Obama's Pay Czar goes on the Defensive

President Barack Obama's TARP Executive Compensation Master (also known as the "Pay Czar") was on the defensive in an interview with Neil Cavuto of the Fox Business Network. The latest trend in the administration is to place the President in the role of seeing no evil, speaking no evil, and hearing no evil. First, it was Attorney General Eric Holder stating that the President had nothing to do with the decision to place Umar Farouk Abdulmutallab with criminal charges rather than to treat him as a military combatant. Now Fienbert tells Cavuto that he "never, ever" spoke to President Obama or anyone in the White House about AIG. This defensive tone was heard through out the interview.

On the AIG bonus controversy

"First of all, understand these contracts that are being honored occurred years ago before the top law was even implemented-not on our watch. These are valid, binding contracts."

"Under the law that I'm administering, I will do what I can in 2010 compensation where I do have jurisdiction to try and make sure that these retention payments are taken into account when I set prospective pay in 2010, but I'm not prepared to challenge valid contracts entered into years ago.""This is the end of the retention contract problem."

It is interesting how he speaks so casually about taking "into account when I set prospective pay in 2010." The financial destiny of individuals is in the hands of a bureaucrat. It reads like an Ayn Rand novel. His distancing himself from autocratic action when it comes to the bonus situation is only in the present tense. He gives every impression that he plans to expand the government's role at his first opportunity.

On whether his jurisdiction should be expanded to include companies who pay back TARP

"Absolutely not. Not only do I believe my purview should not be expanded, I think the administration has made it very clear-Secretary Geithner repeatedly has made it very clear-we are not here to micromanage these companies. I think it is fair to assume there will be no effort to expand my jurisdiction." Incongruence seems to be a hallmark of the Obama administration. The more the Administration claims that it plans no harm to business, the more companies feel threatened.

On whether what he is doing will chase talent out of the industry

"I think it's vital. I am not trying to be vindictive or revengeful-that's not what I'm here to do…I'm trying to get these companies to reign in their pay and repay the taxpayer."

Major companies should not had participated in TARP and the government had no business in allocating funds in such a way. But the government spent the money and it appears they forced many institutions to participate in the program. However, to argue that the majority of these businesses are dragging their feet in paying back this program is to ignore the headlines. The Christian Science Monitor asks, "Why are big banks like Citigroup rushing to pay back TARP funds?" It goes on to note that Citigroup is "joining the likes of Bank of America, Goldman Sachs and JP Morgan. Why are they in such a hurry?" The "rush" is due to the fact that these businesses have faced the kind of scrutiny discussed in this interview. The penalties have been huge and the government reach has been expansive, there should be no surprise that these businesses want to move on.

The Obama Administration has become famous for its "double speak." It is shocking since Obama claimed to have championed the idea of "transparency" in government. It is time for the public to hold this government accountable.

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.

Warren Buffett on the Business and Government Connection

Warren Buffett rolled up his sleeves on the Fox Business Network in a very candid interview with the channel's Liz Claman, in which he discussed CEOs of failing banks, reconfirming Ben Bernanke, and his Berkshire company.

On the Bank Situation

"You'll always have banks that are too big to fail. We can't operate in this world without very big banks…If they are toppling the government will have to do something about it." This is contrary to conventional wisdom and of this writer. After a year we see that banks had more money than expected (witnessed in the pace in which they paid off their bailouts) and these government programs have done little to increase the pace of loans, since banks have found a way to get "money for nothing." Why risk their resources if they are washed in capital from Uncle Sam?

Furthermore, these policies have only undermined moral hazard at a time it is so greatly needed. The US cannot be in the business of rewarding bad decision making."If I were running things if a bank had to go to the government for help, the CEO and his wife would forfeit all their net worth…I think you have to change the incentives. The incentives a few years ago were try and report higher quarterly earnings. It's nice to have carrots, but you need sticks. The idea that some guy who's worth $500 million leaves and only has $50 million left is not much of a stick as far as I'm concerned." This was actually the highlight in the Buffett interview. We need a restoration of moral hazard in banking and that will only come when those responsible for bad decision making suffers for those choices."The CEO has to be the chief risk officer for a bank." This is a great observation and a view that needs to be restored. This is best achieved, in my opinion, by letting banks fail. Any executives behind such will find themselves looking for something else to do for a living.

