So Much for Plan “B”

Another day over and another day closer to once mighty General Motors® declaring bankruptcy. All the king’s horses and all the king’s men, along with billions of our bailout dollars, can't seem to put GM® together again.

 

In 1953, at the peak of its dominance, GM president, Charles Wilson, declared before Congress that “what was good for the country was good for GM”. By contrast it’s not a stretch to say what’s bad for GM is bad for the country.

 

Uh-oh.

 

Bankruptcy could come as soon as June 1. Maybe earlier. Maybe tomorrow.

 

So what you say? In a GM bankruptcy everyone feels the economic pinch. A federal agency, the Pension Benefit Guarantee Corporation, will take over responsibility for the pension money.  $16.5 Billion. Retired employees could end up with far less than what they’re owed. Perhaps pennies on the dollar.

 

Denver auto dealer, John Medved, told me that the average life expectancy was around 75 when those agreements were struck years ago. It’s well beyond that age now. Those retired autoworkers are living longer, and we’ll be paying even longer.

 

A bankruptcy doesn’t last a few weeks. It’s anything but neat and tidy. It doesn’t create jobs. It’s quite the opposite.

 

Dealers, to their credit, are trying everything they can to survive. The government is offering to guarantee your warranty. Wow.

 

Have you bought a new car yet? Didn’t think so.

 

Plan “B”, aka bailouts, isn’t working.

 

My idea still stands. A $10,000 tax credit when you buy a new car. Car dealers need to sell cars. This sort of incentive will get people back to showrooms. Buy today, claim that $10,000 tax credit when you file next year. John Medved told me straight out that it will work. He’s listening. The government isn’t.

 

Meanwhile, GM, in business for 101 years, is heading toward bankruptcy.

 

This helps the economy how? It’s a question I keep asking the government. So far, they have no answer; their hands remain firmly over their ears.

 

It’s not too late. This doesn’t have to happen.

 

John

John W. Scherer

John Scherer is CEO & Founder of Video Professor, Inc.

You can reach him at ceo@videoprofessor.com.

It's too late for this year; let’s focus on 2010.

Another tax day has come and gone. Regardless of whether you paid in, or got a refund, ask yourself this question:

 

“How would my taxes have been different if I received a $10,000 tax credit for buying a new American car?”

 

Then, call or e-mail your elected representatives and ask them why, despite the billions of dollars sent to Detroit, companies like GM are seriously considering bankruptcy. Why are we junking more cars than buying new ones? Why are car sales half of what they were just two years ago?

 

For my regular readers, you know the tax incentive plan is something I continue to believe in. I also realize that change, especially when it comes to the government, moves at a glacial pace. It’s like jogging through peanut butter.

 

The plan is simple: Buy a new American-built car and receive a $10,000 tax credit when you file your taxes next year.

 

You, as a taxpayer, would finally get a break, people would start buying cars, jobs would be created and the domestic automobile industry would get back to being a thriving business rather than a welfare case.

 

The idea, as I said, is SLOWLY catching on. I was honored to be a keynote speaker at this year’s Colorado Auto Summit where it was agreed that my plan would get customers buying again.

 

You can watch excerpts by clicking here for Part 1 and here for Part 2.

 

The Detroit Free Press, The Denver Business Journal, CNN Money, KUSA-TV, KCNC-TV, KMGH-TV, FOX 31, WB2 in Denver, KPHO-TV in Phoenix and WJBK-TV in Detroit have all done stories about my idea.

 

More importantly, no one has come up with an argument for why it won’t work.

 

More and more people are listening. Look for me on more media outlets and Op-Eds in the future. Sadly, just one entity isn’t listening: our government.

 

You’re expected to pay for the solution, but not benefit from it. That is simply not fair.

 

Join me in this fight for what’s right.

 

-John

John W. Scherer

John is CEO & Founder of Video Professor, Inc.

You can reach him at ceo@videoprofessor.com.

Jay Cutler: Lessons learned and not learned.

Jay Cutler is now a Chicago Bear.

So, how does this pass the “So what?” test beyond wins and losses and the whole “football thing.”

The answer is pretty simple. Yes, football is a game. But it’s also big business.

Broncos’ owner Pat Bowlen, is the guy who signs the checks. It’s an easy system. You always listen to the guy who signs the checks.

New coach, Josh McDaniels, does. When Pat Bowlen calls him, McDaniels answers. In return, he gets a paycheck. Bowlen is also smart enough to listen to his coach.

Mr. Bowlen made several calls to Jay Cutler. Cutler ignored them. If Cutler had returned the calls, Bowlen would have listened to him as well.

It’s called communication. But it takes two to communicate.

You can’t run an organization when the employee ignores the employer. When discipline breaks down, the organization fails. Always.

Pat Bowlen is the successful owner of one of football’s most respected franchises. Jay Cutler remains petulant to the point that he felt he didn’t need to respect the organization that paid him a multi-million dollar salary, and despite a 17-20 record as a starter, was still willing to believe in him.

The boss called. The employee didn’t answer.

Pat Bowlen needed to make a point. He did. Good for him.

-John
John W. Scherer
John is CEO & Founder of Video Professor, Inc.
You can reach him at ceo@videoprofessor.com.

Government is wasting its most precious resource. Ideas.

I had the privilege to be the keynote speaker last week at the 2009 Auto Summit, which kicks off the annual Denver Auto Show. They asked to speak about my idea for a $10,000 tax credit for all buyers of cars manufactured by GM, Ford and Chrysler.

Joining me on stage was Mr. John Medved, President and CEO of Medved Autoplex, a long established chain of car dealerships here in Colorado. Medved is the Colorado Automobile Dealers Association Dealer of the Year and simply put; one great guy.

The timing could not have been more opportune. About an hour prior to our presentation, President Obama announced his plans for both GM and Chrysler, essentially keeping them on a very tight leash.

