According to the article “Apple gives iTunes 3-tiered pricing” found in the business section of the Chicago Tribune, Apple’s iTunes music store has decided to change the prices of the songs they sell. Originally, every song cost a constant .99 cents, no matter how old, new or popular the song was. Now, in the new iTunes pricing system, songs will cost 69 cents, 99 cents, or $1.29 each, depending on the song’s popularity. Senior Vice President Philip Schiller announced this new system at the Macworld conference. Another change that Apple is making is that its entire music catalog (8 million songs currently and 2 million more by the end of March) will be available in versions that are striped of anti-copying software. That means that when you buy those songs off iTunes there’s no longer a limit to the type of digital media players you can transfer music with or the number of times you can burn a playlist to a CD. The old system restricted users from transferring downloaded music and videos to a certain number of computers and made listening to iTunes on non-Apple devices problematic. Apple decided to fix these restrictions and ITunes users now have the option of upgrading their old songs to this new format for 30 cents a song or 30% of the cost of an album.
In my opinion from the business perspective, this was a great decision for iTunes to make. They will increase their profit by raising the prices of popular songs because it’s more likely for people to buy the newest songs than random old songs. Also, transferring all the songs to a format that has fewer restrictions is better for consumers and they will also make a profit by offering the upgrade. Overall, Apple will most likely make a huge profit from this change in their business. On the other hand, however, as a consumer the new prices are frustrating. iTunes has always had a standard price for songs; 99 cents. It was easy and quick access to music and the prices were reliable. Now that the newest songs are more expensive, I predict that more people will turn to illegal free downloading (ex. Limewire) to avoid the extra cost.
Thursday, January 8, 2009
Bernard Madoff "Ponzi Scheme"
http://news.yahoo.com/s/nm/20081212/bs_nm/us_madoff_arrest
The Famous founder of Bernard L. Madoff Investment Securities LLC. and former chairman of NASDAQ was charged with securities fraud on Thursday, December 11. The once highly respected Madoff lost around $50 billion dollars in a big pyramid "Ponzi Scheme," which is believed to have started in 2005. Basically, what this means is that Madoff took money from investors and lost that money through bad investments. He then lied to his investors and told them that he was getting 10% or 15% returns on these investment, although he was losing a lot of that money, which he kept in hedge funds. He then used money from new investors to pay the old investors whose money he already lost. Madoff paid investors money that wasn't his. This created a pyramid affect, which over time grew to an estimated $50 billion dollars in losses. When many people began questioning his methods, Madoff confessed that he was lying about the returns he was telling his clients about and unveiled his entire scheme. Many big companies invested in him, which lost millions of dollars. Many of them went out of business. Some people lost their entire life savings and their lives are forever changed. Madoff is now charged with a security fraud and when found guilty he will spend up to 20 years in jail with a $5,000,000 fine. The disgraced 70 year old investor paid a $10,000,000 bond and he now spends his time in his Manhattan apartment under high security. The Securities Exchange Commission is working on at least partially compensating all of them victims of this scheme, which may take a long time. Each can get up to $500,000 from a special reserve.
In my opinion this was nothing but a desperate act by a desperate man, who hid under his impressive resume to take people's money. He made a few bad investments and tried to cover them up. I think that's incredibly stupid for a man that is known to have a brilliant financial mind. It was an accident waiting to be uncovered, with absolutely no way to be fixed.
How Do You Steal $50 Billion Dollars?- video
US Financier Bernard Madoff Admits 50 Billion Dollar Fraud- video
The Famous founder of Bernard L. Madoff Investment Securities LLC. and former chairman of NASDAQ was charged with securities fraud on Thursday, December 11. The once highly respected Madoff lost around $50 billion dollars in a big pyramid "Ponzi Scheme," which is believed to have started in 2005. Basically, what this means is that Madoff took money from investors and lost that money through bad investments. He then lied to his investors and told them that he was getting 10% or 15% returns on these investment, although he was losing a lot of that money, which he kept in hedge funds. He then used money from new investors to pay the old investors whose money he already lost. Madoff paid investors money that wasn't his. This created a pyramid affect, which over time grew to an estimated $50 billion dollars in losses. When many people began questioning his methods, Madoff confessed that he was lying about the returns he was telling his clients about and unveiled his entire scheme. Many big companies invested in him, which lost millions of dollars. Many of them went out of business. Some people lost their entire life savings and their lives are forever changed. Madoff is now charged with a security fraud and when found guilty he will spend up to 20 years in jail with a $5,000,000 fine. The disgraced 70 year old investor paid a $10,000,000 bond and he now spends his time in his Manhattan apartment under high security. The Securities Exchange Commission is working on at least partially compensating all of them victims of this scheme, which may take a long time. Each can get up to $500,000 from a special reserve.