On members of Congress who feel Ben Bernanke should not be reconfirmed:

"They ought to get down on their knees every night and thank the Lord that Bernanke was there through this. He took some unprecedented actions…He took the actions that were necessary to prevent panic from paralyzing this country." "Unprecedented" often means unconstitutional and has led to the expansion of government like we have never seen in our history, even in the Great Depression. What he has done is created instability in our monetary policy by pumping dollars into the economy at a pace we have never seen. Furthermore, his bailouts of large corporations have undermined the normal functions of a free market economy, such as moral hazard. He has created an economy without risk, which is far from free market in design. What he has done is criminal...two thumbs up for those members of Congress who wish to see him go.

On the future of Berkshire Hathaway's business acquisition

"We'll keep buying businesses, as long as I'm alive we'll keep buying businesses…we'll try to buy them for cash, sometimes we may have to use some stock, but we'll use as little stock as possible." If the US economy continues to reel from the unstable monetary and fiscal policies of the Obama administration, large corporations like Berkshire Hathaway will continue to benefit from them. It should be no wonder that, when questioned about Tim Geithner, he replied "I think he's terrific." Maybe for Buffett, but not the rest of the country.

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.

Tim Geithner Plays with Words on Fox Business

Liz Claman of the Fox Business Network is one of my favorite interviewers in media today. She is warm and cordial, which also means her guests are easily disarmed and she follows that up with some of the tougher questions in business news.

Recently Treasury Secretary Timothy Geithner was a guest of Liz Claman on the Fox Business Network and said that we will be able to “solve this financial crisis at a dramatically lower cost than we initially anticipated," he goes on to actually claim that the U.S. taxpayers have made money on banks paying back TARP.

On whether the US taxpayer made money on banks paying back TARP:

Geithner: “Absolutely. Just on that particular investment (Bank of America) the taxpayer got probably more than $2.5 billion even before we sell our warrants…We’re going to be able to solve this financial crisis at a dramatically less cost than we initially anticipated.” On the flip side, our financial industries have developed a new type of "freezing effect" as banks stop making investments because they have huge reserves to sit on and are paid for by taxpayers. Loans are risky; government subsidies have allowed banks to avoid that type of risk. Furthermore, this does not even address the bigger issue of nationalization and the inappropriate use of government power.

On the opposition to government tax credits to small businesses:

Geithner: “There’s a pretty good case for looking at targeted tax incentives to encourage investment and new hiring.” Unfortunately this administration seems to "target" tax cuts or subsidies to political allies, be it political organizations that support its agenda (e.g., ACORN) or corporations that they are trying to win favor (first Wall Street and now a "new" bailout for Main Street).

On what it will take to create jobs:

Geithner: “It will not be one thing. It’s going to have to take a mix of approaches, and you’re right, we have limited resources.” What happened to the money we "made" from TARP? This type of political double talk is common for Obama and his team. With the highest unemployment in a quarter of a century, it is difficult to stomach watching this President spending close to $1 trillion just to launch a health care program that is unconstitutional, promises to create a systems of rationing, and will not event go into effect for almost a half of a decade. Allowing the states to determine its own minimum wage, eliminating taxes on corporations (since those taxes only undermine competitiveness), and making it easier for employers to hire should be on the top of Geithner's priorities.

You can watch the interview by visiting here.

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.

Major Coups at Fox Business

As the Fox Business Channel nears its second anniversary, big things appear to be happening tothe still largely new network. The news media has largely discredited the channel and has even treated it as the ugly step child of the widely successful News Corp family. Network news has often second guessed the decision making of the network's chairman, Rupert Murdoch. In the last few weeks Murdoch and Fox have taken decisive actions designed to put Fox Business on the media map.

First there is the announcement of Don Imus joining the Fox News team. In a press release from the network earlier this month we read "FOX Business Network (FBN) has signed a multi-year deal with legendary radio personality Don Imus in which his nationally syndicated program Imus in the Morning will be simulcast on the channel, announced Kevin Magee, Executive Vice President. Beginning October 5th, the program will be presented in High Definition (HD) Monday through Friday from 6-9 AM ET on FOX Business and continue to be syndicated on the radio by Citadel Media. " Imus reaches millions of listeners every day whom he will drive to the Fox Business Network as they prepare for their day before getting into their cars. Meanwhile, those who love their hard business information will get plenty of reports during Imus' broadcast. Furthermore, Imus will be in a corner screen surrounded by news stories thorough out the broadcast. People will get plenty of business news. This is a huge victory for Imus as he departs the largely limited RFD network and a win for Fox Business who will have its brand promoted to the large audience Imus enjoys.

