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Sheila Collins protests with others outside of U.S. Senator Charles Schumer`s office to demand more jobs on April 1, 2011 in New York City.
America loves entrepreneurs. And in the current dreadful economy, we're looking to the risk-takers and idea-guys more than ever to get us out of our unemployment rut. In some respects, you could call the entire Republican economic platform a formula for spurring entrepreneurship, with its combination of tax cuts and reduced regulation. Then again, you could say the same thing of the Democrats, who want the government to spend more money to stimulate demand for the products that entrepreneurs would create.
KPCC's Shereen Marisol Meraji reported from Los Angeles' entrepreneurship central today on the Madeleine Brand Show. She visited a co-working space and investigated the process of business-building at its most grassroots level. I'm energized by stuff like this, but I also have to throw a small amount of cold water in the face of the idea. The fact is that as important as entrepreneurs are to the economy, it's unlikely that they'll be able to create enough jobs to hammer down a 9.1 percent unemployment rate nationally and a 12-plus-percent unemployment rate in LA County.
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Welcome to your friendly neighborhood investment bank. Do you want them to leave room for...return on investment?
Here's an idea that's going to get people talking — and funding small businesses. The New York Times' Joe Nocera writes his column today about Starbucks' plan to partner with microfinance organization Opportunity Finance Network to solve a major American problem: a lack of small-scale lending. The project is called Create Jobs for USA. It's a great idea, but it has at least one significant problem: return on investment for the Starbucks customers who would be putting up their money.
Starting November 1, while waiting for you nonfat vente caramel latte, you can donate, say...$5 to the cause. You'll receive a red, white, and blue "indivisible" bracelet (the bracelet is an inevitable piece of viral marketing these days). Starbucks will seed the fund with a $5 million donation. As Nocera points out, this will enable Create Jobs for USA and OFN to borrow against this fund, utilizing a 7-to-1 leverage ration. Presto! Your $5 becomes $35.
Today's tweet comes from @Slate. In an effort to make up for last week's terrifying BlackBerry outage, Research in Motion is giving away $100 in apps to users. You can get Sim 3, Bejeweled, Bubble Bash 2...
Um, look, I'm a BlackBerry loyalist — meaning I haven't joined the 4 million people who lined up to buy an iPhone 4S over the weekend — and I literally have no interest in any of those apps. I mean, I have a BlackBerry. The whole point if using this device is to not play games on it. Except for BrickBreaker. But I never even play BrickBreaker. I'm too busy using my BlackBerry to get stuff done!
In the entire time I've been a BlackBerry user, I've browsed the games section of the app store maybe...once? How about this: a $100 credit toward a BlackBerry PlayBook. And don't restrict it. Let me combine it with other offers. Somehow I think it's more imporant for RIM to get its underperforming tablet in the hands of people who have its smartphones than to get apps on those same smartphones that users won't really use.
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Elizabeth Warren, chairman of the TARP Congressional Oversight Panel, testifies at a hearing on Capitol Hill, on July 22, 2009 in Washington, DC.
Were you wondering why some big banks are reporting big profits, even as markets are driving down their share prices? Blame it on...accounting: "'This is the most vilified accounting rule I've ever seen. It's amazing how universally despised it is,'" said Robert Willens, author of the Willens Report, which analyzes corporate accounting and tax matters." (Reuters)
Somebody loves Massachusetts Senate candidate Elizabeth Warren: "She is provocative and assertive in her critique of corporate power and the well-paid lobbyists who protect it in Washington, and eloquent in her defense of an eroding middle class." (NYT)
What it was like in SoCal when aerospace was booming: "...dozens of airfields dotted the landscape; test-rocket firings flashed and echoed in the foothills; and the local economy became yoked to the boom-and-bust cycles of defense spending. In the process, aerospace helped drive the extraordinary metamorphosis of California from a rural, agrarian state to the sixth-largest economy in the world." (Zócalo)
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File: A Bank of America branch is seen in Times Square October 19, 2010 in New York City.
Financial regulation of Wall Street matters in Washington. The U.S. Treasury thinks so and has begun to blog about why. Yes, blog. In its most recent post, the Treasury debunks the idea that bank reform is somehow bad for small banks:
Myth #1: Wall Street Reform Hurts Small Banks
This claim is particularly dubious given strong support for enactment of the Dodd-Frank Act by the Independent Community Bankers of America. Wall Street Reform helps level the playing field between large banks and small ones, helping to eliminate distortions that previously favored the biggest banks that held the most risk.
The operative concept here is risk. It isn't small banks that pose systemic risk to the banking system — it's the too-big-to-fail banks that ignored prudent risk models in the lead-up to the financial crisis. Robert G. Wilmers — a banking executive who runs M&T Bank, one of the few large banks that more or less sailed throught the financial crisis — provides a very succinct take on the problem at Bloomberg: