of consumer strength. So what can we use to define economic recovery?
Writers at the Wall Street Journal believe the jobless rate is a much more meaningful benchmark. But right now it is too soon to tell exactly where that rate is heading based on the statistics available now. So even the jobless rate cannot help us develop a reliable economic recovery definition until we have more information.
Let’s try looking to the president for his definition. The POTUS has declared: “The benchmark I use to measure the strength of our economy is not just whether our GDP is growing, but whether we are creating jobs, whether families are having an easier time paying their bills, whether our businesses are hiring and doing well.” (CBS News)
As unemployment remains high and it is still difficult for people to get loans, we are clearly far from a lasting economic recovery — by the definition of the president himself. But as we have faced the worst economic decline since the Great Depression, it is silly to expect our economy to fully recover after a few months of federal intervention. Obama’s stimulus plan may not have created a full economic recovery within months, but it has helped many families survive what could have been a much worse financial scenario. It has also supported state governments that provide social services like police and teachers to all.
This type of relief may not fit an expert’s economic recovery definition, but it has helped society overall in the short term. For that alone the president can be commended.
Obama’s Fed Chairman Makes Racially Ignorant Remarks: Dr Boyce Analyzes
Posted by: | CommentsFiled under: Dr. Boyce money, News, The Economy, Education
I’ve always had mixed feelings about Federal Reserve Chairman Ben Bernanke. I feel that he is better than the previous chairman, Alan Greenspan, but the Fed Chairmanship (like the presidency) is almost never given to the right man. Just the fact that it is almost always given to a man is problematic enough, and the truth is that only white men need apply for the job.
Well, when you are limited in your option pool for the top job, bad leadership and flat out ignorance can sometimes be the result. While Fed Chairman Bernanke might know some nuts and bolts about economics, he appears to be shockingly misinformed about economic disparities between blacks and whites. His embarrassing and highly inappropriate statements at Morehouse College serve as a significant case in point.
In a recent interview at Morehouse, the Fed Chairman was asked what he felt to be the reason for the wealth gap between blacks and whites. In response, Bernanke said that the gap was due to a lack of “financial literacy” and “financial education” on the part of African Americans. That’s all he mentioned.
What? Sorry Ben, but did you ever hear of this little thing called “slavery”? What about this other thing called “Jim Crow laws,” which made it nearly impossible for African Americans to pass wealth onto their children? Do you truly believe that whites have the bulk of American wealth because they were simply harder working and more intelligent in their wealth building strategies? Do you know how silly you sound?
According to the 2007 Survey of Consumer finances, the median household wealth of white Americans is 10 times greater than that for African-Americans. And in spite of what the Fed Chairman might believe, it is not due to the fact that black people are financially ignorant. Rather, it is due to leaders such as Bernanke who refuse to acknowledge how 400 years of racially-biased wealth distribution can impact structural and financial inequality.
The other point that Mr. Bernanke fails to mention is that white American saving and investing habits are incredibly problematic as well. The recent financial crisis was due to the fact that the American savings rate had become negative for the first time since the Great Depression. Additionally, Americans (not just black people Ben) were borrowing money for homes they could not afford and not preparing for retirement. So, the idea that Chairman Bernanke would sum up the black/white wealth gap as “white people smart….black people illiterate” is a shocking disappointment and a glaring reminder of the fact that our economic captains in the Obama Administration have almost no understanding or respect for the unique economic challenges of the African American community.
I won’t even get into Obama’s appointment of Lawrence Summers as Treasury Secretary, given that Summers disrespected Dr. Cornel West, one of the most significant black scholars in American history. During a spat when Summers was president of Harvard, he criticized Dr. West’s work as not representing “appropriate” scholarship. Translation: you are doing something that white scholars don’t understand, which thus implies that you must be inferior – I get it all the time here at Syracuse, a school that hasn’t tenured a black man in finance in their entire 140-year history – perhaps we lazy black folks are just not good enough. Professor Summers is also the one who implied that women might have a natural deficiency in their ability to understand mathematics. The idea that Obama supports individuals who continue to embrace mindsets reflective of white male supremacy should be problematic to us all. The financial team within his administration needs a makeover, and their “expertise” and qualifications should be questioned by the American people.
A note to Chairman Bernanke: The present around us has been created by a set of tasks that were performed in the past. If you are only able to see wealth disparities through a lens created in the year 2009, one that is blurred by your own biases as a white male in an elitist profession, you are missing 99% of the picture. To cite African American ignorance as the sole driver of wealth gaps in America is a reminder that our leadership still thinks of black people as second class citizens. Rather than presuming cultural superiority on the part of whites, why not engage in creative and intelligent policy analysis that might actually fix the problem that America has created. It was not the flaws of black America which created structural inequality; it was poor decision-making on the part of the very institution with which men like Bernanke, Summers and Obama are employed. It’s time for some personal responsibility.
Dr. Boyce Watkins is a finance Professor at Syracuse University and author of the forthcoming book, “Black American Money.” To have Dr Boyce commentary delivered directly to your email, please click here.
Higher SAT Scores and Getting Ready for College: Dr Boyce Tips
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I was asked recently how to prepare for college. I was also asked how to pay for it. Well, what might surprise you is that paying for college and preparing are actually closely related. The better prepared for college your children are, the easier it will be for them to pay for college with scholarships and other financial support. So, rather than spending money on new Air Jordans for your child, spend that money to help them to find a tutor.
Here are four things about getting higher SAT scores and preparing for college that you should keep in mind when dealing with your kids.