Shortly after the Imus announcement we are now hearing that one of the country's premier broadcast journalists, John Stossel, is leaving ABC to become a part of the Fox Business and Fox News family. In a statement Fox Business reports that "Award-winning journalist John Stossel has signed a multi-year deal with FOX Business Network and the Fox News Channel. Stossel, who is best known for his work on ABC’s '20/20,' will anchor a one-hour, weekly program on FOX Business, entitled 'Stossel.'" According to Fox, the "program will look at consumer-focused topics, such as civil liberties, the business of health care and free trade." Stossel's activities will not be limited to Fox Business, as he "will also appear regularly on the Fox News Channel, and will produce a series of one-hour specials for FOX News. His blog, “Stossel’s Take,” will be published on both FOXBusiness.com and FOXNews.com."

Separately, the journalist has said “I’m thrilled to join Fox News and look forward to inventing a new show for Fox Business." Fox is thrilled too, I am sure. For those in the news media who have questioned the wisdom in creating another business network, Murdoch may just be a little crazy. Crazy as a fox.

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.

What will Fox News do with Glenn Beck?

Back in 2007 Don Imus set off a bomb when he called the women basketball team at Rutgers University "nappy headed hoes" during his daily broadcast on CBS Radio and MSNBC TV and was dismissed from both networks. Within no time Imus was back on the air on a different radio (Citadel) and TV (RFD-TV) network. Imus is about to upgrade his TV affiliation by joining the Fox Business Network. Imus rebuilt a significant amount of audience in no time and is bringing that crowd to Rupert Murdoch's business TV network.

Rupert Murdoch is one of the savviest people in media today, but his Fox News network is in a similar dilemma that MSNBC was in with Imus. Glenn Beck, host of the ever popular "Glenn Beck Show" told the Fox viewing public back in July (on the network's morning show, "Fox and Friends") that President Obama has a "deep-seated hatred of white people and white culture." It was really an off the cuff statement spoken in passing upon observing some of the President's choices, that led Beck coming to such a conclusion. Off the cuff? Maybe, but it has created a stir and has the network buckling down as it faces an onslaught of attack. An organization called the Color of Change has waged a boycott on the network and it has been effective in the financial arena. The Atlantic points out that "Lots of big companies who advertise on Fox have signed onto the boycott, orchestrated by Color of Change to protest Beck's proposition that President Obama is a racist, reportedly including Wal-Mart, Sprint, Travelers Insurance, General Mills, DirecTV, Geico, Progressive, Procter & Gamble, Radio Shack, Men's Wearhouse, GMAC Financial Services--at least 36 companies in all. (UPDATE: as commenter Mike Cee points out, Color of Change put the total at 46 after announcing 10 more yesterday.)" An hour long program would typically not have more than 40 sponsors, so this is a huge number by any standard.

I think that many advertisers who are currently on the Glenn Beck Show are not actual sponsors of his program, but of the network in general and are being placed in the "best times available" (BTA) which is one of the cheapest media buys. Many of these ad buyers are getting multiples of the exposure they are use to receiving at BTA. If this is the case, Fox News is probably losing money compared to what they normally enjoy for Glenn Beck's hour. However, I think everyone, even Beck and Fox News, are crying all the way to the bank. The LA Times points out in an article titled "UPDATED: As boycott continues, Glenn Beck's audience swells" that the TV host and Fox network "attracted 2.81 million viewers Monday, his third-largest audience since his show launched on Fox News in January, according to Nielsen Media Research data provided by the network. On Tuesday, nearly 2.7 million viewers tuned in, his fifth-largest viewership to date. And the conservative host got a plug from former vice presidential nominee Sarah Palin, who urged people to watch his program in a post on her Facebook page." The Times went on to quote Palin, saying “"FOX News' Glenn Beck is doing an extraordinary job this week walking America behind the scenes of 1600 Pennsylvania Avenue and outlining who is actually running the White House,' she wrote Wednesday to her 800,000-plus supporters."

In light of the audience Beck is receiving and the "ink" the networking is enjoying in the media, this temporary lost in revenue is little more than a high priced advertising campaign that should pay the network off significantly over time. As long as Murdoch and his team take a strategic approach and stay with the host, the network should be all the better when the dust finally settles.

If Fox can't handle the heat, I think the ratings hungry MSNBC would be delighted to get Glenn Beck in what they might call "Don Imus Revenge."

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.

Don Imus on Fox Business?

It appears that Don Imus is in "advanced talks" with the Fox Business Network about being a part of its morning team with his radio program being simulcasted on the News Corp network. The network has tried to weaken expectations, stating that they have many conversations with many media personalities, but the talks with Imus seem to be further down the road. Imus is a controversial figure who has been known for his racial rants and also his profound philanthropy. Every person I have met that I have discussed Imus with fall in two camps, they either love his honesty and his generosity or they hate him and think he is a blow hard. In this culture these are among the essential elements of a successful media personality.

If Imus is added he will be on from 6 am to 9 am and the addition will affect current programs. The LA Times notes "Imus' show would replace current programming, which now includes 'Fox Business Morning,' hosted by Connell McShane and Jenna Lee, and 'Money for Breakfast,' anchored by Alexis Glick and Eric Bolling. Nielsen Media Research does not yet release public ratings for Fox Business, which is now available in about 50 million homes." Currently he is on RFD, which seems to be having a difficult time paying its bills (including Imus) and has virtually no footprint. Imus and his strong populist roots (which fits in nicely with Fox Business' desire to be an alternative to its more "elitist" competitors) and the incredible Fox brand could be an impressive "one two punch" and put the business channel on the media map. There are, however, many questions surrounding the deal:

• How will Imus "fit" on a business show? His show isn't about business, but there are ways they can make it more business like. They will, of course, have a crawl on the bottom of the screen with business news and probably put additional information on side boxes. Furthermore there are designated breaks during his radio broadcast that I'm sure Fox will use to promote important business news.



• What about that time of day? The show would run from 6 am until 9 am EST right up to the opening bell. For many, this is a great opportunity to find out what happened over night in foreign markets and to interview those who might make a play on the day's business news. It is the end of this type of programming that makes some think Fox is throwing in the towel. The reality is, that information can also be conveyed with crawlers.



• What is the biggest benefit for Fox Business to having Imus on the network? He has access to millions of listeners who will hear about the Fox Business brand every day on his program. Furthermore, he is a major name in the radio industry.

So, would Don Imus be good for Fox Business? It is hard to say, but both TV and radio are "numbers" games and Imus certainly has the eyes and ears that the Fox Business Network would love to have watching its network.

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.

Richard Shelby has Candid Discussion about the Fed Chair on Fox Business

For the vast majority of Americans, being told that we are having a "jobless recovery" is the same as saying we are having no recovery at all. "Recovery" means employment, job growth, opportunity, job security (even if it is not the one you are in, it is the knowledge that there are plenty available). "Recovery" without jobs, means prosperity only for the "haves" in an economy. This is something that seems to persist no matter what is going on in the larger picture.

In a startling interview on the Fox Business Network, Sen. Richard Shelby (R-AL), the ranking Republican on the Senate Banking Committee, stated that he was informed by Federal Reserve Chairman Ben Bernanke that we might be dealing with a "jobless recovery."

Here are excerpts from the interview with Sen. Shelby on his very candid discussion with Chairman Bernanke:

What does Chairman Bernanke say about the recovery? "He thinks when there will be a recovery—basically his words—it will be a jobless recovery, and that’s not good for America.” Again, for the vast majority of Americans, this is no recovery at all.

What about giving the Federal Reserve more regulatory power? “We talked about the regulatory structure that we will be debating this year up here, and the Fed basically as a regulator failed the American people. Why should we give them more power now? That’s the question I asked. He didn’t say they didn’t fail. He didn’t admit it, but he didn’t say otherwise.” Alas, we have seen how much the shift in power to the Federal Reserve has "benefited" the larger economy to date. No wonder many members of Congress are skeptical.

What about the pace of an economic turn around? “The answer was basically muddle… He was very careful with what he was saying even to me, a member of the banking committee.” I find the word "even" to be a little humorous. Seeing the insane things that have happened from this Administration and the total lack of transparency of those that are governing, you would almost think Sen. Shelby would say "especially to me." The last thing the Fed wants is more accountability, in my opinion.

