Archive for January, 2009

Hells Kitchen

Just finished watching the first episode.

A bit over the top, and that’s is exactly what is needed for it to be a hot TV show.

What I don’t understand is why these people cant make what seems to be a simple meal. How hard is it to cook a scallop, seriously now, if you cant cook a scallop on day one, how on earth are you going to run a top restaurant on week 16. Would you pay top dollar to eat at the restaurant where these winners are going to work? I wont. Being a top chef takes years and years of skill, experimentation, and understanding of how to handle food.

Chef Ramsey your the best, I love your food and your shows, but making instant chefs is like making instant rice, it may look the same as the real thing, but it aint.

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Take a stand – World Poverty/Hunger

Do you care about about world poverty? I mean do you really care?

I am not going to ask you for money, I am not asking you to fill a petition, I am going to ask you however to read this, think it through and comment.

Lets get to the point. We all, people and governments have failed and failed tremendously at helping people who need our help the most. Its 2009, how could the world be so blind and oblivious to world?

I will pick on Canada, because I am Canadian, but Canada is no different from any other wealthy nation, I bet you the stats I will be providing you shortly are the same for any G20 country.

The great white north, Canada the beautiful, Canada the resourceful, Canada the great, and yes Canada the cheap. Canada established a foreign aid policy some 40 years ago stating that Canada will contribute 0.7 of a %percent of GDP in Foreign aid every year.

Canada has FAILED to meet its commitment every year ever since.

Here is what is shocking and sad, lets take 2006 for example. In 2006 Canada  contributed 0.28 of a percent of its GDP on Foreign aid, or 3.1 Billion. In the mean time and in the same year Canadians  spent more than 4 Billion on PETS, 1.3 Billion alone on Pet Food. So there you have it folks. Canada and Canadians, spends more on dogs than on ending poverty. Bravo Canada. Same goes for every other G20 country.

I am not criticizing or passing judgement on pet owners. I understand the attachment and benefit that comes from having a pet. I am simply drawing out an observation, Surly as a society we can do better than we have so far.

All it takes is 30 Billion a year to end poverty, 4% of the bailout folks. For sure that is less than what the G20 spends on Pet food. What is the solutions? Need your feedback please. Pet owners chime in.

Should we force governments to contribute an amount equal to the amount spent on respective pet industries? Other suggestions?

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Get out of Debt fast

Here is some very important advice to everyone especially men.
GET OUT OF DEBT, and as fast as you can, failing to do so will call unexpected consequences.

Are you in debt? unable to save? worse yet, have collections companies on you?  Those collection companies are aggressive and nasty. They wont stop short of doing anything to get you to pay them bills. The latest is a Lithuanian firm that hired a witch to hunt debt dodgers. Yes a witch, do you want a witch coming after you? No you don’t.

Now here is some very important advice to live buy.

When in debt, make sure you don’t dig deeper. cut up your credit cards, and pay with cash. Try to buy what you need, put together a MUST have budget and stick to it. HOWEVER make sure that your budget includes the following line item.

PAY YOURSELF FIRST = 10% * Salary.

Make sure you pay yourself. lock that money up, and make sure you at least have savings that will cover 3 month living expense. Once you accumulated your 3 month, starts investing the 10%. Get yourself invested at least in some mutual funds and contribute every paycheck.

Savings and accumulating wealth is extremely important for you, especially if you are a man, why? Well a recent study concluded that “Wealthy men give women more organisms” So I guess its true what they say.
Size does matter, only its the size of the balance in your savings account.

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My Virtual Model

eCommerce did not do as badly this holiday season, yes, by all accounts it did not grow by double digits this year, but anything that is not writen in red is good. One of the greatest things about working in the eCommerce industry is innovation. There is always new research, solutions, and features designed to help consumers buy and retailers make money.

I recently was made aware by @ashukairy of a new solution called My Virtual Model which allows consumers to create a virtual “me” dress me up, and get opinion from the crowd. Social Shopping.

So the question is, what will that do to eCommerce.

I will have to think hard, to come up with the last eCommerce “KILLER APP”, and that is because there is none, if such a thing was ever produced, eTailers wont be averaging a 2% website conversion rate.

So form the get go, MVM is not the next revolution in eCommerce. especially since it only applies to apparel, and when one looks at eCommerce and subtracts Travel, electronics, software downloads, etc…. apparel is only a small portion of eCommerce, so MVM is already limited in its impact.

The question then becomes what is the impact of MVM on the apparel eTailers. It would be naive of me to guestimate that. I am sure MVM has done the research and have an idea how many this service appeals to.  I will say, that MVM will certainly appeal to “some”, and if that “some” is enough to justify the investment in rolling out MVM, then  eTailers would be well advised to give it a shot. After all, anything that can bump up conversion ever slightly is well worth the effort.

So good luck MVM, in the mean time, I am awaiting the eCommerce Killer App

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How long will the market down turn last?

How long will this market take to recover? 3 month? 6 month? a year? 5? a generation? Where can we look for hints of recovery?

The stock market has taken a beating, when some stock will bounce will depend on the true value of the assets. Seems simple. At the height of the tech bubble the Nasdaq was just at 5000, since then it dropped and today closed at just under 1500. Its Simple, the true value of the tech companies was not there, the bubble burst and never really closed. The massive drop will take a decade to recover from and that is normal. Truth is some assets never recover after a bubble. Think about it, did the Tulip industry ever recover out of the tulip trade bubble? Never.

Value of companies after all depends on sales, and sales really depend on consumer confidence. So the answer to when will stocks in particular and the economy in general will recover is to look for signs of increased consumer confidence.

