Shawn's Bail-Out Plan

Everybody's getting in on it! Bernanke has a plan. Paulson has a plan. McCain has a plan. Obama is working on a plan. Bush... well, I just hope Bush is working on anything. Ryan Peeler has a brilliant plan that will both inject the economy with cash and determine the next president.

Even those Libertarian Madison Avenue-types are getting onboard the Bail-Out planning bus, albeit for different reasons:
But don't worry, even ACTUAL recession won't reduce the Ad Industry's precious consumer spending, let alone RUMORS of recession.

Remember that spike 9 days ago when your mutual fund bounced back and things didn't look so bad? What the NYTimes reported as "the stock market soar[ing] last week on rumors that there would be a bailout." RUMORS, people. Stay with me, here.

And this morning, Goldman shares jumped back towards their pre-Lehman Brothers price just on rumors of Warren Buffet's $5 billion or $10 billion dollar investment. Again, RUMORS.

So JEC Chairman Chuck Schumer (Sen. D-NY) says "Americans are furious" about the price tag on the current plan for bail-out. The people are getting angry--furious--but absolutely nothing has been done, yet. So far it's just talk. Just RUMORS that things are going bad, RUMORS that things are going to get worse.

So, if the largest obstacle to approving the bail-out is the price tag and the strongest force on the US economy today is the rumor mill, I propose a 100% Free Plan to bolster the economy, save the struggling markets and stimulate America's move back to a happy, ignorant, credit-based, stable financial economy.

We need to start the rumor that everything is going great. I recommend it start with a speech from the White House-- George Bush puts one arm around McCain and another around Obama and he tells the cameras that "They'd miscalculated. Bernanke did his math wrong. Everything's good. Going great."

Then we shoot this via satellites and internet, and of course, YouTube, over to Europe and Asia and they hear that the US economy is fine, that the "crisis" was just a "bank error," and it renews the confidence of global financial markets who are quick to swoop up the deals of the weakened dollar, buying more Converse shoes and Michelin tires.

Finally, I suggest we get some people on megaphones to stand around on Wall Street and read government reports on how much more ethanol fuel we produced, how many more pairs of boots, and how much higher our standard of living is compared to years past. We could put a few Squeelers right on the steps of the Capitol building. Just to remind everybody that times are good and that you're not really in as much debt as you think you are.

Either that, or admit that the threat of recession and the entire subprime mortgage crisis was a trick to get Sen. McCain out of Friday night's debate with Sen. Obama.

But more importantly: The Browns are gonna go with Anderson again this week. Anderson! Let's just say we're a country that loves a losing streak.

The World is Still Round…

In spite of Thomas L. Friedman’s best efforts to claim otherwise in his newly revised The World is Flat: A Brief History of the Twenty-First Century, Release 3.0. Just as in his previous books, Friedman showcases his journalistic forte for information gathering, analysis, and insight-laden extrapolation. He supports well his own previous arguments for free trade, market specialization, and classical economic theories regarding absolute and comparative advantage. (Smith, Ricardo, ... Reich)

I’ll pause here to acknowledge that I, too, am a strong proponent of globalization. I have seen first-hand the dissolution of geographic and political barriers to trade and the ensuing benefits to the local economy. I find no fault in Friedman’s historical observations, including his 3 eras of globalization, his 10 flatteners, and even his recommendations for new hybrid fields of study he calls “Mash-Ups.” These ideas are spot-on in our global economy of increasing convergence.

But why all the doom and gloom, Mr. Friedman? Instead of telling your readers how the new “flattened” world will make lives better—spurring the economy of our New America into a greater leadership role as the birthplace of ideas and a nation of entrepreneurs—he focuses on the bad. Friedman follows the M.O. of Lou Dobbs, crying wolf over foreign theft of US jobs and a general disappearance of the American middle-class. Rather than pointing to the strengths of our human capital as inventors, creators, and brand builders, he tells readers that the American sky is falling in competition with Indian and Chinese ITs and engineers.

