DailyFinance.comhttp://www.dailyfinance.comDailyFinance.comhttp://o.aolcdn.com/os/df/2013/img/2-dailyfinance_logo_m.pngDailyFinance.comhttp://www.dailyfinance.comen-usCopyright 2013 Weblogs, Inc. The contents of this feed are available for non-commercial use only.Blogsmith http://www.blogsmith.com/Three Companies That Are Hiring: UPS, Google and Dollar Generalhttp://www.dailyfinance.com/2010/11/28/three-companies-that-are-hiring-ups-google-and-dollar-general/http://www.dailyfinance.com/2010/11/28/three-companies-that-are-hiring-ups-google-and-dollar-general/http://www.dailyfinance.com/2010/11/28/three-companies-that-are-hiring-ups-google-and-dollar-general/#commentsFiled under: , , , , ,

The U.S. economy continues to struggle and the oft-used term 'jobless recovery' remains as apt as ever. Yet, despite the doldrums, many companies are hiring.

If you're looking for a job, these three themes can help you focus your search: Seasonal hiring, growth in discount retailers and competition in tech. I've identified three companies that represent each of these hiring trends:




UPS (UPS): The package delivery company announced recently that it is adding 50,000 seasonal jobs. Best Buy (BBY), Kohls (KSS), Toys R Us and other retailers have announced major hiring plans to cover the holiday rush. The trick is to get a seasonal job and perform so well that the company offers you a full-time job after the holidays are over.

UPS has announced that it will convert some of the seasonal workers to full-time employment. It is looking for drivers, package sorters and other jobs in its huge distribution centers.

Dollar General (DG): Companies that focus on the discount sector are doing well while the economy sputters Hence, Dollar General, which competes with WalMart (WMT) on the low-end (25% of its products are $1 or less), is expanding. It has 9,000 stores, mostly in small town or rural areas, and is looking for managers around the country. No doubt many of these stores are also looking for part-time clerks and seasonal workers.

Google (GOOG): The Internet behemoth only seems to get larger and more powerful. Yet it is facing increasing competition from the likes of Facebook and Twitter, who are hiring away some of its top talent. It needs more engineers and will pay handsomely for them. But you don't have to be a computer whiz to work at Google. The New York office list 32 openings for advertising account managers, for example.

Don't let the onset of the holiday season discourage you from jump-starting your job search. Companies are hiring now. Also check out AOL Careers, which lists 10 Companies that are hiring each week. If you're out of work, there is no better gift for your family for the holidays than getting a new job.

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]]>careersdollar generalFeatured VideoFeaturedVideogooglehelp wantedjobsupsAmey StoneSun, 28 Nov 2010 06:00:00 ESTBest B-Schools: Chicago and Harvard Repeat as No. 1 and 2http://www.dailyfinance.com/2010/11/11/best-b-schools-chicago-and-harvard-repeat-as-no-1-and-2/http://www.dailyfinance.com/2010/11/11/best-b-schools-chicago-and-harvard-repeat-as-no-1-and-2/http://www.dailyfinance.com/2010/11/11/best-b-schools-chicago-and-harvard-repeat-as-no-1-and-2/#commentsFiled under: ,

The first- and second-place finishers in Bloomberg Businessweek's biannual rankings of the top full-time MBA programs are repeat winners. Both landed atop the list again in 2010 after doing so in 2008, the last time the rankings were published.

University of Chicago's Booth School of Business edged out Harvard Business School for the top spot, thanks to higher marks for teaching quality. Both schools got top scores for their career-services departments, helping their overall rankings as the job market for MBAs worsened since the last survey. (See interactive table with full results).

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University of Pennsylvania's Wharton School earned the No. 3 spot, followed by Northwestern's Kellogg School of Management. Stanford's program ranked No. 5 overall, but is tops for post-graduate average salary ($120,000) and for being the hardest to get into. The schools that gained the most in the rankings were Georgia Tech (to 23 from 29 in 2008) and Southern Methodist (to 12 from 18). Falling the most were New York University (from 13 to 18) and Brigham Young (from 22 to 27).

Bloomberg BusinessWeek's top tier also had some newcomers: The University of Minnesota's Carlson School of Management and Michigan State's Broad Graduate School of Management, ranked No. 28 and No. 20, respectively. Rice University's Jones Graduate School of Business (No. 29) and Texas A&M's Mays Business School (No. 20) were ranked for the first time. (See slide show of top-tier schools).

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]]>best business schoolsHarvard Business SchoolWhartonAmey StoneThu, 11 Nov 2010 17:25:00 ESTRetailers' 15 Most Annoying Habits: Readers Speak Outhttp://www.dailyfinance.com/2010/10/27/retailers-15-most-annoying-habits/http://www.dailyfinance.com/2010/10/27/retailers-15-most-annoying-habits/http://www.dailyfinance.com/2010/10/27/retailers-15-most-annoying-habits/#commentsFiled under: , ,

As the U.S. economy limps out of recession, retailers need to fight for every dollar. But the tactics they use to get customers to spend extra are clearly wearing thin.

We asked our readers to tell us what tricks of the retail trade they find most annoying -- and we received nearly 350 submissions. One thing is clear: American shoppers are getting wise to the sneaky ways stores get you to buy more, especially when it comes to promotions, sales and discounts.

Here are the 15 sales-boosting techniques our readers hate most:

Bulk Buying Required
The biggest complaint in our informal survey concerns the increasingly common practice of requiring shoppers to buy several of the same item to get a discount. That might take shape as an offer to, "Buy 10 for $10" in the supermarket. But what if you don't want 10 packages of pasta cluttering your pantry? Writes one respondent, "If you only need one, that's no sale at all." Clothing stores often offer, "Buy two, get the third free" deals these days. Many of our readers would rather buy one for a 30% discount. "I don't want to 'save money' by buying three of them," writes one. "GGGRRRRRRRRR!!!!!!"

Bulk Buying Suggested -- But Not Required
Almost as annoying as the bulk-buying requirement is when store signage suggests you need to buy multiple items to get the sale -- but you don't actually have to. In fact, in the above example, you might very well be able to buy one box of pasta for $1 even though the sign says $10 for $10. Writes one reader: "I think it's a cheap and shoddy trick on the part of the stores."