Professor Abdul Rahman, investor, author, professor, super smart man, told our MBA class once and so far he has been right. One clear way of gauging market performance is by watching next seasons fashion shows. If you see short cut, skin, bright colors, invest. People are going to be in a good mood and are going to be spending. When you see conservative fashion, plain colors, long cuts, get out.

And so it was with great concern when I saw @coutorture tweet that Forever 21 was introducing depression era clothing, and indeed we had one of the worst winters in the market. So what does the future hold, the spring threads say, stay out of the market. Take a peek http://content.coutorture.com/1986258

Lets hope to see some bright colors for the fall… Keep your eye on Milan not on Wall street.

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The Whopper Sacrifice

Oh Burger King.

BK came up with a yet another useless promotion, the whopper sacrifice. Delete 10 of your facebook friends, get a free whopper.

Personally I am happy deleting my whole facebook account (See my twitter vs facebook post) I am also happy to get the whopper, actually I love the whopper, I actually pay for the whopper.

My problem with this, is again similar to my problem i had when i wrote my BK post, with everything else BK does. BK this is cute, does not sell burgers.

BK, how about we get you to cook up an edible order of french fries?

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The Credit Crunch – Part 2 – The Bitter Pill

Savings then is one of the fundamental drivers of the economy. Why? Because savings create liquidity in the market. Savings allow banks to lend. YES, Savings allow banks to lend. And lending means companies investing, and investing means JOBS and JOBS means spending and savings. That is the proper and healthy way of doing economics.

The Root Cause of the Credit Crunch.

In the absence of savings, spending happens with borrowing. For example Government creates liquidity by selling bonds to countries like China. On the other hand consumers borrow from Banks. But what happened this time around is a bit different. Consumers borrowed against their home to fiance spending. As the housing bubble grew, consumers refinanced their homes and drew down the equity of their homes. When the speculation in the market ended, and the price of homes declined, the value of loans against the homes was more than the house is worth, and hence the housing meltdown.

The housing meltdown of course had a domino effect. No longer able to borrow to spend, consumers stopped buying, and the rest is history.

The Bitter Pill.

There is one thing that i have not yet heard discussed on CNN, NBC, CBC, etc… related to this, that must be fixed ASAP. There is a bitter pill that must be swallowed to make sure this does not happen again, EVER. There is something in the TAX code that has to be fixed.

CONSUMERS SHOULD NO LONGER BE ABLE TO CLAIM MORTGAGE INTEREST AGAINST THEIR TAXES.

As a mater of fact, consumers should be penalized for drawing on their houses and I would go further by suggesting that consumers should claim reduction in mortgages as Income.

Yes this is a very bitter pill. It will cause a significant disruptionn but it must be taken so that consumers no longer have a DOUBLE incentive to drain the values of their homes. The Tax code must be fixed first, so that SAVINGS are again an integral part of the economy.

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The Credit Crunch – Does size matter? Part 1.

Does size matter? or is it really about how you use it?

I dont like the Chevy Volt. The car is not yet out and I already dont like it. Especially becuase its a car that is not environmentally friendly. Yes its not environmental firendly becuase somewhere in the US, a giant hunk of coal will be burning to power it. And just because the car does not emit, that does not mean emission has not occurred on its behalf.

What is needed is not Volts, what is needed is no Hummers and Escalates on the road. They are the real problem. They block your view, waste energy and Pollute. Why cant we drive a small car? Why do we all need to be driving monster trucks and vans that drive empty 95% of the time? How does a family of 4 fit in a Honda Civic in Europe but not in the US or Canada?

You see we are obsessed with BIG, somewhere along the line, someone convinced us that SIZE MATTERS. Yes Size matters and as a result we have one of the biggest financial meltdowns.

The average European house is between 900-1000  square feet. That is it. A family of 4 or more lives in it, happily and comfortably. The average family owns 1 compact car. The average family shops for their daily meals. The average family eats a normal food portion.

On the flip side, somehow instead of a coffee and toast, someone convinced us that we need, 2 eggs, 3 sausages, hash browns, toast, coffee, jam, maybe a pancake or 2 to boot, some how we are convinced that we are all lumber jacks and therefore must have a huge breakfast before we go to work.

Somehow instead of a small environmentally firendly car, someone convinced us that we need a 5 liter SUV to drive on our big roads, becuase small cars that do the job on the autobahn in Germany, don’t work on I81.

Somehow instead of a modest size home, someone convinced us that we need a house that is the size of the lot its built on, a 4 bed room, 2500 sqr ft home with an ensuite and walk in closet, and just becuase that is not enough space, we have to finish the basement, and park the car in the drive way becuase our 2 door garage is full.

So what?

Big breakfasts, are not healthy. Big breakfasts are full of fat. Big breakfast make us unproductive. Big breakfast cost more.

Big cars, need more expensive tires. Big cars need more gas. Big cars need more expensive repairs. Big cars pollute. Big cars, cost more.

Big houses, need to be heated and cooled, big houses need furniture, big houses with big closets need to be filled as Daniel Arielle states in his book Predictably Irrational. Savings has an inverse relation to closet space. Big Houses cost more.

And so, big meals, cars, houses, etc… mean only one thing – NO SAVINGS, and that is absolutely dangerous.

In Part 2 – I will discuss the importance of saving on the economy. I will also discuss one of the root causes of the credit crunch, the one thing no one is talking about. Fixing the tax system.

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New years resolutions

Another year has come and so its a must.

I will lose weight

I will save money

I will spend wisely

I will work harder

If the above is on your list, Cheers!

That concludes my list of resolutions that will fail shortly and the most thoughtless blog post of the year.

Happy New Year Everyone

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