Ugly Rumors Surround Goldman Sachs Investigation

I am no fan of Goldman Sachs. They have eaten at the government trough and entangled itself with the political establishment in such a way that anyone should be embarrassed about doing business with them. The company took billions in bailouts on the one hand and gave even more in bonuses to its employees. The corruption demonstrated by the firm in the way it conducts itself is breath taking. On the other hand, it is also reflective of a new business and political culture that makes such activities very "legal" (at least until they are challenged in the courts).

This is not a unique sentiment. The vast majority of Americans that have an opinion on the financial firm probably share a similar view. So when it was announced that the Securities and Exchange Commission was going to press charges on the financial firm, most Americans were pleased and thought "they deserved it." Now there are questions about what the charges are based on, since their behavior does not appear any different than the many other financial companies that took advantage of the bailouts of 2008 and 2009.

Charles Gasparino of Fox Business is keeping a close eye on the story and is raising some important questions that we should all be asking. He wrote in his column that the charges against the firm "are widely regarded as the most aggressive enforcement action against a major Wall Street firm in years. They also come as Wall Street has begun one of the most aggressive lobbying efforts in recent memory to kill aspects of Sen. Chris Dodd's financial reform legislation, which has many on Wall Street believing the charges were motivated at least in part to give momentum to the bill, FOX Business has learned."

"Momentum" may be an understatement. It is true, the lawsuit against Goldman Sachs will have dollars spent by the firm on defending itself, rather than lobbying members of Congress. Especially since the actions of the US has had a domino effect and countries around the world are lining up to go after the financial giant. Furthermore, since the company is being treated like a criminal, it is likely that its criticism of the financial legislation being promoted by the administration would fall upon deaf ears.

Gasparino observes that "In Washington, the aggressiveness of the lobbying efforts has been a controversial issue. One senior executive at a major Wall Street firm said people inside the administration are annoyed by the push and that it only strengthened the White House's resolve to keep the Volcker Rule in place. But people at JP Morgan and Goldman say they believe in the end the administration will back off so it can get a financial-reform bill passed. Republicans oppose the bill on the grounds that it allows the government to continue to bail out large banks that bet wrong in the markets." If this lawsuit turns into little more than harassment it could prove to be a major embarrassment for the Obama administration. Unfortunately, these type of embarrassments have become quite common for this president.

Kevin Price is a syndicated columnist whose articles frequently appear at ChicagoSunTimes.com, Reuters.com, USAToday.com, and other national media. Kevin Price is also host of the Price of Business (M-F at 11 AM on CNN radio). Hear the show live and online at PriceofBusiness.com. Visit the archive of past shows here.

Toyota Recall Raises Question about Conflict of Interest

Recently I had Cody Willard of the Fox Business Network on my program and we discussed the incredible expansion of the federal government for several years and the fact that the end is no where in sight. Willard attributes the problem to the "Republican" and "Democrat" financial machine that pays for an ever expansive government. In addition of leading to questionable priorities, expansive government can also lead to some very serious questions about conflict of interest. He points to the recent recall of automobiles on the behalf of several automobile companies.

Willard noted that, what was historically done for safety reasons (recalls) leads one to think could be done for business reasons. Think about it, if the US owns a company (it is majority owner of GM), recalls could be a very powerful tool to undermine the competition. In recent weeks there has been a huge increase in the number of cars being recalled. More importantly, the government has brought an unusual level of attention to these some what common events.

The big story has been Toyota with recalls covering numerous models. This is a huge blow on a company that has had a reputation of providing great value through reasonable pricing and high quality. Another company that has seen a more limited recall is Toyota's chief competitor, Honda. Than there is Volvo's SUV problem. The list of companies in a recall covers a huge number of makes and models and there appears to be no end in sight.

Willard is not the only one noting the hype behind the recalls in general and Toyota in particular. Indiana Governor Mitch Daniels has spoken out about the subject as well. "Let's recall. Let's fix it - the cars," Daniels said. "If a fine is in order, then fine, but they have gone so far beyond that. It's very very suspicious in view of the government conflict of interest." He goes on to note, "This is why you don't want government in the car business, for instance. There you have a company doing more than others have done with regard to a recall. There were 600 recalls last year alone and they didn't go so hysterical as this," Daniels said. "These congressmen running this committee (investigating the Toyota recall) have their own agenda and it is a discriminating agenda in this case. They didn't do this the last several hundred recalls."

WHTR in Indianaoplis is now reporting that Daniels is part of "a bipartisan group of other governors around the nation have joined together to send a letter to the Obama administration, complaining about the handling of the Toyota recall investigation... The governor said the letter was written up without influence from Toyota."

Our federal government has very limited and specific powers, when they do not exercise them properly or if they go beyond that role, the impact can be damaging to everyone in the economy. The people who could suffer from a government abusing its recall powers are the consumers who want safe, but affordable, cars.

Kevin Price is a syndicated columnist whose articles frequently appear at ChicagoSunTimes.com, Reuters.com, USAToday.com, and other national media. Kevin Price is also host of the Price of Business (M-F at 11 AM on CNN 650). Hear the show live and online at PriceofBusiness.com. Visit the archive of past shows here.

Buffet is Bullish on Trains

There has been a great deal of buzz this week about Warren Buffet discussing a recent purchase by his company. Buffet is noted for his candor, which makes him one of the more credible voices when it comes to the status of the economy and Wall Street in particular.

Recently, Buffet was found on the Fox Business network visiting with anchor Liz Claman. In particular, he was discussing his Berkshire Hathaway's gamble into the railroad business. Just recently the company purchased Burlington Northern Santa Fe in a deal worth about $44 billion.

This is a bold move for Buffet in a shaky economy, but typical of a person who has learned to take advantage of sales that can be found when a business environment is in decline. Furthermore, with the move towards reducing energy costs in order to support the environment and save dollars, trains are a very smart form of transportation. Buffet does not buy things he is not comfortable with and had already owned 25 percent of the company before he acquire the rest of it in a recent meeting in Fort Worth, Texas.