President Obama officially announced the termination of GM CEO Rick Wagoner plus giving GM 60 days; and Chrysler 30 days to come up with restructuring plans before anymore bailout money would be made available to either company. The President also announced that Chrysler must merge with Fiat.

When did they add CEO to the POTUS job description?

The President didn’t mention about asking Detroit what government could do to actually help them sell cars. He did say the government would “back-up” warranties if you buy a car. Bet that will get you to a showroom.

Not.

President Obama is getting all his advice from people who know nothing about business or the American Automobile industry. After spending quality time talking on stage with John Medved, it struck me just what government is missing out on when it listens to bureaucrats instead of people like John Medved.

John’s dad worked on an assembly line back in Michigan for 37 years. John himself started out working the line before coming west to start his car business. His background is pure blue collar. He built up his business with grit, determination and plain old hard work. He’s an incredible businessman, who despite all the challenges facing the industry somehow is keeping the doors of his business open.

He agrees with me that the solution to getting the car business and our economy going again is sales. People aren’t buying because there is no incentive for them to buy. No sales mean no business.

Sales on the other hand mean business. It means creating more jobs. It means getting the economic blood flowing again.

John shared some staggering numbers. The industry is selling about half the cars it did compared to just two years ago. America is actually junking more cars than buying them!

I’ve blogged numerous times, and opined in numerous Op-Ed’s that the issue isn’t quality. Detroit makes great cars. Consumers simply need an incentive to buy. John Medved agrees. Give people a good reason to buy, and they’ll do just that.

John’s been to Washington. He’s a smart man. His ideas however, are falling on deaf ears. He’s just one of hundreds of “Main Street CEO’s” government isn’t listening to. I’m going to Washington next month to give it a try. Wish me luck.

I know, you see the photo-ops of business leaders supposedly meeting with government leaders. It’s all just “grip and grins,” But it’s the bureaucrats who call the shots. Not the people who live and breathe free enterprise. Or what’s left of it.

Until government realizes the tremendous resource it has in people like John Medved, we’re going to be stuck in neutral for a long time.

Washington. Listen. Please.

-John
John W. Scherer
John is CEO and Founder of Video Professor, Inc.You can reach him at ceo@videoprofessor.com

Annual Employment Review

Employee Name: Federal Government
Date of Hire: July 4, 1776
Review Date: March 27, 2009
Next Review: November 2010


It’s important for employers and employees to communicate and to measure performance. This annual review is designed to provide positive re-enforcement and to identify key areas for improvement.

We will be reviewing your performance in the following areas:

Quality of Work
Integrity
Teamwork
Problem Solving Skills
Attention to Detail

Each area will be evaluated on a scale of 1-5, with 1 being excellent and 5 being unsatisfactory. When appropriate, we will include comments detailing the reasons for the particular score.

Quality of Work
Overall Rating: 5/ Unsatisfactory
It should be noted that after your initial hire in 1776, your work was the envy of the world. You maintained an excellent quality of work for over 200 years. The past several decades or so have brought about a significant decline, which is of growing concern to us.

Budget management is of key concern. Accounting reports you are consistently over-budget and that your deficits continue to grow. Revenue projections are over-inflated and do not achieve promised projections

You appear to be more focused on drawing attention to yourself, rather than problem solving. Political hearings on everything from the budget process to steroids in baseball, while worthy topics, have achieved no measurable results.

Integrity
Overall Rating: 5/ Unsatisfactory
This area has been especially disappointing to us. Several employees within your departments have been convicted of various crimes, including graft, corruption, and misuse of budget funds. Several recent hires in the budget departments were made, despite the fact that these employees did not pay their taxes, which could account for some of the revenue shortfalls you have incurred.

One recent promise made on your part last fall, to cut earmarks, was totally ignored with the recent signing (behind closed doors) of a legislative package that included over 8,000 earmarked projects. One example was the $200,000 study to find out why pigs stink.

You promise one thing then do something completely different.

Teamwork
Overall Rating: 5/ Unsatisfactory
Speaking again of your initial years of employment, while there were two distinct divisions (Republicans and Democrats), you always managed to put the best interests of your employers first, and set political differences aside for the overall good.

Frankly, in recent years, you have behaved more like spoiled children used to getting their way. No one appears to be working with a positive team spirit. The result is a dysfunctional organization. This is of growing concern to us and an area we will be paying close attention to as we prepare for your 2010 review.


Problem Solving Skills
Overall Rating: 5/ Unsatisfactory
Problem solving skills is another area of serious concern. Key issues facing the organization remain the economy, employment, the flow of credit to responsible borrowers and financially viable incentives for investment and growth.

Your solutions seem to take the proverbial “back-asswards” approach. You are investing funds in failing institutions and processes. We have several examples, but for the purpose of brevity, we’ll just mention AIG and housing.

AIG has been issued $180 billion, which has resulted in an 80 percent stake of ownership on our part. Yet, as majority stakeholders, you have put no control systems in place to account for and protect our investment. The recent decision by AIG to pay out $165 million in bonuses for failure is a perfect example. Several key managers within the government organization have expressed outrage, but in this case, the horse has already left the barn. No sense in closing the gate now.

As for housing, people were lent huge amounts of money for homes they could not afford to pay back. This was based on ill-advised rule processes and lax oversight. Your solution is to make the 93 percent of your shareholders, who are responsible and pay their bills on time, pay for your mistakes. A far more acceptable approach would be to free up credit for those who have proven track records of managing their bills and personal budgets.

Attention to Detail
Overall Rating: 5/ Unsatisfactory
Your most recent budget calls for approximately $3 trillion to be spent ($10 trillion over the next three years) with a promise of cutting the existing budget deficit in half during the same time period.

This is what’s called “fuzzy math” and unsustainable in execution.

