Wednesday, October 27, 2010

Making Money on Internet


To summarize an hour of dialogue, you should at some point have a product that your readers will want. You should give a lot of free content away, but even when it comes to content, you can charge for some amount, and if your content is good enough, people will pay for the premium stuff. "You can tell them about ninety percent, and they'll pay money just to get the final ten percent," so they know they have the whole picture, Clark says.



Making money blogging will not happen overnight. Sometimes it may seem like this is possible, but in reality, it takes a lot of work. "Build something that is real and something that matters to people," Rowse advises. He shared a story about how he launched a product one day and literally watched the sales roll in. It was as if he had hit a button, and the cash just started flowing, but then he realized he had been working hard up to that point for over two years, promoting the blog, writing two posts a day, doing SEO, press releases, etc. It wasn't overnight. 



You're not scalable, meaning that as your audience grows and more people want to connect with you, there will be a point where it just becomes too much. You have to set boundaries, otherwise you will have no time for yourself and your family. 



Eventually, you're going to have to "get real" about how many meaningful connections you can make in a day, Simone says, adding, "That's part of growing up in social media.”



When they say "no one actually wants that much authenticity," they mean that nobody cares about what you did last night, who you were with, what you had for breakfast, etc. In other words, don't show everybody everything about yourself, because you're not writing for you. You're writing for them. Be who you want to be for your audience. 



Ultimately, you're blogging and using social media to sell, but you can't just go around selling to people, because they won't have it. It just doesn't work. You have to make them want to buy. "You're selling yourself," says Clark. If you provide enough value to your audience, they will want to buy what you have to offer if it expands upon the value you're already giving them. "The content is the marketing," he says. 



Just having a blog is not a business. If you want it to be a business you have to treat it like one, Rowse says. This is basically an extension of number 2. 



The most important of the seven points is that no one is reading your blog. As Simone says, there are hundreds of millions of blogs, and that includes blogs on your topic. You have to write it in a way that is fresh, and either entertaining or informative. The good news is that you don't need "monster traffic". You just need a good, steady core audience for advertising to do well. 


Comments


Subscribe to comments for this post OR Subscribe to comments for all ReadWriteWeb posts










  1. I have been following the emergence and ultimate convergence of Internet and TV. The real crux will be content ownership and some sites made deals a year ago to produce shows for them. The ultimate switch will be similar to when the traditional networks lost eyes to cable channels. One misconception IMHO is this over 30 under 30 idea. Using age to demonstrate adaption trends is short sighted and frankly offensive. It puts into the social consciousness a sort of age bias that those over "40" already struggle with. It reminds me of an earlier decade belief in not trusting someone over 30. Not good relationship management.



    Posted by: Judith Copeland |
    September 29, 2010 9:02 PM




















  2. the problem with clicker is everyone already knows where to get the legal main content. Theres not too many places you can get ABC , FOX, NBC .. etc. They aren't solving a real problem. The real problem is finding all the places that I can find it outside of those channels if you know what I mean.



    Posted by: guest |
    September 29, 2010 9:55 PM




















  3. Google TV has the opportunity to be a transformative milestone in the realization of TV convergence. Google’s Android platform in every user’s home will be open to developers, including Clicker, to run apps that will be able to engage viewers in unprecedented manners. Leaned-back couch potatoes will be offered opportunities to lean-forward and curate their converged media, share, learn take actions.



    Closed captioning of both broadcast & online video will be a significant basis for converged TV experiences. Congress has passed, and the President will soon sign, directives to the FCC to have U.S. commercial broadcasters include these time-coded transcripts in all broadcast video content offered online. These metadata can be used by semantic engines to derive highly granular dynamic understanding of the content and better present viewers with powerful recommendations.



     Posted by: R Macdonald |
    September 29, 2010 9:59 PM




















  4. Well if Google starts working on it, there's a little chance for other companies unless they can come up with a real innovation and withstand the temptation of selling it out to google. As for online TV, I really hope that they find a smart compromise between producers protecting their content and users wanting it all for free.



    Posted by: essay_writing |
    September 30, 2010 1:45 AM




















  5. The switch from TV over the internet was always going to happen. It will be interesting to see how many peple embrace this change!



     Posted by: Dom |
    September 30, 2010 2:01 AM




















  6. It is expected of Free TV channels to set up their own channel over the internet as others are well gearing up for this. Me for one will use Internet TV if that will be free (for Free Channels) but won’t even pay a dime for Pay Channels since I do have it on cable. Kill the cable first before expecting users to pay for Internet TV.



    Posted by: Steve Jobs |
    September 30, 2010 8:46 AM




















  7. If there is a labeled group that I must fall into then I would be a 'Cable cutter/never'. oh well, like politics two groups do not define the nation's opinion.

    I have been cable free for years. Lost the privilege one year and the spell was broken. I watched what I could get/receive from the roof antenna. Then the internet was suddenly quite a resource as I discovered people uploaded their season long DVR recordings and shared to many public sites. These hard to find sites called for registration or a number of uploads to contribute.

    Further research found major television companies sharing episodes and highlight reels. Then I heard about a young Hulu.com from a programmer friend who built a major tv site's app and then the Hulu.com app. Nice. This was free with registration and you could setup subscriptions and just scan your queue for what's new.

    Another great value is in sites like CastTv.com where we have a resource of shows found all over the web and they simply link you to the sites with the episodes. No fee. They even monitor when a program reaches the end of a season and goes to DVD or the producer earmarks an episode(Ex: Star Wars The Clone Wars to a paid format only).

    The tv community is on the move to the web and more will follow as Cable tries to compensate with fees and threatens stations with new contracts. Then we have companies supporting the community with $150 Blue Ray players and $99 Apple Tv that are pushing those internet shows to the front room television directly from your computer. We can get it all in HD quality on youtube, International tv stations, netflix, news shows and old tv series (VHS recordings salvaged and uploaded) that have been forgotten. All of this uploaded and available for the international viewing audience.



     Posted by: Eric |
    September 30, 2010 12:43 PM




















  8. this concept is going to rule the future generation TV.



    Posted by: san diego zoo |
    October 3, 2010 12:38 PM




















  9. Watching TV in the internet would be a big favor for people who spends most of their time facing their laptop or PC because of their work. Now they are able to enjoy and relax a bit watching their favorite TV show while using their unit.



    Posted by: satellite t.v. for p.c |
    October 11, 2010 11:58 PM























  10. ABC <b>News</b> for iPad adds 2010 Election Results | iLounge <b>News</b>

    iLounge news discussing the ABC News for iPad adds 2010 Election Results. Find more iPad news from leading independent iPod, iPhone, and iPad site.

    Small Business <b>News</b>: Social Media Secrets

    Pssst. We've got something important to tell you about a new tool that can totally transform your business. In terms of upfront investment, there is no cost,

    BREAKING <b>NEWS</b>: The Hobbit Stays In New Zealand | Hobbit Movie <b>News</b> <b>...</b>

    The night is darkest ere the dawn... and dawn has ever been the hope of Men! After days of closed door talks between New Zealand Prime Minister John Key and.


    atlanta property management

    ABC <b>News</b> for iPad adds 2010 Election Results | iLounge <b>News</b>

    iLounge news discussing the ABC News for iPad adds 2010 Election Results. Find more iPad news from leading independent iPod, iPhone, and iPad site.

    Small Business <b>News</b>: Social Media Secrets

    Pssst. We've got something important to tell you about a new tool that can totally transform your business. In terms of upfront investment, there is no cost,

    BREAKING <b>NEWS</b>: The Hobbit Stays In New Zealand | Hobbit Movie <b>News</b> <b>...</b>

    The night is darkest ere the dawn... and dawn has ever been the hope of Men! After days of closed door talks between New Zealand Prime Minister John Key and.



