Can Culture Changes Fix Distressed Companies?

This Article from the WSJ talks about how Bob Flexion, the new Chief Executive of Dynegy, is trying to save his company by changing the general culture of the company. He has already done things like move out of the expensive executive office his predecessor used and into a cubicle with his fellow employees, as well as moving the company to a cheaper building. This move will save the company 5 million dollars per year. He has also made his workers more efficient by not allowing them to mess around on their phones or the internet while working. 

Do you guys think that this culture change will help save Dynegy? Should other struggling companies follow Mr. Flexion's example? Is this idea of more efficient workers and more frugal executives perhaps what this country's economy needs as a whole?

Balanced Budget Fight

"While economists generally agree that narrowing the government’s deficit and limiting the size of the debt are necessary in the long run, most argue that balancing the budget would not restore the nation’s still-weak economy to health in the near term." 

The article mentions that it is more important to slow the deficit growth rather than eliminate it.

Economists in the article also suggested, "Closing the budget gap over the longer term could be vital to sustaining economic health, some stressed, by ensuring that the government did not crowd out private investment and by helping to keep interest rates low."

The article also gives a stat that public debt in the U.S. is  about 76% of the size of the economy...

Republicans and Democrats fight on the deciding to get back to a balanced budget or not... what do you all think? There is talk about fiscal policy? Thoughts?

click here----> Balanced budget...

Would anyone give you 10 million dollars to run for office?

On average, Senators raised 10.5 million in their campaigns while House races cost on average a paltry 1.7 million.


What it costs to win a Congressional election - The Week

Flammable ice-- a possible new energy source

'Japan said Tuesday that it had extracted gas from offshore deposits of methane hydrate — sometimes called “flammable ice” — a breakthrough that officials and experts said could be a step toward tapping a promising but still little-understood energy source.'

Going off of the video we watched today about innovative research could help our economy in many ways check out this article! A possible new energy source. This could be a possible alternative to oil and gas reserves. The article mentions that Japan invested millions to research and explore these reserves and have finally found this powerful energy source... experts predict lasting Japan 100 years of their natural gas needs.


There are still questions about environmental issues that could result from this new source. But what do you think? A step in the right direction? Doesn't this show that researching and developing new ideas will help an economy?

Japan's Energy Find

Detroit automakers rethink small trucks

This Article talks about how the "Big Three" (Chrysler, Ford, and GM) automakers in Detroit are looking to get back into the small pickup truck market after abandoning it in the U.S. due to weak demand. Rising fuel prices have convinced the Big Three to consider reentering the small pickup market with its own fleet of smaller, more fuel efficient trucks. Toyota is the current market leader in the small pick up market with its Tacoma. The Big Three hope to regain their share of the market with these new smaller trucks. In addition to better fuel economy, The Big Three hope to appeal to "price sensitive, younger buyers" who will then hopefully turn away from rival auto dealers and build up consumer loyalty. The downside to these smaller pick ups is they do not make as big a profit as the full size trucks do. 

"Barclays Capital estimates auto companies earn between $7,000 and $10,000 on each full-size pickup because they command higher prices in dealer showrooms, while midsize trucks bring closer to $3,000 to $4,000 a vehicle."

Do you think these small trucks are a good idea for the Big Three? Do you think consumers will go for these smaller trucks instead of a full size pick up or a different type of car all together?

Facebook reveals your secrets...

I found this article in Financial times and found it kind of interesting... especially since I know there are people who are applying for jobs and internships, you might want to take a look at what businesses might start doing with your Facebook, and how your personal information might affect you in your future interviews.

article here

Fight of the Century: Keynes vs Hayek Round 2

As you guys may recall, a few weeks ago we watched a Youtube video in class in which John Maynard Keynes and F.A. Hayek engaged in a rap battle about their views on government spending in the economy. Hayek represented the Classical perspective while Keynes represented the Keynesian perspective, obviously. If you guys enjoyed the video then I think you will enjoy the sequel to it, which I personally thought was better than the first one. 

Fight of the Century: Keynes vs Hayek Round Two

So after watching the video (for those who actually watched the video), who do you think won the battle? Did the arguments by Keynes and/or Hayek change your view on the economy at all?