In my opinion this was nothing but a desperate act by a desperate man, who hid under his impressive resume to take people's money. He made a few bad investments and tried to cover them up. I think that's incredibly stupid for a man that is known to have a brilliant financial mind. It was an accident waiting to be uncovered, with absolutely no way to be fixed.
How Do You Steal $50 Billion Dollars?- video
US Financier Bernard Madoff Admits 50 Billion Dollar Fraud- video
The Dow Jones Industrial Average breaks and closes below 8000 for the first time in 5 years.U.S. stocks thudded sharply lower on Wednesday to finish at more than five-years lows, its lowest close since March 31, 2003. Financial powerhouse Citigroup Inc. pummeled by its greatest ever one-day percentage drop, falling 23.4% to end at $6.40, its largest one-session decline since the market collapse on Oct. 19, 1987, as fears intensified about its fate as well as the U.S. auto industry. "It's a combination of comments from [Fed Chairman Ben] Bernanke and [Treasury Secretary Hank] Paulson that has us on pins and needles. Everything is hinging on what happens with the General Motors bailout" said Art Hogan, chief market strategist at Wall Street firm, Jefferies & Co. A day after the Big Three auto makers CEOs went begging on Capitol Hill, there doesn't seem to be a whole lot of confidence that will be enough. Shares of GM (General Motors Corp.) closed at $2.79, the lowest close since 1942 over 60 years ago. Equities remained solidly lower after the release of the minutes from the last Federal Open Market Committee meeting. Volume on the New York Stock Exchange topped 1.6 billion, and for every stock on the rise, more than 15 fare falling.When will the market stop going down? People have never been so curious about a subject in their life. After today’s close at 7,997 it has lost almost 50% its value. Some people claim the money they invested in the markets 10 years ago has now been wiped out. Leaving them out on money and lost. Historically, on average, the markets give you a 10% return yearly. Every headline we see lately reminds us that our economy is in a world of hurt. Picking up the newspaper or tuning in to the nightly news all you see is flash….Dow drops 200, 500, 700 points. The next day there may be some relief ….but only for a moment. The Dow has its biggest one day advance in history up 960+ points, only to give it all up by the end of the week. The most important reason why people are worried, is that they are losing value on things that were very overvalued so what is the true value is the big question? We listen to our parents talk about people losing their jobs, homes, and retirement accounts. In consumer Ed I learned that what used to be 401K’s are now 201K’s, (that’s financial speak for a yearly savings program you can contribute to for your future retirement years). For kids that are planning on going to college next fall and that counted on student loans, well... they could have a tough time. Banks are not real comfortable lending money out to consumers for college, autos or any type of loans. There is no trust going on between banks and people looking for loans. I guess the bottom line to all this is, live within your means, save money when you can and be somewhat conservative.
Sources: http://www.marketwatch.com/news/story/us-stocks-down-early-action/story.aspx?guid=%7B23B672FE-7FCB-4F99-A066-8191B9B77C16%7D&print=true&dist=printMidSection
https://www.istockanalyst.com/article/viewiStockNews/articleid/2820214
Wednesday, January 7, 2009
Too Much TV and Computer for Kids is Never Good
http://news.yahoo.com/s/nm/20090107/hl_nm/us_computer_kids
Researchers from Australia have recently found out that kids who use the TV and computer more than 2 hours a day have less endurance than kids who use these less. This study was used on 2,750 11-15 year-old students in Australia only, but certainly can be compared to American children as well. The researchers tested the children on a few basic running/fitness tests that all involved using their endurance. The researchers state this is clear-cut evidence and is certainly very accurate. The only difference is the 15 year old boys who are taller and have more muscle mass. This could very well prove that if you're a boy who is 15 years old or older than this study does not apply to you and your fitness could very well be good or bad in ways undetermined. The AAP (American Academy of Pediatrics) agrees with the researchers' statements and tests.
I personally believe that these tests and results are accurate to a certain extent. I believe that too much TV and computer is bad for the health of children, but I have to disagree with the 2 hours part. I believe that this is too little and that children spend sometimes watching an entire football game or baseball game and those are almost always about 3 hours. There are games on almost every day if a child enjoys every sport or most sports. This for me is false and I'm confused on if this part is really true or not. I've met many kids in my life and I once was a kid too. Kids watch way more than 2 hours a day on average and they're still very active and healthy and their endurances are the same as others. I think people/researchers should focus more on getting kids more exercise in general and eating and drinking less and healthier foods and drinks. This too me is more important than just the amount of TV and computer time. While I agree that this research is mostly true, I wish people could focus on more important researches and realize that almost every child watches more than 2 hours of TV or uses the computer on average.