Why trains versus trucks or other forms of transportation? Buffet told Claman that "the rails move a freight at a much more environmentally friendly way than the truckers do. And they also only use about a third of the fuel. So, it's helping...It helps in terms of the atmosphere. It is a very, very efficient, effective, environmentally friendly way of moving freight. And, you know, our rail system is a huge asset to the country."

Claman covered a topic that is extremely important to anyone concerned about transportation. She noted that trains are, in transportation, the "cheapest, best way. But then there's cap-and-trade, Warren. Some analysts are very skittish about coal and a possible backlash if cap-and-trade goes through. You mentioned now -- you said, we're going to see a diminishing of coal use. But what do you think cap-and-trade would do to the business if that went through?"

Buffet can not easily dismiss the topic, but noted "It won't change the composition of what utilities are doing tomorrow or next week or next year. The utilities over time are going to use less coal and probably more nuclear. Our own utility, for example, uses wind very substantially in Iowa. So, over time, coal is going to diminish somewhat. Now, I think that will hit Eastern coal more than Western coal, but that's a fact of life over a considerable period of time. And that's true whether there's cap-and-trade or not, yes."

One of the things that caught my eye in the interview was Buffet's discussion of his view of the dollar in this current economy, stating "You're seeing us get rid of a lot of dollars today in exchange for a lot of assets. So, I would rather own physical assets than own dollars." Why? Because of the rapid decline of the value of dollars through the printing of money. Those of us who cannot afford to purchase railroads, might want to consider precious metals as a part of an investment strategy.

Kevin Price is Host of the Price of Business, the longest running show on AM 650 (M-F at 11 am) in Houston, Texas and on AOL Radio. His articles often appear in Chicago Sun Times, Reuters, USA Today, and other national media. Steve Moore of the Wall Street Journal calls Price the “best business talk show host in the country.” Find out why and visit his blog at www.BizPlusBlog.com and his show site at www.PriceofBusiness.com. You can also find Price on Strategy Room at FoxNews.com.

The "Rest of the Story" on David Asman of Fox Business

David Asman of Fox Business, who was a guest on my program a few months back, spoke with passion about a terrible incident that happened when his wife and him were traveling to London, England. In his own words, from an article in the Wall Street Journal, he talks about being approached by an employee of the hotel they were staying at: "'Mr. Asman, could you come down to the gym? Your wife appears to be having a small problem.' In typical British understatement, this was the first word I received of my wife's stroke. We had arrived in London the night before for a two-week vacation. We spent the day sightseeing and were planning to go to the theater. I decided to take a nap, but my wife wanted to get in a workout in the hotel's gym before theater. Little did either of us know that a tiny blood clot had developed in her leg on the flight to London and was quietly working its way up to her heart. Her workout on the Stairmaster pumped the clot right through a too-porous wall in the heart on a direct path to the right side of her brain. Hurrying down to the gym, I suspected that whatever the 'small' problem was, we might still have time to make the play. Instead, our lives were about to change fundamentally, and we were both about to experience firsthand the inner workings of British health care." He goes on to make one of the most eloquent arguments I have heard about the horrors of socialized medicine.

What stayed with me in that interview was the amount of "heart" he had in this discussion about saving his wife. You hope every man or woman would have the same amount of passion in wanting to save his or her partner. In Asman it was awe aspiring. I understand more so why this is the case after learning the "rest of the story." A friend of mine, who knew how much I liked Asmen refereed to me an article from the Miami Hearald called "A Revolutionary Love Story."

It reads like an adventure novel with a romantic bent. In it, Asman describes his adventures as a journalist in Nicaragua in the dangerous days of the Communist Revolution. While there he is introduced to Marta Cecilia, a revolutionary herself who grew to find that the communists were merely offering another brand of totalitarianism. She quickly gave up her government job, which made her a threat to the new regime and even became a critic of the revolution. With people being arrested left and right for criticizing the government, it was clear Cecilia had to get out. During all this drama, Asman and Cecilia fell very much in love and an amazing story unfolded that resulted in their life together as a family with children in New York City today. The article reads like great fiction, but it is absolutely true. I'm only scratching the surface. I suggest you read the entire article yourself. To hear my interview with Asman, click here.

Kevin Price is Host of the Price of Business, the longest running show on AM 650 (M-F at 11 am) in Houston, Texas and on AOL Radio. His articles often appear in Chicago Sun Times, Reuters, USA Today, and other national media. Steve Moore of the Wall Street Journal calls Price the “best business talk show host in the country.” Find out why and visit his blog at www.BizPlusBlog.com and his show site at www.PriceofBusiness.com. You can also find Price on Strategy Room at FoxNews.com.

Roger Ailes, Matt Egan, and the Changing Face of Cable News

Matt Egan is only 24, but he is already in a position that is well beyond his age. He is a news writer for FoxBusiness.com and has been in this role since 2007. Just a few years ago, Egan wasn't very sure what he wanted to do. He talks about an interview with Fox Business in a recent article in the New York Times: "Ray Hennessey, the director of business news, went to my college (the College of New Jersey), and also wrote for The Trenton Times. I kind of went to the interview not interested in business or TV, but I figured I’d give it a shot. And the interview was amazing. I was one of the first hires for the Web team." The old adage of "who you know" and the value of alumni relationships seemed to help the young Egan. However, I'm familiar with the standards of Fox Business and Fox News. Going to the same "old school" might get you noticed, but would not necessarily secure a career. Egan certainly had to bring his best game to the program.

Something that certainly helped Egan is the Roger Ailes Apprentice Program. In an article in Multichannel News, "Fox News Channel has quietly sought to increase its minority employee base through an apprentice program spearheaded by the network's most senior executives... CEO Roger Ailes created the network's Apprenticeship Program in 2003 in an effort to provide minorities at entry-level positions with an opportunity to gain valuable behind-the-scenes experience working at a cable network that otherwise wouldn't be available to them."