Friedman leans toward the dramatic, but what do you expect from an Opinion Columnist? He opens with this quote from an Indian software CEO: “The global playing field is being leveled… and the US is not ready.” This is followed by other sensational statements of hyperbole. “Today, people in China and India are starving… for your job!” he warns his children. But then, you are given to flights of the inflammatory if you are to make your living as an op-ed writer. The Title The World is Friendlier to International Business because of Improvements in Technology and Transportation doesn’t sell books.
--Shawn Butler

Digital Convergence

In the years of Thomas Edison, the business model of the motion pictures industry was vertically integrated and tightly controlled among a very few. The original inventors of the technology joined together and created a single trust called the Motion Picture Patents Company (MPPC) in 1908. From this time up until the Paramount Decision of 1948 when government regulatory forces broke up the tight vertical integration between content production and distribution, the industry was dominated by a few giant corporations exercising oligopolistic powers.

The Value Chain for this industry was a closely controlled, proprietary vertically-integrated monopoly. All the components: production, distribution, and exhibition were under the control of the studios themselves. This allowed them to engage in several practices including block and blind booking before these were deemed illegal in regulatory decisions by the federal government.

The introduction of Television had a powerful effect on the Business Model of the Movie Industry. Initially, television broadcasting was seen as a threat to the Movie Industry and its programming was a new competitor for the already declining attention of the film audience. However, by the early 1950s, the film studios recognized that the new technology was benefitting them. Past opinions aside, they did not hesitate to take advantage of a secondary market for their products, selling their extensive libraries for Television exhibition.

The arrival of the Videocassette Recorder (VCR) created another lash of retaliation from the Movie Industry. The technology, both Betamax and Video Home System (VHS), was met by a vehement lawsuit which, although taken all the way to the Supreme Court, proved ineffective. The Betamax Case of 1984 essentially paved the road for the introduction of new distribution technologies that were to come. As with television, the existing industries quickly realized that rather than fighting the technology change, they could have been profitting from it. Again they had found themselves in a legal battle against an alternative, and lucrative, new distribution channel. Direct sales of films to VCR owners quickly gave way to video sales to Rental Stores, creating the two-tiered pricing system that is still utilized with the introduction of DVD technology. With a 40 to 60 percent split of the rental revenues, the Home Entertainment category is now the most profitable segment for the Motion Picture industry.

The internet was met with similar trepidation. As though struck with the same inexplicable amnesia that repeatedly appears in their plotlines, the Film Industry completely ignores their history and continues to view technological advancement as a threat. The big 6: Disney, Sony Pictures, Paramount Viacom, Fox News Corp, NBC Universal and Time Warner, joined together to form the Motion Picture Association of America (MPAA). In an organization that bears the very same traits that led to government antitrust intervention a century ago, the major Hollywood studios have again united to create closed standards that hinder competition. Together with a similar organization in the music industry, the Recording Industry Association of America (RIAA), the MPAA exerts a concerted effort to find and prosecute internet-based piracy and file sharing. In place of embracing these technological advancements and evolving complementary technologies to generate greater profits, like the billion dollar online film business being operated by early-adapter Blockbuster.com, the motion picture industry is again seeking legal insulation against the natural progress of their industry.

I see two possible scenarios for the Motion Picture Industry in the next 5 years. One, it will succeed as it has never before in controlling the distribution and exhibition of its products. This will undoubtedly follow a multi-year court hearing and perhaps several appeals that will be costly not to the media corporations, but to the consumers who are subpoenaed for testimony for or against the practices condemned. Afterwards, movie industry products like HD DVD and Blu-ray will have multiple layers of encryption to prevent copyright infringement. Movie theaters will be equipped with state-of-the-art biometric security to prevent movie-goers from “movie hopping” within the theater. Blockbuster will require a password, DNA sample, and a large cash deposit prior to releasing any media for rental. The internet will be laced with information-eating viruses that seek out unlicensed copyrighted materials on civilian computers, erasing it and signaling the Ministry of Truth to prevent any further crimethink. Meanwhile, independent filmmakers will capitalize on the benefits of unsolicited word-of-mouth product marketing facilitated by a peer-driven audience base of information sharers to create the future blockbuster films with zero dollar marketing budgets.