Has the economy made a turn around the corner? “He couldn’t really answer that. He thinks some of our financial crisis has stabilized, but it’s not over.” I guess one of the "jobs saved" so far is Bernanke's. That is a sign of recovery, isn't it?

As I have said before, being hungry is crucial, no matter what business you are in, including cable news. Consistently, Fox Business, even with its relationship with the largest name in cable news, Fox News, demonstrates a desire to beat others to the most important business news stories of the day, as seen in this breaking news story on Shelby. I don't mean to sound like Neal Cavuto, but if you don't get Fox Business, make sure you contact your cable provider. In the mean time, you might consider regularly visiting FoxBusiness.com for the latest in videos and other 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. 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.

After Receiving 150 Year Sentence, Madoff Debates an Appeal

Bernie Madoff, the scam king of the decade, was sentenced to 150 years in prison and according to his attorney, Ira Sorkin, he is uncertain about whether or not he will appeal this sentence. Bernie Madoff’s lead attorney spoke to Fox Business Network and said that “we haven’t made the decision yet” to appeal and that Ruth Madoff’s settlement “took a long time to work out.”

In a coup for the Fox Business Network, Sorkin tackled some tough questions:

• On appealing Madoff's 150 year settlement: “We haven’t made that decision yet.”



• On the significant wait for Ruth Madoff to make a deal regarding the surrender of a majority of the assets: “We came to a settlement with the government that took a long time to work out. It was a compromise.”



• On the amount of money recovered following the $50 billion Ponzi scheme:“More than $1 to 2 billion has been recovered.”

The question many are asking, is why wouldn't he appeal, what is essentially is, a life sentence? It could be that Madoff's attempt to get a more lenient sentence of 12 years based on the average lifespan for a man his age, fell on deaf ears. It could be that that Madoff's wife was vulnerable to possible jail time herself and feels it may be time to simply catch their breath. There are also his sons, Mark and Andrew, who worked for their father's firm and have been pleading innocent since the story broke. Maybe, quietly going away for 150 years, will make it possible for this chapter to close for them.

Unfortunately for Madoff and his attorney, they do not have 150 years to make a decision. In fact, they have only ten days from the day he received his sentence and soon his time will be measured in hours.

For the time being, Sorkin is making the case that he and his client are involved in the recovery process. For example, in the Fox Business interview, Sorkin acknowledged that there are assets in other parts of the world, citing France specifically, stating “There are assets overseas, and as we said in court yesterday, we are assisting the government -- my firm and one of my partners -- in recovering assets that are located overseas, which the U.S. attorneys office cannot recover on their own."

I would guess that Madoff is going to pursue an appeal in order to keep the door for a lighter sentence open. After all, I assume he can always change his mind on the appeal if his attorney asks for it, but he cannot force the government to give him more time to choose to pursue such.

Hearing the sentiments of those who are his victims makes me think that prison may be the safest place he could possibly be. So many have been terribly and profoundly impacted by this scam master. I don't know if that reality will be as inspiring as the hope of living beyond his sentence.

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 Demise of the US Auto Industry on FoxNews.com Strategy Room

FoxNews.com Strategy Room is an eclectic marketplace of ideas, especially when Eric Bolling is at the helm. Bolling’s academic background of economics and business, accompanied by a career that has included being a professional baseball player, one of the world's largest commodity traders, and years as a business news journalists (first with CNBC and now with Fox News and Fox Business) makes him something of an adrenaline addict and one of the most enjoyable TV hosts to watch.


Bolling is intelligent, eloquent, and passionate about his convictions, although they are not easy to label. He describes himself as one who is "center/right and believes in free markets." As a man who has made a significant part of his living as a commodities broker, his passions are both pragmatic and well founded.

When I was on the Strategy Room this week (Bolling hosts 3 PM EST hour) the show covered a plethora of issues early on, but slowly began to focus on the fact that the United States automobile industry is dying and seems to be doing so quickly. This is one of the most dominant topics in business news today.

