Debt Fiscal Crisis Brief -7-27-10

[Rob Tucker]

I am not opposed to business within the boundary of Pahoa Village. I do not make judgments as to whose business or what type of businesses are entitled to invest. If the Woodland enterprises have customers they will survive. If they do not they will fail and something else will take their place.

I suspect that if you look into it you will find that somewhere there is a farmer's co-op selling produce to Burger King. Maybe tomatoes, maybe lettuce.

[tada]

Buy cheeseburgers at Burger King for dinner every night- not only a great bargain but you'll be putting them out of business at the same time-

http://www.bloggingstocks.com/2009/11/13...1-burgers/

Other people want to make friends- I just want to make money.
James Cramer

[Bob Orts]

quote:

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Originally posted by CFB483

You say there is nothing preventing co-ops, but the Burger King IS something that prevents co-ops.

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Explain

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[Kapohocat]

I have found it interesting that in the last week - two friends - one in HPP, and one in HA - has been complaining about the loan modification process that they are going through (both since Nov 2009).

They send paperwork in, banks send more paperwork to fill out. Both said they know the "number" of their new payment - let them pay it and move on. Now both have received short sale paperwork and been told short sale, and receive $3K, or foreclose.

The one friend asked - "wonder if I can buy back my house at the short sale price?"

Are banks stupid? they want to dink around till they get one (two) more foreclosures on their hands?

[Bob Orts]

quote:

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Originally posted by CFB483

You mean how does a multinational corporation compete and crush a community owned cooperative?

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Assuming all the things you mentioned are true, if people want to buy cheaper priced products from a company located outside Hawaii, why can't they? This is the people making the decision to shop where they want and they vote with their purchase.

It's all fine and good to grab a tamborine and sing and dance for local purchase power, but if the people are pushing past you to get to the mega store, what can be done to change people's habits if they don't want it changed?

All the things you mentioned are true factors in how these large chain stores can compete with lower prices, but that's just business. The question is: how do you put local stores with local products on the same competitive level as these chain stores. What steps need to be taken?

Do you have lower taxes for them?
Offer economic development funds?
Job creation tax credits for local hiring?
Increase taxes for off island produced goods?
Reduced business fees for local companies?

Talking about buying local does nothing if the people can get it cheaper so there has to be something more to turn it around - what is that?

[Bob Orts]

I heard the song, now play the music!

How do you accomplish what your saying? Simple question!

[mdd7000]

I don't know that I have ever come across a small, family-owned company that will pay employees anymore than they absolutely have to, which is generally minimum wage. That goes for benefits as well. Good luck with that idea.

[Kapohocat]

quote:

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Still in the end, for the banks, the decision comes down to one simple but little known calculation that determines whether people get to stay in their homes.

Net present value, Kishner explains. "Net present value tells you whether the modification makes sense on behalf of the investor. In other words, the property if it were to be sold on the open market if it would net the investor more money than the modification.”

So it comes down to simple math which makes more money for the investors: a foreclosure or a modified loan. The cost of foreclosure to the overall economy is not part of the equation.

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Net present value as opposed to future present value. A modified loan that someone continues to make regular payments on has a higher FPV than a net present value. So really what it is is the setting of the bar so high that only those that would qualify for a loan in today's market can actually get a modification. If the FPV equations takes into account a failure rate of X, it may be correct to dump all loans so that X isnt spread across the balance sheet in 5-10-15 years. Look bad now when everyone else does, or look bad later.

So the gist is the modification program is bogus.

[Kapohocat]

quote:

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Originally posted by CFB483

quote:

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Originally posted by mdd7000

I don't know that I have ever come across a small, family-owned company that will pay employees anymore than they absolutely have to, which is generally minimum wage. That goes for benefits as well. Good luck with that idea.

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That is because they operate as a for profit and not a cooperative. That is because the workers are still wage-slaves and have no say in the direction of the business. These stores care as much about the community as Burger King.

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I did better working for a small family owned company in Hilo than I did for the last corporation (Hilton) on the Big Island I worked for. And because they were small - we had seriously good medical insurance for a small co. And Argus took in a big part of what we had to say - he was the bottom line - but he always looked to us for info/suggestions/advice.

The problem with gross generalizations is there is always an exception. I think though that I could name quite a few organizations that did well by their employees. The difference between screwing your employee here and on the mainland is that you have to deal with them all the time during/after out in the world. Everyone knows who the pake company is. And who is the boss no one wants to work for. On the mainland you just go somewhere else.

[PaulW]

Yes I am fine with a Burger King in Pahoa. You'll never see me there but if people want to invest in a legal business and provide employment for people as well as satisfy other people's need for junk food then it all adds to the general level of happiness. The only people not happy are those who want to force their own choices down other people's throats, but oh well you can't win 'em all.

Please continue your campaign to convince everyone how bad Burger King is so they'll stop buying there. Just no physical sabotage thanks.