Essentially, Ailes doesn't believe that young people who are minorities are not getting enough opportunity to learn about this important industry. He wants to fast track opportunities for these often neglected groups. Ailes is quoted as saying “I didn't think enough minorities were getting access to the system,” Ailes said (Fox News Channel employee base is nearly 20% minority). “If there aren't a lot of people they know inside, then they don't necessarily have the same access as others.”

Since 2003, 20 young people have gone through this unique mentoring program and by 2008, over $900,000 had been spent on it. The senior executives who nominate young people for the program, often fresh out of college, go on to actually mentor the students they recommended if selected.

The program has certainly fast tracked Matt Egan's career. Although he seems very comfortable in his job today, he noted in the Times interview being challenged early on, "Getting beyond the businessy terms: derivatives. Mutual funds. Futures. Options contracts. I had no idea about the stock market. I wish I had taken business classes. I bought a business textbook ahead of time. I read that, and started reading The Wall Street Journal every day. We had a month and a half to prep." Even today, it isn't always smooth sailing, noting that his big problems today relate to "Keeping my cool. The stock market tends not to cooperate a lot. If the Dow’s up 100 points because an economic report came out, I’ve got to go back and change what I’ve just written."

Fox News and Fox Business have developed an innovative approach to acclaimating young people to the news industry that has, in my opinion, further positioned the networks as the industry leaders.



Kevin Price is Host of the Price of Business, the longest running show on AM 650 (M-F at 11 am) in Houston, Texas and on AOL Radio. His articles often appear in Chicago Sun Times, Reuters, USA Today, and other national media. Steve Moore of the Wall Street Journal calls Price the “best business talk show host in the country.” Find out why and visit his blog at www.BizPlusBlog.com and his show site at www.PriceofBusiness.com. You can also find Price on Strategy Room at FoxNews.com.

The Stanford Financial Group Web Begins to Spread

As someone who lives in Houston and monitors financial articles, I have been particularly interested in the Stanford Financial story. Today, the Fox Business Channel has taken the lead on providing information on this hot topic.

Today I read that "Laura Pendergest-Holt, Stanford Financial Group’s chief investment officer, is likely to be indicted on Tuesday on criminal charges" at FoxBusiness.com. The total scope of the indictment is unknown at the time of this writing, but the article points out that "At minimum, the indictment will be on a charge of obstruction of justice, though her legal team thinks there could be a number of other charges brought against her as well." Knowing the way the government has pursued these type of cases, we can expect more, maybe many more. It is through the leveraging of these charges that the government gets pleas and information on others involved.

Pendergest-Holt is joining the firm’s founder, Chairman and CEO Robert Allen Stanford in the brewing hot water. Stanford, and three of his companies, have been charged by the Securities Exchange Commission (SEC) of orchestrating an $8 billion fraud related to a Certificate of Deposit program. Although he has not yet been charged with any crime at this point, accusations are flying and it seems to be a question of "when" and not "if" he will be facing charges. The indictment of Pendergest-Hold cannot bode well for Stanford.

In fact, the focus on Pendergest-Holt first, could be a part of the government's efforts to make sure that the bigger penalties fall on Stanford. It is not at all unusual for the government to go after the underlings in criminal cases first in order to assure a conviction and to get a heavy sentence for the ring leader.

Pendergest-Holt is the youngest of the Stanford senior executives and, at 35, may seem to be an unlikely central character in this story, but her knowledge of the inner workings of the firm and the relationships that drive it, makes her a very connected personality in this drama and a potentially attractive target to the government indeed.

Historically, an $8 billion fraud case would be considered massive and virtually unheard of; but thanks to the era of Bernie Madoff and his $50 billion Ponzi scheme, the Stanford story has largely been under the radar screen. Fortunately, Fox Business is being serious in its due diligence. Fox's prowess is a story in itself. Increasingly the new cable business network is becoming the leading network and is putting its older competitors (CNBC and Bloomberg) on notice, on the importance of being first.

Kevin Price is Host of the Price of Business, the longest running show on AM 650 (M-F at 11 am) in Houston, Texas and on AOL Radio. Eric Bolling of Fox News and Fox Business says that Price’s Blog “is very influential and moves the blogosphere.” Steve Moore of the Wall Street Journal calls Price the “best business talk show host in the country.” Find out why and visit his blog at www.BizPlusBlog.com and his show site at www.PriceofBusiness.com. You can also find Price on Strategy Room at FoxNews.com.

FBN Breaks the Story of Peregrine@Weeden

In October of 2007, the Fox Business Network came on the air and made the case that there was a need for competition against Bloomberg and CNBC. They continued to make that case yesterday with breaking news that should have been seen on every financial network on cable.

On yesterday's Fox Business Network, the CEOs of Weeden & Co and Peregrine came on FOX Business Network to announce that they are merging to form Peregrine@Weeden, a fixed-income sales, trading, and research firm. Their goal is to become a company with the size and reach of a Goldman Sachs.

“I believe that an equity trading firm today must not only understand the dynamics of the credit markets, but must also offer trading and research services across the entire array of fixed-income products,” said Barry Small, CEO of Weeden & Co., L.P. “In today’s markets, debt becomes tomorrow’s equity through restructuring. It is imperative that a broker offer integrated equity and fixed income trading services to its institutional clients.”

The company's own press release noted: Peregrine@Weeden will be led by Peregrine CEO, Evan Wein and will have offices in Greenwich, CT and Summit, NJ. Peregrine’s leadership team has vast experience in building and managing premier fixed-income platforms at major buy and sell side firms. Peregrine’s Founding Partners are Rick Fuscone, Evan Wein, Martyn Ball, Fred Fiddle, Jin Ho, Fady Rizk, Ron Rosenberg and Michael Temple.

“"We are very excited about our affiliation with Weeden and their extraordinary professionals,' stated Mr. Wein. 'We are committed to providing clients with exceptional service across our respective fixed-income and equity product specialties, in an expanding and sustainable partnership.' The management teams of Weeden and Peregrine have noted that the compatibility and synergies of their alliance are especially critical in today’s volatile market environment."

