Rebate Story #1
Wall Street Journal - One in Five Rebates Goes Through Normally
The Wall Street Journal submitted 5 consumer rebates in an unscientific test. Only one of the five went through without a hitch.
Rebate Story #2
Company Patents Method to Avoid Paying Rebates
Parago, the company that handles Circuit City rebates, has been awarded a patent for a system that is designed to reduce the payout on rebates by maintaining a high "breakage rate". For more info, see the Adrian Kingsley-Hughes blog on ZDnet.com.
Thursday, May 10, 2007
Best Buy and Microsoft Accused of Racketeering
According to this post at the Consumerist blog, a civil racketeering case has been filed against Best Buy and Microsoft. The suit alleges that Best Buy had a practice of regularly scanning MSN trial subscriptions when the consumer did not request them; and (at least by implication) Microsoft knew about it and was more than happy to charge a monthly fee to the consumers' debit cards or credit cards.
According to this post at the Consumerist blog, a civil racketeering case has been filed against Best Buy and Microsoft. The suit alleges that Best Buy had a practice of regularly scanning MSN trial subscriptions when the consumer did not request them; and (at least by implication) Microsoft knew about it and was more than happy to charge a monthly fee to the consumers' debit cards or credit cards.
Tuesday, May 08, 2007
Queen Becky & President George Play the Dozens
You couldn't help but think "That's My Bush" when reading news accounts of the state dinner hosting Queen Elizabeth at the White House. Apparently, W thought the party wasn't lively enough (perhaps his Mr. Microphone was in the shop), so the natural thing to do was to engage his guest of honor in a game of the dozens, at least the WASP version thereof.
In the spirit of harmoneous diplomatic relations, in preparation of the inevitable rematch at Buckingham Palace, I'm linking to sites providing suitable disses for the next round of the dozens played by these spirited foes.
For George W., here are some "you so old" lines.
For the Queen, there are enough "you so stupid" jokes here to hang right in there.
You couldn't help but think "That's My Bush" when reading news accounts of the state dinner hosting Queen Elizabeth at the White House. Apparently, W thought the party wasn't lively enough (perhaps his Mr. Microphone was in the shop), so the natural thing to do was to engage his guest of honor in a game of the dozens, at least the WASP version thereof.
In the spirit of harmoneous diplomatic relations, in preparation of the inevitable rematch at Buckingham Palace, I'm linking to sites providing suitable disses for the next round of the dozens played by these spirited foes.
For George W., here are some "you so old" lines.
For the Queen, there are enough "you so stupid" jokes here to hang right in there.
Detroit News Reports on Ford Family Meeting
The Detroit News article published this morning gives an interesting behind-the-scenes look at a recent Ford family meeting. When I say Ford family, I'm talking about the 13 great grandchildren of Henry Ford (and other associated kin) who together hold 70 million shares of Class B Ford stock and control 40% of the entire voting rights of the company. Because (so far) the Ford family has voted its shares as a bloc, even though the family controls a minority of the total shares outstanding, the family has effectively controlled the company.
The report discloses restlessness and cluelessness on the part of some family members. The restlessness was shown by a spirited discussion on whether to hire an outside investment banker to represent the family's interest. The cluelessness was illustrated by one family member asking when the company is going to restore dividend payments. Dividend payments are nowhere in the immediate future. Last year Ford reported a $12.7 billion loss, and it mortgaged all of its substantial assets in order to generate $23 billion with which to fund its turn-around plan. The market value of the family's stock has plunged to about 1/4 of it's value in 1999, and dividend payments have gone from $130 million per year to zero.
The sad state of the Ford family makes me think of the Ford Family version of Clarence Carter's song Patches. "Every day we had to cash T-bills, cause that's the only way we'd work our deals." I'll work on it.
The Detroit News article published this morning gives an interesting behind-the-scenes look at a recent Ford family meeting. When I say Ford family, I'm talking about the 13 great grandchildren of Henry Ford (and other associated kin) who together hold 70 million shares of Class B Ford stock and control 40% of the entire voting rights of the company. Because (so far) the Ford family has voted its shares as a bloc, even though the family controls a minority of the total shares outstanding, the family has effectively controlled the company.