Video Example:http://www.youtube.com/watch?v=Yj5OSAx2mhI
Researchers from Australia have recently found out that kids who use the TV and computer more than 2 hours a day have less endurance than kids who use these less. This study was used on 2,750 11-15 year-old students in Australia only, but certainly can be compared to American children as well. The researchers tested the children on a few basic running/fitness tests that all involved using their endurance. The researchers state this is clear-cut evidence and is certainly very accurate. The only difference is the 15 year old boys who are taller and have more muscle mass. This could very well prove that if you're a boy who is 15 years old or older than this study does not apply to you and your fitness could very well be good or bad in ways undetermined. The AAP (American Academy of Pediatrics) agrees with the researchers' statements and tests.
I personally believe that these tests and results are accurate to a certain extent. I believe that too much TV and computer is bad for the health of children, but I have to disagree with the 2 hours part. I believe that this is too little and that children spend sometimes watching an entire football game or baseball game and those are almost always about 3 hours. There are games on almost every day if a child enjoys every sport or most sports. This for me is false and I'm confused on if this part is really true or not. I've met many kids in my life and I once was a kid too. Kids watch way more than 2 hours a day on average and they're still very active and healthy and their endurances are the same as others. I think people/researchers should focus more on getting kids more exercise in general and eating and drinking less and healthier foods and drinks. This too me is more important than just the amount of TV and computer time. While I agree that this research is mostly true, I wish people could focus on more important researches and realize that almost every child watches more than 2 hours of TV or uses the computer on average.
Video Example:http://www.youtube.com/watch?v=Yj5OSAx2mhI
Tuesday, January 6, 2009
Russia Stops Supplying Gas to European Countries
On January 1, 2009, Russia stopped gas flow to the Ukraine. Not only is this affecting the Ukraine, it is affecting a lot more countries in between them. Slovakia, Bulgaria, Macedonia, Romania, and even Turkey and Greece are some that are being affected. Romania's pipeline operator said the gas has been cut by 75 percent. Gas flow the Ukraine has stopped by nearly 60 percent
Russia was warned that by doing this it would affect the rest of Europe. They're reasoning for doing this was that Ukraine hasn't paid a debt since 2005 and Russia is no longer giving something Ukraine wont pay for. Martin Riman, a Czech industry trade minister said, "The situation changed very dramatically. The amount of gas transported from Russia to Ukraine decreased and the situation of the Slovakian border is getting worse." By stopping gas flow, Russia has broken agreements and is making the European Union question Russia as a good energy supply country anymore.
I dont think Russia is fully thinking about what they are doing. they are 100% just cutting off gas and it is going to cause a lot more harm than they think. Gas is needed for heat as well and these countries were already in trouble because of the cold weather before the gas was cut off. It is also affecting countries they have no problems with. I don't understand how they think this is just affecting the Ukraine. They're gas lines go across plenty of other countries and it is hurting them. This is just another example of a very drastic action that will hurt more than it means to. They should re think what they are doing and take time to decide how to get they're money from Ukraine without hurting anyone else.
Russia was warned that by doing this it would affect the rest of Europe. They're reasoning for doing this was that Ukraine hasn't paid a debt since 2005 and Russia is no longer giving something Ukraine wont pay for. Martin Riman, a Czech industry trade minister said, "The situation changed very dramatically. The amount of gas transported from Russia to Ukraine decreased and the situation of the Slovakian border is getting worse." By stopping gas flow, Russia has broken agreements and is making the European Union question Russia as a good energy supply country anymore.
I dont think Russia is fully thinking about what they are doing. they are 100% just cutting off gas and it is going to cause a lot more harm than they think. Gas is needed for heat as well and these countries were already in trouble because of the cold weather before the gas was cut off. It is also affecting countries they have no problems with. I don't understand how they think this is just affecting the Ukraine. They're gas lines go across plenty of other countries and it is hurting them. This is just another example of a very drastic action that will hurt more than it means to. They should re think what they are doing and take time to decide how to get they're money from Ukraine without hurting anyone else.
Monday, January 5, 2009
No big plan's for New Years
New Year's Eve parties are not what they used to be. The City's Hotel's, nightclubs, and restaurants we're less than full on New Years and remained hungry for guests all night. Although that didn't apply to many of the city's flashiest parties, the tickets to those festivities we're 30-40% less expensive than last years. Tables, rooms and dancefloors remain empty on New Years 2008.