In my opinion, this type of story is important on so many levels. In a time when so many companies are failing and taking TARP (Troubled Asset Relief Program) money, here comes a new and private company that does not have any government or taxpayer involvement. Furthermore, financial decision makers are going to want to know about a new firm such as this as competition or as a way of growing one's own income.

A year ago this should have popped up on CNBC's radar screen and Bloomberg's as well. This indicates a real hunger by the rising leader in the business news front. This isn't a surprise though, Fox parent company News Corp has put considerable resources into the business news arena, with one of its highlights being the purchase of the Wall Street Journal.

This move on the part of FBN only heightens the competition among business news outlets. The beneficiaries of this competition are individuals who are serious about their business news and information.

Kevin Price is Host of the Price of Business, the longest running show on AM 650 (M-F at 11 am) in Houston, Texas and on AOL Radio. Eric Bolling of Fox News and Fox Business says that Price’s Blog “is very influential and moves the blogosphere.” Steve Moore of the Wall Street Journal calls Price the “best business talk show host in the country.” Find out why and visit his blog at www.BizPlusBlog.com and his show site at www.PriceofBusiness.com. You can also find Price on Strategy Room at FoxNews.com.

Strategy Room: More Reasons Big Media Should Fear the Little Screen

Today I had the opportunity to be a guest on my favorite show, on the little screen, Strategy Room on FoxNews.com. Eric Bolling did a fantastic job of leading his panel on the "ADD Hour" (as he likes to call it) on exploring Somalian Pirates and more on today's program. The group of panelists were diverse, the discussion was lively, and Bolling maintained that perfect balance of letting it "rock and roll" without losing control

One could easily retort about my claim that the show is a small screen phenomenon by saying, "maybe, but only because it is on the small screen." In reality, with the exception of those who play with the carrot with the smiley face that is something of a show mascot, this program is very similar and better than those that enjoy a big screen presence. It is the fact that it is on the small screen that it is a threat to other traditional media.

The number of quality channels that people have to choose from are virtually without limit. We have comedies, dramas, documentaries, current events, reality etc., etc. etc to choose from. It is true, we have similar "limitless" programming online, but few have the quality of Strategy Room when it comes to competing with the big boys. Very few indeed. There are Strategy Room from 9 to 5, Monday through Friday, there is the new FoxBusiness.com Live, and the CBS News' Washington Unplugged (which is a high video quality, but terrible in its editorial bent). Other than that, most programming is amateurish or not unique to the Internet (shows that have appeared elsewhere on TV, but archived online).

I believe Strategy Room has a further edge over the other few uniquely Internet based programs -- the number of hours it is on. With the program running 8 hours a day, people have all the reasons to stay with it throughout the day. It dominates the Internet. Increasingly, people may channel surf on their TVs , but won't think about touching that web channel, since they are getting big screen quality on the Internet, for what often feels like "non-stop."

Kevin Price is Host of the Price of Business, the longest running show on CNN 650 (M-F at 11 am), AOL Radio, and CBS Radio. Eric Bolling of Fox News and Fox Business says that Price’s Blog “is very influential and moves the blogosphere.” Steve Moore of the Wall Street Journal calls Price the “best business talk show host in the country.” Find out why and visit his blog at www.BizPlusBlog.com and his show site at www.PriceofBusiness.com.

Fox Nation: Needed Change in Media or a Compromise in Objectivity?

Today Fox News announced its long awaited and new "TheFoxNation.com." With a great deal of fanfare the network has had a huge advertising campaign and has all of its network personalities referring to it at every opportunity.

On the surface, TheFoxNation.com looks like many other websites. I do like how it fuses Fox News with its Fox Business site and there is no question that such will help to bolster the visibility of the latter. Also, I love how it has articles from various news sources, rather than just content produced by Fox directly. (However, some of the affiliated media is from companies owned or closely linked to Fox parent company, News Corp, such as the New York Post). Visually this news portal is very easy to read, navigate, and to find content. Furthermore it is exhaustive in its reach covering virtually every area of news, business and lifestyle.

However, TheFoxNation.com is designed to be more than just another TV network website. According to its purpose statement, much more. The site states that the "Fox Nation was created for people who believe in the United States of America and its ideals, as expressed in the Constitution, the Declaration of Independence, and the Emancipation Proclamation.
It is a community that believes in the American Dream: Life, liberty, and the pursuit of happiness. One that believes being an American is an honor, as well as a great responsibility—and a wonderful adventure." It always amazes me that the most pro-American major news network is owned by a person born in another country (Rupert Murdoch is from Australia). This statement goes beyond the typical scope of a news network.

The site goes on to say that "this is a place for people who believe we live in a great country, a welcoming refuge for legal immigrants who want to contribute their talent and abilities to make our way of life even greater. We believe we should enjoy the company and support of each other, delighting in the creativity, ingenuity, and work ethic of one and all, while observing the basic rules of civility and mutual respect and, most importantly, strengthening our diverse society by striving for unity." This sounds more like a conservative social networking site, than the content of a news media. This is the kind of statement that will attract criticism from those in the mainstream media. We are told that "taking sides" may be patriotic, but it may compromise objectivity.

Finally the site states that "the Fox Nation is for those committed to the core principles of tolerance, open debate, civil discourse--and fair and balanced coverage of the news. It is for those opposed to intolerance, excessive government control of our lives, and attempts to monopolize opinion or suppress freedom of thought, expression, and worship. We invite all Americans who share these values to join us here at Fox Nation." Again, not what you expect to find from a media website. But, then again, maybe it should be.

Currently the mainstream media behaves as though it hates this country. It seems far more fond of models being promoted by Europe and other parts of the world than that of the US. Many traditional media sites claim objectivity, while plowing us over with agendas and hostility towards the values that have made this nation the most prosperous and free in the history of the world. A great example was the recent election for President in which the media didn't merely witness history, but created it.

