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State of the Union speech unlikely to ease worries, analysts say

In Uncategorized on January 27, 2010 by msg390 Tagged: , , , ,

By Ed Hornick, CNN

President Obama needs to reassure the nation and members of his own party with his speech, analysts said.

President Obama needs to reassure the nation and members of his own party with his speech, analysts said.

STORY HIGHLIGHTS

  • President Obama to give State of the Union speech on Wednesday
  • GOP analyst says Obama’s speech unlikely to ease country’s worries
  • Democratic analyst says Obama must not retreat from health care overhaul
  • Watch State of the Union coverage on CNN.com and CNN Wednesday at 8 p.m. ET

Washington (CNN) — President Obama’s State of the Union speech Wednesday will be a tough sell for millions of Americans struggling under the weight of an economic recession, political analysts said.

“The president will respond as he always does to emergencies: with a speech. In this case, it’s his State of the Union address,” said David Frum, a CNN contributor and former speechwriter to President George W. Bush. “The Obama team always assumes the best remedy for any Obama difficulty is more Obama.”

Frum said Obama’s new populist tone, which he said emerged after the Democrats’ surprising loss in the Massachusetts special Senate election, might work short-term if he uses it in Wednesday’s speech, but it won’t work over the long haul.

“If so, it would be a big mistake. It may win the president an immediate bounce in the polls by exciting downcast liberals and progressives,” Frum said in a CNN.com commentary. “But that bounce will prove limited and short-lived, and it will come at the expense of more trouble not very far down the road.”

Obama is expected to announce that he’ll freeze discretionary spending in the federal budget, and his Middle Class Task Force has recommended further tax credits and economic support meant to reassure Americans nervous about the pace of economic recovery.

Read more of Frum’s column

Democratic strategist Bob Shrum said that a rousing speech on Wednesday isn’t necessarily the best approach.

“A speech can’t make people believe that he’s going to do the jobs thing. Only the creation of jobs is going to reassure people,” he said.

Share your thoughts on the state of the union at CNN’s iReport

Obama has faced widespread criticism for his handling of the economy by Republicans and independents. The current unemployment rate is at 10 percent, up from 7 percent when Obama took office.

The president not only needs to reassure Americans that the country is headed in the right direction but to reassure Democratic members of Congress that the party is going to be OK, said Nathan Gonzales, political editor of the Rothenberg Political Report.

“The president’s going to be delivering a speech on the heels probably of some more Democratic retirements in the House, some members who after Massachusetts see that it’s probably easier to hang it up than run a tough campaign for a year and lose,” he said. “Democrats are probably looking for the president to lead and not leave the details to Congress [on health care reform], which he has done over the last year.”

And those concerns are seen among some Democrats.

On Monday, a group of fiscally conservative Democrats known as the Blue Dog Coalition sent a letter to the president urging him to address federal spending. Specifically, they asked him to support a freeze on all nondefense discretionary spending in the upcoming fiscal year 2011 budget.

“I hope the President will use this historic moment to shine the spotlight on our troubling fiscal policies and lay out his plan for addressing these challenges head-on,” Rep. Brad Ellsworth, D-Indiana, said in a press release.

Later Monday night, two senior administration officials said the president will announce Wednesday night that he’s proposing to save $250 billion by freezing all nonsecurity federal discretionary spending for three years.

The freeze, which could help position Obama in the political center by sharpening his credentials on fiscal discipline, would exempt the budgets of the departments of Defense, Homeland Security and Veterans Affairs, along with some international programs.

The officials would not reveal the details of which domestic programs would be cut, as they prepare to face major pushback from liberals in the president’s own party because popular education and health spending could be on the chopping block.

Other presidents in their first term faced similar economic hurdles Obama is facing. In their first State of the Union speeches, President Reagan in 1982 and President Clinton in 1994 aimed to ease the nation’s worries about tough economic times.

“While not quite as dramatic as Bill Clinton’s announcement in his 1996 State of the Union address that the ‘era of big government is over,’ Obama is signaling that he wants to appeal to centrist voters concerned about government spending,” said Julian Zelizer, a presidential historian and CNN.com columnist.

Douglas Brinkley, a presidential historian, said Obama needs to “sell jobs, jobs and more jobs” in his speech.

“It’s essential that, like Clinton, he lets the American people know he feels their pain,” Brinkley said. “And he needs to use fierce Reaganesque language about smashing al Qaeda. Due to the Christmas bomber debacle, Obama must explain in detail new innovative ways his administration is protecting U.S. citizens from terrorist attacks.”