Another example is that there is no accounting for $350 billion in TARP funds issued last fall. We don’t know where the money went and what it was spent on, other than a few lavish corporate retreats.

Summary
Overall Rating: 5/ Unsatisfactory

Based on past performance during the previously mentioned 200 years of employment, we have decided that there remains hope that you can turn this situation around in a positive manner. As a result, we expect the following action items to be instituted prior to your November 2010 review.

Accountability: You will respond to constituent comments and inquiries in a prompt and timely manner, not with pre-packaged generic e-mails. This will require extra hours on your part and certainly more work, but we feel this can be a positive move on your part to maintain employment. You will also read all bills before voting on any of them. Your direction will come from your constituents as to how to vote, not lobbyists and party hacks.

Budgeting: Moving forward, expenditures must not exceed revenue. This will require no small amount of fiscal discipline. But, the balance sheets must be just that, balanced. We will give you through the next scheduled review to develop a plan to adjust expenses, and also project realistic revenue numbers.

Teamwork: All of you must begin to work together. As an example, use this as a guideline before making any decisions: “Is this good for the citizens of this nation, the people who ultimately pay the bills? Do we reward success or continue to reward failure instead?”

Integrity: Please stop lying to us. Just tell the truth. Honesty is a good policy and served you well after your initial hire in 1776. We know it can move forward.

We will be closely monitoring the above action items through this next review period and will make our decisions as to your continued employment in November of 2010.

We hope that you have found this to be positive input, with constructive and workable solutions to ensure your continued employment. We have good ideas to help you succeed. But, you have to listen.

Supervisor Name:
John W. Scherer, on behalf of the American taxpayer.
John is CEO & Founder of Video Professor, Inc.
You can reach him at ceo@videoprofessor.com.

Memo to: Jay Cutler, QB1-Denver Broncos From: John W. Scherer, Football Fan

Dear Jay,

It’s come to my attention that you’re not happy. I haven’t been happy either. Last year’s 8-8 record was disappointing to say the least. Like many of the previous seasons.

Before I continue, please note that you have a 17-20 record as the Broncos QB and have never been in a playoff game, either in college or professional football. Don’t let the Pro Bowl thing go to your head. No one watches that game anyway.

Apparently, you’re miffed that the team considered a possible trade. The keywords being “considered” and “possible.” It didn’t happen. Since then, you’ve pouted.

Football is a game on the field. It’s big business off the field. Pat Bowlen, who pays your annual $14 million a year salary, brought in a new coach, Josh McDaniels, from the New England Patriots.

The Patriots have a history of winning. The Broncos don’t.

Job #1 for Coach McDaniels is to change that. Otherwise, he doesn’t get a paycheck.

You make more money than the coach, but he has more authority. It’s the way the system works. He’s in charge. You know, the boss. The head dude. The “Decider.”

The team has made several private and public assurances to you that they want you to remain on the team. Yet, you continue to stomp your highly paid feet, and some reports now have you wanting a trade. That is what upset you in the first place.

Word is you might not show up for spring conditioning drills.

Jay, you’re 25 years old and a multimillionaire. There are men and women younger than you leading troops into combat at this very minute who make a fraction of the money you do. Let’s face it: Getting shot at 24/7 is far more dangerous than being sacked on Sundays.

They’re not whining. Why are you?

There are people standing in unemployment lines, or hoping to make their next mortgage payment or just trying to put food on the table for their families.

None of them make $14 million a year. They don’t feel your pain. Frankly, they think you’re a pain.

Back to the business side of pro football, it involves trades. Even you. Your job is to lead your team on the field. Pat Bowlen and John McDaniels’ job is the bottom line, both financially and in the win-loss column.

Part of being QB1 of a an NFL franchise, earning millions of dollars a year and being 25 years old includes leadership and maturity. (Google both.)

Jay, it’s time to man up.

Yours truly,
John
John W. Scherer is CEO & Founder of Video Professor.
You can reach him to talk football or anything else at ceo@videoprofessor.com.

Beer-gate?

It’s a tough job being president of the United States. At any one time, you have about half the country mad at you. It comes with the job.

Everything the president does is scrutinized. Everything.

So, when President Obama took in an NBA game this week and ordered a beer, the outrage began.

More than a few folks complained that he shouldn’t be having fun while so many people are having a tough time of things in this economy. Others complained that his job is 24/7, and he shouldn’t drink on the job.

Most folks are still able to catch sporting events, pay their mortgages and generally live their lives. Some even enjoy a beer or a cocktail once in a while.

So, why begrudge the POTUS for having a cold one? He does have a designated driver.

Franklin Roosevelt enjoyed a Martini (or two) during the Depression. Harry Truman was known to enjoy a Bourbon and Branch while we fought in Korea. John F. Kennedy partied with Marilyn Monroe and Frank Sinatra during the Cold War. President Reagan was known to have a “Weak Orange Blossom” on rare occasions, and he won the Cold War.

Yes, we’re in the middle of some tough times. Having a beer won’t change that. But, it certainly won’t make it any worse

If I had any advice for the president, however, it would be to make sure that beer was a domestic brand!

Of course, always, everything in moderation.

-John
John W. Scherer
John is CEO & Founder of Video Professor, Inc.
You can reach him at ceo@videoprofessor.com.

Tea party anyone?

Back in 1763, old King George of England needed to pay for some wars he fought with the French. His solution was to tax the American colonies. King George used the same tricks that politicians use today to “disguise” the tax, but the colonists weren’t buying any of it.

It was a sneaky pitch. One of the taxable items was tea, sold by the East India Company, which had exclusive rights to selling tea. King George told the colonists that he would actually lower the import fees paid for the tea, but in the fine print, the colonists would then acknowledge the British Parliament’s ability to tax them for anything, anytime.

King George made a serious mistake underestimating the intelligence of his subjects. Sound familiar?