The report discloses restlessness and cluelessness on the part of some family members. The restlessness was shown by a spirited discussion on whether to hire an outside investment banker to represent the family's interest. The cluelessness was illustrated by one family member asking when the company is going to restore dividend payments. Dividend payments are nowhere in the immediate future. Last year Ford reported a $12.7 billion loss, and it mortgaged all of its substantial assets in order to generate $23 billion with which to fund its turn-around plan. The market value of the family's stock has plunged to about 1/4 of it's value in 1999, and dividend payments have gone from $130 million per year to zero.
The sad state of the Ford family makes me think of the Ford Family version of Clarence Carter's song Patches. "Every day we had to cash T-bills, cause that's the only way we'd work our deals." I'll work on it.
Monday, May 07, 2007
Delphi loses 1/2 Billion Dollars in First Quarter
Chapter 11 denizen, Delphi Corp., announced that it lost $533 million in the first quarter of 2007, up from a $363 million loss in Q1 last year. Per the Detroit News, $73 million was employee termination expense.
The large Delphi losses come at a time where Delphi's former parent and largest customer, General Motors, has fought hard to get to the break-even point, reporting a statistically insignificant $62 million profit in the first quarter. GM's profit of $395 million from the sale of its Suzuki stake was mostly offset by a $305 million charge due to bad subprime loans at GMAC.
It's hard to see how the bankruptcy court judge will allow Delphi to post losses at the rate of $2 billion per year without a concrete plan for survival. I also don't know who's bearing the loss for the current losses, since Delphi was already bankrupt in the first place. Look for all the creditors (except GM) to revolt any quarter now. GM no doubt benefits by having these loses on Delphi's books rather than GM's. If the losses eventually come to rest upon GM's shoulder's, that's going to be a hard blow for the general to overcome.
Chapter 11 denizen, Delphi Corp., announced that it lost $533 million in the first quarter of 2007, up from a $363 million loss in Q1 last year. Per the Detroit News, $73 million was employee termination expense.
The large Delphi losses come at a time where Delphi's former parent and largest customer, General Motors, has fought hard to get to the break-even point, reporting a statistically insignificant $62 million profit in the first quarter. GM's profit of $395 million from the sale of its Suzuki stake was mostly offset by a $305 million charge due to bad subprime loans at GMAC.
It's hard to see how the bankruptcy court judge will allow Delphi to post losses at the rate of $2 billion per year without a concrete plan for survival. I also don't know who's bearing the loss for the current losses, since Delphi was already bankrupt in the first place. Look for all the creditors (except GM) to revolt any quarter now. GM no doubt benefits by having these loses on Delphi's books rather than GM's. If the losses eventually come to rest upon GM's shoulder's, that's going to be a hard blow for the general to overcome.
Cleveland Rocks with Ford Plant Closures
Ford is closing one Cleveland area factory and idling another. Ford announced that it would be idling it's Cleveland, Ohio casting plant. Simultaneously, Ford announced that it would be idling for a year one of two Cleveland area engine plants. The plant will be switching over from the old 3.0 liter to the new 3.5 liter engine. Other carmakers can switch engine lines within a typical summer shut-down period, perhaps extending it a little bit.
Ford is closing one Cleveland area factory and idling another. Ford announced that it would be idling it's Cleveland, Ohio casting plant. Simultaneously, Ford announced that it would be idling for a year one of two Cleveland area engine plants. The plant will be switching over from the old 3.0 liter to the new 3.5 liter engine. Other carmakers can switch engine lines within a typical summer shut-down period, perhaps extending it a little bit.
Thursday, May 03, 2007
How Much Does Ameriquest Pay its Employees?
Ameriquest is one of the key players in the subprime mortgage market. A good chunk of these loans have been termed "predatory mortgages" by various commentators. There is currently a multidistrict litigation consolidating numerous individual and class actions against Ameriquest.
I just found a comment on theripoffreport.com which, if true, really brings home the unfairness in subprime lenders. They load poor people up with unaffordable debt, and they assuage their consciouses with pay packages which are way in excess of what most people get for similar but ethical jobs.
According to someone posting as Maryjoshelton, Here are the annual salaries for various levels of Ameriquest employees:
$200,000 for account executives
$700,000 Branch Managers
$1,300,000 Area Managers
$2,000,000+ Regional Managers
Compare this to your typical UAW-LSP lawyer or legal services organization lawyer handling mortgage fraud cases on behalf of consumers who typically make less than $60,000, sometimes quite a bit less.
Ameriquest is one of the key players in the subprime mortgage market. A good chunk of these loans have been termed "predatory mortgages" by various commentators. There is currently a multidistrict litigation consolidating numerous individual and class actions against Ameriquest.