Zelizer argues that the real test for Obama will come after the speech, when liberals react to his center-driven approach.

He wrote in a CNN.com opinion piece that Obama cannot afford a battle with liberals.

“It could leave him without any strong base of support and fuel the perception that he is an ineffective leader, something else independent voters don’t tend to appreciate,” he wrote. “If the president backs too far away from the issues that animated his supporters in 2008, he could find himself facing even stronger challenges from liberals and depressing the base of support that he will very much need going into 2012.”

Read more of Zelizer’s story

Zelizer notes that there has been a long tradition of Democratic presidents taking the left for granted, which resulted in a cost to their administrations. He pointed to the Johnson, Carter and Clinton presidencies as examples.

And on health care reform, liberals have been pushing for a strong government-run public option to help stem the rising costs coming from private insurance companies. Although the House bill contains a public option, the Senate bill does not, which has appealed to moderate and conservative Democratic senators.

Frum and Shrum, meanwhile, admitted that the president must continue to fight for health care reform. Backtracking or giving up on the issue will be Democrats’ “Jonestown,” Frum said.

Shrum said that if he walks away from health care, the Democratic party is in “serious difficulty.”

“We’re going to see the country wait another 10 or 15 years before there’s action on an issue which could not only cripple our economy, but which involves a fundamental unfairness to tens of millions of people,” he said.

Gonzales admits that the American people are not expecting these problems to be solved in the short term, but they do want to see progress.

“The rhetoric from the White House has to match up with reality,” he said.

Source: http://www.cnn.com/2010/POLITICS/01/26/obama.sotu.tone/index.html?hpt=T1

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Apple’s earnings: What the analysts say

In Apple, Business on January 25, 2010 by msg390 Tagged: , , ,

Act One of next week’s two-part Apple extravaganza begins Monday after the markets close

Ignore for a moment, if you can, the clamor and hype surrounding next Wednesday’s special event and the new tablet computer Steve Jobs is expected to reveal.

Wednesday is the second act of a two-part performance that Apple (AAPL) has stage managed for Wall Street next week.

Act One starts Monday after the markets close, when the company reveals its other not-so-well-kept secret: sales and earnings for quarter that ended Dec. 26 that nearly everybody expects will blow past Apple’s typically conservative guidance.

According to Thomson Financial Network, the Street is looking for Apple to report earnings of $2.07 a share on revenue of $12.05 billion, based on generally accepted accounting principles (GAAP).

More significant, however, are the so-called non-GAAP numbers that account for the full revenue from iPhones sold during the quarter. (GAAP rules spread it out over 24 months; see The day Apple released its iPhone revenue bomb.)

The consensus among the analysts we polled is that Apple will report non-GAAP earnings of $3.49 on revenue of $14.93 billion — up 31% and 27%, respectively.

We’ve attached those estimates below the fold, dividing them as usual between the professional analysts affiliated with banks and brokerage firms and the bloggers and day traders who roll their own.

Revenue in billions; units in millions; GM in percent. Source: Apple 2.0

Tune in Monday around 4:30 p.m. ET (1:30 p.m. PT) to find out who was closest to the mark. Apple’s earnings call is scheduled to begin at 5 p.m.

We’ll rank the analysts and post a color-coded follow-up Tuesday morning before heading out to San Francisco to cover Wednesday’s event.

Source: http://brainstormtech.blogs.fortune.cnn.com/2010/01/22/spotlight-on-apples-earnings/

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Massachusetts Message: Not satisfied with promised ‘change’

In Uncategorized on January 22, 2010 by msg390 Tagged: , , ,

On CNN’s “State of the Union,” CNN host and chief national correspondent John King goes outside the Beltway to report on the issues affecting communities across the country.

Boston, Massachusetts (CNN) – Candace Brooks is a Democrat who voted for the losing candidate Tuesday. Yet she, too, is part of the Massachusetts Message.

“I literally stood over the ballot, and I was, like, almost Scott Brown,” Brooks said over breakfast the morning after Republican Brown’s stunning upset in the Massachusetts Senate race. “I was almost there.”

Almost there — almost casting a Republican vote — a little more than a year after her enthusiasm for Barack Obama convinced her to switch from “unenrolled,” or independent, to a registered Democrat.

Al Perry, like Brooks, is a registered Democrat and voted for Democratic candidate Martha Coakley. But his morning-after mood also magnified the message:

“Well, it’s pretty clear to me that people are disappointed in the change that we were all expecting to see with a Democratic president, a Democratic-controlled Congress, and what we see is just more fighting and nothing getting done, seemingly.”