It was taxation without representation. So, when the next shipment arrived in Boston Harbor, colonists met the ships and dumped the tea overboard.

The Boston Tea Party set the stage for America’s eventual independence.

Now, 246 years later, it might be time for another Tea Party, this one proposed by Rick Santelli, a CNBC reporter. Called the “rant heard ‘round the world,” Santelli was reacting to the mortgage stimulus bill being pitched by President Obama. Santelli’s point was clear. Why should the overwhelming majority of Americans, who play by the rules and pay their bills on time, be forced to pick up the tab for the small minority who don’t?

Not everyone agrees with him, especially the current administration. Personally, I can’t fault Santelli’s logic. He is calling for another Tea Party, set for July 4th. The event already has its own Facebook page.

This economic mess has been long in the making, and there’s plenty of blame to go around. But it won’t be solved by pouring hard-earned money down a deep, dark hole. Let’s get money flowing to those with proven and dependable track records, and the free market will take care of the rest. Reward investment; don’t punish it.

President Obama’s biggest problem was sitting right in front of him Tuesday night. I noticed that most of the faces in the crowd had been there for decades. These are House and Senate leaders from both parties who have built powerful fiefdoms, and the last thing they care about is you and me. What they want is what they get. They are the root cause of the mess we’re in today.

It’s time for us to show them the folly of that thinking again. Let’s hold the president to his promise to go through the budget, line by line, and cut the waste, a.k.a. pork. Then, see if he’s willing to stand up to those who put the pork there in the first place.



What better day than July 4th? Tea anyone?

-John
John W. Scherer
CEO & Founder
Video Professor, Inc.
You can reach John at ceo@videoprofessor.com.

Thank goodness for Sully.

It’s been quite a week. President Obama signed the stimulus package. Do we know if anyone voted for it in the House or Senate read the darn thing? Anyone? It seems like no one really knows what’s in it.

Price tag? At least $1 trillion, despite claims otherwise.

Senate Majority Leader Harry Reid scored $1.5 billion for his home state of Nevada. He’s up for election next year. How much did your state get? Look for more neon the next time you visit ‘Vegas, if you can afford to go.

GM and Chrysler made yet another trip to Washington for more bailout money. There will now be a bailout oversight committee, a.k.a. task force, instead of a car czar. Washington loves committees. More people in charge of less.

As for GM and Chrysler, they’ll head back to Detroit with a bailout total of $39 billion but without a plan or incentives for new car buyers, just more bailout money. I still believe a $10,000 tax credit for new car buyers will have customers lining up, dealers selling cars and jobs being created as a result.

Want proof? There was a story on local radio about a man with a good credit record, willing to put a 30 percent down payment to buy a new car, and the bank turned down the loan. This helps the economy how?

There was some progress on housing. Low interest rates for qualified borrowers are a start. The President also announced a new plan to help troubled homeowners, which essentially rewards failure and irresponsibility. Your cost? $275 billion. Maybe the government should reward success and responsibility instead.

Why not eliminate capital gains taxes when a qualified buyer invests in a property, which creates jobs and is able to sell it for a profit? Heck, they might take the money and buy another property, fix it up and create even more jobs. But no, success is punished instead.

So, what’s done is done. But what exactly has been done? We won’t know for awhile. Whatever the outcome, it will be spun, and re-spun.

President Obama is “Takin’ it to the streets.” He’s showing up in places like Peoria and Denver and away from Washington. He’s making his pitch on Main Street as he did during the election. It worked once. It may work again. The new President says he’s a fan of Abe Lincoln. I hope he remembers that Lincoln said, “You can’t fool all the people all the time.”

But, America today is a country that likes instant gratification. “What have you done for me lately” has been replaced by “What are you doing for me right now?”

GIMME, GIMMEE, GIMMEE! Okey dokey.

Good luck with that Mr. President.

Normally, when the news reaches a certain level of depression, I switch over to ESPN. There’s nothing like baseball and spring training to restore the spirits. But all the stories are about A-Roid. He’s sorry. He didn’t mean to do it. He’s going to make it up to us. I think he’s making it all up.

Cooperstown will soon have an asterisk wing. It will be a big one.

But, you know what? I remain optimistic about America. Our history has been full of wild pendulum swings. We’ve always been pretty good at grabbing it when it reaches the middle and holding it there for awhile. I think we’ll do it again.

Common sense will once again prevail. Hard work and honesty will be something to be admired and rewarded.

Sometimes it takes someone like Chesley B. Sullenberger III to set the standard and raise the bar. Sully, who in his own words was “Just doing my job, what I’m trained to do,” calmly set down his crippled airliner in the Hudson River. He and his crew saved all 155 passengers. He was the last crewmember off the plane, leaving only when he made sure everyone he was responsible for was safe. Just doing his job.

As long as America has men and women like Sully and his crew, we’re going to be ok.

I’m counting on it.

-John
John W. Scherer
John is CEO & Founder of Video Professor, Inc.
You can reach him at ceo@videoprofessor.com.

MLB: This Bud’s not for you.

"Those who cannot remember the past are condemned to repeat it." –Poet and philosopher George Santayana.

"Major League Baseball has always recognized the influence that our stars can have on the youth of America. As such, we are concerned that recent revelations and allegations of steroid use have been sending a terrible message to young people."-Bud Selig speaking before Congress.

“FIRE BUD SELIG.”-John Scherer, the Video Professor and old school baseball fan.

Just when you thought the whole mess with steroids and baseball had settled down a bit comes the admission by Alex Rodriquez aka A-Rod, A-Fraud, A-Roid etc (The list grows every day) that he used steroids when he played with the Texas Rangers.

Big bat to big joke. Jay Leno is sending a thank you note. A-Joke admitted to it only after being outed by Sports Illustrated. He now says he’s sorry. Remember when saying you’re sorry used to mean something? Not any more. It’s been replaced with “A-Sorry.”

No word from MLB Commish Bud Selig yet. Part of his $18 million salary is apparently to keep his trap shut and do nothing. He’s like a monkey with six arms to cover his eyes, ears and mouth all the time humming, “Take me out the ball game.”

Meanwhile, the Yankees are standing by their man. He cheated while playing for the Rangers after all; not the Yankees. Lying is acceptable behavior within the Yankee Organization. (Read Joe Torre’s book)

The real stink of all this comes after last year’s Congressional Circus, I mean, “Hearings” about the problem.

Baseball Commissioner Bud Selig vowed to clean the mess up. Two things amaze me about Bud Selig. He’s apparently totally oblivious to the train wreck about to happen to professional baseball and you can’t see the puppet strings attached to him being pulled by MLB owners.

Howdy, Doody.

Why does Bud get to keep his job? Because the money is pouring in. Money is a great deodorant.

Ole Bud and baseball are in for a rude awakening this season. The economy is tanking and when people are broke, things like going to the ballpark move to the bottom of the discretionary spending list.

Bud, you’ve finally ruined the game. Americans are about to take a pass on America’s pastime.

The bar for behavior is now set so low you have to look down to see it. The apple pie is juiced. Don’t eat the Peanuts and Crackerjack. You might get salmonella.

It’s time to re-boot pro baseball. Step one is to boot Bud Selig out of his job.

Any records set after Roger Maris and Hank Aaron are deleted. 61 and 755 are the target numbers for rookies starting this season who keep their noses clean and the needles out of their arms.

The Mick, the Babe and Joltin’ Joe were far from perfect. But they were clean. What they accomplished on the field and made them heroes to a generation wasn’t due to science. Just hard work and skill.

Hank Aaron broke the Babe’s homerun record despite death threats. He overcame it all through courage, grace and determination. Not chemicals. Roger Maris was booed and had chairs thrown at him. But he didn’t juice up, he showed up.

A-Roid, Barry, Mark, Sammy and a bunch of others may have sold more t-shirts than those that preceded them in baseball. But they did so by selling out. So did over a hundred others.

Maybe there should be a new monument to these players for kids to visit called “Cop-Out” town, one big hall of shame. Washington DC would be a good location. The building would be shaped like a syringe.

-John
John W. Scherer
John is CEO and Founder of Video Professor, Inc.
Reach him at ceo@videoprofessor.com

I hate to rain on your parade, but I’m going to anyway.

“A regulator overseeing the government’s $700 billion bailout testified Thursday that the Treasury Department paid $254 billion for $176 billion of assets — an overpayment of $76 billion.” (Source: New York Times, Feb 5, 2009)

An overpayment of $76 Billion. Bailouts American Style. They hired the regulator after they gave away the money. You know, closing the barn door after the horse took off.

Sadly, I’ve officially lost all faith in government. As the new President, Senate and House leadership scream “Hurry up we have to pass this stimulus bill or the sky will fall,” we get positive proof, that haste indeed makes waste.

Last fall we were told the same thing. The bailout had to be passed immediately if not sooner. Congress caved and we paid. Actually we overpaid.

STOP, STOP, STOP, STOP with the B.S.!!

Chew on that number again. $76 Billion. Check your last pay stub. We’re paying for it. One paycheck at a time for a very long time. You have no other use for the money do you? My gloom and doom is non-partisan by the way. Republicans and Democrats alike are running the ship of state aground, when what’s really needed is statesmanship.

Welcome to the USS Titanic. There’s a financial iceberg dead ahead and the crew says “Full speed ahead.”

Last fall’s $700 Billion bailout is relative chump change as the current “Stimulus” bill is closing in on $1 Trillion. The difference between “B” and “T” is a whole bunch of zeros. Word also comes this week that our government will need to borrow another $2 Trillion to pay the bills for 2009.
So how do they raise that money? Foreign governments, many of whom have little regard for us, our ideals and our society are buying up that debt. While our government overpays, they’re buying our debt for pennies on the dollar.

They’re going to want it back. Imagine the Chinese Government foreclosing on the White House. Maybe Dubai putting padlocks on the Capitol.

Folks, we’re heading for financial Armageddon and I want to be on record saying so. But it’s not too late to slam on the brakes. There’s only one way to do so. Contact your elected representatives and tell them to “Just say no.” If you phone, yell. If you e-mail, type it in all caps. Call radio talk shows. Write the Editor if you’re lucky enough to still have a newspaper. Blog loud and blog proud.

If millions raise a big enough ruckus, Government just might listen to reason. The key word being “might.” Give it a shot anyways.

I’ve got some phone calls to make, e-mails to send and this blog to post. Are you with me?

-John
John W. Scherer
John is CEO and Founder of Video Professor,
Inc.Reach him at ceo@videoprofessor.com

Your Turn!

When I first started blogging a few years ago, I was among a few thousand doing so. Since then, millions of new bloggers are on the scene almost daily.

Blogging is all part of a much bigger evolution called “Social Media,” and I take advantage of it.

It’s amazing how posting ideas and opinions can quickly spread. My recent postings on a tax credit for buyers of American-produced cars were picked up as Op-Ed articles in the Detroit Free Press and Denver Business Journal. I just finished an interview with CNN Money based on these postings along with thoughts on kick-starting the economy by making housing affordable for qualified buyers. The key word being qualified.

The soapbox is now a digital one. (And far more comfortable to stand on)

My most recent posting on housing and the economy became an excellent springboard for discussion when I posted it on a very popular site called Linkedin.com. Think of it as Facebook for people in business.

Several folks kindly allowed me to share their opinions with you. Here they are:

You ask "How did Washington get this way?" I believe it got that way because we the people started to believe that everytime there is a problem, we need government to solve it. We looked to the government in the 30's, they told us what we wanted to hear, gave us government programs that never go away and after 8 years of raising taxes and more government programs, we still had a depression. The depression ended because of WWII but the expectations of government didn't.-Michael Gardner, Live Coach Trainer, Salt Lake City UT.
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You may just be the smartest man alive. Is the 'keep it simple' philosophy still alive? You have the dead on solution and yet.... they will dance around that money as long as they can. I agree completely. The most profound statement for me was ' government doesn't create jobs'. DUH! I pray for this new administration. I have faith that we have seen the last of the crash and burn economics and policies. Obama is smart, and he has two little kids... my thoughts, as a parent, he will do things during his administration that will impact profoundly on his girls and their children. Bravo John!!-Shari Greer, Professional Marketing and Sales, Houston TX.
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I doubt that the govt can engineer especially lower interest rates for housing, separate from all else. Actually, the interest rates in the economy need to be increased so that people are encouraged to spend and save within their incomes rather than live off 'cheap' credit. Except, of course, no one can pay for a house with one's past savings - so housing loans can be supported via the fiscal mechanism instead - say e.g. allowing one to take the standard deduction instead of itemizing and, on top, get a tax rebate of, say, 28% of the mortgage interest one paid in the year. But the valid question arises, if the banks are getting these massive money infusions not for making new, cheap loans to the people, then for what are these? That's a separate speculation.-Harsh V. Pant-SAP America.


Social media is a great way to get your voice heard, and better yet, to hear other voices. Of course, not everyone agrees, but it’s this sort of discourse that has kept America very vibrant since 1776.

Technology simply makes it easier to do so.

-John
John W. Scherer
John is CEO & Founder of Video Professor, Inc.
Reach him at ceo@videoprofessor.com

Economic Recovery starts with Housing

The new Congress has been sworn in and it’s all about the economy and how to fix it. Or so they claim.

Wheels are turning. Make that spinning. We’re going nowhere in a hurry.

So allow me to offer a starting point: Housing.

Fact: Good people want to buy houses from people that want to sell them. Or buy homes to rent to others. But they want to BUY.
Problem: The system is such a mess, they can’t. Even the most qualified of potential buyers.
Result: Chaos.

The political pendulum has swung from “Anything Goes” to “No Way” since the system crashed last fall.

How about swinging back to the middle? The way buying and lending used to be; fair and equitable terms for qualified people. Apply the same rules for all borrowers and lenders. Then enforce them.

Your mortgage payment shouldn’t be more than 1/3 of your income. Your income must be verifiable and you have to show a proven and stable record of paying your bills on time.

Down payment? Absolutely! But how about 10-15% instead of 40%? This should apply to both homes to live in, and investment properties. Let’s peg the interest rates at no more than 5%. This will result in performing loan portfolios for lenders. Lenders like that.

Let’s provide this additional inventive for investment property buyers: No Capital Gains Tax on proceeds if the house is sold within ten years of original purchase.

Now for the easy part: It will work now. It will work tomorrow.

Once we get qualified buyers into houses, there will be a positive impact on our economy. These homeowners will buy new carpet and drapes. They’ll install cable or satellite TV. Maybe even buy a new TV and sofa. They’ll buy building materials to expand or improve their property and hire trades people to fix anything from a leaky faucet to repairing a roof.

All this creates jobs. Good jobs.

Let’s dispel a myth right now. Government doesn’t create jobs. Government’s responsibility is to make it easy for free enterprise to create jobs. That means private investment. Investment requires capital. Capital should be made available to responsible people. Investment doesn’t guarantee success. But success shouldn’t be punished either.

Government is pouring billions of dollars into banks. Let’s just attach one string. The banks have to make this money available for investment. A trillion dollar deficit isn’t the answer. A trillion dollar investment in real estate is. Not by government, but qualified and responsible buyers.

This has been the core of this nation’s economic success for over two centuries.

It is so frustrating to see Washington deal with the most complex problems because they can’t see how easy the solutions can be. How did Washington get to this point? Where did Washington lose its way? Where did Washington get the idea that printing money that doesn’t exist can be a solution to anything?

Washington needs to listen to folks like you. Call, write or e-mail. Flood Congressional Offices with your voice. Let’s all make our voices heard, loud and clear.

Let’s move forward by looking back at what worked so well in the past and will work in the future.

Please stop printing money we don’t have. It’s not as complicated as Washington is making it.

Problem solved. It starts with us. If government will let us.

-John
John W. Scherer
John is CEO and founder of Video Professor, Inc.
You can reach him at ceo@videoprofessor.com

Big 3 Tax Credits

As a veteran business leader I am fully aware that changing economic conditions will have an impact on business operations, some good and some bad. In bad times you won’t see me in front of Congress asking for a bailout; like the majority of American business we here at Video Professor are on our own.

As a businessman, a taxpayer, and especially as a consumer I find myself thinking about what government might do to ensure the future of the American automobile industry. Since Henry Ford’s first Model “T” rolled off the revolutionary assembly line, the auto industry has been the cornerstone of our manufacturing sector and the foundation of our economy.

Americans make things. We’re good at it and the world knows this.

GM, Ford, and Chrysler are in a huge financial hole. They helped dig that hole but the major impact is the result of the housing crash. The Big 3 went from having some chance of success to having no chance at all. Of course, assistance from the government must be packaged with fundamental change in all areas of operation. And in the US auto industry there is plenty that needs fixing, in both areas of management and labor.

OK, let’s talk solutions. Now that the band-aid has been put on the big 3 here’s an idea. Why not offer a $10,000 tax credit to any US taxpayer who buys a GM, Ford, or Chrysler by April 15th, 2009? Also offer a zero interest loan and just watch the cars sell.

Right now, generating cash and reducing inventory are most critical to the success of the Big 3. But this can’t happen until the American people start buying cars again, now!