Up-Selling at the Register
This tactic came up over and over again in different forms. When buying electronics, no, customers don't want the warranty (in fact, the pitch makes them think twice about buying the item. Is it likely to be defective?). When getting a soda at a drive-through window in a fast-food chain, no, they don't want an apple pie. At a clothing store, no, they don't want the high-interest rate store credit card. And, in bookstores, no, they don't want to contribute to charity.

Our readers were sympathetic to store employees who they know are required to up-sell. One respondent who works in retail explains: "We are not allowed to deviate from this script, and if we do, we're reprimanded." Still, they lament, "In a convenience store, I want the cashier to ring things up I need in a hurry," one writer reports. "Stop pushing things people don't want."

Bait and Switch
This is a time-honored retail sales tactic, and customers find it as annoying as ever. We received numerous reports from shoppers who identify a deal from a circular or newspaper ad, rush to the store -- and the item is already sold out. The "helpful" salespeople are always quick to suggest a more expensive alternative than the original deal. Explains one reader: "For that item there is little if any in stock, but next to it are the more expensive items the store really wants you to buy."

Too Much Fine Print
Our readers are getting quite tired of the complexities of discount offers and promotions. Several respondents gave examples of times they brought coupons to a store, picked out items and were told at check-out that the item is excluded from the sale. One reader vents:"You have to be a bloomin' lawyer to get that fourth 12-pack of Pepsi for 'free.'"

Rebates
Need we say more? Not only are they a bureaucratic nightmare, but stores count on many consumers forgetting to mail in the documents. This frustration was common: "I always seem to miss the mail-in rebate somehow. So 'free' is never free for me. Not at all."

Mispriced Items
Readers say they frequently find that the price listed on the shelf -- or even on the item itself -- is lower than the price rung up at the register. Many think stores do this on purpose, hoping customers won't notice or bother to complain. "I want it at the cost that was marked," says one reader. "Get the manager."

Item in Front of the "Sale" Tag on the Shelf Is Not on Sale
This is a corollary to the mispricing complaint that's no doubt familiar to supermarket shoppers everywhere. You pick out a certain brand or flavor of an item because a shelf tag proclaims it's on sale. But then you get charged full price at the register because it was actually a related item that was on sale. Our readers think stores must hope customers will just buy the full-price item. Laments one reader, when the sale is for cranberry juice cocktail, "Why is the sign always in front of the 100% juice? I know why. Creeps."

Telling You How Much You "Saved"
Many readers find it annoying that, as they're paying their bill, the cashier will often tell them how much they supposedly saved by shopping there. "That I call insulting your intelligence," says one commenter. Even worse, another reader notes that when you turn down the much-despised store credit card offer, the salesperson will sometimes say, "'You could have saved X dollars if you had our card.' It's like you're a child, and they're scolding you."

Putting a Coupon on the Receipt
These deals often require another trip to the same store in a week's time to take advantage of this new deal. One reader complains: "So to save $10 dollars using the certificate, you must return to the store, spending time, gas and mileage added to your car, and then spend another $50 dollars or more. This circle is vicious!"

Constantly Rearranging the Shelves
Shoppers want to find the item they came for quickly. Yet stores often rearrange displays as a way to get customers to scan more shelves. One reader writes of a retailer that was constantly moving items so she couldn't find the one brand of shampoo she was looking for. "I realized they were trying to get me to look at everything every time I went in there so I would be tempted to buy more. I stopped going there." Another reader came up with a name for the supermarket version: "I call this the 'Hide the Groceries Game.'"

Cheap Items Are Hardest to Reach
Readers lament that stores put expensive brands at eye level and cheaper items near the floor, or in other inconvenient spots on the shelves. "I dislike having to always look on the lowest shelves in a super market for the best prices," writes one respondent. "It would be nice to have them at eye level for a change."

Staples Are in the Back
A familiar complaint is the time-honored supermarket tactic of putting the most sought-after staples at the back of the store. "I hate it when they stick the milk, eggs, butter all the way in the furthest back corner of the store," writes one reader. "Then they put all that candy, gum, soda, and magazines at the register."

Putting Items Coveted by Children Near the Checkout
It's not only parents who hate this tactic. All shoppers have to hear small children cry and beg for items near the checkout that parents don't want to waste money on. Frequently they give in, to stop the embarrassing wails. Complains one parent: "Even if you manage to avoid the toy section while shopping with your children, they still manage to see something that they will want and throw a fit over not getting before you manage to get them out of the store."

Promoting Christmas Items Before Thanksgiving
Truth be told, this complaint didn't come up all that often in our reader survey. But it's a good one. Most shoppers don't want to deal with Santa in November. We bet if we'd waited a few more weeks, this pet peeve might have topped the list. When it comes to Christmas promotions, urges one shopper, "Let's get back to a reasonable time frame."

Readers provided us with lots of annoying tactics to choose from for this feature. So, thanks to our many contributors. And, given the state of the economy, we bet retailers are busy coming up with more annoying sales tactics. Look out for our next similar feature.

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]]>bait and switchconsumer spendingcouponsdiscountsRebatesretail promotionsretail strategyshoppingsneaky sales tacticsstore credit cardsAmey StoneWed, 27 Oct 2010 10:20:00 ESTTwo Years After Madoff: Ponzi Hell Continueshttp://www.dailyfinance.com/2010/10/16/two-years-after-madoff-ponzi-hell-continues/http://www.dailyfinance.com/2010/10/16/two-years-after-madoff-ponzi-hell-continues/http://www.dailyfinance.com/2010/10/16/two-years-after-madoff-ponzi-hell-continues/#commentsFiled under: , ,

Bernie Madoff Ponzi schemeIt has been two years since Bernie Madoff's $60 billion scheme to defraud investors was unmasked. It it was pretty clear almost immediately that his kind of fraud -- a Ponzi scheme -- was likely perpetrated by many others. Indeed, in the years since there have been dozens of so-called mini-Madoffs uncovered, each with their own brand of Ponzi scheme.

Just this past week, it was reported that Hall of Fame Denver Broncos quarterback John Elway lost millions in an alleged Ponzi Scheme.