I have been involved in journalism since the 80s, working with both publications and as a radio personality, so this approach to broadcast journalism even makes me a little uncomfortable. However, Fox Nation is being refreshingly honest. That network is made up of people that make a living conveying news and information. They want to continue to do that without government interference. Fox is a business, not just a news sources, and it wants to be able to stay profitable and not be crushed by a government out of control. Fox is made up of individuals who have families and they want to make sure that their spouses and children live in a country that is continually improving. The bottom line is that Fox Nation recognizes, above all things, they are Americans first and journalists second. That may be the perfect role of media in a time such as this.

Kevin Price is Host of the Price of Business, the longest running show on CNN 650 (M-F at 11 am), AOL Radio, and CBS Radio. Eric Bolling of Fox News and Fox Business says that Price’s Blog “is very influential and moves the blogosphere.” Steve Moore of the Wall Street Journal calls Price the “best business talk show host in the country.” Find out why and visit his blog at www.BizPlusBlog.com and his show site at www.PriceofBusiness.com.

Fox News is Now on Dish

I was wondering why my friends who were on Dish Network were not able to find the Fox Business Channel on their system and that they had to pay extra to get Fox News. Now I have found out the "rest of the story."

The Fox News and Fox Business Networks released a press release stating: "FOX Business Network (FBN) has launched on DISH Network to four million subscribers while FOX News Channel (FNC) has renewed its carriage agreement with the satellite television provider, announced Tim Carry, the network’s senior vice president of affiliate relations. The deal expands FBN’s total distribution to nearly 50 million homes nationwide." The statement went on to state that "Starting today (February 3, 2009), FBN will be available on channel 206 through DISH Network’s Classic Gold 250, formerly known as America’s Top 250 package. FNC will move to channel 205 on Classic Bronze 100, formerly known as America’s Top 100 package, increasing its distribution to more than 11 million DISH Network subscribers. Both networks will be available to DISH subscribers in HD."

Tim Carry went on to point out that “The inclusion of FOX News on Classic Bronze 100 is a milestone for the network. We are grateful for the opportunity DISH Network has given FOX News to continue to expand our audience as the number one cable news provider in the country.”

The Dish Network is the third largest pay-TV provider, so how was it that the most popular cable news network was being so greatly disrespected? According to Multichannel.com, "The deal comes shortly after the companies settled a 2007 lawsuit filed by Fox alleging Dish violated the terms of their previous agreement because the satellite operator did not include FNC in its "most widely distributed' tier. Fox had sought $50 million in the suit, which was settled Jan. 31, Reuters reported." I am biased, but I certainly believe that Fox had a legitimate case and that Dish has finally done the right thing and maybe the only thing necessary to keep it a viable satellite provider for those who are serious about the news.

Kevin Price is a syndicated columnist whose articles frequently appear at ChicagoSunTimes.com, Reuters.com, USAToday.com, and other national media. Kevin Price is Host of the Price of Business (M-F at 11 AM on CNN 650) and Publisher of the Houston Business Review. Hear the show live and online at PriceofBusiness.com. Visit the archive of past shows here.

Will CBS 60 minutes Get a Pass on the Oil Boom?

This past Sunday 60 Minutes (CBS) did an "expose" about the forces behind the explosive increase in oil prices. Unfortunately, they limited their discussion to mere oil speculation and missed several other factors that drove prices up. A few of them include:

• The rapid drop in the value of the dollar since 2001. There has been a 40 percent drop since that time. This alone would lead to an increase in fuel costs.
  
• People seem to forget that the wars in the Middle East are in the heart of where oil is produced. It doesn't take a rocket scientist to understand that the possibility of disruption can lead to an increase prices.


• Since 2001 there has been a rapid increase in all commodities, not just oil. Some of those commodities have seen a bigger increase than oil. Is there collusion going on in all these industries or are there simply larger business pressures playing a role? 60 Minutes didn't even consider this possibility.
  
• 60 Minutes completely ignored the link between an expanding economy (which increased the demand for oil and therefore led to higher prices) and the recent recession (which has decreased demand and recently led to lower prices). This is something that would be covered in a high school economics class, but again ignored by 60 minutes.


• There was no mention in the dramatic change in geo-politics since September 11th, 2001, including the rise of al-Quada, the growing hostilities in the Middle East, the disdain of Hugo Chavez of Venezuela towards the US, and the Nigeria crisis that has led to a disruption of supplies. These are among the factors that 60 Minutes did not even consider.


• Then there is the rapid economic expansion of China and India that has only added to the demand on every commodity (as mentioned earlier), including oil. Again ignored by 60 minutes.


• High prices in fuel led to a dramatic decrease in travel in the US by several billions of miles. This has led to a decrease in demand and a decrease in prices. This further proves that there was more than mere speculation involved in the rise of fuel prices.

These are just a few of the things 60 Minutes didn't address. One can easily go on, unless you have an apparent agenda like CBS. So far, virtually everyone in the media has given the network a pass, with the rare exception of Eric Bolling at Fox Business. Currently he is one of the only serious financial journalists to address the poor reporting by CBS. Maybe most journalists simply didn't watch the CBS program or maybe they don't believe they should hold their fellow news journalists accountable. All I know, is that the news industry needs to be held to a higher standard.

Kevin Price is a syndicated columnist whose articles frequently appear at ChicagoSunTimes.com, Reuters.com, USAToday.com, and other national media. Kevin Price is Host of the Price of Business (M-F at 11 AM on CNN 650) and Publisher of the Houston Business Review. Hear the show live and online at PriceofBusiness.com. Visit the archive of past shows here.

Lessons from the Slightly Famous

The pursuit of one’s “fifteen minutes of fame” is easier now than any time in history. No longer do the masses have to live in the shadow of the famous because they have the tools to cheaply make a name for themselves.

YouTube has been a significant driver in this effort. People are battling it out with mattresses in a college dorm, a kid jumps from a second story window on a trampoline (bad idea), a person cries out in defense of an actress taking a pounding from the media. These people become the talk of the web for a least a day or so. There are those who seeking fame for reasons other than ego and entertainment purposes and they are a growing breed of entrepreneurs.

In the old days the media drove information. Occasionally a person got his letter to the editor in the newspaper, he or she would get on the radio as the “person on the street.” Besides such scenarios, there was a huge chasm between the media and the average person. The Internet is changing all of that.

