Remember when the Dow hit 10,000 in 1999?
CNBC put together an interesting “then & now” re: what was happening then and what’s happening now.
Worth browsing … will make you smile (and moan).
http://www.cnbc.com/id/33309699/
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Archive for October 15th, 2009
Should fat people pay more for health insurance?
October 15, 2009I received several “you’re heartless” comments when I suggested that healthcare should be rationed to fat people (instead of rationing it to old people).
https://kenhoma.wordpress.com/2009/08/06/instead-of-old-people-how-about-rationing-care-to-fat-people/
Well, on a variant to the theme, a number of state insurance plans penalize smokers already. In January of this year, Alabama became the first state to charge overweight employees more for their health insurance coverage, and North Carolina plans to place state employees who are overweight in a more expensive health insurance plan beginning in July 2011.
A new Rasmussen Reports national telephone survey finds that 50% support a plan that makes government workers who smoke pay more for their health insurance, and 30% favor making overweight government workers pay more for health coverage.
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Factoids
70% of Americans said they opposed a national tax on all non-diet soft drinks to combat obesity.
41% of Americans describe themselves as overweight.
49% of adults say they exercise one to three times per week, and over half say their workout lasts at least 30 minutes.
18% of Americans smoke cigarettes … 34%) don’t smoke now but used to http://www.rasmussenreports.com/public_content/politics/current_events/healthcare/october_2009/30_say_overweight_workers_should_pay_more_for_health_insurance
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$25 times a lot of bags equals … well, a lot of money.
October 15, 2009TakeAway: From baggage to blankets, à la carte charges are becoming significant revenue sources for airlines
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Excerpted from Business Week, For Airlines, Fees Become Lifelines, October 12, 2009
Just a few years ago air travel was simple: Buy a ticket, fly. But as airlines hunt for new revenues to help them weather the recession, their goal is to make fares just one piece of the travel experience. Whether it’s a fleece-blanket-and-travel-pillow set or a can of soda, the airline cabin has become a bazaar, and the selling has only just begun.
Ancillary revenues—products and services airlines can sell à la carte—are becoming a vital financial lifeline for airline balance sheets amid weak travel demand. For some airlines, more than 20% of 2008 revenue come from ancillary sources.
Airlines argue that they have little choice: Low fares do not cover their costs, and charging for products and services represents one of their few options for survival. “The airlines have been in negative returns since the days of Orville and Wilbur [Wright].”
Passengers could be forgiven for wondering where the new charges might end. Is air travel destined to be dominated by ultra-spartan flights, such as those pioneered in Europe by Ryanair ? Ryanair has even proposed installing credit-card-operated toilets.
Carriers are learning that some fees are more palatable to travelers than others. Checked luggage is one of the most successful new revenue sources—the top 10 U.S. airlines collected $670 million in bag fees in the second quarter. American led the way in June 2008 with a $15 fee to check a first bag, and nearly every other U.S. carrier has matched that.
While it may take time to adjust to the new reality, consumers could ultimately benefit. With an à la carte approach, fliers will no longer be subsidizing products or services they don’t use.
Full article:
http://www.businessweek.com/magazine/content/09_41/b4150064773617.htm
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Starbucks plays the value card … say, what ?
October 15, 2009TakeAway: For a company that has increased the price of its latte exponentially each time the price of milk rose by a penny, it is very intriguing to see Starbucks aggressively offering a coffee value play. Will a high volume, low margin gain from an extension of its market footprint be able to turn this company around … we’ll see.
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Excerpted from WSJ, “Starbucks Takes New Road With Instant Coffee,” By Julie Jargon, September 30, 2009
Starbucks aims to convince Americans and Canadians that its new Via instant coffee is comparable to its brewed product …
Via is part of a strategy to provide value for customers who can’t or don’t want to splurge on a regular coffee purchase. One packet of the instant variety produces a cup of coffee for less than $1. Via costs $2.95 for a three-pack and $9.95 for a 12-pack …
Portability will be an important selling point. As such, Via will be available in stores such as REI and Office Depot … Via will be available for purchase on domestic United Airlines flights longer than two hours …
Starbucks doesn’t plan to enter traditional grocery stores until sometime next year … In traditional supermarkets, Starbucks will go up against Nestlé, maker of Nescafe Taster’s Choice, which already is running ads attacking Via.
Starbucks is launching its own ad campaign on television — a rare move for a company that has traditionally stuck to print ads and social-networking sites for its marketing. The initial commercials will promote a “taste challenge” that will take place at Starbucks stores … “We’re convinced a majority of people won’t be able to tell the difference” …
The idea for developing an instant coffee has been brewing at Starbucks for 20 years … The company, which has struggled amid the recession as customers have either forgone Starbucks visits or purchased less expensive coffee drinks, expects its entry into the $21 billion global instant-coffee market to be a huge opportunity to boost sales …
Edit by TJS
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Full Article
http://online.wsj.com/article/SB125418430092348015.html?mod=djemMM
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The Homa Files 