Michael Goldberg, an attorney with Akerman Senterfitt in Fort Lauderdale, Fla., is a court-appointed receiver for several Ponzi schemes. He is responsible for liquidating remaining assets and overseeing a claims process to distribute any remaining or recovered funds to investors.


Unwinding a Ponzi scheme and returning funds to investors is a long and difficult process, says Goldberg. "Some people get no money back, some get it all, but it can take upwards of 10 years."

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As Goldberg defines it, a Ponzi scheme is an investment vehicle where new money is used to pay returns to old investors. As long as there is new money coming in, a Ponzi scheme can last for years. But when there is a liquidity crunch, like there was in 2008, new money freezes up, investors start asking questions and demanding their money back and the scam is quickly unmasked. "A ponzi scheme needs cash to continue," says Goldberg. "That's the fuel."

How does one avoid getting caught in a Ponzi scheme? "Ask yourself, is it too good to be true," says Goldberg. "Someone can not continuously beat the market return year after year for 20 years in a row." If you suspect you are in one, call the Securities and Exchange Commission, he says. "They can tell pretty quickly."

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]]>Ask an Expertbernie madoffFeaturedVideomadoff securitiesPonzi SchemeAmey StoneSat, 16 Oct 2010 06:00:00 EST10 Signs the U.S. Economy Is Still on Shaky Groundhttp://www.dailyfinance.com/2010/09/15/economy-still-on-shaky-ground/http://www.dailyfinance.com/2010/09/15/economy-still-on-shaky-ground/http://www.dailyfinance.com/2010/09/15/economy-still-on-shaky-ground/#commentsFiled under: , , , ,

stock traderIt has been two years since the epicenter of the financial crisis -- the infamous weekend in mid-September, 2008, when Lehman went bankrupt, Merrill Lynch was sold and AIG virtually imploded. The crisis threw the American economy into a deep and prolonged recession.

Since then, the financial industry has regained its footing. Indeed, Goldman Sachs (GS) reported record profits in July 2009, less than a year after receiving $10 billion in bailout funds from the government (which it returned). The stock market plummeted in 2008, but then regained lost ground in 2009 and has remained stable in 2010.

Yet the U.S. economy is still on rocky shoals. Financial disaster has been kept at bay with historically low interest rates and mounds of government stimulus -- including possibly more tax cuts. Still, growth is stalling and economists increasingly fear a double-dip recession is possible. Of course, there are plenty of economic bulls out there too, including Warren Buffett, who think worries are overblown and economic activity is picking up.

To show where the American economy has been in the past two years -- and where it might be heading next -- we've compiled data from 10 key economic indicators to watch:

Gross Domestic Product (GDP)

When the easy credit that fueled consumer spending and the housing boom suddenly dried up, the U.S. economy was shunted abruptly into recession, which is technically defined as two negative quarters of negative GDP growth. Starting in the third quarter of 2008, real GDP, a measure of the annual rate of increase of goods and services produced in the U.S., went negative for four quarters in a row (the first quarter of 2008 was also revised down to show negative growth).

Economic growth returned in mid-2009, thanks in large part to massive government spending. In the fourth quarter of 2009, GDP even reached an almost overheated 5% growth rate. But since then, it has stalled. First quarter GDP increased by 3.7%. And in late August, the government reported that real GDP increased by just 1.6%, less than the 2.4% estimated initially.

Many economists believe the U.S. is in for years more of tepid growth and that additional stimulus from the government will be needed to keep the U.S. out of a double-dip second recession.



Unemployment

Want to get really depressed about the economy? Look at the chart of the unemployment rate for the past two years (below) and the dramatic spike from about 4.5% just before the financial crisis to a current rate of over 9%. A recent Labor Department report shows there are about five job seekers for every available job in the U.S. Economists say that until job creation picks up, there can be no hope of prolonged economic growth in this country.

Lately there are some early signs of improvement in the employment picture. There were six job seekers for every available job at the start of this year, so five now is at least a bit better. The temporary staffing industry is reporting stronger demand, which could be a precursor to businesses hiring more full-timers. Even more recently, initial jobless claims have fallen, coming in below expectations. The figure reported on September 9 was 451,000 claims, when economists expected 470,000 filings. However, economists want to see claims fall below 400,000 a week before they feel confident that businesses have really started hiring again.



Consumer Spending

For the average American, it still takes a great deal or a real necessity to get them to open their pocketbooks. Commerce Dept figures released Tuesday showed retail sales were up 3.6% from August 2009, driven by spending on gasoline, groceries and clothing (think back-to-school). That's a bit better than expected, but economists warn that what may sound like a meaningful percentage increase in sales is off a low base.

On a more positive note, some experts believe that as households reduce their debt burdens (and consumer debt is way down from peak financial crisis levels), they are willing and able to spend a bit more. Business inventories have even picked up as stores restock shelves, anticipating increased spending. But the market is very uneven. Wealthy people are keeping the luxury sector alive even as middle class Americans hold back on purchases.



Home Prices

We all know the housing market tanked in the aftermath of the financial crisis. Then, when the economy rebounded in mid-2009, home prices and the number of sales perked up a bit, then stabilized. The S&P/Case-Shiller Home Price Index, a measure of residential real estate, even shows a slight improvement in prices this year.

Still, many economists have a bleak outlook for the real estate market. The number of new and existing home sales plunged in July (existing-home sales fell 27.2% and July new-home sales fell 12.4% -- to the lowest rate in nearly 50 years). Many economists question a double-dip scenario in the broader economy. But in the housing market, a double-dip doesn't seem that far-fetched.



The Stock Market

Can you say 'range bound'? Stocks fell hard before the financial crises and then kept falling even after bailouts and government stimulus choked off the worst of the panic. Once economic growth returned, corporate profits followed and stocks rebounded. By April the market was getting a little too excited about the recovery and sold off when credit problems of nation's like Greece and Portugal fueled worries of a second round of global financial contagion.

Now, for all that volatility, the S&P is hovering around the 1,100 mark -- below where it was 10 years ago.



Gold

For a prettier picture, take a look at the chart of the price of gold. Sure, it dips a bit after the financial crisis hits, but then it takes off and just keeps on going. On Tuesday, gold hit a record high of $1,271 an ounce and new targets project $1,300 this year.

The problem with this picture is that gold does best when investors are most worried about the economy. It is reaching record levels because more investors are seeking a safe haven in the event the global financial picture takes a turn for the worse. So, as indicators go, the high price of gold is actually quite bearish for the U.S. economy.



Oil

Oil prices are of interest to consumers mainly as an indicator of where gasoline prices are heading. Before the financial crisis, global economic growth combined with concerns that oil production capacity was peaking led to record prices. AAA reports gas reached a high of $4.11 in July, 2008. Following the crisis, as with stock prices and housing prices, oil plummeted and gasoline prices stabilized. Regular gas is now at $2.73 a gallon nationally, according to AAA. Lower gas prices is one reason consumers may be spending a bit more at the mall.

But flat-to-down oil prices aren't all good news for the economy. Crude prices rise when investors believe a stronger economy will lead to increased demand for fuel. In that sense, today's lower oil is an indicator that the slow-growth economy is here to stay.



Interest Rates

In the wake of the financial crisis, the Federal Reserve had little choice but to reduce interest rates as a way to stimulate the economy. In 2008, the Fed Funds (the rate the Fed charges banks to lend other banks their reserves overnight) fell from 3.5% all the way to 0.25% and then just stayed there. With slowing economic growth, the Fed surely has no near-term plans to raise rates.

The 10-year Treasury, which better reflects the rates consumers pay for mortgages and other loans, has had more movement, but is still at extremely low levels. Mortgage rates remain near historic lows, for example. While interest rates are more a reflection of the current economy than an indicator, bond investors are wise to take note of one fact: There is essentially no room for rates to fall further, which means bond prices could get whacked when yields eventually rise.



Inflation

In the words of Fed Chairman Ben Bernanke, inflation is contained. With tepid consumer spending, businesses have no power to raise prices. And wage pressure, which would force companies to raise prices, is virtually non-existent. In fact, the big worry of economists in recent months has been deflation, a cycle of falling prices and slower growth as demand falls. Given that dire possibility, a forecast of continued low inflation sounds just fine to us.



Budget Deficit

What could be more depressing than the incomprehensibly huge budget deficit? This year, the government is expected to add a record $1.34 trillion to the national debt, which soared to nearly that level last year thanks to bailouts, military spending, economic stimulus and tax cuts for the wealthy. Total U.S. national debt is now at $13.45 trillion, which will have to be financed by generations to come, probably when interest rates are much higher, which will create a serious drag on U.S. growth, and some would argue, security.

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That said, recent budget news is not all bad. In August, the deficit was lower than forecast as corporations paid more taxes than expected on all those profits they've been earning. In fact, the modestly improving U.S. budget picture is actually one of the most decisive bits of improving economic news in this entire report.



With reporting by Dan Burrows, senior writer with DailyFinance.

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]]>budget deficitCase Shillerconsumer spendingeconomygoldhome priceshousing pricesinflationinterest ratesLehman BrothersoilTwo Years After LehmanunemploymentAmey StoneWed, 15 Sep 2010 11:00:00 ESTAndrew Ross Sorkin on Lehman, the Crisis and How Pride Led to the Fallhttp://www.dailyfinance.com/2010/09/13/andrew-ross-sorkin-lehman-too-big-to-fail/http://www.dailyfinance.com/2010/09/13/andrew-ross-sorkin-lehman-too-big-to-fail/http://www.dailyfinance.com/2010/09/13/andrew-ross-sorkin-lehman-too-big-to-fail/#commentsFiled under: , , , , ,

Lehman Brothers NY officeIn the two years since crisis gripped the financial world, surprisingly little has changed. In those perilous days in September, 2008, Lehman, Merrill Lynch and AIG fell like dominoes, and it seemed Goldman Sachs (GS) and JPMorgan Chase (JPM) might be next. Any American family with money in the bank or investments in a 401(k) had to wonder if their financial security was imperiled.

"It felt like the world was on fire," recalls financial writer Andrew Ross Sorkin, whose book Too Big To Fail covers the crisis at its peak. Yet, he agrees, the financial world as we know it, isn't really that different now.

It's a truism that surprised Sorkin, but it's actually fortuitous for him: The paperback edition is just out, and the events he describes remain the most dramatic and significant. In fact, for the new paperback edition, the book needed little updating, and the afterword is only 10 pages, he says.

Sorkin doesn't think the lack of change is good for the world's financial security. In a recent interview, he discussed the aftermath of the crisis, the quest for power on Wall Street and why more regulation is needed.

DailyFinance: In the introduction to Too Big To Fail, you refer to these events as a "giant puzzle -- a mystery, really -- that still needs to be solved." Are events around the financial crisis still a mystery to you, two years later?
Sorkin: Two years later it's less of a mystery. At the time that I was reporting and writing the book, I think there was a lot we didn't know about what took place both prior to and following the infamous Sept. 14 weekend. Especially now, I'm not sure people appreciate how bad things really were. No one knew Goldman and other huge firms were near bankruptcy. This country still has problems, but when you go back to those harrowing days, on a relative basis, we actually are doing quite well.

In the book and your coverage in The New York Times since, it's clear you think Lehman should have been bailed out.
Yes, but it's unclear to me that it could have been saved -- that's one of the enduring mysteries of the book. Did regulators have legal authority at that point to bail out Lehman? Would it have required so much money that it was politically untenable? More information has come out lately that politics played a role in regulators' decision not to bail out Lehman.

Even if impossible, how would events have played out differently if Lehman hadn't gone bankrupt that weekend?
What that would have done is provided time. When you read the book, you see that one thing none of these people making decisions had enough of was time. Some would argue they had lots of time to realize the crisis was coming. But once they got to that moment, had they been able to squeeze out another week, they probably would have been able to find a way to merge Lehman with Barclays.

And then, what would have happened to everything else? AIG would probably still have been the next domino, and Merrill Lynch, Morgan Stanley (MS), Citigroup (C) would still have all faced huge problems. But we might have been able to avoid utter panic.