In the book, Get Slightly Famous, author Steven Van Yoder writes about the forces available online for the average person to leave his mark and to get noticed. They do so in order to set themselves apart as the expert and to get the notoriety and recognition of such. This becomes a way to attract new customers.

In the early days of the Internet people simply had a website. These domains were little more than 24 hour brochures. Now there are far more tools available.

Blogging. People create their own web platforms where they tell people their unique opinion on politics, finance, marketing, movies, and more. Whatever their passion, vocation, obsession, or all of the above. Recently an article I wrote had close to 120,000 impressions on one day on Reuters.com. An article I wrote on Neil Cavuto of Fox News and Business led to his office contacting me and wanting to find out if I would be interested in having him on my show. The reach of blogging is breath taking.

Podcasting. This includes video and audio. Audio is cheap to start, in some cases it is even free. Video costs more, but could leave a bigger impression. The web is about the convergence of media – bringing several types of media to one place. Essentially, individuals can create a media network of their own.

Social networking. Twitter, Plaxo, and LinkedIn are just a few of the tools that business leaders are using to tell others about their influence.

But the Internet is not the only vehicle available:

People are writing books like never before. With Print on demand technology, people can self-publish at a fraction of what it use to cost and not fill their garage with books that may or may not get sold. Such books are not typically being written in order to become rich, but to be semi-famous.

People are buying air time on the radio and TV. They are not buying commercials where they can be lost among the many who merely sell, buy are buying programs that demonstrate their expertise as a way to attract customers.

People are giving speeches. Most towns have numerous organizations that are looking for speakers. Chambers of commerce, Rotary Clubs, and networking groups to name a few. When you give a speech to such groups you further differentiate yourself as the expert and find it very easy to find the clients that create more business.

The only downside to such activities is that it is difficult to make your website the place to be found without traffic or to be identified as the person to give speeches. Furthermore, there is an opportunity cost to pursuing such activities. You are trading the thing you do for a living to pursue the opportunity to get more business.

There is a company I am working with that is making this transition easier for entrepreneurs called USBusinessDaily.com. They have a free white paper that is available for the asking at Info@HoustonBusinessShow.com. I strongly encourage you to request it today.

Kevin Price articles frequently appear at ChicagoSunTimes.com, Reuters.com, USAToday.com, and other national media.

Kevin Price is Host of the Price of Business (M-F at 11 AM on CNN 650) and Publisher of the Houston Business Review. Hear the show live and online at PriceofBusiness.com. Visit the archive of past shows here.

Lehman Brothers: Another Government Bailout?

Many from the world of business are concerned over the situation at Lehman Brothers and for good reason. It was announced this week that the finance giant has gone from being interested in an appropriate suitor to looking dangerously close to needing a fire sale. No worries though, Uncle Sam appears poised to bail them out. Yes, the government is getting ever deeper in the finance industry, with the latest news that Lehman Brothers is in crisis mode and the company's stock continues to shrink in value (over forty percent in the past week). The mortgage situation that has pounded so many companies is now hitting another financial giant.

Lehman Brothers' situation was centerpiece of a discussion on Fox Business this week. Here are some comments from Dick Bove, analyst with Landenburg Thalmann, on the finance company (for more see the video above):

The possibilities of a deal for Lehman:

“I think that there will be a deal and I think that the Treasury’s very interested in seeing that a deal occurs because if there is no deal and if Lehman has to come back to the market on Monday and Tuesday…then Lehman will be in deep trouble and the Treasury will have to step in.”

The type of "deal" we are talking about:

“I actually think that one big bank will do it and I do believe that you change the whole economics of running Lehman if a big bank acquires it.”

WaMu vs. Lehman Brothers

“I have a different opinion on Washington Mutual. I actually think that Lehman is a very good company and I think it has a lot of quality assets. WaMu does not. This is one that I think the U.S. Treasury is going to have to get involved in. I think there’s going to have to be an assisted merger, and I think the Treasury is going to have to come up with money on this one.”

I personally think Bove is only half right. WaMu is a mess as is Lehman Brothers. Lehman is suffering from the continued fall out from the sub prime mortgage crisis and has lost a record $2.8 billion in the second quarter of this year alone. The only way Lehman survives is with government intervention and, with what we have seen from Washington as of late, we can expect it.

However, this is the kind of corporate welfare that average Americans should be alarmed about. Such acts on the behalf of the government were "precedents" a short time ago and are evolving into common practice. Unless there are consequences for such behavior, the "moral hazard" only grows for those on Wall Street and leads those on Main Street to simply scratch their heads.

Kevin Price articles frequently appear at ChicagoSunTimes.com, Reuters.com, USAToday.com, and other national media.

Kevin Price is Host of the Price of Business (M-F at 11 AM on CNN 650) and Publisher of the Houston Business Review. Hear the show live and online at HoustonBusinessShow.com. Visit the archive of past shows here.

Obama, Wealth, Work, and Poverty

We should want a tax code that rewards wealth to create work. Not a tax code that rewards work, instead of wealth. The latter would “succeed” only if the government was the primary source of job creation. That describes societies with command economies, such as what we saw in Eastern Europe and the former Soviet Union before the fall of Communism and in struggling developing countries today that have yet to figure out why their economies haven’t worked. Such hostile views towards wealth creation should not be found in free market economies, such as the United States, but it is exactly what we saw and heard during the Democratic National Convention (DNC).

Its funny, in my circle of friends, decrying the engines that create wealth is the equivalent of economic blasphemy. At the DNC, it was a virtue. The message of “we need a tax policy that rewards work, not wealth” wasn’t merely seen on the signs of delegates or alternates. It wasn’t the occasional mentioning of one of the many speakers that passed in front of the microphone. It came from the keynote address of the Party’s nominee for President. Barack Obama.

This sentiment of wanting to bite the hand that feeds the economy (wealth created by corporations and small businesses, not revenue confiscated by taxpayers) stood in contrast to the message heard by the candidate that I hoped would get the Republican nomination and who spoke at the his party’s Convention on behalf of Sen. John McCain, former Sen. Fred Thompson of Tennessee.