I just found a comment on theripoffreport.com which, if true, really brings home the unfairness in subprime lenders. They load poor people up with unaffordable debt, and they assuage their consciouses with pay packages which are way in excess of what most people get for similar but ethical jobs.
According to someone posting as Maryjoshelton, Here are the annual salaries for various levels of Ameriquest employees:
$200,000 for account executives
$700,000 Branch Managers
$1,300,000 Area Managers
$2,000,000+ Regional Managers
Compare this to your typical UAW-LSP lawyer or legal services organization lawyer handling mortgage fraud cases on behalf of consumers who typically make less than $60,000, sometimes quite a bit less.
Wednesday, May 02, 2007
Conspiracy Theory of the Month
The Return of Lyndon LaRouche
Eight-time presidential candidate Lyndon LaRouche, Jr., has published a 21,000 word essay in the American Intelligence Review (which is actually his standard mouthpiece) called Ask the Man Who Owns One. To be quite candid, I only read a part of this article. Even I get tired of conspiratorial bitchfests. Nevertheless, this is the article to read if you're into phrases like "Al Gore's neo-Malthusian swindle".
I'd be interested in seeing George W. in a debate with LaRouche. It would be like watching a dual between a windbag and a windsock.
The Return of Lyndon LaRouche
Eight-time presidential candidate Lyndon LaRouche, Jr., has published a 21,000 word essay in the American Intelligence Review (which is actually his standard mouthpiece) called Ask the Man Who Owns One. To be quite candid, I only read a part of this article. Even I get tired of conspiratorial bitchfests. Nevertheless, this is the article to read if you're into phrases like "Al Gore's neo-Malthusian swindle".
I'd be interested in seeing George W. in a debate with LaRouche. It would be like watching a dual between a windbag and a windsock.
Trans Union taking some lumps over Mixed Credit Files
I spend a significant portion of my time working on credit report cases. One thing that I've noticed over the years is that Trans Union seems to have a worse time keeping the files straight than Experian or Equifax (CSC in our neck of the woods). It was therefore gratifying to read a case report in the Myfaircredit.com forums reporting on a new case, Cortez vs. Trans Union LLC, where the jury awarded $50,000 in actual damages, and $750,000 in punitive damages against Trans Union for a mixed credit file. According to the report, the jury foreperson wrote on the verdict form "THE TRANS UNION BUSINESS PROCESS NEEDS TO BE COMPLETELY REVAMPED WITH MUCH MORE FOCUS ON CUSTOMER SERVICE AND THE CONSUMER."
I spend a significant portion of my time working on credit report cases. One thing that I've noticed over the years is that Trans Union seems to have a worse time keeping the files straight than Experian or Equifax (CSC in our neck of the woods). It was therefore gratifying to read a case report in the Myfaircredit.com forums reporting on a new case, Cortez vs. Trans Union LLC, where the jury awarded $50,000 in actual damages, and $750,000 in punitive damages against Trans Union for a mixed credit file. According to the report, the jury foreperson wrote on the verdict form "THE TRANS UNION BUSINESS PROCESS NEEDS TO BE COMPLETELY REVAMPED WITH MUCH MORE FOCUS ON CUSTOMER SERVICE AND THE CONSUMER."
From the Not Available Here File:
2007 Ford Mondeo
England's 4 Cars site has a review on the 2007 Ford Mondeo. If you saw the recent James Bond pic, Casino Royale, the pre-production Mondeo featured in the Bahamas scene stole the show almost as much as the Aston Martin later in the film. Supposedly this car would be too expensive for the mainstream if sold in the USA. Too bad. As is the normal practice, a huge range of engines are available in Europe. The most interesting to me is the 2.0 liter diesel. It seems to have well-balanced performance with 0-60 in 9.5 seconds, 130 mph top speed and 47.5 mpg (european cycle) -- not bad for a family car.
2007 Ford Mondeo
England's 4 Cars site has a review on the 2007 Ford Mondeo. If you saw the recent James Bond pic, Casino Royale, the pre-production Mondeo featured in the Bahamas scene stole the show almost as much as the Aston Martin later in the film. Supposedly this car would be too expensive for the mainstream if sold in the USA. Too bad. As is the normal practice, a huge range of engines are available in Europe. The most interesting to me is the 2.0 liter diesel. It seems to have well-balanced performance with 0-60 in 9.5 seconds, 130 mph top speed and 47.5 mpg (european cycle) -- not bad for a family car.
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