Invariably these discussions lead to "what should the government do to solve this?" My answer to that is that government has been the primary reason the industry is in such a dire situation. You can go back decades to when Michigan became a close union shop state, making labor the primary customer rather the people who buy cars. This has led to Detroit paying over $70 an hour per employee compared to Japan's $40 an hour for employees in Southern states. Addressing the auto industry situation should include:

• Ending the controversial UAW "Job Bank" program . This program has paid tens of thousands to be idle at 90 percent of salary.


• Bring auto worker wages back to the real world. According to the Heritage Foundation, when it comes to salary and benefits, the average wage of all private sector employees is $25.36 and for American based Japanese auto plants (Honda, Nissan, Toyota) is $42.95 to $47.60 on average. The big three pays $70.51 (Ford), $73.26(GM), and $75.86 (Chrysler) per hour, per employee. These six digit wages for blue collar work demand a reality check.


• End the "30 and out" practice. The Detroit auto companies allow employees to retire with very lucrative packages at the young age after 30 years. If you start working at a plant at 20, you can retire at fifty. You can see where that can be costly. 60 or 65 should have to be the standard retirement age, which is what the market clearly demands.


• Seven week vacations need to be history. Detroit auto workers receive almost two months off a year. This is another pounding cost, on a very weak industry, that needs to change.


• Finally, they should require the companies to relocate to a right to work state. This would empower these companies to lower wages and make it easier to implement the other reforms listed above. Twentytwo states are Right to Work, 28 are not. It is more than a coincidence that all but one of the ten richest states are Right to Work, while the ten poorest are closed union shops according to the American Legislative Exchange Council. The threat alone could make the Michigan government come to its senses.

So how do I think the problems of the auto industry should be solved? This can only be done through markets, less government, more freedom, and plain old business sense. These are the kind of ideas that once made the automobile industry the envy of the world.

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.

Fox Business to Tackle Red Ink

This morning I had the opportunity to visit with one of my favorite broadcasters, Eric Bolling of Fox News and Fox Business, for this blog. The purpose was to learn more about his fascinating career that has included professional baseball, being one of the world's largest commodity traders, and his work in cable business television. He began that TV career with CNBC and is has been a pioneer at the Fox Business Network. I will be going more into Bolling's story in a future article. For this piece, I want to mention that Bolling will be one of the many Fox Business personalities who will be involved in the coverage of what the Network is calling "Red Ink Week."

In a press release, the "Fox Business Network (FBN) declares the week of June 1st 'Red Ink Week.' The American government, and so the American taxpayer, is now drowning in red ink. How much of this will be billed to your family and your future generations? Have we ever seen anything like this before? Has anyone? Do we have a reasonable expectation of getting out of it?" What I appreciate about this is that the network is taking this subject on with the passion it so greatly deserves. There is no "dry" detachment like the subject of a history book, but the sounding of an alarm, which is so greatly needed. The network has our attention, the burden on them now will be to help us calmly navigate through our national challenge.

The press release went on to say that "FBN will have a full five days of coverage dedicated to uncovering how the government is spending taxpayers’ money and what the long-term implications of the auto industry and bank bailouts will be for taxpayers of today and tomorrow. Politicians, industry experts, and business leaders will be on hand to go through the line items and discuss how much of this will be billed to our families and future generations." It is refreshing that the network will be focusing on where these policies are having their biggest impact. They are studying the financial institutions, factories, and main street businesses being pounded by government action and the people who work in these actual industries. It is important to get the perspective of policy makers, but it is more important to see where these policies are showing their biggest impact.

The coverage begins Monday, June, 1st through Friday, June, 5th at 7 PM Eastern Time. If you have money, you are going to want to watch this programming.

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.

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.

Socialized Medicine on Strategy Room

My second appearance on Strategy Room (FoxNews.com) this past week moved to a topic that hits close to home to me -- socialized medicine. Eric Bolling had already navigated the panel through his 3 PM hour through a plethora of topics and they were primed by the time I got on the show.

My mother came right off the boat from England. She was a war bride who left her family to join her spouse in the United States. She was young when she did this, a mere 18 years old. Maybe, as a result, she was one of the biggest fan of England you would ever find. She would go on and on about the "virtues" of British socialism and how "terrible" it was that people in this country were responsible for their own health insurance. Having had visited with members of my family in "the old country" many times over the years, my instincts tell me that my mother would have likely had a very different view of British socialism if she lived under it.