Or the second scenario, where the lessons of cooperation and compatibility push the Motion Picture Industry to adapt to a digitally enabled consumer society. They evolve their product offerings into a format that takes advantage of the rapid file sharing capabilities of the continually broadening internet. The MPAA will pioneer the technology of degradable digital, where all digital files have a shelf life before evaporating into zeroes and ones. This becomes the new standard format for movie viewing, people watching degradable digital on their cell phones, ipods, laptops, and home theaters. Independent filmmakers and Hollywood studios both make giant amounts of money from the now much larger consumer pie as we watch the multiplex theater go the way of the opera house, becoming a quaint experience where parents take children for a night of nostalgia and pay premium prices. A new market of Film Viewing Houses emerge after the pattern of IMAX theaters, targeting the Audio/Videophiles who are seeking the “Ultimate” in film-viewing experience. Formal Standard Setting becomes secondary to a spirit of innovation so that the “Best” technological advancements can come to the forefront, with the understanding that the whole industry will benefit from an increased interest facilitated by an improved customer experience. Movie-making will follow in the direction that television and internet are now going. The consumer, not the seller, determine the content and usage practices.

These ideas may be a little far-fetched, but they stem from lessons that history has taught in the areas of electric current, telecommunications, and long-distance travel. Businesses that will continue to succeed are businesses that focus on the benefits they are providing to customers and which are capable of adapting their own business model to follow the advancement of technology as it realigns itself with that overarching goal. Media and delivery channels will continue to change, but creating a relationship of trust with your customer base will assure financial success and maximize long-term shareholder value. --Shawn Butler

I <3 New York City

New York City gets a bad reputation. As the most filmed city in the world, it is no wonder that I had many preconceived notions about NYC. Many of them were true. It is bigger, taller, and even more fast-paced than I had anticipated. I had blisters on my feet by the end of day 2. But I also had been lead to believe that this city was full of rude, selfish, busy and impatient people.

I want to say that this couldn't be further from the truth. I travelled the streets of NYC with my wife and our 4-month-old baby. We usually carried with us two bags and a stroller. On the way from the airport and back, we carried all this, plus two suitcases. At every leg of our trip, from the Q33 Bus at the airport to the Q Train to Central Park, without even asking, we had kind people offering us information and helping hands. These complete strangers offered to carry bags for us, to hold doors for us, and even to call elevators for us.

I came to expect that if I looked puzzled in front of the subway map for long enough, someone nearby would ask where we were trying to get to. And when I answered, as often as not, someone completely different offered up the route to get us there. I loved one experience where two separate groups were debating the best route to get us from 53rd and Lexington up to Lincoln Center. When people helped us with our bags or held doors for us, I would respond to their kindness in the way I had seen in movies: I pulled a couple dollars from my wallet. In every case, every case! it was refused with a shake of the head or a wave of the hand.

I want to say thank you to the countless helpful and friendly people of NYC for their kindness and altruistic service. You have conquered forever the unfortunate stereotype of your city. Well, I can't speak for any of the other boroughs, but, we loved the experience we had with the generous people of Manhattan, NYC. --Shawn Butler

Mitt Is It! Romney for President 2008

This Man Has the Ability to Lead America Out of the Slump Created by the Last Four Presidential Terms.

America needs a President that we can look up to. The World needs an American President that is leading the global community in intellect, integrity, and mutual respect. Romney brings back to the White House traditional American values, confident integrity, solid morals, and a platform that understands America's needs. He plans to execute an effective foreign policy that will end the "War" in the only way it can end, a decisive American victory and the long-term stabilization of a local government in Iraq.

I am tired of being embarrassed for the policies, demeanor, and scandals of our nation's leader. I am hard-pressed to understand why anyone would cast their vote for more of the same policies, demeanor, and scandals that we have endured over the past 7 years embodied in the other major candidates in both parties with exception of Obama, from whom I am not sure what to expect. But that is my issue with him, he has no record from which to extrapolate a "what to expect".

If you agree with Mitt Romney's ideas for America, and like me, are tired of suffering humiliation in the global community for our elected leader, then join Mitt on his website MittRomney.com and let him know that you believe in him.

Or you should buckle up and look forward to four more years of this: