Explaining Southern California's economy

Wine Report: Whole Foods sells a better Two-Buck Chuck

UPDATE: A commenter has me thinking that Three Wishes may be produced by...the same people who make the Chuck (The Bronco Wine Company)! A bit of an interesting "conspiracy" in the ultra-cheap wine world? It would create an interesting wrinkle in Whole Foods' "chuck the Chuck" argument. I'll see what I can learn...

A little more than a month ago, Whole Foods rolled out an alternative to Trader Joe's "Two Buck Chuck," the lineup of $1.99 Charles Shaw wines that have been wildly successful for the retailer. Whole Foods isn't kidding around: "chuck the Chuck" is its sales pitch.

I've always believed that Two-Buck Chuck is among the most imporant wines every introduced. The wines aren't very good. But they have made it possible for people to load up on wine and drink it more frequently. Brilliant. Plus, the brand has become an institution and eliminated much of an anxiety that wine seems to induce. It comes in a premium-type wine bottle and it has a cork. It's not a jug wine. It's not a box wine. It's not rotgut.

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MF Global CEO Corzine was 'rusty'

Maybe this should be his nickname, henceforth: Jon "Rusty" Corzine. The former Senator and New Jersey governor — not to mention former Goldman Sachs CEO — marched up to Capitol Hill today to explain how his most recent firm, MF Global, was plunged into bankruptcy, taking $1 billion in supposedly protected client funds with it.

MF Global was no Goldman Sachs, and various theories have been offered about how that's a significant difference. Like, Corzine wasn't being dogged by the crack, risk-assessment pros he dealt with at Goldman. He could make bets on European sovereign debt based on his own sense that Europe would solve its financial mess. 

But I like Marketplace's Heidi N. Moore's take, which is that Corzine had been out of the Wall Street action for too long. His ambition was to take MF Global, a respectable broker-dealer but hardly a Goldman-level investment bank, and turn it into a junior Goldman. It was a bold move. But maybe he wasn't up to the job.

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California economy: When is a recovery not a recovery?

The UCLA Anderson Forecast, covering the fourth quarter of 2011 and looking forward through the fourth quarter of 2013, came out yesterday. KPCC's Brian Watt provided a report on air, and now I've had a chance to dig into at least some of the forecast. I'll start with the California section, presented by Anderson Forecast economist Jerry Nickelsburg. 

You'll remember that in the previous Anderson Forecast, Nickelsburg explained that California has broken into two distinctive economic regions: a recovering coast and a stagnating inland zone. Here's how I put it in the post I wrote back in September:

Since the financial crisis, two California economies have emerged. On the coast, there's growth. Inland, there's near-stagnation. You can easily see this expressed in the Los Angeles region's unemployment numbers. LA is bad, at at 12.7 percent. But Riverside and San Bernadino counties are far worse, at 15.1 and 14.3, respectively.

The industries that are creating jobs in California are also disproportionately located on the coast. Inland, the blast wave of the the housing bust is still being felt, with industries like construction shedding jobs.

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A conversation with Michael Rossi at Drucker Day

The video above is my conversation with Michael Rossi, whom Gov. Jerry Brown asked earlier this year to serve as Senior Advisor for Jobs and Business Development. Rossi's is an impressive guy with a formidable background in banking and business. During the course of our talk, which took place last month at the Peter F. Drucker and Masatoshi Ito Graduate School of Management at the Claremont Graduate University, we discussed the California jobs crisis, Rossi's personal story, and some of his ideas for how California can — and will — remain competitive in the 21st century.

Be sure to take note of the moment when Rossi asks the audience what was the best infrastructure investment California ever made. The answer (hint: it's not a bridge or highway) says a lot about his priorities and what he believes is necessary to become a successful individual.

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Building a business, one family member at a time

Last night, KPCC presented a really terrific panel discussion at the Crawford Family Forum, "All in the Familia: L.A. Latino Business in the 21st Century," moderated by my blogging colleague Leslie Berestein Rojas. The four panelists — and their extended families — represented four well-known LA-region family businesses: Portos Bakery & Cafe, Gaviña Gourmet Coffee, Guelaguetza Restaurante, and Tapatio Hot Sauce.

I've heard plenty of discussions about business, but this one was special. Business leaders, even family business leaders, are usually more than happy to talk about how they built their enterprises. But they don't usually talk about the process in such moving, personal ways. 

I think everyone who aspires to start a company, in any industry, should listen to what the panelists have to say. And, lo, they can. The CFF team has made the panel's conversation available online. Check it out!

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