Archive for March 10th, 2009

Obama’s foreclosure plan gets strong support … that is, from folks who don’t know what’s in it

March 10, 2009

Excerpted from  the Diageo/Hotline Poll,   March 5, 2009

According to the Diageo/Hotline Poll, a majority of voters (56%) support President Obama’s $75 billion home foreclosure plan,

People who know the most about what’s in the package are evenly split on it … the blissfully ignorant (2/3s of the folks polled) support it 2 to 1. 

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Not surprisingly, support varies widely with party affiliation: Dems favor the package 4 to 1 … GOPs oppose it 2 to 1

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http://www.diageohotlinepoll.com/documents/diageohotlinepoll/FDDiageoHotlinePoll_topline03.09.pdf

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Note: the Diageo/Hotline Poll is managed by an MSB alum: Brent McGoldrick, MBA ’04.  Brent is a VP with Financial Dynamics (FD) and can be reached via email at:
Brent.mcgoldrick@fd.com  

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“The stock market is just another political tracking poll” … huh?

March 10, 2009

Ken’s Take:

A few weeks ago, a reader replied to one of my posts joking (I think) that Pres. Obama must be shorting the market the way he’s talking and acting.  Suddenly, the reply isn’t sofunny.  There may be method to the madness.  If the stock market impact is most felt by (previously) wealthy folks, hen the decline levels the playing field — a stated Obama goal —  making everybody worse off and more dependent on the government.  Think about it.

Even if you pin all of the stock market drop on Bush, it’s clear that Obama isn’t taking any direct initiative to stem the decline.  The non-stimulus plan is conforming to the Congressional Budget Office’s assessment that it will have little or no impact in 2009.  And, actions that might steady the market — e.g. lower capital gains taxes on stocks bought in 2009 and 2010, restoration of the uptick and short selling rules — are dismissed out of hand as favoring the rich.

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Excerpted from NY Post, ” Obama’s search for an enemy”, March 8, 2009 

The President dismisses the growing perception he is adding to the economic pain. Asked about the markets, Obama waved them off as like a “tracking poll in politics” that “bobs up and down day to day.”

It was a telling moment, for the markets on his watch have moved almost exclusively down. And the 55 million households that hold mutual funds are watching their savings and retirements vanish in great gobs.

Most are decidedly middle class, making them collateral damage of this war.

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Full column:
http://www.nydailynews.com/opinions/columnists/goodwin/index.html

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Telecom: Banking on Mobile Banking to be a Killer App …

March 10, 2009

Excerpted from Marketing Daily, “Mobile Banking May Be Telecom’s Killer App” by Aaron Baar, Jan 23, 2009

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With increasing consumer familiarity and growing ease of use, mobile applications for financial services companies–particularly banks–could become the new “killer app” for telecommunications.

The number of people banking through a mobile device could hit half a billion worldwide by 2013 … “Mobile financial services have the potential to be bigger than mobile TV and premium mobile content in terms of numbers of subscribers” …

The drive for more and better mobile financial services applications is being fed by consumers who are becoming more accustomed to banking online. “The lowest-hanging fruit are the online customers … That’s one of the only barriers to mobile banking; if you don’t trust online, you won’t trust mobile.”

But just as customers are using online banking for uses beyond simply checking their accounts, they will begin to use their mobile devices for those purposes as well. “The growing parts will be more sophisticated applications like bill payment” … But banks will have to work on making the mobile experiences as simple and user-friendly as the online services.

Increasing numbers of customers–particularly younger ones–are learning to trust the online space for their banking, and mobile will quickly follow. “Generation Y expects mobile to be part of what they’re doing, and banking is no different,” …

In the U.S., the mobile banking leader is Bank of America … The bank launched its mobile service in May 2007, and by the end of 2008 it had 1.5 million subscribers. “It’s a growing segment, and it’s being led by Bank of America” …

Edit by SAC

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Full Article:
http://www.mediapost.com/publications/?fa=Articles.showArticle&art_aid=98908

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Airlines Fight For First Class With Food … Umm, umm, good

March 10, 2009

Excerpted from WSJ, “Cooking Up Ways to Improve Steaks on a Plane” By Scott McCartney, Jan 20, 2009

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Competition for first-class passengers is more heated than ever in the global recession, and sometimes it boils down to whether the soup is hot enough. International airlines are beefing up food spending as a differentiating draw for premium customers — even U.S. airline spending on food has increased recently

U.S. airlines that fly internationally increased their spending on food by 8.5% — the biggest increase in any category besides fuel … The same airlines cut labor expenses and maintenance expenses in the same period and slashed advertising more than 22%.

Many airlines, domestic and international, hire famous chefs to help create in-flight menus and lend cachet to airline food … Profitability for long international flights hinges on selling business-class and first-class tickets for thousands of dollars … Food is a crucial variable.

“Nobody complains about what kind of fuel you buy, but food does get a disproportionate share of comments … Airlines fly the same kind of planes — either a Boeing tube or an Airbus tube. What’s different is the service and the food, and that’s where we try to excel.”

The focus on food may seem a bit bizarre for travelers who usually travel domestically — and in coach. Food service on airlines has soured for many travelers after years of cost-cutting …  Even in first class, meals on many domestic flights are skimpier: Drinks and nuts are the typical offering on shorter trips …

It turns out you can serve a high-quality meal on an airplane, if you know how to overcome the huge obstacles. Because the dry air of a jet cabin dries mouths, taste is diminished in flight. So Singapore and other carriers exaggerate flavors in meals … High-quality airline food is prepared so that it can be reheated hours after its initial cooking …

Today, passengers want flexibility in meal service so they can work, watch fancy entertainment systems and sleep. And just as culinary arts have been raised on the ground, so, too, do passengers expect more from airline food …

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Full Article:
http://online.wsj.com/article/SB123241509322796411.html

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