GM stock is finally inching up to its 2010 IPO price. Meanwhile Dow is up 20% over the same period of time. By exiting 241MM shares of GM at today’s prices, taxpayers will take a $20B loss on the bailout. Considering the stock has to go up another 62% for us to just break even, it’s time to cash this clunker and move on. Monica discussed this and more with Fox’s Neil Cavuto.
Facebook is losing users left and right in the US and Europe, with 7.5MM members dropping off the site last month alone for competitors like Instagram. But are we really all that surprised? Afterall, there’s no commandment that reads ‘thou shalt always use Facebook for your social networking needs.’ Although western countries appear saturated, the company is experiencing robust adoption in emerging markets including India and Brazil, each with about 60MM users to date and plenty of room for more friends. While there’s no reason to believe the social media giant will disappear anytime soon, nothing lasts forever in the technology. Just ask Chris DeWolfe or Tom Anderson (if you’re Alta Vista’ing those, I rest my case). I discussed this and more with Fox’s Neil Cavuto.
Consumer spending drops to a 9 month low, matching a significant decline in consumer sentiment which catches analysts off guard. Declining consumer savings rate and a spike in loans drawn off 401K suggest an American consumer that is strapped, feeling the weight of payroll tax holiday expiration and fiscal cliff fear mongering. Monica discussed this and more with Neil Cavuto.
‘The Entrepreneurial Instinct’ named a finalist for Book of the Year in the Business and Economics category in 2012 by premiere review publication for publishing industry.
When President Obama asked federal employees to offer budget cutting suggestions, he received 86,000 ideas. Some were bordering on the ridiculous (ask TSA officers to scour floor for loose change). But others were more pragmatic (stop “use it or loose it” budgeting policies that incentivize taxpayer funded spending sprees at year end, stop printing paper calendars for divisions that track appts online, don’t allow different armed forces to design individual armed services logos). In the end, not a single budget cutting proposal was heeded, as Washington proved once again that partisan priorities trump fiscal responsibility.
The Entrepreneurial Instinct named a winner in the Best Start-up Book category for 2013 by Small Business Trends, a leading resource for entrepreneurship and small business. Read more
Last week the House Republicans offered a budget proposal that balances the budget by taxing for Obamacare but magically obliterates the law itself. This week House Democrats offered an equally unlikely option in the form of a budget that replaces hard earned sequester cuts with $1.2T in new taxes, while continuing to spend more than we collect for the next two decades. What hope is there for fiscal sanity when our elected officials can’t seem to get even a small grip on reality.