One thing I was surprised to see in your book is that there are no heroes or villains. But it seems the financial crisis was rife with villainous behavior.
One of my goals for the book was to bring a reader inside the room where the crisis was raging and decisions were being made. That way, they can see what the participants saw. Once people have the same field of vision as the regulators, bankers and lawyers in the room, nothing looks black and white, everything looks gray.

You realize that there really aren't heroes and villains -- just people struggling to make decisions in the midst of a fast-moving crisis. Some people made some good decisions, and some people made some bad ones. That's what life is really like.

Were you surprised how quickly banks recovered?
Shocked.

I thought Wall Street was going to be a very different place. I thought there would be a lot of new regulations, a whole different world. Of course, a year came, and went there wasn't that much new that happened.

One of the things you worry about when you write a book like this, very quickly, almost in real time, is whether there is another shoe to drop. But luckily, everything that has come out since only goes on to confirm or offer another illustration of the key issues and events I covered in the book.

There was no new epilogue to write. Even for the paperback edition, two years later, there weren't a lot of updates to make. There isn't a long afterword - it's only 10 pages. The world hasn't changed that much. I am surprised.

What are the updates you made for the paperback edition?
There is some new reporting in there. I added a couple of scenes around Repo 105, which was a Lehman accounting gimmick. There are a few updates, more for completeness or history's sake.

Two years later, it seems clear that TARP (Troubled Asset Relief Program) actually worked.
As unpopular as it was, it would be hard to argue that TARP didn't work. It helped restore confidence in the financial system. But it didn't work way it was sold or advertised. It was oversold as a way to get money back in the hands of consumers, businesses. We were told it would help grease the economy. It didn't result in more loans and mortgages.

Do you think a financial crisis like this could happen again? Are our financial institutions still too big to fail?
To the extent the phrase still applies, it's more for countries and states. We've seen crisis this year in Greece, Ireland. If there is a sequel to book, and I hope there isn't, I imagine it will be around the debt of countries.

It's the same problem -- entire states are overextended. That to me is the ultimate issue. Until we're really willing to regulate how people use debt and how much debt they can use, I'm not sure we're ever going to break the back of this crisis.

If you could see one piece of regulation passed, what would it be?
What worries me most is that capital requirements for banks won't be high enough. There is nothing in current legislation that addresses at all. It's being left to the Federal Reserve to negotiate as part of Basel III with all European and Asian banks. Our banks are decently capitalized, but most European banks not nearly as well capitalized. The tension you have is European finance officials can't reach the same numbers one would want our banks to have.

What about compensation reform? Do you think the incentive pay structures of the CEOs and bankers needs to be restricted in any way?
Compensation is something I think about all the time, particularly in context of Dick Fuld, Lehman's CEO. He is someone who had over $1 billion of stock in Lehman. He had more skin in the game than just about anyone else. Arguably, he was incentivized to always do the right thing for Lehman. Yet not only did company collapse, he rode his stock all the way to $56,000.

What does that say about incentives?
I'm less convinced that Wall Street is about greed. It's not about greed at all anymore. It's about power. The dollars, the money, is a scorecard for the power. One of the things I tried to get across in the book is that it wasn't just the institutions that were "too big to fail," it was also the individuals who saw themselves as too big to fail. In the end for Dick Fuld, this was about pride, not about money. I don't know how you regulate pride.

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For people at these senior levels, stock options are just the cherry on top in their life. By the time they've reached CEO suite, they've made tens if not hundreds of millions in cash that they've already been able to take home. They have a remarkable cushion. Clawbacks might be the answer -- where they really have something riding on their company's results. Or Wall Street could go back to the partnership model. Then, if the partnership failed, partners lost all their money, too.

In the afterword of your book, you talk about whether banks can regain America's trust. It doesn't seem like they've made much progress.
Banks need to return to doing what they are supposed to be doing -- making loans, financing businesses, being the backroom engine of economy. They got very far afield of that in the years leading up to the crisis. Until they get back to that role, they will have a real trust problem.

But memories are short. After the savings and loan crisis of the 1980s, people thought banks and bankers were horrible. Then they became superheroes again. How long are our memories going to last this time?

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]]>andrew ross sorkinbank bailoutbanking reformbanking regulationfinancial crisisLehman Brotherslehman brothers bankruptcyTARPtoo big to failTwo Years After LehmanAmey StoneMon, 13 Sep 2010 11:00:00 ESTGoodbye Google Wave, We Hardly Knew Youhttp://www.dailyfinance.com/2010/08/04/google-wave-we-hardly-knew-you/http://www.dailyfinance.com/2010/08/04/google-wave-we-hardly-knew-you/http://www.dailyfinance.com/2010/08/04/google-wave-we-hardly-knew-you/#commentsFiled under: , ,

Citing slow adoption, Google (GOOG) announced Wednesday on its blog that it is halting development of Google Wave, an innovative email application which combined elements of live chat and real-time document sharing.

When announced in May 2009, Google Wave was lauded as a breakthrough technology which would change the way people communicate online. Members of the development community embraced it, including one who created an amazing online Wave animation using a scene from Pulp Fiction.

But in the Wednesday blog entry, Urz Hölzle, a senior vice president of operations, acknowledged, "despite these wins, and numerous loyal fans, Wave has not seen the user adoption we would have liked." He said Google Wave would be discontinued as a standalone product, "but we will maintain the site at least through the end of the year and extend the technology for use in other Google projects." He promised developers who had built new kinds of web applications using Wave would be given tools to "liberate" their code from the site.

Finally, he congratulated the team for the ways they had "pushed the boundaries of consumer science." Tech blog Engadget offered a moment of silence for the 'now-fallen experiment' of Lars and Jens Rasmussen, who also created Google Maps.

Aspects of their success will, presumably live on in other Google products, such as Gmail and Google Docs. But Google Wave will now join the ranks of amazing tech innovations that were, sadly, debuted well ahead of their time.