Thompson uses a Southern charm and has a disarming approach to speaking that made the logic of what he said perfectly clear, regardless of party affiliation or philosophy. Paraphrasing the Senator, Thompson pointed out that the Democrats only want to increase the taxes on a small group of people – the top 5 percent. This, we are told, has no effect on the common person. Unless you buy milk, bread, or any other consumer product at the store. Or if you have a job that is dependent on someone (or company) subject to that top five percent. The Democrats like to bemoan “trickle down economics” (where the government ostensibly benefits the wealthy, which in turn creates opportunities for others). But the trickle can be seen in more than one way. The trickle can be policies that hurt the rich and, out of simple self interest, they share the misery with everyone else. Thompson did an excellent job of warning us of that possibility.

According to economist Stephen Moore of the Wall Street Journal, the US already has the second highest corporate tax rates of any developed country in the world after Japan. That, more than cheap wages, has led to the flight of jobs and manufacturing to other countries. Barack Obama promises to push us further in that direction through tax increases.

Ronald Reagan use to say that “you can’t help America’s poor by making America poor.” Obama disagrees. He intends to help America’s poor by making more people poor, so they will have more company. An Obama administration will be very interesting indeed. I doubt, however, we can afford it.

Kevin Price's articles are found daily in national publications such as USA Today, Chicago Sun Times, and Reuters. Subscribe to his newsletter here.

Kevin Price is Host of the Houston Business Show (M-F at 11 AM on CNN 650) and Publisher of the Houston Business Review.

Among the Reasons I Like Fox business

I have been a faithful viewer of Fox News for years and I was giddy as a young teenager at a Hanna Montana concert as I waited for the launch of Fox Business last October. I have not been disappointed. Fox Business has made extraordinary strides in bridging the divide between Wall Street and Main Street, it has developed a personality driven network (versus purely an issue focus) that is necessary in producing quality programming, and it has more resources available on finance and business than any other network (aided recently with its purchase of the Wall Street Journal.

Fox Business is also very entrepreneurial. In spite of the vast resources of its parent company, News Corp, the network has used some good old fashioned guerilla marketing to get the word out on the network. Recently, I wrote a post about Neil Cavuto's absence at Fox Business due to his battle with MS (fortunately he is back). Within a day of that post I received a call from Fox Business thanking me for the article and to see if I would be interested in having Cavuto and other personalities on my show. My decision required very little deliberation.

Before I received that call I had already enjoyed visits with Jonathan Hoenig of Capitalist Pig (a regular on Fox's popular Cashin' In) and Charles Payne of Wall Street Strategies (and a regular on Money for Breakfast). Everyone associated with the network is eager to get the word out to others. Since the network has contacted me I have had great interviews with Alexis Glick (Vice President of Business News and an anchor of Money for Breakfast) and David Asman (Forbes on Fox and America's Nightly Scoreboard). In the next few weeks I am scheduled to interview Neil Cavuto (Managing Editor of Fox Business and anchor), someone whom I have long been interested in having on the show.

Besides being an innovative approach to marketing, the contacting of Fox Business to our media only reinforces its commitment to Main Street business, because that is what my show is largely about. Just one more reason Fox Business is one of my favorite networks.

Kevin Price's articles are found daily in national publications such as USA Today, Chicago Sun Times, and Reuters. Subscribe to his newsletter here.

Kevin Price is Host of the Houston Business Show (M-F at 11 AM on CNN 650) and Publisher of the Houston Business Review.

Conservative Rhetoric Wrong on Credit Crisis

I believe in the power of free markets, the importance of private property, and the necessity of limited government as much as anyone. Very few question my "conservative credentials." However, I have recently begun to question some of the rhetoric that is being used by many rather prominent proponents of free enterprise when it comes to the credit crisis.

In recent months I have had Steve Moore (Wall Street Journal), Jonathan Hoenig (Fox Business), Craig Smith (frequently on CNBC and Fox), Charles Payne (Fox Business), and others on my radio show and the topic of the mortgage situation will often come up. I typically agree with the experts on the vast majority of issues we discuss and they are among the most brilliant analysts in the media today. In fact, I even agree with them on their assessment of the sub-prime crisis, I just strongly disagree with their rhetoric.

In every case and without exemption, these authorities said that the crisis was simply due to a "large group of people who had no business buying a house in a first place" (almost a direct quote of several of those listed above). Conservatives are often accused of being elitist and it is due to statements such as this.

Who is it to say which person should qualify for a home or who should be a home owner? If you believe in free markets, that is the responsibility of the mortgage companies and other financial institutes that are willing to take the risk, not the government or pundits. However, it is also imperative that those companies take responsibility if things go wrong with the loan. The economy shouldn't have to suffer from the moral hazard being created when mortgage companies take risks and then get bailed out by the government. That will lead to businesses taking more risks, with the belief they will be bailed out in the end if it doesn't work out.

Because of the anti-consumer rhetoric being spoken by these free market thinkers, people who could get a loan no other way than through a sub-prime approach may never qualify for a loan again. Yet, the number of loans by such persons that are going into foreclosure are in the single digits. The majority of these people are pleased to own a home this way because they wouldn't have been able to get one any other way because they are self-employed. They had all the "business" in the world getting such loans, the financial institutions that underwrote them had no right to a government bailout. That should be the focus of conservative critics.

The results of this crisis are bailouts for the mega rich corporations and the future punishment of every person who needs variable interest rates loans in order to get a home. Some how, the latter is being projected as the "bad guy". Advocates of freedom should defend the individuals who were creative in their pursuit of their homes -- the vast majority who have kept up their payments. Those who couldn't pay should suffer the consequences. Meanwhile, the businesses who made poor decisions in whom they loaned money to should be allowed to suffer the consequences for their decisions. Heads should roll, companies should be purchased by others, and changes should be made internally. But prohibiting sub-prime laws publishes the wrong individuals.