    To summarize an hour of dialogue, you should at some point have a product that your readers will want. You should give a lot of free content away, but even when it comes to content, you can charge for some amount, and if your content is good enough, people will pay for the premium stuff. "You can tell them about ninety percent, and they'll pay money just to get the final ten percent," so they know they have the whole picture, Clark says.



    Making money blogging will not happen overnight. Sometimes it may seem like this is possible, but in reality, it takes a lot of work. "Build something that is real and something that matters to people," Rowse advises. He shared a story about how he launched a product one day and literally watched the sales roll in. It was as if he had hit a button, and the cash just started flowing, but then he realized he had been working hard up to that point for over two years, promoting the blog, writing two posts a day, doing SEO, press releases, etc. It wasn't overnight. 



    You're not scalable, meaning that as your audience grows and more people want to connect with you, there will be a point where it just becomes too much. You have to set boundaries, otherwise you will have no time for yourself and your family. 



    Eventually, you're going to have to "get real" about how many meaningful connections you can make in a day, Simone says, adding, "That's part of growing up in social media.”



    When they say "no one actually wants that much authenticity," they mean that nobody cares about what you did last night, who you were with, what you had for breakfast, etc. In other words, don't show everybody everything about yourself, because you're not writing for you. You're writing for them. Be who you want to be for your audience. 



    Ultimately, you're blogging and using social media to sell, but you can't just go around selling to people, because they won't have it. It just doesn't work. You have to make them want to buy. "You're selling yourself," says Clark. If you provide enough value to your audience, they will want to buy what you have to offer if it expands upon the value you're already giving them. "The content is the marketing," he says. 



    Just having a blog is not a business. If you want it to be a business you have to treat it like one, Rowse says. This is basically an extension of number 2. 



    The most important of the seven points is that no one is reading your blog. As Simone says, there are hundreds of millions of blogs, and that includes blogs on your topic. You have to write it in a way that is fresh, and either entertaining or informative. The good news is that you don't need "monster traffic". You just need a good, steady core audience for advertising to do well. 


    Comments


    Subscribe to comments for this post OR Subscribe to comments for all ReadWriteWeb posts










    1. I have been following the emergence and ultimate convergence of Internet and TV. The real crux will be content ownership and some sites made deals a year ago to produce shows for them. The ultimate switch will be similar to when the traditional networks lost eyes to cable channels. One misconception IMHO is this over 30 under 30 idea. Using age to demonstrate adaption trends is short sighted and frankly offensive. It puts into the social consciousness a sort of age bias that those over "40" already struggle with. It reminds me of an earlier decade belief in not trusting someone over 30. Not good relationship management.



      Posted by: Judith Copeland |
      September 29, 2010 9:02 PM




















    2. the problem with clicker is everyone already knows where to get the legal main content. Theres not too many places you can get ABC , FOX, NBC .. etc. They aren't solving a real problem. The real problem is finding all the places that I can find it outside of those channels if you know what I mean.



      Posted by: guest |
      September 29, 2010 9:55 PM




















    3. Google TV has the opportunity to be a transformative milestone in the realization of TV convergence. Google’s Android platform in every user’s home will be open to developers, including Clicker, to run apps that will be able to engage viewers in unprecedented manners. Leaned-back couch potatoes will be offered opportunities to lean-forward and curate their converged media, share, learn take actions.



      Closed captioning of both broadcast & online video will be a significant basis for converged TV experiences. Congress has passed, and the President will soon sign, directives to the FCC to have U.S. commercial broadcasters include these time-coded transcripts in all broadcast video content offered online. These metadata can be used by semantic engines to derive highly granular dynamic understanding of the content and better present viewers with powerful recommendations.



       Posted by: R Macdonald |
      September 29, 2010 9:59 PM




















    4. Well if Google starts working on it, there's a little chance for other companies unless they can come up with a real innovation and withstand the temptation of selling it out to google. As for online TV, I really hope that they find a smart compromise between producers protecting their content and users wanting it all for free.



      Posted by: essay_writing |
      September 30, 2010 1:45 AM




















    5. The switch from TV over the internet was always going to happen. It will be interesting to see how many peple embrace this change!



       Posted by: Dom |
      September 30, 2010 2:01 AM




















    6. It is expected of Free TV channels to set up their own channel over the internet as others are well gearing up for this. Me for one will use Internet TV if that will be free (for Free Channels) but won’t even pay a dime for Pay Channels since I do have it on cable. Kill the cable first before expecting users to pay for Internet TV.



      Posted by: Steve Jobs |
      September 30, 2010 8:46 AM




















    7. If there is a labeled group that I must fall into then I would be a 'Cable cutter/never'. oh well, like politics two groups do not define the nation's opinion.

      I have been cable free for years. Lost the privilege one year and the spell was broken. I watched what I could get/receive from the roof antenna. Then the internet was suddenly quite a resource as I discovered people uploaded their season long DVR recordings and shared to many public sites. These hard to find sites called for registration or a number of uploads to contribute.

      Further research found major television companies sharing episodes and highlight reels. Then I heard about a young Hulu.com from a programmer friend who built a major tv site's app and then the Hulu.com app. Nice. This was free with registration and you could setup subscriptions and just scan your queue for what's new.

      Another great value is in sites like CastTv.com where we have a resource of shows found all over the web and they simply link you to the sites with the episodes. No fee. They even monitor when a program reaches the end of a season and goes to DVD or the producer earmarks an episode(Ex: Star Wars The Clone Wars to a paid format only).

      The tv community is on the move to the web and more will follow as Cable tries to compensate with fees and threatens stations with new contracts. Then we have companies supporting the community with $150 Blue Ray players and $99 Apple Tv that are pushing those internet shows to the front room television directly from your computer. We can get it all in HD quality on youtube, International tv stations, netflix, news shows and old tv series (VHS recordings salvaged and uploaded) that have been forgotten. All of this uploaded and available for the international viewing audience.



       Posted by: Eric |
      September 30, 2010 12:43 PM




















    8. this concept is going to rule the future generation TV.



      Posted by: san diego zoo |
      October 3, 2010 12:38 PM




















    9. Watching TV in the internet would be a big favor for people who spends most of their time facing their laptop or PC because of their work. Now they are able to enjoy and relax a bit watching their favorite TV show while using their unit.



      Posted by: satellite t.v. for p.c |
      October 11, 2010 11:58 PM
























    10. slides8 by nbbta


      ABC <b>News</b> for iPad adds 2010 Election Results | iLounge <b>News</b>

      iLounge news discussing the ABC News for iPad adds 2010 Election Results. Find more iPad news from leading independent iPod, iPhone, and iPad site.

      Small Business <b>News</b>: Social Media Secrets

      Pssst. We've got something important to tell you about a new tool that can totally transform your business. In terms of upfront investment, there is no cost,

      BREAKING <b>NEWS</b>: The Hobbit Stays In New Zealand | Hobbit Movie <b>News</b> <b>...</b>

      The night is darkest ere the dawn... and dawn has ever been the hope of Men! After days of closed door talks between New Zealand Prime Minister John Key and.


      ABC <b>News</b> for iPad adds 2010 Election Results | iLounge <b>News</b>

      iLounge news discussing the ABC News for iPad adds 2010 Election Results. Find more iPad news from leading independent iPod, iPhone, and iPad site.

      Small Business <b>News</b>: Social Media Secrets

      Pssst. We've got something important to tell you about a new tool that can totally transform your business. In terms of upfront investment, there is no cost,

      BREAKING <b>NEWS</b>: The Hobbit Stays In New Zealand | Hobbit Movie <b>News</b> <b>...</b>

      The night is darkest ere the dawn... and dawn has ever been the hope of Men! After days of closed door talks between New Zealand Prime Minister John Key and.

