My aunt (her sister) use to tell me how such a huge portion of every paycheck was devoured by the socialized health care system, she was amazed by the large number of people who were subsidized to not work, and was disgusted by how it became almost impossible for the average Brit to buy their own home. Regarding health insurance, she said national health care is "great until you need it." It provides "enormous peace of mind" until you actually get sick. Ironically, this aunt eventually died in the British health care system. She was diagnosed with cancer and could not believe how slowly the government dragged its feet in her treatment. Things were even worse when it came to my grandfather when he became ill. Doctors informed my family that treatment options were "limited" because he no longer paid taxes. My aunt was convinced my grandfather died because of the rationing of health care (a common problem when the government controls or owns anything).

This anecdote hits close to home, but the facts support her argument that socialized medicine does not work:

• According to England's own National Institute of Health, eleven percent of the population of England has very expensive private health insurance. This allows them to get treated as a person, rather than a crowd, and to be able to hold their doctor accountable in a way you can't have when the government is your vendor.


• In countries such as Canada it is common for people to head to the US for much of their health care (particularly urgent). Many individuals will go to a veterinarian to get tests, like MRIs, because the waiting lists are too long with government doctors.


• In Australia's socialized health care state, more than half of the population has private insurance.


• More than 60 percent of innovations in health care are from the United States with a much smaller part being carried by the rest of the world. If the US chooses a socialized system, innovation will be severely damaged because it is the incentives in our system that promotes changes and improvements.

One of the best discussions I have had on the subject was with David Asman of Fox Business when he was a guest on my show (then called the Houston Business Show). While visiting in England his wife had a stroke and barely survived. Because of his resources he was able to get her the best care possible in that country, but concluded that an indigent person in the United States has a better opportunity for recovery than the best insured in England. The harsh reality is very simple, why would we believe that a government that can do so few things effectively, could handle the huge task of providing for all our health care needs?

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. You can also find Price on Strategy Room at FoxNews.com.

Fox Business Network Update

The Fox Business Network has been around since October and I thought it was about time to do a progress report. My assessment is that the company is making a major splash early and could alter the ways business news is delivered. Here are a few observations:

* Fox Business, unlike CNBC is more personality driven. It is true that the latter has its "money honeys", but even as a news junky, I have a hard time remembering who they all are.

* Fox Business gives each of its shows their own unique format. CNBC is driven almost entirely by stock related news and it is difficult to differentiate their shows from one another. Fox has different environments (an actual bar for "Happy Hour") and formats (such as Dave Ramsey on "financial freedom"). CNBC, which I actually like, tends to blur between the lines in a way Fox has successfully avoided.

* Fox is multi-generational in scope. With the various settings and topics, as well as with the more youthful personalities, I see Fox Business creating a bridge that will make business news more relevant to a wider audience.

Fox is still early in its venture, so I don't want to jump to any dramatic conclusions, but my gut tells me that Fox should be good for business.

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Official Fox Business Channel Schedule

So far Direct TV doesn't have any information on the new Fox Business Network schedule and the network's website seems to be failing to work quite often. I'm sure it is mere growing pains. Any way, I finally found a schedule from Gretta Van Susteren's blog. Here's the line up:

• 5-6am: FOX Business Morning Nicole Petallides and Jenna Lee

• 6-10am: Money For Breakfast Alexis Glick, Peter Barnes and Liz MacDonald

• 10am-12pm: FOX Business Tom Sullivan and Cheryl Casone

• 12-2pm: FOX Business Stuart Varney, Dagen McDowell and Connell McShane

• 2-5pm: FOX Business David Asman & Co-Anchor TBD (hmmm… Liz Claman’s available Wednesday)

• 5-6pm: Happy Hour Cody Willard and Rebecca Gomez

• 6-7pm: Neil Cavuto

• 7-8pm: America’s Nightly Scoreboard David Asman

• 8-9pm: The Dave Ramsey Show

• 9-10pm: Cavuto (repeat)

• 10-11pm: [Turn your TV to Fox News Channel’s On The Record]. She's putting a fast one here in a shameless effort to get more viewers, but do you blame her? I actually believe this hour is a repeat of America's Nightly Scoreboard with David Asman.

• 11pm-12am: Happy Hour (repeat)



The station seems to be moving along nicely and glad to see it is getting support from the Fox News Channel.