In my opinion I think the downfall of the ecnonomy is a huge learning experience. People that used to waste there money away on things that aren't necessary for their health or safety, and only feed into their luxury needs, are having a hard time adjusting to the new times. Vangie Baga-Reyes wrote on article for Inquirer called "Tough times force families to cut back on expenses. he states that "Every weekend Chelyn Santos and husband Arnold would treat their three young children to the mall, capping the day with a meal at a fast-food chain.
That was a year ago. Now, as tough times set in and belts are tightened, the family barely goes out to eat. The weekly "spree" has become a once-a-month occasion—only during the couple’s payday." Learning to use your money wisely and keeping necessities as your first priority isn't always easy for people with boatloads of money. In times like this, however, is when they wish they didn't spend 300 dollars on admissions to a new years party downtown. Although this article shows how people are cutting back and keeping their budget in line, for those who are used to the glitz and glam life are struggling with living their old life while also trying to make ends meet.
Although it is hard to see some results of the economic downturn, it is life and people are going to need to make changes in their business. They need to have their prices appeal to the people so that they are willing to pay. Other hotels, nightclubs and restaurants are lowering party prices and creating evening packages to try to lure guests in. Cyrano's Bistrot & Wine Bar brought it's menu down by $10, and now is it "pretty much sold out," said Didier Durand, chef and owner. The main reason is that large groups of friends are going back on their word of party plans, either because of lost jobs or they're tight on cash. Until the economy get's back on it's feet, expenditure outings will have to be cut off.
Sources: http://newsinfo.inquirer.net/inquirerheadlines/nation/view/20080923-162315/Tough-times-force-families-to-cut-back-on-expenses
http://www.chicagotribune.com/business/chi-wed-new-years-eve-recession-dec31,0,3441566.story
In my opinion I think the downfall of the ecnonomy is a huge learning experience. People that used to waste there money away on things that aren't necessary for their health or safety, and only feed into their luxury needs, are having a hard time adjusting to the new times. Vangie Baga-Reyes wrote on article for Inquirer called "Tough times force families to cut back on expenses. he states that "Every weekend Chelyn Santos and husband Arnold would treat their three young children to the mall, capping the day with a meal at a fast-food chain.
That was a year ago. Now, as tough times set in and belts are tightened, the family barely goes out to eat. The weekly "spree" has become a once-a-month occasion—only during the couple’s payday." Learning to use your money wisely and keeping necessities as your first priority isn't always easy for people with boatloads of money. In times like this, however, is when they wish they didn't spend 300 dollars on admissions to a new years party downtown. Although this article shows how people are cutting back and keeping their budget in line, for those who are used to the glitz and glam life are struggling with living their old life while also trying to make ends meet.
Although it is hard to see some results of the economic downturn, it is life and people are going to need to make changes in their business. They need to have their prices appeal to the people so that they are willing to pay. Other hotels, nightclubs and restaurants are lowering party prices and creating evening packages to try to lure guests in. Cyrano's Bistrot & Wine Bar brought it's menu down by $10, and now is it "pretty much sold out," said Didier Durand, chef and owner. The main reason is that large groups of friends are going back on their word of party plans, either because of lost jobs or they're tight on cash. Until the economy get's back on it's feet, expenditure outings will have to be cut off.
Sources: http://newsinfo.inquirer.net/inquirerheadlines/nation/view/20080923-162315/Tough-times-force-families-to-cut-back-on-expenses
http://www.chicagotribune.com/business/chi-wed-new-years-eve-recession-dec31,0,3441566.story
It was supposed to be one of the best days of Jennifer and John Davis' lives, they were giving birth to their new baby girl. They were on the highway on the way to the hospital during rush hour. Because of their emergency John Davis pulled into the breakdown lane, to avoid traffic and reach the hospital. On the way they got pulled over by two state troopers who told them to proceed carefully. Although they understood, the third state trooper wasn't as caring. In this video shows the couple expressing how they feel about the whole event. Other blogs have been discussing this, and most people this it is unfair. When the third state trooper pulled them over, he made them wait while he wrote another vehicle and ticket. When he came back to the car he asked Mrs.Davis to show him her stomach to prove she was truly pregnant. After showing the state trooper her pregnant belly, he let them go and said they were going to receive their ticket in the mail. When they reached the hospital they finally gave birth to their baby girl Charlotte Jane. They were excited to bring home their new member of the family and received their ticket for $100 in the mail a few weeks later.
I think that the officer should have let them continue to the hospital. Officers aren't just supposed to give tickets with power, but also with compassion. They should understand it is important to get to the hospital. I especially think it's wrong that they got a ticket even after other police men let them continue. Also I think it was very uncalled for to ask Mrs. Davis to show her pregnant belly, that is rude and disrespectful.
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