People Making Money Net


-->




  • They openly stole races before
    by realskinny




  • Oh and he has also said now that he would have
    by earlgrey




  • Wilson is either clueless or selfish...
    by traversecityconservative




  • Bummer. I was really hoping for that one
    by earlgrey




  • Accuracy is important
    by longwalker




  • Alex Sink's text message to Florida....I am a cheat who is backed by all Unions, all Socialists, and Obama....but don't tell anybody
    by fpete13527




  • Rasmussen has Manchin ahead by 3...
    by zipbags




  • Well, sorry that doesn't work for you
    by E Pluribus Unum




  • If we take the Senate, the House will not have to
    by Dan Perrin




  • Sadly, no
    by E Pluribus Unum




  • Thanks Dan- I like your numbers
    by Scope




  • Meh.
    by aesthete




  • Since it didn't hit her head,
    by Darin_H




  • Part of the problem in Wahington is that too many people do
    by ihateliberals




  • The SCOTUS has already upheld photo ID.
    by realskinny




  • What is going on in WV??
    by zipbags




  • "argue to another place". As when the "argument" consists of a ballbat.
    by realskinny




  • It's the difference between. . .
    by msctex




  • You got me, Erick
    by Dan McLaughlin




  • Congress shirks its duties
    by Thomas_Hauber




  • Agreed
    by aesthete




  • From fake conservative to religious zealot, nothing else.
    by Locked and Loaded




  • The problem is that mileage varies for "fair and credible,"
    by The_Gadfly




  • Fully agree Brian
    by fpete13527




  • so the IDCC paid for ballot postage
    by Common_Cents




  • There's got to be lots more of these type of fraud efforts going on across the country
    by civil_truth




  • I am slow on the draw today. NT
    by Moe Lane




  • My 5 year old is too young to understand,
    by earlgrey




  • This is GREAT....just sent money to five candidates instantly:))
    by fpete13527




  • G'bye
    by Neil Stevens




  • No more Boners
    by ac7880




  • thanks for the pep talk. I needed it. nt.
    by earlgrey




  • My 11 year old son is paying attention
    by izoneguy




  • Fire the RINOs and good ol boys/girls
    by ac7880




  • Christie has spoken publicly about it --check out Breitbart
    by JSobieski




  • Doubtful. National voters will be too intent
    by The_Gadfly




  • Very true
    by powertothepeople




  • chipped in
    by charlesmartel




  • I wonder if the MSM will report this?...
    by zipbags




  • Sweet! I just ponied up a bit more too.
    by cwilson






If the latest trend holds and no hanging chads get in the way, the nastiest man in Congress may get some extra time to work on some sensitivity training. The latest Sunshine News Poll shows Daniel Webster with a 7% lead over Mr. Nasty himself, incumbent Alan Grayson. A poll taken four weeks ago reported Webster with the same margin, but the percentages for both candidates have risen as undecideds are making up their minds.



Former state Senator Daniel Webster, now leads Grayson in Florida's 8th congressional district by 48-41%. Fake tea party candidate Peg Dunmire who entered the campaign at the behest of the incumbent got 4 percent, No Party Affiliation candidate George Metcalfe got 1 percent, and 5 percent of respondents were undecided. Last month's poll showed Webster with a 43-36% lead.

"Webster has to be the favorite here. Grayson has failed to turn his negative image around, and is still viewed in a negative light by a 55-38 margin," said Jim Lee, president of Voter Survey Service, which conducted both polls. "This means Grayson has very little if any room to grow."



While Webster's negatives climbed 12 points since the earlier poll, undoubtedly spurred by Grayson's relentlessly negative advertising, the Republican maintains a relatively healthy favorable/unfavorable rating of 47/33.
Lee said nothing has changed the "fundamental equation for Grayson" in Central Florida's 8th Congressional District, where President Barack Obama gets a 52 percent job disapproval score (vs. 51 percent last month).



"Given that this district leans Democratic in raw registration numbers, Grayson's only hope is to turn out his base at a higher rate than the opponent's," Lee said.



But even then, Lee cautioned, the district still trends Republican in a nonpresidential year.



"The key difference in the poll when compared to last time is that Webster is surging with independents, now leading them by a 48-33 margin over Grayson, which is a reversal from a 42-33 Grayson lead in the last poll (a net swing of 24 points)," Lee reported.
Kathy Mears, a spokeswoman for Webster, said, "Although we are being outspent and deluged with some of the most negative and dirtiest ads in the country, we do sense a great deal of support from voters in the district. We trust that our positive message will win the day in Central Florida."
Over the weekend Columnist George Will wrote an article bashing Grayson's nastiness but also intelligence.  In his weekly Newsweek piece, George Will calls Grayson "America's Worst Politician" as he endorsed his challenger Daniel Webster.

Grayson campaign manager Susannah Randolph responded that the contest "is much closer than Daniel Webster and the Republicans would like to admit, being that they spent nearly $2 million in negative ads to defeat Congressman Grayson."
Not quite true, the Oct. 13 filings with the FEC show Grayson has raised $5,120,846, with $814,741 cash on hand and $1,080,966 in debt. Webster reported raising $1,317,108, with $340,119 cash on hand and no debt. And don't forget the SCHMOTUS was there yesterday to help him raise money.



Since the Sunshine State News Poll shows Webster’s margin widening to 11 points among voters who say they are most likely to cast ballots (51-40), Lee projected that the Republican could top 50 percent on election night.



Even though both Webster and Grayson have increased their support in their respective bases (Webster up 7 with Republicans, Grayson up 8), the swing of independents against Grayson could prove to be his undoing.



And the congressman's rising unfavorable rating -- now worse than Obama's -- appears to be downright lethal.



"Grayson’s favorable-unfavorable image is now a staggering negative ratio of 55-30, compared to a negative 47-36 ratio in September, so it’s apparent his TV campaign has completely backfired," Lee said.
Floridians are decent people, they will not stand for a congressman who along with having the wrong positions are just plain embarrassingly nasty.  That's why if people turn out to vote, Alan Grayson will be sent packing on election day.



The entire poll is below:



Crosstabs-Florida CD8 Oct10

Juan Williams: Fox <b>News</b> Lets &#39;Black Guy With A Hispanic Name&#39; Host <b>...</b>

Juan Williams said Tuesday that he's still upset about his firing from NPR, and added that NPR does not understand the Fox News culture or audience. In an interview with Baltimore Sun columnist David Zurawik, Williams said he remains ...

Shepard Smith Inks New Fox <b>News</b> Deal – Deadline.com

EXCLUSIVE: Fox News Channel's signature news anchor Shepard Smith has signed a new multi-year deal to continue as the channel's lead news anchor as well as anchor of FOX Report and Studio B. Smith's most recent pact with Fox News inked ...

Greenpeace dumps on Nintendo Wii <b>News</b> - Page 1 | Eurogamer.net

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Juan Williams: Fox <b>News</b> Lets &#39;Black Guy With A Hispanic Name&#39; Host <b>...</b>

Juan Williams said Tuesday that he's still upset about his firing from NPR, and added that NPR does not understand the Fox News culture or audience. In an interview with Baltimore Sun columnist David Zurawik, Williams said he remains ...

Shepard Smith Inks New Fox <b>News</b> Deal – Deadline.com

EXCLUSIVE: Fox News Channel's signature news anchor Shepard Smith has signed a new multi-year deal to continue as the channel's lead news anchor as well as anchor of FOX Report and Studio B. Smith's most recent pact with Fox News inked ...

Greenpeace dumps on Nintendo Wii <b>News</b> - Page 1 | Eurogamer.net

Read our Wii news of Greenpeace dumps on Nintendo.