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]]>GmailOfflinegoogle docsGoogle WaveGoogle Wave haltedtechnologyAmey StoneWed, 04 Aug 2010 18:10:00 ESTChina Promises More Flexibility on Yuan Exchange Ratehttp://www.dailyfinance.com/2010/06/19/china-promises-more-flexibility-on-yuan-exchange-rate/http://www.dailyfinance.com/2010/06/19/china-promises-more-flexibility-on-yuan-exchange-rate/http://www.dailyfinance.com/2010/06/19/china-promises-more-flexibility-on-yuan-exchange-rate/#commentsFiled under: , , ,

China currency statementIn a surprise Saturday announcement, the Chinese central bank said it would allow more flexibility in the exchange rate of its currency, the yuan, also known as the renminbi (RMB). The move seems intended to help foreign economies as China's own economy shows increased strength.

"The global economy is gradually recovering," reads part of the statement from the People's Bank of China. "The recovery and upturn of the Chinese economy has become more solid with the enhanced economic stability. It is desirable to proceed further with reform of the RMB exchange rate regime and increase the RMB exchange rate flexibility."

Central bankers didn't say they would let the yuan appreciate against the dollar, which would make other countries' exports more competitive with China's typically low-cost goods. But some appreciation was implied.

Whether the announcement will be enough to placate critics, especially U.S. lawmakers who say an undervalued currency gives China an unfair trade advantage, remains to be seen. Very gradual appreciation of the yuan against the dollar was permitted by the Chinese government starting in 2005.

U.S. Treasury Secretary Timothy Geithner welcomed China's increase in flexibility, saying in a statement that it would, "make a positive contribution to strong and balanced global growth."

China's currency statement comes in advance of the G-20 meeting, a summit of representatives from 20 major industrial nations in Toronto next week. President Barack Obama has said it's essential to global economic vitality that countries adopt market-oriented exchange rates.

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]]>chinachina currency policyChina currency statementGeithnerrenminbiyuanyuan exchange rateAmey StoneSat, 19 Jun 2010 15:10:00 ESTLarry Summers on Obama's Financial Crisis Fix: A Multi-Pronged Approachhttp://www.dailyfinance.com/2010/06/02/larry-summers-on-obamas-financial-crisis-fix/http://www.dailyfinance.com/2010/06/02/larry-summers-on-obamas-financial-crisis-fix/http://www.dailyfinance.com/2010/06/02/larry-summers-on-obamas-financial-crisis-fix/#commentsFiled under: , ,

When it comes to financial reform, former U.S. Treasury Secretary Larry Summers is nothing if not a realist. In an exclusive interview with DailyFinance, Summers, who leads the White House's economic council, explained how the Obama administration's current plan for financial reform addresses several of the causes of the recent financial crisis. But asked if current proposals would prevent another financial crisis, he equivocated.

"Huge accidents or crashes always have multiple 'but for' causes, in the sense that without multiple events, they might not have taken place," Summers said following his appearance at the annual Templeton Lecture at the National Constitution Center in Philadelphia on May 27 (See transcript). "This legislation seeks to operate at multiple levels to eliminate the kinds of things that can cause crises."


The first problem he addressed was the housing bubble. Summers believes that had the proposed new Consumer Financial Protection Agency been in place earlier, then it, along with a reform of ratings agencies and changes to some securitization practices, would have prevented the housing bubble from growing so large. Second, he thinks that had proposed new regulations of financial institutions been implemented prior to the crisis, firms like Lehman Brothers, Bear Stearns and AIG would have been more likely to have had enough capital to have avoided insolvency.

Finally, if the government had had resolution authority over financial institutions, as proposed in current legislation, it "would have prevented the kind of choice between chaos on one hand and massive taxpayer bailout on the other," says Summers. The controversial 'resolution authority' provision in the current reform bill now making its way through Congress, would allow the government to essentially take control of financial institutions in crisis and dissolve them in an orderly fashion to prevent the damage from spreading to other firms.

Summers stopped well short of saying that the Obama administration's proposed changes would prevent another financial crisis from happening in the future -- and even short of saying definitively that they would have prevented the most recent one. The best regulators can realistically hope to do, he implied, is try to stop history from repeating itself.

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]]>crisisfinancial reformfinancial reform billLarry SummersObama AdministrationTempleton LectureAmey StoneWed, 02 Jun 2010 11:05:00 ESTWhat Lies Ahead for the American Economy? See Obama's Economic Advisor Lawrence Summers Speak on May 27 - Live!http://www.dailyfinance.com/2010/05/27/what-lies-ahead-for-regulatory-reform-lawrence-summers-to-discu/http://www.dailyfinance.com/2010/05/27/what-lies-ahead-for-regulatory-reform-lawrence-summers-to-discu/http://www.dailyfinance.com/2010/05/27/what-lies-ahead-for-regulatory-reform-lawrence-summers-to-discu/#commentsFiled under:

lawrence larry summersPolicymakers are hard at work coming up with new regulations that can prevent another financial collapse. Are they likely to succeed? And what will be the effect on the American economy?

Lawrence Summers, director of the White House's National Economic Council, will answer these questions and more at the National Constitution Center in Philadelphia, Pennsylvania on May 27 at 7:00 PM.

The Constitution Center's annual John M. Templeton Jr. lecture showcases important thinkers and policy-makers in America as they discuss economic liberties and current issues in a forum open to the public.

DailyFinance is the Constitution Center's media partner for this year's lecture and will be streaming the event live. Tune in for the live webcast at 7:00 PM.

Update: The full transcript of the lecture is available here.

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]]>Constitution CenterregulationSummersTempleton LectureAmey StoneThu, 27 May 2010 16:00:00 ESTLousy Credit? Good Thing It's Financial Literacy Monthhttp://www.dailyfinance.com/2010/04/28/lousy-credit-good-thing-its-financial-literacy-month/http://www.dailyfinance.com/2010/04/28/lousy-credit-good-thing-its-financial-literacy-month/http://www.dailyfinance.com/2010/04/28/lousy-credit-good-thing-its-financial-literacy-month/#commentsFiled under: ,

Financial Literacy Month is basically a time when financial firms are reminded that they should help teach the populace how to effectively use things like credit cards, stock trading accounts and home equity lines of credit -- or risk that there will be too few people in this country who can actually afford to be their customers.April is many things -- the cruelest month, National Poetry Month and is also said to bring May flowers. But did you know it is also financial literacy month?