The free market advocates at the beginning of this piece are largely right in their thinking. The government should not bailout bad business decision making. However, they were wrong in the rhetoric. No one, but the ones who make a loan, should say who is worthy of being financed. Not only does such rhetoric do nothing in winning hearts and minds to free market principles, it is contrary to the ideas of freedom itself.

Kevin Price's articles are found daily in national publications such as USA Today, Chicago Sun Times, and Reuters. Subscribe to his newsletter here.

Kevin Price is Host of the Houston Business Show (M-F at 11 AM on CNN 650) and Publisher of the Houston Business Review.

On the Show: Charles Payne Tackles Poverty

Charles Payne of Wall Street Strategies (and of Fox News and Fox Business) was recently on the Houston Business Show discussing the problem of poverty facing many minorities today. Charles brings a unique perspective on the subject since he has faced both poverty as a young boy raised by a single parent and wealth because of his entrepreneurial success as an adult. As a result of his up bringing, Charles takes a some what contrarian view of poverty.

Conventional wisdom is that poor people should be given hand outs and that the poor should be treated as victims rather than as people merely seeking opportunity. Conventional wisdom fails to understand that the more you subsidize something, the more you get of it. Subsidizing poverty generates more of it.

Payne says that a big part of the poverty problem as that the focus is on the wrong thing. We don't need a "Poverty Czar" as advocated by many liberal leaders, but a "Wealth Czar" who points people away from poverty. We need to tackle the real causes of poverty in this country -- excessive taxation on wealth creation that prevents many businesses and opportunities to be created, excessive regulation that deters business growth, and licensure laws that inhibit people from entering the market place.

I love Charles' insights and he is one of my favorite contributors to the Houston Business Show. Listen to this informative two part interview here and here to understand America's poverty problems from someone who has experienced them.

For a copy of the free report, "Why Your Marketing Isn't Working," email Info@HoustonBusinessShow.com and put "marketing" in the subject line.

Kevin Price is Host of the Houston Business Show (M-F at 11 AM on CNN 650) and Publisher of the Houston Business Review. Hear the show live and online at HoustonBusinessShow.com. Visit the archive of past shows here.

On the Show: Craig Smith Speaks His Mind

Craig Smith of Swiss America is a well known financial advisor that is a frequent guest on MSNBC, Fox Business, and CNBC. He is one of the leading advocates for investing in gold and a strong proponent of a free market economy.

On a recent Houston Business Show, Smith took the government to task over its recent actions to bail out financial institutions and its plans for seriously revamping the regulation of such firms. In typical government fashion, Smith warns, the "cure" is going to likely be worse than the illness.

My view is that the government should do little or nothing at this time, mainly because we are not even sure how bad the damage will be. Wouldn't it make sense to "fix" our problems once we understand what those problems are? Especially since it is an election year and decision making is often driven by polls rather than common sense. I'm glad, however, that there are some with a more reasoned approach to such problems. Check out my interview with Craig Smith here and here.

For a copy of the free report, "Why Your Marketing Isn't Working," email Info@HoustonBusinessShow.com and put "marketing" in the subject line.

Kevin Price is Host of the Houston Business Show (M-F at 11 AM on CNN 650) and Publisher of the Houston Business Review. Hear the show live and online at HoustonBusinessShow.com. Visit the archive of past shows here.

Staples vs. Office Depot

The Fox Business Channel is blowing and going, and challenging the way people think about "business news." Recently I wrote praises for their new segment "America's Greatest Business Rivals Challenge" in which the first two competitors were Wal-mart versus Target. Such programming is more than mere news, but practical information on how businesses think and work.

Recently, Fox put two other mega box stores up against each other, and this time the stores focus is on mainly business customers. Office Depot takes on Staples for number one. One of the new tools that Fox provides is a financial analysis and business background for each company provided by Funding Universe. On Staples you will find the contact information, statistics, company perspectives (values, missions, etc.), key dates in the company's history, and more. There you will also find similar information on Office Depot.

I'm a pretty big fan of Office Depot and unfortunately, there are no Staples in my area (Houston) that I am aware of. I have said in this blog that I like Staples "Smart Button" much better than the short lived "creepy hand" (I discussed this in an earlier post), but advertising is only one dimension of the show. Over all, I think Office Depot is great in providing informed and helpful service.

As I said before, I like this kind of programming on business television, but I think Fox Business could improve on this great segment by having the results and video footage at the page on the subject at Fox Business web site. That would only increase the value of the segment and the web site. However, I am sure that will happen over time and will be a part of the growing pains of the station.

For more information, check out Money for Breakfast each week on the Fox Business Channel.

Kevin Price is Host of the Houston Business Show (M-F at 11 AM on CNN 650) and Publisher of the Houston Business Review. Hear the show live and online at HoustonBusinessShow.com. Visit the archive of past shows here.

Sneak Peek of This Week's Show

I'm not much for brash commercialism in this blog, but there are several guests coming up this week on the Houston Business Show (M-F at 11 AM on CNN 650) that you might want to be aware of.




On Tuesday, Floyd Brown, who is a nationally known economist and Washington, DC political consultant will discuss why McCain will likely be our next President. Sound improbable? The current Democrat opponents are actually perfect competition for the Arizona Senator, according to Brown.


Also on Tuesday, Troy Dunn, author of Young Bucks (a phenomenal book on raising successful kids), will be on to discuss his unique philosophy on building future business leaders. I receive many more books than I could ever read from potential guests, but Troy's book is must reading and you can order it here. You can either raise financially successful adults or perennially dependent adult children. This book can help you in pointing your child in the right direction.


Jonathan Hoenig of Capitalist Pig and Charles Payne of Wall Street Strategies, two regulars from Fox Business and Fox News, will both be on Wednesday to discuss what is going on in the volatile stock market. They always provide great answers to the complex business environment of today. Hear recent interviews by Jonathan and Charles from the Houston Business Show archive.


Kevin Price is Host of the Houston Business Show (M-F at 11 AM on CNN 650) and Publisher of the Houston Business Review. Hear the show live and online at HoustonBusinessShow.com. Visit the archive of past shows here.