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-->




  • They openly stole races before
    by realskinny




  • Oh and he has also said now that he would have
    by earlgrey




  • Wilson is either clueless or selfish...
    by traversecityconservative




  • Bummer. I was really hoping for that one
    by earlgrey




  • Accuracy is important
    by longwalker




  • Alex Sink's text message to Florida....I am a cheat who is backed by all Unions, all Socialists, and Obama....but don't tell anybody
    by fpete13527




  • Rasmussen has Manchin ahead by 3...
    by zipbags




  • Well, sorry that doesn't work for you
    by E Pluribus Unum




  • If we take the Senate, the House will not have to
    by Dan Perrin




  • Sadly, no
    by E Pluribus Unum




  • Thanks Dan- I like your numbers
    by Scope




  • Meh.
    by aesthete




  • Since it didn't hit her head,
    by Darin_H




  • Part of the problem in Wahington is that too many people do
    by ihateliberals




  • The SCOTUS has already upheld photo ID.
    by realskinny




  • What is going on in WV??
    by zipbags




  • "argue to another place". As when the "argument" consists of a ballbat.
    by realskinny




  • It's the difference between. . .
    by msctex




  • You got me, Erick
    by Dan McLaughlin




  • Congress shirks its duties
    by Thomas_Hauber




  • Agreed
    by aesthete




  • From fake conservative to religious zealot, nothing else.
    by Locked and Loaded




  • The problem is that mileage varies for "fair and credible,"
    by The_Gadfly




  • Fully agree Brian
    by fpete13527




  • so the IDCC paid for ballot postage
    by Common_Cents




  • There's got to be lots more of these type of fraud efforts going on across the country
    by civil_truth




  • I am slow on the draw today. NT
    by Moe Lane




  • My 5 year old is too young to understand,
    by earlgrey




  • This is GREAT....just sent money to five candidates instantly:))
    by fpete13527




  • G'bye
    by Neil Stevens




  • No more Boners
    by ac7880




  • thanks for the pep talk. I needed it. nt.
    by earlgrey




  • My 11 year old son is paying attention
    by izoneguy




  • Fire the RINOs and good ol boys/girls
    by ac7880




  • Christie has spoken publicly about it --check out Breitbart
    by JSobieski




  • Doubtful. National voters will be too intent
    by The_Gadfly




  • Very true
    by powertothepeople




  • chipped in
    by charlesmartel




  • I wonder if the MSM will report this?...
    by zipbags




  • Sweet! I just ponied up a bit more too.
    by cwilson






If the latest trend holds and no hanging chads get in the way, the nastiest man in Congress may get some extra time to work on some sensitivity training. The latest Sunshine News Poll shows Daniel Webster with a 7% lead over Mr. Nasty himself, incumbent Alan Grayson. A poll taken four weeks ago reported Webster with the same margin, but the percentages for both candidates have risen as undecideds are making up their minds.



Former state Senator Daniel Webster, now leads Grayson in Florida's 8th congressional district by 48-41%. Fake tea party candidate Peg Dunmire who entered the campaign at the behest of the incumbent got 4 percent, No Party Affiliation candidate George Metcalfe got 1 percent, and 5 percent of respondents were undecided. Last month's poll showed Webster with a 43-36% lead.

"Webster has to be the favorite here. Grayson has failed to turn his negative image around, and is still viewed in a negative light by a 55-38 margin," said Jim Lee, president of Voter Survey Service, which conducted both polls. "This means Grayson has very little if any room to grow."



While Webster's negatives climbed 12 points since the earlier poll, undoubtedly spurred by Grayson's relentlessly negative advertising, the Republican maintains a relatively healthy favorable/unfavorable rating of 47/33.
Lee said nothing has changed the "fundamental equation for Grayson" in Central Florida's 8th Congressional District, where President Barack Obama gets a 52 percent job disapproval score (vs. 51 percent last month).



"Given that this district leans Democratic in raw registration numbers, Grayson's only hope is to turn out his base at a higher rate than the opponent's," Lee said.



But even then, Lee cautioned, the district still trends Republican in a nonpresidential year.



"The key difference in the poll when compared to last time is that Webster is surging with independents, now leading them by a 48-33 margin over Grayson, which is a reversal from a 42-33 Grayson lead in the last poll (a net swing of 24 points)," Lee reported.
Kathy Mears, a spokeswoman for Webster, said, "Although we are being outspent and deluged with some of the most negative and dirtiest ads in the country, we do sense a great deal of support from voters in the district. We trust that our positive message will win the day in Central Florida."
Over the weekend Columnist George Will wrote an article bashing Grayson's nastiness but also intelligence.  In his weekly Newsweek piece, George Will calls Grayson "America's Worst Politician" as he endorsed his challenger Daniel Webster.

Grayson campaign manager Susannah Randolph responded that the contest "is much closer than Daniel Webster and the Republicans would like to admit, being that they spent nearly $2 million in negative ads to defeat Congressman Grayson."
Not quite true, the Oct. 13 filings with the FEC show Grayson has raised $5,120,846, with $814,741 cash on hand and $1,080,966 in debt. Webster reported raising $1,317,108, with $340,119 cash on hand and no debt. And don't forget the SCHMOTUS was there yesterday to help him raise money.



Since the Sunshine State News Poll shows Webster’s margin widening to 11 points among voters who say they are most likely to cast ballots (51-40), Lee projected that the Republican could top 50 percent on election night.



Even though both Webster and Grayson have increased their support in their respective bases (Webster up 7 with Republicans, Grayson up 8), the swing of independents against Grayson could prove to be his undoing.



And the congressman's rising unfavorable rating -- now worse than Obama's -- appears to be downright lethal.



"Grayson’s favorable-unfavorable image is now a staggering negative ratio of 55-30, compared to a negative 47-36 ratio in September, so it’s apparent his TV campaign has completely backfired," Lee said.
Floridians are decent people, they will not stand for a congressman who along with having the wrong positions are just plain embarrassingly nasty.  That's why if people turn out to vote, Alan Grayson will be sent packing on election day.



The entire poll is below:



Crosstabs-Florida CD8 Oct10

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Juan Williams: Fox <b>News</b> Lets &#39;Black Guy With A Hispanic Name&#39; Host <b>...</b>

Juan Williams said Tuesday that he's still upset about his firing from NPR, and added that NPR does not understand the Fox News culture or audience. In an interview with Baltimore Sun columnist David Zurawik, Williams said he remains ...

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Read our Wii news of Greenpeace dumps on Nintendo.


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Juan Williams: Fox <b>News</b> Lets &#39;Black Guy With A Hispanic Name&#39; Host <b>...</b>

Juan Williams said Tuesday that he's still upset about his firing from NPR, and added that NPR does not understand the Fox News culture or audience. In an interview with Baltimore Sun columnist David Zurawik, Williams said he remains ...

Shepard Smith Inks New Fox <b>News</b> Deal – Deadline.com

EXCLUSIVE: Fox News Channel's signature news anchor Shepard Smith has signed a new multi-year deal to continue as the channel's lead news anchor as well as anchor of FOX Report and Studio B. Smith's most recent pact with Fox News inked ...

Greenpeace dumps on Nintendo Wii <b>News</b> - Page 1 | Eurogamer.net

Read our Wii news of Greenpeace dumps on Nintendo.


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Juan Williams: Fox <b>News</b> Lets &#39;Black Guy With A Hispanic Name&#39; Host <b>...</b>

Juan Williams said Tuesday that he's still upset about his firing from NPR, and added that NPR does not understand the Fox News culture or audience. In an interview with Baltimore Sun columnist David Zurawik, Williams said he remains ...