That means it's basically a time when financial firms are reminded that they should help teach the populace how to effectively use things like credit cards, stock trading accounts and home equity lines of credit -- or risk that there will be too few people in this country who can actually afford to be their customers.

In that vein, the New York Stock Exchange has gone one step further and proclaimed this Financial Literacy Week -- also a handy launching pad for the exchange's new financial education site, NYSE MoneySense.

A group from the site rang the opening bell at the exchange on Monday (all the opening and closing bell ceremonies in the U.S. and European exchanges will be dedicated to financial education this week). After Monday's ceremony, I spoke with David Cautin, who is the NYSE's chief digital officer and the brains behind the new site.

The 200-year-old NYSE feels both "the responsibility and the obligation" to help improve the financial knowledge of Americans, says Cautin. Through its MoneySense site, the exchange is making information available to the public and is also partnering with listed companies to share the information with their employees. The site covers handling a pay check, saving money, protecting assets, spending wisely and, of course, investing.

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]]>Financial LiteracyNYSEAmey StoneWed, 28 Apr 2010 08:40:00 ESTWall Street Predicts the Bull Market May Keep Charginghttp://www.dailyfinance.com/2010/04/27/three-signs-bull-market-is-back/http://www.dailyfinance.com/2010/04/27/three-signs-bull-market-is-back/http://www.dailyfinance.com/2010/04/27/three-signs-bull-market-is-back/#commentsFiled under: , , , , , ,

Cort Gwon, market strategist with FBN Securities, thinks the bull market is back. Bull markets are said to climb a wall of worry, and that has certainly been the case this year. But many of investors' biggest concerns about the strength of the current rally could be resolved this week, Cort Gwon, market strategist with FBN Securities, pointed out in an interview Monday morning.

For starters, earnings are going great guns. Gwon says 85% of S&P 500 companies that have reported so far this earnings season have beaten analysts' expectations, making it the best season of the last six or seven years. This week brings earnings from Ford (F), Bristol-Myers Squibb (BMY), 3M (MMM) and more.

Merger Monday Returns

The return of Merger Monday also is a positive sign that companies are investing for the future. (Among other deals, Hertz today said it's buying Dollar Thrifty and Mirant and RRI Energy two weeks ago announced they would merge.) In addition, as investors receive cash from these transactions, they are likely to reinvest it in stocks.

The macroeconomic backdrop is, of course, improving as well. On Tuesday, we will learn the latest from the S&P Case-Shiller Home Price Index, which gives an important view into a potential housing market recovery. (The market consensus anticipates a year-over-year rise of 0.1%.) And on Friday morning, the gross domestic product (GDP) report will be released. "Hopefully, with a good GDP number, that will create momentum and create new jobs," Gwon says.

Finally, if the International Monetary Fund and European Union can put together a rescue package for Greece, investors will start to feel secure about international markets too. If all the news goes well this week, Gwon argues, the bull market could have plenty of room to run.



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]]>3MBristol-Myers SquibbearningsGDPhousingmergerAmey StoneTue, 27 Apr 2010 06:30:00 ESTDailyFinance Welcomes AOL Money & Finance Usershttp://www.dailyfinance.com/2010/02/18/dailyfinance-welcomes-aol-money-and-finance-users/http://www.dailyfinance.com/2010/02/18/dailyfinance-welcomes-aol-money-and-finance-users/http://www.dailyfinance.com/2010/02/18/dailyfinance-welcomes-aol-money-and-finance-users/#comments
First, I want to reassure you that all of your portfolio data is here at our new site. Just click on the "Portfolios" link in our black horizontal navigation bar at the top of the site, or try out our nifty drop-down "My Portfolios" view at the top right of the site. If you haven't already created a portfolio here, we invite you to add one.

Now, let me welcome you properly to DailyFinance, AOL's new flagship for all things business and investing. Why the change? We want to keep you ahead of the curve on what's going on in the universe of money and finance with a new experience that allows you to better enjoy all our great content and features.

In building DailyFinance into the Web's premier destination for business news, we've hired some of the best financial reporters and columnists on the planet. Behind the scenes, our designers have been busy developing new online data feeds and investing tools that are unmatched in the industry.

The result, we believe, is an exciting new site that builds on Money & Finance's strengths to bring you the smartest business news and commentary, combined with the best data and investing tools available for free on the Web.

We realize change isn't always easy. But we believe DailyFinance's clean, easy-to-read design, which still manages to provide an amazing array of calculators, portfolios and other personalization features, will satisfy even the most experienced investors.

Along with sister sites BloggingStocks and the personal finance destination WalletPop, DailyFinance seeks to help you navigate through turbulent economic times and make the best decisions about the future. Of course, we know you will ultimately be the judge of whether DailyFinance is as good as we think it is. We look forward to hearing from you.
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]]>Amey StoneThu, 18 Feb 2010 04:00:00 ESTThe Week In Preview: Earnings Coming From Walgreen, Jabil, Morehttp://www.dailyfinance.com/2009/12/20/the-week-in-preview-earnings-coming-from-walgreen-jabil-more/http://www.dailyfinance.com/2009/12/20/the-week-in-preview-earnings-coming-from-walgreen-jabil-more/http://www.dailyfinance.com/2009/12/20/the-week-in-preview-earnings-coming-from-walgreen-jabil-more/#commentsFiled under: ,

Even in a holiday shortened week so close to the end of the calendar year, there are still some earnings reports dribbling in. Walgreen Co. (WAG), American Greetings Corp. (AM), ConAgra Foods (CAG) and Jabil Circuit Inc. (JBL) are among the companies reporting. Question is, will any of the companies' quarterly results this week offer up a gift for investors? Read more on Bloggingstocks.


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]]>Amey StoneSun, 20 Dec 2009 09:28:00 ESTDailyFinance Gets a New Lookhttp://www.dailyfinance.com/2009/12/16/dailyfinance-gets-a-new-look/http://www.dailyfinance.com/2009/12/16/dailyfinance-gets-a-new-look/http://www.dailyfinance.com/2009/12/16/dailyfinance-gets-a-new-look/#commentsDailyFinance will note that we've implemented some momentous design changes. We're unveiling the new DailyFinance, which first launched in February in a simple blog format and has now been reborn as a full-fledged financial and business news destination.