When the leaders of the Big 3 appeared before Congress, not one of them was asked, “How can we help you sell more cars?” It was a missed opportunity.

This bailout, loan, or whatever our government wants to call it, should include some taxpayer benefit. Simply put, the government offers a tax credit to American taxpayers who buy American made automobiles. Without stimulating the market, government is dreaming while asleep at the switch.

A tax credit ensures that all benefit – manufacturers and their employees, suppliers, dealers and their employees, and oh yes, the American taxpayers too. This will get the economic blood flowing again. The increase in sales will create a renewed revenue stream for the automakers, which in turn will reduce the amount of taxpayer money needed from the government. Taxpayers who buy cars benefit when they file their returns April 15th.

This is not rocket science. It’s common sense.

“Simply the best computer learning available – guaranteed.”


But you have to have an incentive for customers to visit showrooms. What’s wrong with a tax break for the folks who drive cars along Main Street, USA? So far, the only people not getting a break are the people paying for everyone else to get a break. That will break us all!

People aren’t buying Big 3 brands due to lack of quality. They make great cars and they can produce even better ones. One of my own cars is a Chevy Tahoe. It is a GREAT vehicle. The housing mess (don’t get me started on that) is the root cause of this particular “evil”. But when the warehouse is stuffed, there is no point in producing more inventories.

A tax credit to reduce inventory and generate cash flow is as good an idea as any I have heard. It’s a start. Why not try it?

The idea of government now getting involved in free enterprise is the last thing any of us should want. But the current situation is what it is. Tax credit for the folks, who one way or the other will pay for it all anyway, seems only fair.

The government keeps saying they want to help the taxpayers but they still haven’t done that as of yet. Wake up and step up Federal Government! Get the cars moving and get taxpayers the break you keep promising!

Sincerely,

John W. Scherer
CEO & Founder
Video Professor, Inc.
ceo@videoprofessor.com
12055 W. 2nd Place
Lakewood CO 80228
303-232-1244 Ext 386

Communication can’t be a generational thing.

com⋅mu⋅ni⋅ca⋅tion-(kuh-myoo-ni-keyh-shuhn)

• the act or process of communicating; fact of being communicated
• the imparting or interchange of thoughts, opinions, or information by speech, writing, or signs
• something imparted, interchanged, or transmitted
  (Thanks to Dictionary.com)

How do you communicate? How much time do you spend on the phone vs. using e-mail? When was the last time you actually wrote a note by hand or actually met with someone in person? Does generation factor into how you communicate?

According to a report this year by Forrester®, “Generation Y sets the pace for technology adoption and digital, far exceeding any platform of traditional media consumed spending. In a survey of 45,315 North American online adults, people 21–-25 spend an average of 17.6 hours online per week, with 65% of that time for leisure purposes.”

Theirs is a life lived online. It’s all they’ve known. It’s a world not only of e-mails, instant messaging and texting, but posting on social web sites like Facebook® or using Twitter.

By contrast, Boomers learned how to read and write both by hand and on something called a typewriter. We also used something called “conversation.” Most, but not all of us, later evolved to electronic communication. Research shows a significant number of Boomers are well versed in computing. Those who aren’t are generally held back by economic or educational circumstances, or plain stubbornness.

So how does Generation Y communicate with the Boomer Generation and vice-versa? Communication between generations has always been a challenge. The divide is prevalent both inside and outside the work place. Sometimes it’s like we exist in parallel universes.

Being in the business of teaching people how to use computers for over 21 years there certainly is anecdotal evidence showing that both generations have room to improve, better yet, to compromise. The good news is today’s computer technology offers the best opportunity to bridge generational divides.

What good is it for someone from Gen Y to be a Twitter whiz, if they can’t work with a simple Excel® spreadsheet? Your Facebook page may rock, but what about your presentation to senior management on a project involving the merge of numerous documents, graphics and images, where you actually have to speak, live, in front of real people?

It goes both ways of course. Boomers belong on Facebook. There’s no reason that senior management can’t use Twitter to communicate short, concise thoughts and opinions.
Perhaps we can teach each other. These are uncertain times at best. We can all do better.
It all starts with communication. We’re happy to help.

-John

John W. SchererJ

ohn is CEO and founder of Video Professor, Inc.

You can reach him at ceo@videoprofessor.com

Chatting it up in Hong Kong

I had the opportunity recently to e-mail back and forth with a graduate student in Hong Kong. She’s doing research for a paper on blogging, how it is a part of corporate communications, etc.

My blog is a weekly exercise on my part. It’s quite separate from our regular marketing here at Video Professor. It is an opportunity to share thoughts and ideas, often times dealing with technology, sports and politics as well.

Simply put, it’s a great way to express myself and I enjoy it.

Ever since we produced our first Video Professor Lesson on MS-DOS, I’ve tried never to take for granted the huge advances in computer technology since we opened our doors in 1987.

One advantage is how computers allow us to communicate, literally with the world, to share thoughts and opinions and even help a grad student in Hong Kong with an academic paper.

It’s one of the reasons we donate our lessons to non-profit groups who include computer literacy as part of their programs here at home and around the world. We recently donated lessons to a group for a school in Tanzania.

Those kids will not only be able to learn about the world around them, but share their world with us as well.

Communication is a good thing.

-John

John W. Scherer

John is CEO and founder of Video Professor, Inc.

You can e-mail him at ceo@videoprofessor.com

USA CTO: It’s about time

America is going to have a Chief Technology Officer. It’s all part of the soon to be Obama Administration.

Will it be a cabinet level position? Hard to say, but it deserves to be. It could also be an executive level appointee, akin to being the National Security Advisor.

A lot of names have been speculated for the job, I won’t do that here. There are plenty of good choices and it’s my hope whoever gets the job has real world technology and entrepreneurial experience.