Consider Victoria Vigna the exclamation point: like Brooks and Perry, a registered Democrat. But unlike them, she voted for the winner, anguishing until the end but finally swayed by a bad economy and the tone of the Democratic campaign.

“I think that he is really what the people need, and I am a Democrat,” Vigna said during a break from her work waiting tables at Mike’s City Diner in Boston’s blue-collar South End. “I was like, ‘Oh, my God, I voted for a Republican.’ But honestly, I think I chose the right person for the job.”

The Massachusetts Message is many things but first and foremost the theme sounded by Perry.

Fourteen months after Obama swept Massachusetts by 26 points and won the presidency in an Electoral College landslide, the economic anxiety and political disaffection that put such a strong wind at Obama’s back are just as strong, if not stronger.

As Perry put it: “The economy is a mess for most people, and we watch what’s happening on Wall Street … and Obama has gone along with that. It’s now his issue as much as it is Bush’s issue.”

To be sure, Coakley, the state attorney general, ran an uninspired and flat-footed campaign while Brown was disciplined and agile. Also, there is no doubt the state political environment helped Brown; the Democratic governor is unpopular, and the Democratic-controlled legislature has had more than its share of recent corruption issues.

But there were without a doubt national issues at play. Although Obama’s image never appeared in a Brown campaign ad, his agenda was center stage, as was his partnership with House Speaker Nancy Pelosi and Senate Majority Leader Harry Reid. Given the Obama margin of victory just 14 months ago, it was stunning that the GOP candidate had no hesitation in criticizing the president’s views on health care, the economy and the treatment of terrorism suspects.

Brown’s come-from-behind win was powered by independents, who are now a majority of the Massachusetts electorate. Just 14 months ago, independents in the state broke for Obama over John McCain, according to exit polls, by a 57 percent to 40 percent margin.

Brown credited his win to the state’s independent majority, and the shifting sentiment of independents is one major worry for Obama and his fellow Democrats. But perhaps even more stunning were the words and views of Massachusetts Democrats who, not long ago, were strong Obama supporters.

Brooks was quick to urge some patience. “A year isn’t enough to say whether the guy’s going to be able to change something,” the self-employed market researcher said.

But she was quick to answer “no” when asked whether Obama had kept his promise to change the tone and working environment of Washington. ”Something’s got to give. I just don’t know when.”

Vigna’s take tracked with what we have heard time and again during our cross-country travels in recent weeks. Coming from a working-class Democrat — and one who had just voted Republican in the Senate race — it underscored the shaky ground facing the president and his party early in this midterm election year.

“I think people are more anxious and agitated” than they were in the 2008 campaign, Vigna said. “There’s a lot of people who aren’t working. … In the last six months, it’s been very hard to make money, because people just aren’t spending like they were.”

Perry, again echoing what we have heard often elsewhere, said his take on Washington is that those calling the shots are disconnected from the daily challenges and economic anxiety so easy to find nowadays, in Massachusetts and across America.

“Maybe they need to evaluate what is important to people,” Perry said. “Obama, maybe Congress, need to step back and say, ‘What do the American people really want here, and are we serving them, or are we simply here to gain power for our parties?’ “

That disaffection continues to drive voters away from the major political parties. A majority of voters in Massachusetts are now “unenrolled,” and Perry is poised to join the state and national trend, another warning sign for Democrats.

“I used to be a Republican; now, I’m a Democrat,” he said. “Now, I am going to become an independent. And I can understand why Tea Party people are so upset, because nobody’s being served by either party in Washington.”

For now, independent-turned-Democrat Brooks will remain a Democrat. But her mood after losing says a lot about the early “intensity gap” of this young election year, a major part of the Massachusetts Message.

“The people ended up voting against Martha Coakley,” she said. “The system, in a way, righted itself. I’m not upset, even though I voted for her. I’m not upset that she lost. I think that we need change, to use an overused statement, and you know, maybe he has something to bring to the table.”

Source: http://www.cnn.com/2010/POLITICS/01/22/king.sotu.mass/index.html

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Apple invites press to see ‘our latest creation’ – Will it be the tablet?

In Apple, Hardware, IT, News on January 19, 2010 by msg390 Tagged: , , , , ,

(CNN) — It’s official: Apple Inc. will host a much-anticipated press event January 27 in San Francisco, California.

Invitations went out Monday.