Continue reading DailyFinance Gets a New Look


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]]>Amey StoneWed, 16 Dec 2009 09:15:00 ESTGates, Buffett to biz students: We're still bullish on capitalism...Okay, billionaireshttp://www.dailyfinance.com/2009/11/12/gates-buffett-to-biz-students-were-still-bullish-on-capitalis/http://www.dailyfinance.com/2009/11/12/gates-buffett-to-biz-students-were-still-bullish-on-capitalis/http://www.dailyfinance.com/2009/11/12/gates-buffett-to-biz-students-were-still-bullish-on-capitalis/#commentsFiled under: ,

Much of the fun of observing the friendship between Warren Buffett and Bill Gates is derived from the fact that they are such unlikely comrades. In Gates, you have the 54-year-old quintessential tech geek billionaire. And in Buffett, the revered 79-year-old homespun, value-investor billionaire. What could they possibly have in common?

Oh yeah, billions. Together, the two are worth a combined $100 billion, an announcer pointed out during an event in New York Thursday organized to let future business leaders -- MBA students at Columbia University -- ask questions of the fabled capitalists.

Continue reading Gates, Buffett to biz students: We're still bullish on capitalism...Okay, billionaires


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]]>berkshire hathawayBuffettcapitalismColumbia UniversityGatesMicrosoftAmey StoneThu, 12 Nov 2009 19:15:00 ESTTen Minutes with Carol Leifer: Comedian suggests investing in Spandexhttp://www.dailyfinance.com/2009/05/17/ten-minutes-with-carol-leifer-comedian-suggests-investing-in-sp/http://www.dailyfinance.com/2009/05/17/ten-minutes-with-carol-leifer-comedian-suggests-investing-in-sp/http://www.dailyfinance.com/2009/05/17/ten-minutes-with-carol-leifer-comedian-suggests-investing-in-sp/#commentsFiled under:

Comedian Carol Leifer has spent decades in comedy, writing for Seinfeld (she contributed to 75 episodes, including writing the famous "Marble Rye" episode), The Larry Sanders Show, Saturday Night Live and, of course, her own stand-up comedy shows. This year she wrote her first book, a memoir called, When You Lie About Your Age: The Terrorists Win.

It's a fun read and Leifer has a light touch with weighty topics like aging, religion and relationships. However, she doesn't write much about money and investing. So I followed up with a few questions:

Q: What is the biggest money mistake you ever made?

A: When I invested in the Pocket Bass Fisherman.

Q: What is the smartest money move you ever made?

Continue reading Ten Minutes with Carol Leifer: Comedian suggests investing in Spandex


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]]>Carol Leiferdont missLarry DavidSeinfeldspandexAmey StoneSun, 17 May 2009 15:00:00 ESTInnovative ways to stimulate the economy: Reform the nanny taxhttp://www.dailyfinance.com/2009/04/13/innovative-ways-to-stimulate-the-economy-reform-the-nanny-tax/http://www.dailyfinance.com/2009/04/13/innovative-ways-to-stimulate-the-economy-reform-the-nanny-tax/http://www.dailyfinance.com/2009/04/13/innovative-ways-to-stimulate-the-economy-reform-the-nanny-tax/#commentsFiled under:

This is just one of the Innovative Ways to Stimulate the Economy suggested by DailyFinance contributors.

Want to create more jobs and get millions of people who avoid taxes now to start paying into federal and state coffers? How about reforming the so-called nanny tax?

The tax laws around hiring childcare workers are notoriously difficult to comply with and easy to flout. Reforming them would be one small step toward stimulating the economy, but a giant step for household workers and the busy families that can afford to hire them, but find the maze of required paperwork too daunting.

Continue reading Innovative ways to stimulate the economy: Reform the nanny tax


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]]>domestic workerseconomic stimulusnanny taxAmey StoneMon, 13 Apr 2009 13:15:00 ESTWelcome to Daily Financehttp://www.dailyfinance.com/2009/02/10/welcome-to-dailyfinance/http://www.dailyfinance.com/2009/02/10/welcome-to-dailyfinance/http://www.dailyfinance.com/2009/02/10/welcome-to-dailyfinance/#commentsFiled under: ,

Welcome to DailyFinance, a new web site offering business and financial news and analysis. Our goal is to combine the immediacy and conversational tone of blogs with the serious reporting and financial expertise of traditional journalism, and to serve it up with the best in online data and investing tools.

Our goals are ambitious, but we're starting today in beta with a simple blog format. We're still assembling our team of top-notch journalists and financial experts, and integrating a new set of calculators and tools. DailyFinance is part of the AOL Money & Finance family of sites and readers of our sister sites, BloggingStocks and WalletPop, will recognize some of our writers.

Continue reading Welcome to Daily Finance


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]]>in focusAmey StoneTue, 10 Feb 2009 09:00:00 ESTUnderrated in America: RadioShackhttp://www.dailyfinance.com/2008/11/07/underrated-in-america-radio-shack/http://www.dailyfinance.com/2008/11/07/underrated-in-america-radio-shack/http://www.dailyfinance.com/2008/11/07/underrated-in-america-radio-shack/#commentsFiled under: ,

It's all too easy to make fun of RadioShack. The home electronics chain endures with whole walls devoted to different kinds of wires, cables and connectors. A 2007 spoof , "Even CEO Can't Figure Out How RadioShack Still In Business," from The Onion has its chief executive saying, "I wouldn't think that people still buy enough strobe lights and extension cords to support an entire nationwide chain, but I guess they must."

Well, I certainly do. I'll go there for an ethernet cable, a cheap phone, an AC adapter, even a quick birthday present for a child's party. If I need some kind of component to get my ancient VCR hooked up to my new TV, I know where to turn.

RadioShack is a bridge from old technology to the new. The stores are ubiquitous and remain an easy stop for picking up items that can solve all sorts of electronics problems faced by modern families -- a phone with three handsets, a box to convert your television to receive digital signals (that was a big recent driver of sales).

Continue reading Underrated in America: RadioShack


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]]>converter boxConverterBoxRadioShackunderratedAmey StoneFri, 07 Nov 2008 16:00:00 EST