Shepard Smith Inks New Fox <b>News</b> Deal – Deadline.com

EXCLUSIVE: Fox News Channel's signature news anchor Shepard Smith has signed a new multi-year deal to continue as the channel's lead news anchor as well as anchor of FOX Report and Studio B. Smith's most recent pact with Fox News inked ...

Greenpeace dumps on Nintendo Wii <b>News</b> - Page 1 | Eurogamer.net

Read our Wii news of Greenpeace dumps on Nintendo.


bench craft company complaints bench craft company complaints

Tuesday, October 26, 2010

Help Making Money



I've been wondering about this for awhile. The GOP-allied groups have spent millions and millions and millions on t.v., but do they know how to turn out voters? That's unclear. I know how sophisticated the operation on the Democratic side is. In mid-term elections particulary, effective GOTV really matters. The Los Angeles Times thinks the Democrats have an advantage here -- and I think so, too:

With money and momentum on their side, Republicans are considered competitive in dozens of districts once thought to be out of reach. But races are tightening, and the voter mobilization program could determine whether the election provides better than average midterm gains for the GOP.

"There is a sense now that Republicans may not be able to capitalize on the backlash against Obama and the Democrats because they lack the well-organized voter ID and get-out-the-vote effort that they have had in the past," said Lawrence Jacobs, a University of Minnesota political scientist who has been comparing the ground game of both parties. There is enormous variation now state to state, he said.

Democrats and allied groups are spending most of their $200-million political budgets in the largely invisible effort to turn out sympathetic voters.

The party was shocked to lose control of the House in 1994 in the so-called Gingrich Revolution. Since then, Democrats and labor have emphasized personal voter contact to win close races. In Pennsylvania last week, AFL-CIO President Richard Trumka said his organization planned to "touch" every union member in the state 25 times with mail, phone calls and personal visits in the campaign's final weeks.
Meanwhile, there's no trust among the right-wing groups. In some places, they're not sharing lists.

With so much money being spent, pundits and politicos overlooked the failings of the RNC and the efforts by Rove and others to bypass that organization. But, the RNC was the hub of GOTV -- and now it's not:
For the GOP, this year's patchwork approach is a dramatic departure from the last decade, when a single well-organized entity — the Republican National Committee — ran sophisticated voter mobilization programs that were years in the making. But the RNC has faltered in funding and organization recently, and outside groups have stepped up efforts, many of them starting only recently.
If you want to help with GOTV, PCCC has "Call out the Vote" and MoveOn has a call from home program, too.



GOP candidates are making a point of running against "bailouts" this year. Yet even as they rail about rescuing big banks, they're working on a plan that would slip those same banks an estimated $90 billion in taxpayer money...and that's just in the first ten years.



"Fiscal conservatism," anyone?



It was always hypocritical to slam a bailout that they and their party initiated. But it turns out they were just warming up. Now they're trying to pull a fast one on the American public, tapping Tea Party rage about big government spending even as they prepare to slip the big bankers some big bucks. They're planning to siphon off $90 billion meant for America's college students and their families and give it to Wall Street.



Any Tea Partier who votes for these guys is being played for a sucker.



The Republican repeal plan wouldn't just put tens of billions of public dollars in bank coffers. It would also raise the maximum amount a graduate is forced to pay each year from 10 percent to 15 percent of income. And it would extend the length of time before their debt is forgiven from 20 to 25 years.



Your GOP: Sending billions in taxpayer money to rich bankers, and squeezing young people starting out in life. Call it the New Populism.



Small government? Less spending? The Republican Party's backdoor bailout of wealthy bankers is bigger than the auto-industry bailout. It's bigger than the home-loan program. It's bigger than the lending program for small businesses. And unlike those programs, it serves no social purpose at all:







This week, two Republican senatorial candidates were the latest to push this secret subsidy for Wall Street. Washington's Dino Rossi and Mark Kirk in Illinois were obviously working from the same playbook, since they made almost identical points while declaring their opposition to this year's student-loan reform. "You know, part of the takeover of government has been part of the student loans," said Rossi. "I don't think that we should adopt legislation that the Congress has moved forward to have a complete government takeover of all student loans," said Kirk.



Kirk and Rossi are talking about this year's student-loan reform. That program eliminated a cushy deal that gave private banks a percentage of government-loan funds for "administering" loans (they weren't actually lending the money). They performed their administrative duties both inefficiently and unethically. What's more, the banks took a portion of their vig and spent it on lobbyists in order to keep the pot sweetened for themselves. It didn't work -- but if the GOP has its way, it'll work next year.



You're not seeing a "populist" uprising on the right. You're seeing lobbyist and billionaire money at work, channeling genuine frustration and anger into an electoral plan designed to help bankers get even richer.



The "government takeover" argument is ridiculous, of course. In this case they're talking about a government takeover... of government. This is the public's money, and it's intended to be lent to students and their families so that the dream of an ever-more-expensive college education is available to more families. Taxpayers support this program so much that neither Kirk nor Rossi could afford to criticize it. But not too many of those taxpayers would support taking billions of their dollars and funneling it to Wall Street, as the GOP would do.



The "complete government takeover" statements are also absolutely false, since private students loans are still available. (See Pat Garafolo's excellent pieces on Rossi and Kirk for more detail.)



When private bankers managed the student-loan process, it was filled with rampant corruption that included kickbacks to school administrators. Millions of dollars meant for students were also stuffed in the pockets of lobbyists and politicians. (Details here.) And as for that "privatization" mantra we keep hearing from the GOP, consider this: The government created and funded Sallie Mae to help students get these government loans, and then privatized it. The result was a taxpayer-created and financed company that bought itself three private jets, paid bloated executive salaries, and threw government money at Washington pols (including a quarter of a million dollars for George W. Bush's inauguration).



(We've got more information on the loan program, and a rundown on the "private" Sallie Mae Corporation that includes a photo of one of those jets and their ID numbers.)



Because of our current hard times -- hard times brought about by the very same bankers who would get billions under the GOP plan -- our student-loan program is even more important than ever. Unemployment and underemployment for college graduates is soaring. The average college graduate's debt in 2009 was $24,000, up six percent from the year before, and that's before the full impact of the economic downturn. Diverting billions in federal student loan money to Wall Street under these circumstances is nothing short of obscene.



But the GOP has made it clear that they're in the bankers' back pockets. Sen. John Cornyn, head of the Republican Senate campaign committee, indicated they would immediately move to repeal the financial-reform bill if they gained power. That would give their banker friends free reign to exploit consumers and take even greater risks with the economy. This $90 billion giveaway of government money -- our money -- is just part of a larger pattern.



While neither Kirk nor Rossi were originally Tea Party candidates, they've both made their peace with the movement. Unnamed "Tea Party activists" from the State of Washington issued a letter of support for Rossi, while the formerly centrist Mark Kirk has flip-flopped on multiple issues in the last few months in order to pass Tea Party muster. Both candidates are part of a larger GOP plan to use anti-spending, anti-bank rhetoric in order to spend billions on subsidizing banks.



Billions for bankers, benefit cuts for students. A "privatization" scheme that lets a few people get rich off government programs, promoted in the name of "less spending" and "less taxes." That's the system that these Republicans want to bring back and even expand. They want to use student loan money as a piggy bank for rich piggies, tapping taxpayer dollars to to enrich their pals.



So my question for the Tea Party rank and file is this: Are you going to let the big banks and their politician cronies play you like this? Are you going to be a sucker? They've got $90 billion that says you will.



______________



About the table: The Department of Education Arne Duncan estimates the bank subsidy was costing approximately $9 billion per year, including the interest banks were able to collect . Given the rapid and ongoing increases in college tuitions, it's not unreasonable to think that the total amount could be wind up being much more than either figure. I used the data compiled by the New York Times for the other figures. In every case, I used the highest possible figures for the final cost of each program, to make my estimates as conservative as possible. (I stayed away from TARP, even though we're told it's making a profit, because the total cost is still unknown.)