Note: Order Kevin Price's audio program The Accumulators, which explains the impact that the Internet is having on marketing and consumer behavior. It is available online here for only $10 plus p and h. Receive the Houston Business Review e-zine free each week by clicking here.

Dave Ramsey on Fox Business

My search for Fox Business is over! I found it on channel 359 on Direct TV (for others who have that service, but don't know where the channel can be found). I found the station to be very fresh, similar to its sister station, Fox News.

One of the things that always concern me about business programming is that such networks often disregard business beyond Wall Street. It is too early to see how Fox will be (unfortunately, I had to work much of the day and didn't get to watch every minute of it), but I was please to see the direction it appears to be going.

In particular, I was delighted to see the Dave Ramsey television show on Fox Business. Dave is an old friend who has been a guest on my own show back when he too was on AM 650 locally. Dave does an excellent job of addressing the "rubber meets the road" issues when it comes to personal finances. Most of our personal dollars are saved and spent on Main Street, rather than Wall Street and he provides great advise in that arena.

I know it is early, but I'm pleased to see the good things going on at the new Fox Business Network.

Note: Order Kevin Price's audio program The Accumulators, which explains the impact that the Internet is having on marketing and consumer behavior. It is available online here for only $10 plus p and h. Receive the Houston Business Review e-zine free each week by clicking here.

Fox Business Vs. CNBC

Fox Business Network began its business day today (sorry, I didn't mean to be redundant) and the debate is on over how big of a player it is going to be.

National Public Radio has chimed in by pointing out that one of the biggest factors is distribution. Today, Fox Business is in 30 million homes and CNBC is in 90. In the same vein, I'm a news freak (and a Fox fan in particular) and here it is launch day and I have no idea where to find the channel in the Houston market. NPR's point is well taken.

However, distribution isn't everything and there is always a curve involved with the introduction of anything new. I have already thoroughly checked out the videos online (which is where the future of TV is, in my opinion) and am certain we will see it in all the same places we find CNBC in no time. In fact, I'm sure some of the distribution "problems" are planned as the station makes sure it has reached a high level of quality as early as possible.

I like CNBC, so I do not mean this as a slight to that network. But being on many channels is only one part of the formula. Being wanted by viewers is even more important. I have little doubt that Fox Business will have plenty of demand.

Interesting News at Fox Business Channel

For those of us tired about the bad news continuously being propagated by most of the cable networks, I am very excited about the advent of the new Fox Business Channel. Bad news is pervasive everywhere in cable (and news in general), and the business news arena is among the worst at getting the message straight. Friends of the free market need a break and we hope we are going to get one from the new channel.

First of all, Neil Cavuto, who is the Senior Vice President of the new cable network, is one of my favorite news persons. He has continued to deliver the news with a refreshing objectivity that resembles false optimism in the media world, but healthy reality in the world we live in. I knew his appointment meant good news for business and news.

The good news continues, in my opinion, with his recent appointment of Alexis Glick as News Director. Alexis is a bright and passionate friend of free enterprise. Recently she did an interview (above) on the Fox News' Cashin' In program on which she boldly addressed the Social Security system and said it had to go and be replaced by a private alternative. This type of innovative thinking will only further make the new Fox Business Channel a major cable news source. I'm delighted that October 15th is just around the corner, the day in which the new network will launch and create a better way for business news to be delivered.

What I Read: Mediabistro

One of my favorite e-zines and websites is Mediabistro. It has extremely useful information and is one item that comes in my email that I find very difficult to delete.

* Just this week I found out who some of the personnel are going to be at the new Fox Business Network.

* I learned that over 3/4th of all Internet users used streaming video in May (important to me because Houston Business Media Group is moving in that direction).

* In spite of the surge in video, they have had no effect on the number of people who watch TV and how much that watch it (good, since we are looking at that media as well).

* That Mediabistro was sold for $23 million. This is certainly a little proof of its worthiness.

I suggest if you are at all interested in media trends and if you want to know what is going to happen before the morning newspapers (often the case with Mediabistro), I suggest you become a member. It doesn't cost a penny (just a little time to fill out a form) and the information you get is entertaining, interesting, and often valuable. There are premium services for a price, but I found plenty of great information that is free. No, I'm not getting paid to write this recommendation. I'm doing it, because I think it could make a difference to anyone interested in the business of media.