This will be the first Presidential administration that truly acknowledges technology. It’s not surprising as the Obama campaign harnessed it very effectively, while Senator McCain admitted to being decidedly non-tech. It cost him dearly among a generation of voters who grew up with technology being part of their lives.

I’ve posted here before that the progress in computing technology the 21 years Video Professor has been in business never ceases to amaze me. We have computers on our desks, on our belts, in our pockets and purses and certainly at home. We shop, we bank, we invest, we do business, and we research and just have plain fun with computers.

We’ve taught over 10 million people to do all of the above.

The creation of a Chief Technology Officer is good news for consumers. It means Washington finally gets it. We hope this means that innovation and entrepreneurship will be encouraged, that regulatory roadblocks will be at least reduced, and that the way we use technology will empower us more than ever before.

Whatever comes along, we’ll do our best to help you master it.

-John

John W. Scherer

John is CEO and founder of Video Professor, Inc.

You can reach him at ceo@videoprofessor.com

BCS: Success or Mess?

Just about everyone has weighed in this season on the Bowl Championship Series or BCS for short. Most notable is our next President who wants an 8 game playoff system.

The Chairman of the BCS committee respectfully disagrees. Guess who wins that one? The BCS Committee says a play-off wouldn’t be in the best interests of the “student-athletes.” Heck, it might be the best chance their professors actually get to see them.

Here at Video Professor we run the gamut of school favorites. Big 12, SEC, Big 10, PAC 10, ACC, the MAC and the WAC and the list goes on. We have a lot of proud alumni of some great schools working here.

The BCS is a strange brew of polls, both human and computer that no one seems to quite understand, although everybody has an opinion. The best win-loss record doesn’t necessarily mean a trip to the NCAA National Championship. Other factors include some conferences like the Big 12 and SEC have conference championship games while others like the Big 10 and Pac 10 do not, plus strength of schedule, blah blah blah.

But the powers that be refuse to consider (at least publicly) a play-off, even though there is one in college basketball which is a 65 team tourney. Guess what? When you add up all the bowl games played this year and early next year, 64 Division 1 football teams will play.

So we end up with 4 BCS games, and one National Championship Game. In most cases, someone is unhappy.

Ultimately this won’t come down to what’s right, but what makes the most money. ESPN just closed a deal to carry BCS games starting in 2010. While they plan to carry the Rose Bowl on ABC, you’ll have to have cable or satellite to watch the others. Another option is the games will be available on your computer or mobile device.

In the meantime, it’s great fodder for sports talk shows and interviews with the likes of Pete Carroll. He suggests removing the “C.”

I won’t have to wait to hear who makes what BCS games. I’ll just check the vacation request forms and do the math myself.

-John
John W. Scherer
John is CEO and founder of Video Professor, Inc.
Reach him at ceo@videoprofessor.com

Vision depends upon your point of view

Folks sure like to predict things. Sometimes the predictions come true, often times they don’t. Predicting can be very un-predictable.

I came across these quotes about computing and technology from years past.
“No one will need more than 637KB of memory for a personal computer” by Bill Gates (Currently new PCs use around 524288KB+).

“There is no reason for any individual to have a computer in his home.” by Ken Olson of Digital Equipment Corporation in 1977.

“Computers in the future may weigh no more than 1.5 tons.” by Popular Mechanics, 1949.

“I think there is a world market for maybe five computers. ” by Thomas Watson, chairman of IBM, 1943.

“But what ... is it good for?” (referring to microchip) by an Engineer at IBM, 1968.

“ [By 1985], machines will be capable of doing any work Man can do. ” by Nobel Laureate, Herbert A. Simon.

“Everything that can be invented has been invented.” by Charles H. Duell commissioner of the US Patent Office in 1899.

We seem to have a fascination with trying to predict things. Football pregame shows always include predictions. ESPN’s Bowl predictions change every week.

Las Vegas makes a lot of money off people who make predictions.

It’s all so very predictable.

-John
John W. Scherer
John is CEO and founder of Video Professor, Inc.
You can reach him at ceo@videoprofessor.com

The transition from traditional media to Web 2.0

How did you watch the election returns Tuesday night? Did you watch on TV, your computer or both? The networks provided a dizzying array of graphics. CNN even used holographic images of reporters and analysts that looked like something out of Star Wars. All produced with computers of course.

But the razzle-dazzle often times got in the way of what most people want on election night, what candidate or issue was winning or losing.

I heard one report that stated as many as 28% of you monitored election results on your computers. Most networks, newspapers and radio stations provided election night web sites that let you be the producer for election coverage.

Web 2.0 played an important part in Campaign ’08. The same held true when the vote was being counted.

While the networks may have been focused on one state, if you were interested in a different race in a different state, there were online options for you. It’s yet another example of how computers and Web 2.0 empowers you and puts you in control of the information flow.

Most election night web sites offered a full map of the United States. You simply clicked on the state you were interested in, and could drill down for more detailed information from there. Another plus was the ability for you to interact with these sites, post comments and blogs.

I try and never take any of these advances in computers for granted, thinking back to the days when we introduced our first lesson on MS-DOS. There have been huge technical advances in computing during the 21 years we’ve been in business at Video Professor, and there was no better proof than what we all experienced on election night.

More changes are coming as “traditional” media makes the full switch to the Web. The Christian Science Monitor will no longer publish a print edition. Everything will be online. Print circulations for newspapers continue to decline, while viewers shift their attention to the online editions.

Radio station web sites now offer multiple video clips. When radio uses video, you know the times are indeed changing.

I’ll make a guess that many of the 10 million people we’ve taught over the years, were watching election results online this year. Good for you. We’re happy to have helped you do so.

-John
John W. Scherer
John is CEO and founder of Video Professor, Inc.
You can reach him at ceo@videoprofessor.com