The result was clear: This GOP's planned Wall Street giveaway was the biggest and costliest of all the programs listed.



Richard (RJ) Eskow, a consultant and writer (and former insurance/finance executive), is a Senior Fellow with the Campaign for America's Future. This post was produced as part of the Curbing Wall Street project. Richard also blogs at A Night Light.



He can be reached at "rjeskow@ourfuture.org."



Website: Eskow and Associates











Nevada Voters Complain Of Problems At Polls - Las Vegas <b>News</b> Story <b>...</b>

LAS VEGAS -- Some voters in Boulder City complained on Monday that their ballot had been cast before they went to the polls, raising questions about Clark County's electronic voting machines. Tuesday, October 26, 2010.

Lujiazui Breakfast: <b>News</b> And Views About China Stocks (Oct. 26 <b>...</b>

Investors and traders in China's main financial district are talking about the following before the start of trade today: The dollar fell to a 15-year low against the yen yesterday, fueling speculation that major countries will continue ...

Probably Bad <b>News</b>: Parenting FAIL - Epic Fail Funny Videos and <b>...</b>

epic fail photos - Probably Bad News: Parenting FAIL.


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Can you help these people out and make yourself money? Investors wanted. by grahunt


Nevada Voters Complain Of Problems At Polls - Las Vegas <b>News</b> Story <b>...</b>

LAS VEGAS -- Some voters in Boulder City complained on Monday that their ballot had been cast before they went to the polls, raising questions about Clark County's electronic voting machines. Tuesday, October 26, 2010.

Lujiazui Breakfast: <b>News</b> And Views About China Stocks (Oct. 26 <b>...</b>

Investors and traders in China's main financial district are talking about the following before the start of trade today: The dollar fell to a 15-year low against the yen yesterday, fueling speculation that major countries will continue ...

Probably Bad <b>News</b>: Parenting FAIL - Epic Fail Funny Videos and <b>...</b>

epic fail photos - Probably Bad News: Parenting FAIL.


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I've been wondering about this for awhile. The GOP-allied groups have spent millions and millions and millions on t.v., but do they know how to turn out voters? That's unclear. I know how sophisticated the operation on the Democratic side is. In mid-term elections particulary, effective GOTV really matters. The Los Angeles Times thinks the Democrats have an advantage here -- and I think so, too:

With money and momentum on their side, Republicans are considered competitive in dozens of districts once thought to be out of reach. But races are tightening, and the voter mobilization program could determine whether the election provides better than average midterm gains for the GOP.

"There is a sense now that Republicans may not be able to capitalize on the backlash against Obama and the Democrats because they lack the well-organized voter ID and get-out-the-vote effort that they have had in the past," said Lawrence Jacobs, a University of Minnesota political scientist who has been comparing the ground game of both parties. There is enormous variation now state to state, he said.

Democrats and allied groups are spending most of their $200-million political budgets in the largely invisible effort to turn out sympathetic voters.

The party was shocked to lose control of the House in 1994 in the so-called Gingrich Revolution. Since then, Democrats and labor have emphasized personal voter contact to win close races. In Pennsylvania last week, AFL-CIO President Richard Trumka said his organization planned to "touch" every union member in the state 25 times with mail, phone calls and personal visits in the campaign's final weeks.
Meanwhile, there's no trust among the right-wing groups. In some places, they're not sharing lists.

With so much money being spent, pundits and politicos overlooked the failings of the RNC and the efforts by Rove and others to bypass that organization. But, the RNC was the hub of GOTV -- and now it's not:
For the GOP, this year's patchwork approach is a dramatic departure from the last decade, when a single well-organized entity — the Republican National Committee — ran sophisticated voter mobilization programs that were years in the making. But the RNC has faltered in funding and organization recently, and outside groups have stepped up efforts, many of them starting only recently.
If you want to help with GOTV, PCCC has "Call out the Vote" and MoveOn has a call from home program, too.



GOP candidates are making a point of running against "bailouts" this year. Yet even as they rail about rescuing big banks, they're working on a plan that would slip those same banks an estimated $90 billion in taxpayer money...and that's just in the first ten years.



"Fiscal conservatism," anyone?



It was always hypocritical to slam a bailout that they and their party initiated. But it turns out they were just warming up. Now they're trying to pull a fast one on the American public, tapping Tea Party rage about big government spending even as they prepare to slip the big bankers some big bucks. They're planning to siphon off $90 billion meant for America's college students and their families and give it to Wall Street.



Any Tea Partier who votes for these guys is being played for a sucker.



The Republican repeal plan wouldn't just put tens of billions of public dollars in bank coffers. It would also raise the maximum amount a graduate is forced to pay each year from 10 percent to 15 percent of income. And it would extend the length of time before their debt is forgiven from 20 to 25 years.



Your GOP: Sending billions in taxpayer money to rich bankers, and squeezing young people starting out in life. Call it the New Populism.



Small government? Less spending? The Republican Party's backdoor bailout of wealthy bankers is bigger than the auto-industry bailout. It's bigger than the home-loan program. It's bigger than the lending program for small businesses. And unlike those programs, it serves no social purpose at all:







This week, two Republican senatorial candidates were the latest to push this secret subsidy for Wall Street. Washington's Dino Rossi and Mark Kirk in Illinois were obviously working from the same playbook, since they made almost identical points while declaring their opposition to this year's student-loan reform. "You know, part of the takeover of government has been part of the student loans," said Rossi. "I don't think that we should adopt legislation that the Congress has moved forward to have a complete government takeover of all student loans," said Kirk.



Kirk and Rossi are talking about this year's student-loan reform. That program eliminated a cushy deal that gave private banks a percentage of government-loan funds for "administering" loans (they weren't actually lending the money). They performed their administrative duties both inefficiently and unethically. What's more, the banks took a portion of their vig and spent it on lobbyists in order to keep the pot sweetened for themselves. It didn't work -- but if the GOP has its way, it'll work next year.



You're not seeing a "populist" uprising on the right. You're seeing lobbyist and billionaire money at work, channeling genuine frustration and anger into an electoral plan designed to help bankers get even richer.



The "government takeover" argument is ridiculous, of course. In this case they're talking about a government takeover... of government. This is the public's money, and it's intended to be lent to students and their families so that the dream of an ever-more-expensive college education is available to more families. Taxpayers support this program so much that neither Kirk nor Rossi could afford to criticize it. But not too many of those taxpayers would support taking billions of their dollars and funneling it to Wall Street, as the GOP would do.



The "complete government takeover" statements are also absolutely false, since private students loans are still available. (See Pat Garafolo's excellent pieces on Rossi and Kirk for more detail.)



When private bankers managed the student-loan process, it was filled with rampant corruption that included kickbacks to school administrators. Millions of dollars meant for students were also stuffed in the pockets of lobbyists and politicians. (Details here.) And as for that "privatization" mantra we keep hearing from the GOP, consider this: The government created and funded Sallie Mae to help students get these government loans, and then privatized it. The result was a taxpayer-created and financed company that bought itself three private jets, paid bloated executive salaries, and threw government money at Washington pols (including a quarter of a million dollars for George W. Bush's inauguration).



(We've got more information on the loan program, and a rundown on the "private" Sallie Mae Corporation that includes a photo of one of those jets and their ID numbers.)



Because of our current hard times -- hard times brought about by the very same bankers who would get billions under the GOP plan -- our student-loan program is even more important than ever. Unemployment and underemployment for college graduates is soaring. The average college graduate's debt in 2009 was $24,000, up six percent from the year before, and that's before the full impact of the economic downturn. Diverting billions in federal student loan money to Wall Street under these circumstances is nothing short of obscene.



