Political Slush Funds

           

Some states and especially the Federal government in the past made political efforts by subsidizing some company payrolls. It’s a stupid populist attempt to show concern for workers at those jobs.

                 

Taxpayers must pay for businesses who are not able to make a go of it. Perhaps inefficiencies but also including barriers placed before them by government being restrictive. Such as business taxes and fees.

                 

Such assistance will inevitably be politically dominated. The funds will go to companies preferred by the politicians in office. Graft and corruption is always a consequence.

                 

The whole process amounts to nothing significant. Where will it all end, short of Fed or state government winding up in a failing business?

                 

Leave companies exist without abusive taxation and other restrictions and they will tend to do far better on their own. (See the Earl J. Weinreb NewsHole® comments and @BusinessNewshole at Twitter.)

FDR's Poor 1930s Policy

            

Did Franklin D. Roosevelt really get us out of the Great Depression in the 1930s? Actually, he never succeeded at creating jobs. Though the public thinks he did.

We ought to learn from his then Treasury Secretary, Henry Morgenthau. The latter admitted in his memoirs at the end of his years of effort, and just before World War II, how we were still mired in unemployment. How 1937 and 1938 were particularly bad, after all the economic pump-priming after 1932.

                 

Roosevelt believed in high taxes and Keynesian spending by government that did not work. Yet, it’s the very philosophy often  used today. (See the Earl J. Weinreb NewsHole® comments and @BusinessNewshole at Twitter.)

Business Management

    

You hear about the best management techniques that are successful and implemented. Every year or so, another business management expert is recognized for ideas, on sales, or productivity.

                 

A few years later, a fresh crop of experts and authors arise in a repetitive cycle. The concepts become regenerative fads. The same ideas regurgitate every so often. What becomes stale in a decade becomes fresh in the next. or the following. (See the Earl J. WeinrebNewsHole® comments and @BusinessNewshole at Twitter.)

Avoiding Deep Recessions

            

America has always had self-corrective economic cycles, but now we have more financial regulators than ever before; they are doing their man-made damage, as never before. By avoiding massive bailouts by regulators offering the illusion of doing something.

All that was needed in the recent past was a federal agency guarantee of all bank assets, with a fee charged to the banks.

                 

And by avoiding “mark-to-market” accounting of mortgage assets, which had no market appraisal, which wiped out assets of major banks almost overnight, aided by short selling this enticed.

                 

And by having a government agency in 2008 buying up, at bankruptcy, and destroying, empty tract homes in over- speculative states such as Nevada, Florida and California.

                                

The government repeated the same errors made by Herbert Hoover and Franklin Roosevelt during the Great Depression. We thus accomplished little for the economy but have revamped the form of government with state capitalism, a nasty type of socialism.

The Dodd-Frank Act further attempts to get us out of any financial mess: a disaster beyond anything America has had. (See the Earl J. Weinreb NewsHole® comments and @BusinessNewshole at Twitter.)

Good Business Management

             

There is a little truth to the adage: Good management makes money and bad management loses money. It’s always applied on Wall Street where analysts usually have no genuine idea of how to evaluate corporations.

                 

An executive must operate with the hand being dealt. If the business environment or the economy is poor, an excellent manager may do extremely well by just minimizing losses;there are no real standards to go by.

                 

Look at the techniques used and they are all the same. The same acronyms to describe managerial approaches. Those that worked in the past may not be working now. The ones that did not work in the past may be working today.

                 

A lot of luck is involved. Alert: Keep an eye on protective management. Keep away from lawsuits, especially employee harassment and EEOC suits. Stick to the employee manuals you set up. (See the Earl J.Weinreb NewsHole® comments and b@BusinessNewshole at Twitter.)

Financing by Non-Banks

           

It will take decades for Dodd-Frank’s financial regulation tentacles to be clearly defined.

                 

One of its unintended consequences: Large retailers and other companies can now do more openly the type of financing that banks will not wish to undertake because of severe regulations in place under the new regulations.

                 

Large industrial companies have been giving small business loans where banks have not ventured.

                                        

Should this favorable trend continue, no doubt Uncle Sam will then become under pressure from anti- business groups. (See the Earl J. Weinreb NewsHole® comments and @BusinessNewshole at Twitter.)

Over-Wordy Legislation

        

Dodd-Frank financial regulation has an immense, adverse transformational impact on American society, as well as its economy. It has over 2300 pages. I doubt if any of our House or Senate reps had read it entirely or ever will.

                 

The Federal Reserve Act which set up our basic banking

system had 31 pages. Most other basic financial legislation of the past had been composed with about a hundred or so pages.

                 

ObamaCare runs rover a couple of thousand pages and literally hides information the public or its proponents never realized exists. Which are only now coming to light.

                 

Limit the size of any bill. If it is too big to be read in a couple of hours, it is simply too big. (See the Earl J. Weinreb NewsHole® comments and @BusinessNewshole at

Twitter.)