1) Good ACT and SAT scores don’t come naturally, you have to prepare. Some people think that you are going to magically end up in college just by saying that you want to go. Some think that you should take the ACT and SAT cold, and that natural intelligence will carry you through. That’s not the case. Your child should prepare for college like it’s a part-time job: studying 2 – 3 hours each day, for several months straight. Yes, that sounds like a lot of work, but is it really very much when compared to the fact that most of our kids are fine with working at McDonald’s for four or five hours a day, or going to football practice for three hours a day after school? Education MUST be the number one priority in your household if you want your children to have a bright future.
2) Make sure your child is taking classes that will truly prepare him/her for college. With the horrific state of the American educational system, the truth is that we can’t trust the system with our children. Making good grades is not enough when it comes to ensuring that your kids are prepared. Make sure that they are taking classes that meet the standards of attending college, and this will reflect itself in higher SAT scores. Check with the university of your choice to ensure that your child is enrolled in the classes necessary to get into that school.
3) Apply to at least 12 universities. The more irons you have in the fire, the more likely it is that one of them is going to get hot. Have your child do one college application every two days for one month. that will give him/her roughly 15 applications to various colleges. You can then find out which schools have needs that match the things your child has to offer, and you should make sure that your ACT and SAT scores are high enough to get into the places you apply. You’ll never know what opportunities are out there unless you apply for them.
4) There should be no use of the word “if” when preparing for college. I hate the fact that there are so many people who are afraid of college or think that it only works for someone else. I teach at a university that charges over $30,000 per year, and I argue that any 10th grader of average intelligence could get a good grade in my class, if they study each day consistently. I don’t care what your SAT scores happen to be, college is not nearly as difficult as some might lead you to believe, and the truth is that it can change your life forever. It certainly changed mine, and I was told that I wasn’t smart enough for college in the first place.
Dr. Boyce Watkins is a professor at Syracuse University and author of the book, “Everything You Ever Wanted to Know about College.” To have Dr. Boyce commentary delivered directly to your email, please click here.
Professional Women and their Love Lives: Money and Matrimony Sometimes Conflict
Posted by: | CommentsFiled under: Personal finance, Careers, Dr. Boyce money
I have become obsessed recently with trying to figure out how successful black women find a way to get it all done. Now, by “successful,” I’m not referring to the woman who works 70 hours a week while seeing all of her relationships die in the process. I am referring to the women who do some of the most important jobs in our society (nurturing children and maintaining their relationships) while finding success in their professional lives. Call me old fashioned, but I think that there is no job in the world more important than being a mother.
This week on Financial lovemaking, S. Tia Brown and I speak with Dr. Towanna Freeman, a life coach and women’s empowerment guru, about what it takes to maintain love, life and everything in between. We ask Towanna the hard questions about her business and her family and try to determine the formula for keeping it real and keeping it realistic.
One thing that Towanna makes clear is that you don’t have to be perfect to be happy. She also reminds us that successful people are not successful all the time. The key is having the right mindset and always striving for success, whether you are feeling successful or not. I can personally say that I fail at roughly 90 percent of everything I do: But it’s striving for that last 10 percent which helps to set me apart.
The interview with Towanna is below. Enjoy!
Dr. Boyce Watkins is a finance Professor at Syracuse University and author of the book, “Financial lovemaking 101: Merging Assets with Your Partner in Ways that Feel Good.” To have Dr. Boyce commentary delivered to your email, please click here.
Nicolas Cage Money Problems: Balling Without a Budget
Posted by: admin | Comments (0)Filed under: Celebrity News, Personal finance, Dr. Boyce Money
I grow weary of the fact that whenever the media presents an entertainer going broke, we almost always see a black man. Well, the tables do turn, even on the best of them. Actor Nicolas Cage is allegedly having major financial problems, having his property foreclosed and admitting in court that his former business manager may have milked him of millions of dollars.
In a major court battle, the actor lost two of his homes worth a combined total of $6.8 million dollars. Cage owes over $5 million in mortgage payments and more than $150,000 to the city of New Orleans in real estate taxes. Cage is also suing Samuel Levin, his former business manager, claiming that Levin was responsible for his financial demise.
Here are some quick and dirty thoughts on the plight of Nicolas Cage:
1) Is there a change in the language? I noticed that a CNN article about Cage mentions the recession as one of the reasons that Cage is struggling financially. However, most commentary about the financial problems of NBA star Antoine Walker attributed his woes to financial irresponsibility. Not to accuse anyone of racism, but I wouldn’t be surprised if it were difficult for the world to imagine the great Nicolas Cage as being financially irresponsible.
2) Hollywood money is not what it seems to be: By having five major projects slated for 2010, it’s tempting to believe that Nicolas Cage is going to be financially free by the end of next year. Not so fast. After actors finish paying the agents, lawyers, managers, and the IRS, they may only get 30 – 40% of their total pay package. That means that if Cage gets $10 million for his film, he is only going to see three or four million dollars of that money.
Whatever the case may be, it does appear that Nicolas Cage was certainly living it up. Few A-list actors are as blockbuster-worthy as Cage, so there is no excuse for him to ever go broke. But given that Cage has purchased personal islands, castles, and other extravagant items, he put himself in a situation where he needed a lot of money in order to simply stay afloat. Michael Jackson had the same problem during his life, as he was easily spending five to ten million dollars per month. No matter how much money you have, you can always go broke. We should all live beneath our means.
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