But the GOP has made it clear that they're in the bankers' back pockets. Sen. John Cornyn, head of the Republican Senate campaign committee, indicated they would immediately move to repeal the financial-reform bill if they gained power. That would give their banker friends free reign to exploit consumers and take even greater risks with the economy. This $90 billion giveaway of government money -- our money -- is just part of a larger pattern.



While neither Kirk nor Rossi were originally Tea Party candidates, they've both made their peace with the movement. Unnamed "Tea Party activists" from the State of Washington issued a letter of support for Rossi, while the formerly centrist Mark Kirk has flip-flopped on multiple issues in the last few months in order to pass Tea Party muster. Both candidates are part of a larger GOP plan to use anti-spending, anti-bank rhetoric in order to spend billions on subsidizing banks.



Billions for bankers, benefit cuts for students. A "privatization" scheme that lets a few people get rich off government programs, promoted in the name of "less spending" and "less taxes." That's the system that these Republicans want to bring back and even expand. They want to use student loan money as a piggy bank for rich piggies, tapping taxpayer dollars to to enrich their pals.



So my question for the Tea Party rank and file is this: Are you going to let the big banks and their politician cronies play you like this? Are you going to be a sucker? They've got $90 billion that says you will.



______________



About the table: The Department of Education Arne Duncan estimates the bank subsidy was costing approximately $9 billion per year, including the interest banks were able to collect . Given the rapid and ongoing increases in college tuitions, it's not unreasonable to think that the total amount could be wind up being much more than either figure. I used the data compiled by the New York Times for the other figures. In every case, I used the highest possible figures for the final cost of each program, to make my estimates as conservative as possible. (I stayed away from TARP, even though we're told it's making a profit, because the total cost is still unknown.)



The result was clear: This GOP's planned Wall Street giveaway was the biggest and costliest of all the programs listed.



Richard (RJ) Eskow, a consultant and writer (and former insurance/finance executive), is a Senior Fellow with the Campaign for America's Future. This post was produced as part of the Curbing Wall Street project. Richard also blogs at A Night Light.



He can be reached at "rjeskow@ourfuture.org."



Website: Eskow and Associates











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Nevada Voters Complain Of Problems At Polls - Las Vegas <b>News</b> Story <b>...</b>

LAS VEGAS -- Some voters in Boulder City complained on Monday that their ballot had been cast before they went to the polls, raising questions about Clark County's electronic voting machines. Tuesday, October 26, 2010.

Lujiazui Breakfast: <b>News</b> And Views About China Stocks (Oct. 26 <b>...</b>

Investors and traders in China's main financial district are talking about the following before the start of trade today: The dollar fell to a 15-year low against the yen yesterday, fueling speculation that major countries will continue ...

Probably Bad <b>News</b>: Parenting FAIL - Epic Fail Funny Videos and <b>...</b>

epic fail photos - Probably Bad News: Parenting FAIL.


bench craft company complaints bench craft company complaints

Nevada Voters Complain Of Problems At Polls - Las Vegas <b>News</b> Story <b>...</b>

LAS VEGAS -- Some voters in Boulder City complained on Monday that their ballot had been cast before they went to the polls, raising questions about Clark County's electronic voting machines. Tuesday, October 26, 2010.

Lujiazui Breakfast: <b>News</b> And Views About China Stocks (Oct. 26 <b>...</b>

Investors and traders in China's main financial district are talking about the following before the start of trade today: The dollar fell to a 15-year low against the yen yesterday, fueling speculation that major countries will continue ...

Probably Bad <b>News</b>: Parenting FAIL - Epic Fail Funny Videos and <b>...</b>

epic fail photos - Probably Bad News: Parenting FAIL.


bench craft company complaints bench craft company complaints

Nevada Voters Complain Of Problems At Polls - Las Vegas <b>News</b> Story <b>...</b>

LAS VEGAS -- Some voters in Boulder City complained on Monday that their ballot had been cast before they went to the polls, raising questions about Clark County's electronic voting machines. Tuesday, October 26, 2010.

Lujiazui Breakfast: <b>News</b> And Views About China Stocks (Oct. 26 <b>...</b>

Investors and traders in China's main financial district are talking about the following before the start of trade today: The dollar fell to a 15-year low against the yen yesterday, fueling speculation that major countries will continue ...

Probably Bad <b>News</b>: Parenting FAIL - Epic Fail Funny Videos and <b>...</b>

epic fail photos - Probably Bad News: Parenting FAIL.


bench craft company complaints bench craft company complaints

Friday, October 22, 2010

Making Money Cash


One of the big problems during the financial crisis was a bank run in the shadow banking system when doubts emerged about the safety of deposits.


In my last column at the Fiscal Times, I talked about an approach to solving the problem that involves having deposits in the shadow system backed (insured) by high quality collateral.


But high quality collateral is not the only option. Another way to do this is through a type of insurance along the lines of what the FDIC does for the traditional banking system, along with restrictions on eligibility for the insurance. In reaction to my column, and in support of the insurance approach, Morgan Ricks of Harvard Law School emails:



I enjoyed your Fiscal Times piece and am glad you're focused on this issue.


I'm a big admirer of Gary and Andrew's work, but I would encourage you to give some more thought to whether collateral requirements for repo are likely to do the trick. Here are a few things to consider:



  • Many of the short-term liabilities of the shadow banking system were and are uncollateralized (think about Lehman's reliance on unsecured commercial paper -- the default of which caused the Reserve Fund to "break the buck," igniting the run on money market funds; and Citigroup's SIVs, which financed themselves in the unsecured markets).

  • Money market investors do not want to take possession of collateral and dispose of it. Even if the collateral is high quality, they don't want the interest rate risk. That's not their business. They don't want to deal with the consequences of a counterparty default. This is why, in the crisis, many money market investors stopped rolling even those repos that were fully secured by Treasuries and agencies:

    • See Chris Cox's testimony on Bear Stearns (here http://www.sec.gov/news/testimony/2008/ts040308cc.htm): "For the first time, a major investment bank that was well-capitalized and apparently fully liquid experienced a crisis of confidence that denied it not only unsecured financing, but short-term secured financing, even when the collateral consisted of agency securities with a market value in excess of the funds to be borrowed"

    • See also FRBNY's repo task force report (here http://www.newyorkfed.org/prc/report_100517.pdf): “Discussions in the Task Force emphasized repeatedly that many Cash Investors focus primarily if not almost exclusively on counterparty concerns and that they will withdraw secured funding on the same or very similar timeframes as they would withdraw unsecured funding.”



  • Even if collateral requirements reduce the likelihood of runs, how do we calibrate them -- what is the objective function? Presumably we think maturity transformation (fractional reserve banking) is a good thing -- it increases the supply of loanable funds by pooling otherwise idle cash reserves and deploying them toward productive investments. Risk constraints (such as collateral requirements) necessarily reduce this surplus -- there is a real social cost. How do we appraise the corresponding benefit? That is, how do we estimate the systemic instability associated with any given level of collateral requirements? My argument is that we can't. And by "we" I mean not just the government, but anybody.


My paper argues that we avoid these problems with an insurance regime; that financial firms outside the insurance regime should be disallowed from conducting maturity transformation (i.e., they would have to rely on term funding, not money market funding); and that we should develop functional criteria of eligibility for the insurance regime. (By the way, this is not the same thing as "extending" insurance to shadow banks.)


Anyway, these are things worth thinking about. I think the insurance approach needs more serious consideration than it has received -- it's a little lonely over here ...


Best,


Morgan Ricks



See here for nice summary of this approach and link to the underlying academic paper.



