E-Readers

Hearst Corporation is looking to launch a wireless e-reader. The e-reader is a hand-held device that allows the consumer to purchase periodicals, magazines and books. The e-reader displays electronic "ink" on low-power screens that show one page at a time, like a regular book. The experience is similar to reading on paper. I think this is a great idea. It just proves how fast our society turns to technology for any aspect of life. Having e-readers will also cut down on paper use. This will save our trees and forests and is a great example of "going green." The cut in cost also effects printing and distributing the product. This will cut costs by more than 50%. There is a downside though. The device is going to market sometime later this year. With the recession keeping money in consumers' pockets, I don't see many people splurging for this device when they can easily get the paper version. I think another problem to this idea is the people that love to collect and read actual books. I love to read and am currently building up my library. The device is more efficient than a book(s), but some consumers will miss the tangible product.





Copeland, Michael V. (February 27, 2009). Hearst to Launch a Wireless E-Reader. Retrieved February 27, 2009 from CNN Money.com http://money.cnn.com/2009/02/27/technology/copeland_hearst.fortune/index.htm?postversion=2009022712



Sony Reader image retrieved February 27, 2009 from http://www.mobilewhack.com/reviews/ebooks/

Buy Stocks!

If you are young, and we are, now is the time to buy stocks. It is a great time to invest in stocks at sale prices. With the recession and the stock market struggling, everyone else is selling. If you have the money, invest and watch your money grow over the next 30 years. Stocks are long term and most people selling right now have been invested for awhile (that makes sense to them). The market will be struggling for months to come, maybe even years, but that is irrevelant to us in our 20s and 30s. If we invest now, in 30 years, we will have a great nest egg. When we get to retirement age, social security probably will not be available to us. Investing now will allow us to have freedom when we are older. Most students don't think this far in the future, but I think that's a mistake. You can never start too early. Our teacher assigned our class a stock project this semester and I think it's a great idea (also fun!). It is teaching us the basics of stocks and the importance of investing. I am excited to build my own stock portfolio in the very near future!

Fried, Carla (Feb. 17, 2009). Younger Investors Can Proft From the Crisis. Retrieved February 20, 2009 from CNN Money.com http://moneyfeatures.blogs.money.cnn.com/2009/02/17/younger-investors-can-profit-from-the-crisis/

There are some fun calculators on CNN Money.com. This one is called "When will you be a millionaire?" Try it out...http://cgi.money.cnn.com/tools/millionaire/millionaire.html

Microsoft opening retail stores

Microsoft is planning to open its own retail stores this year. The stores will be set up with displays of computers with Microsoft software and Xbox 360 consoles, along with other products the company makes. David Porter, a 25-year Wal-Mart vet, was named head the project. The stores are meant to "help shoppers make smarter decisions about spending money on technology." It's interesting that Microsoft would make such a decision during a recession. Electronic sales, in general, have declined. Circuit City was forced to shut their doors last year. Even Best Buy has laid off thousands of corporate employees and seen a drop in sales. I'm not sure if now is the best time to make such a bold move. Competing with Apple stores will be difficult for Microsoft. Apple is known for their unique, modern stores. Microsoft will really have to convince consumers that their products are superior and worth the money. I hope Mr. Porter comes up with some great ideas! I wish him luck!

Associated Press (February 13, 2009). Microsoft Plans to Open Retail Stores. Retrieved February 13, 2009 from NY Times http://www.nytimes.com/2009/02/14/technology/companies/14soft.html?_r=1&ref=business

Ford Refuses Bailout Aid

Ford has had it's worst year ever with a loss of $14.6 billion in 2008. But the company refuses to let the government aid them with bailout money. Competitors like GM and Chrysler are involved in the bailout. Ford says they have enough liquidity to stay afloat. But at the end of 2008, Ford had $24 billion in cash on hand and a debt of $25.8 billion (more debt than assets). So why is the company not involved in the bailout? Ford believes that the economy will improve in the months to come. Some analysts believe the economy will get better around July, but how can they know that? Ford will continue to support themselves during these hard times until the economy significantly worsens or one of their competitors files for bankruptcy protection. If the economy continues into this recession, it will be the longest on record since the Great Depression of the 30s. Because most of my class is graduating in May, this recession is an important factor for us. Are we going to be able to get jobs in retail? Will the economy start to stabilize in the coming months? I am kinda worried, but only time will tell! Props to Ford for refusing government aid when that money can be used elsewhere. I really hope things work out for the company that made the automobile popular!