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.

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.

Obama Wants to Restore Welfare "As we Knew It"

Hidden in the media coverage about Barack Obama is the eloquent argument being made by Republican Governors regarding their concerns over the stimulus package. The media believes that these politicians are jockeying for higher office. The truth is, most are opposed to the massive growth of the federal government and are particularly concerned about the bill's various "hitches" designed to force states to take positions that they are opposed to. Worse than being critical about these governors, many in the mainstream media are ignoring them entirely.

Robert Schlesinger has noted at US News and World Reports that the New York Times reviewed the views of GOP candidates and their thoughts on Obama's stimulus package and stated that "in terms of presidential politics, the most notable name in the Times piece is Florida Gov. Charlie Crist, who campaigned with Obama for the stimulus package last week. Glaringly absent from the Times piece were governors like South Carolina's Mark Sanford, Louisiana's Bobby Jindal, Mississippi's Haley Barbour and Alaska's Sarah Palin—all governors recently named in the Washington Post's excellent 'The Fix' column as being among the five most influential and powerful voices in the Republican Party (the other person named was former Massachusetts Gov. Mitt Romney). Palin and Jindal are often named as contenders in 2012, and Barbour gave 2008 a long look before passing on it. Sanford is chairman of the Republican Governor's Association."

Haley Barber has been particularly persuasive in discussing his concerns, stating on Fox News that the Obama measure would force states to allow people to receive welfare, even if they are not willing to work, if they want to enjoy the complete package. For example, Barbour notes, that if the state of Mississippi wants to receive $54 million in increased unemployment benefits, they will have to expand the benefits to those not actively looking for employment or willing to take it if offered. If Barbour doesn't take it, he will receive less than $4 million of the expanded benefits.

We haven't seen this kind of pressure on the restoration of the Welfare State since Bill Clinton and Republicans in Congress led the efforts to reverse many of the damaging policies that led to multi generational poverty. I consider that to be one of the the greatest policy achievement of the 1990s. This achievement is threatened as the Obama policies are implemented in the states.

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.

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.

Economy Keeps Growing

In spite of the general malaise that seems to be spreading in the economy, virtually everything I have read beyond the headlines focuses on good news. Sure , the headlines can seem negative, "Huge drop in lower price homes," but the rest of the story tends to be positive ("but home sales in other price ranges reach record highs").

Today on CNBC I learned that the US economy added 110,000 jobs this past month, maintaining a very low 4.7 percent. Meanwhile, the stock market's hold on 14,000 plus seems to be continuing to grow, as seen recently on Fox News. So, in spite of these great numbers, why do we keep having a slightly negative view of things?

I think some of the weakness is due to long term exposure to negative spins on what should be, positive stories. This economy has grown continuously over the last few years in spite of what the media has told us. I am grateful to the few "good guys" out there like Neil Cavuto of Fox News who points out much of the positive news that is often neglected. Consumers of TV news should keep journalists accountable by telling them their opinions and voting with their wallet by supporting companies that advertise on networks that provide a more balanced view of the news.

Murdoch Finally Gets WSJ

It appears official. Sure, I'm sure there are documents to be filled and lawyers to be dealt with, but it appears that Rupert Mudoch's quest for the Wall Street Journal has finally been sucessful. Media Bistro reports:

Nearly three months after CNBC's David Faber broke the news that Rupert Murdoch's News Corp. was making an offer to buy the Dow Jones Company, Faber reports this morning that it's a done deal, and an "agreement is expected tonight."

Apparently, enough members of the family which controls 64% of the voting shares, have agreed to sell. A little more than 3 months from now, Murdoch launches his business news companion to the #1 cable news network, the Fox Business Channel.

Many analysts, and Murdoch himself, expect the Dow sale to be a game changer for FBC; bringing the heft of The Wall Street Journal to 24-hour TV. "We just want to have a business channel that lives up to the quality and traditions of The Wall Street Journal," Murdoch told FNC's Neil Cavuto on the day the offer was announced. "We think that we can do that and we will do very well."

One hurdle: The Wall Street Journal has a television deal with CNBC until 2012. On that issue Murdoch said, "we think there is plenty of room for us all to work together."

I wasn't sure Murdoch was going to pull it off for a while. After all, the Journal is an old publication with deep family roots. I bet their next family reunion will be very interesting. But I'm not surprised either. One thing I have learned is that it is foolish to under estimate Rupert Murdoch. He might be the single biggest media player in history.

CNBC enjoys a coveted relationship with the Wall Street Journal and, I'm sure, enjoy providing the Dow Jones Industrial Averages (DJIA) with pride. But the DJIA is just a name. What if Murdoch changes it to the Fox Business Industrial Averages? If that happens, 2012 couldn't come sooner for CNBC.

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.