To summarize an hour of dialogue, you should at some point have a product that your readers will want. You should give a lot of free content away, but even when it comes to content, you can charge for some amount, and if your content is good enough, people will pay for the premium stuff. "You can tell them about ninety percent, and they'll pay money just to get the final ten percent," so they know they have the whole picture, Clark says.



Making money blogging will not happen overnight. Sometimes it may seem like this is possible, but in reality, it takes a lot of work. "Build something that is real and something that matters to people," Rowse advises. He shared a story about how he launched a product one day and literally watched the sales roll in. It was as if he had hit a button, and the cash just started flowing, but then he realized he had been working hard up to that point for over two years, promoting the blog, writing two posts a day, doing SEO, press releases, etc. It wasn't overnight. 



You're not scalable, meaning that as your audience grows and more people want to connect with you, there will be a point where it just becomes too much. You have to set boundaries, otherwise you will have no time for yourself and your family. 



Eventually, you're going to have to "get real" about how many meaningful connections you can make in a day, Simone says, adding, "That's part of growing up in social media.”



When they say "no one actually wants that much authenticity," they mean that nobody cares about what you did last night, who you were with, what you had for breakfast, etc. In other words, don't show everybody everything about yourself, because you're not writing for you. You're writing for them. Be who you want to be for your audience. 



Ultimately, you're blogging and using social media to sell, but you can't just go around selling to people, because they won't have it. It just doesn't work. You have to make them want to buy. "You're selling yourself," says Clark. If you provide enough value to your audience, they will want to buy what you have to offer if it expands upon the value you're already giving them. "The content is the marketing," he says. 



Just having a blog is not a business. If you want it to be a business you have to treat it like one, Rowse says. This is basically an extension of number 2. 



The most important of the seven points is that no one is reading your blog. As Simone says, there are hundreds of millions of blogs, and that includes blogs on your topic. You have to write it in a way that is fresh, and either entertaining or informative. The good news is that you don't need "monster traffic". You just need a good, steady core audience for advertising to do well. 


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One of the big problems during the financial crisis was a bank run in the shadow banking system when doubts emerged about the safety of deposits.


In my last column at the Fiscal Times, I talked about an approach to solving the problem that involves having deposits in the shadow system backed (insured) by high quality collateral.


But high quality collateral is not the only option. Another way to do this is through a type of insurance along the lines of what the FDIC does for the traditional banking system, along with restrictions on eligibility for the insurance. In reaction to my column, and in support of the insurance approach, Morgan Ricks of Harvard Law School emails:



I enjoyed your Fiscal Times piece and am glad you're focused on this issue.


I'm a big admirer of Gary and Andrew's work, but I would encourage you to give some more thought to whether collateral requirements for repo are likely to do the trick. Here are a few things to consider:



  • Many of the short-term liabilities of the shadow banking system were and are uncollateralized (think about Lehman's reliance on unsecured commercial paper -- the default of which caused the Reserve Fund to "break the buck," igniting the run on money market funds; and Citigroup's SIVs, which financed themselves in the unsecured markets).

  • Money market investors do not want to take possession of collateral and dispose of it. Even if the collateral is high quality, they don't want the interest rate risk. That's not their business. They don't want to deal with the consequences of a counterparty default. This is why, in the crisis, many money market investors stopped rolling even those repos that were fully secured by Treasuries and agencies:

    • See Chris Cox's testimony on Bear Stearns (here http://www.sec.gov/news/testimony/2008/ts040308cc.htm): "For the first time, a major investment bank that was well-capitalized and apparently fully liquid experienced a crisis of confidence that denied it not only unsecured financing, but short-term secured financing, even when the collateral consisted of agency securities with a market value in excess of the funds to be borrowed"

    • See also FRBNY's repo task force report (here http://www.newyorkfed.org/prc/report_100517.pdf): “Discussions in the Task Force emphasized repeatedly that many Cash Investors focus primarily if not almost exclusively on counterparty concerns and that they will withdraw secured funding on the same or very similar timeframes as they would withdraw unsecured funding.”



  • Even if collateral requirements reduce the likelihood of runs, how do we calibrate them -- what is the objective function? Presumably we think maturity transformation (fractional reserve banking) is a good thing -- it increases the supply of loanable funds by pooling otherwise idle cash reserves and deploying them toward productive investments. Risk constraints (such as collateral requirements) necessarily reduce this surplus -- there is a real social cost. How do we appraise the corresponding benefit? That is, how do we estimate the systemic instability associated with any given level of collateral requirements? My argument is that we can't. And by "we" I mean not just the government, but anybody.


My paper argues that we avoid these problems with an insurance regime; that financial firms outside the insurance regime should be disallowed from conducting maturity transformation (i.e., they would have to rely on term funding, not money market funding); and that we should develop functional criteria of eligibility for the insurance regime. (By the way, this is not the same thing as "extending" insurance to shadow banks.)


Anyway, these are things worth thinking about. I think the insurance approach needs more serious consideration than it has received -- it's a little lonely over here ...


Best,


Morgan Ricks



See here for nice summary of this approach and link to the underlying academic paper.



To summarize an hour of dialogue, you should at some point have a product that your readers will want. You should give a lot of free content away, but even when it comes to content, you can charge for some amount, and if your content is good enough, people will pay for the premium stuff. "You can tell them about ninety percent, and they'll pay money just to get the final ten percent," so they know they have the whole picture, Clark says.



Making money blogging will not happen overnight. Sometimes it may seem like this is possible, but in reality, it takes a lot of work. "Build something that is real and something that matters to people," Rowse advises. He shared a story about how he launched a product one day and literally watched the sales roll in. It was as if he had hit a button, and the cash just started flowing, but then he realized he had been working hard up to that point for over two years, promoting the blog, writing two posts a day, doing SEO, press releases, etc. It wasn't overnight. 



You're not scalable, meaning that as your audience grows and more people want to connect with you, there will be a point where it just becomes too much. You have to set boundaries, otherwise you will have no time for yourself and your family. 



Eventually, you're going to have to "get real" about how many meaningful connections you can make in a day, Simone says, adding, "That's part of growing up in social media.”



When they say "no one actually wants that much authenticity," they mean that nobody cares about what you did last night, who you were with, what you had for breakfast, etc. In other words, don't show everybody everything about yourself, because you're not writing for you. You're writing for them. Be who you want to be for your audience. 



Ultimately, you're blogging and using social media to sell, but you can't just go around selling to people, because they won't have it. It just doesn't work. You have to make them want to buy. "You're selling yourself," says Clark. If you provide enough value to your audience, they will want to buy what you have to offer if it expands upon the value you're already giving them. "The content is the marketing," he says. 



Just having a blog is not a business. If you want it to be a business you have to treat it like one, Rowse says. This is basically an extension of number 2. 



The most important of the seven points is that no one is reading your blog. As Simone says, there are hundreds of millions of blogs, and that includes blogs on your topic. You have to write it in a way that is fresh, and either entertaining or informative. The good news is that you don't need "monster traffic". You just need a good, steady core audience for advertising to do well. 


Nuclear submarine runs aground off Skye | Scotland | STV <b>News</b>

Royal Navy submarine HMS Astute stranded after accident near Skye Bridge.

Vatican synod sees growing concern over Islam :: Catholic <b>News</b> <b>...</b>

The need for more interfaith dialogue and greater Christian-Muslim understanding has been a key theme in the month-long meeting of bishops at the Vatican to discuss the Middle East.

After <b>news</b> of Google tax dodges, Obama raises money with Google <b>...</b>

Google, according to a report by Bloomberg News, has used paper transactions to shift $3.1 billion of its income to Bermuda and other low-tax havens in recent years. The company's aggressive use of such tax dodges has reduced its ...


eric seiger eric seiger


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