Tech insiders expect the company to unveil a touch-screen “slate” computer, which would look something like a giant iPhone.

Buzz about such an announcement, and the possible press event, has been dominant news in the tech blogosphere for months.

The invitation to Apple’s event gives only a cryptic message about what news will come, however.

“Come see our latest creation,” says the invite, which was sent Monday by e-mail.

The e-mail invitation shows an image of bright colors splashed around an Apple logo. It does not show photos of products or specify what products Apple will discuss at the event.

The press event will be held at San Francisco’s Yerba Buena Center for the Arts at 10 a.m. PT on January 27, according to the announcement.

The amorphous “slate” and “tablet” computer categories have drawn much attention from technology writers and the public in recent months.

Some companies say the devices — which fall in size and function somewhere between smartphones and laptop computers — are good for reading books, sorting through photos and browsing Web sites.

Others have criticized these emerging computer categories as overhyped.

Apple has a history of game-changing product announcements. The Cupertino, California-based company also has a reputation for being tight-lipped about its plans. The company has not commented on the frenzy of rumors about its supposedly upcoming tablet computer.

Source: http://www.cnn.com/2010/TECH/01/18/apple.event.invite/index.html

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50 Cent’s 10 laws for money and power

In 50 Cent, Business, Power on January 16, 2010 by msg390 Tagged: , , , , ,

50 Cent’s 10 laws for money and power:

1.  Crush Your Competition

ala Microsoft crushing Netscape and AOL.

2.  Knowledge Reigns Supreme

ala Hiring at McKinsey & Co., the elite global management and strategy consulting firm

3.  Move From Demand to Supply

ala Apple’s remarkably successful offering of the iPod series and the iPhone

4.  Expand and Protect Your Turf

ala Southwest Airlines’ run at consistent profitability, great branding, and low costs, for decades

5.  Use Your Cents to Make Change

ala Google’s commitment to allow workers to spend a chunk of their work time in their own creative and out-of-the-box projects

6.  The Hustler’s Eye

ala Warren Buffet’s legendary eye for niche, promising, and definsible businesses and revenue models

7.  Respect the Hustle

ala Donald Trump’s relentless foray into diverse businesses and marketplace initiatives

8.  Truth = Money

ala Saturn’s honest and fair treatment of car shoppers at its dealers

9.  S— To Sugar

ala struggling carmaker Chrysler’s popular car offering in the Chrysler 300 – the poor man’s Bentley

10.  Choose Your Crew Wisely

ala the hiring of exceptional talent at Goldman Sachs – the pre-eminent Wall Street financial institution

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7 Things Microsoft Must Do In 2010 — Microsoft — InformationWeek

In IT, News, Software, Technology, Windows on January 15, 2010 by msg390 Tagged: , , ,

Microsoft is turning to search, services, and the cloud, but what the company really needs is a game changer.

The year 2009 was a tough one for Microsoft. Overall sales slumped, and core franchises like Office and Windows were hit doubly hard. Sure, the economy was bad, but a handful of other tech vendors managed to hold up significantly better.

Redmond’s problem is that CEO Steve Ballmer and other top executives continued to operate as though it were 1989 — when the personal computing industry was new and Microsoft could dictate prices and practices. In reality it’s two decades later, and Microsoft has numerous new rivals, computing is moving from the desktop to the Internet, and the company is having trouble keeping up.

via 7 Things Microsoft Must Do In 2010 — Microsoft — InformationWeek.

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Vid: 50 Cent Introducing his New Fragrance ‘Power’

In Uncategorized on January 14, 2010 by msg390

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50 Cent On The Today Show for supporting his new book “The 50th Law” (2009)

In Uncategorized on January 14, 2010 by msg390

Great book!

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50 Cent Not Shy About Flying Coach: ”If You Think Flying First Class Makes You A Star, Then Your Not One”

In 50 Cent, Entertainment on January 14, 2010 by msg390 Tagged: , , , ,

Rap-Up: The next time you fly the friendly skies, you may just see 50 Cent sitting next to you.

The millionaire rapper, who released his fourth album Before I Self Destruct last November, has no problem forgoing first class for the cheaper economy seats. “I really don’t mind flying coach if I have to,” he tells Interview magazine in the December 2009/January 2010 issue.

And where exactly can you find the “In Da Club” hitmaker on the aircraft? “If the front of the plane is sold out, I’ll sit in the back. Some people are like, ‘Oh, first class is sold out. I can’t go.’ I guess they care about people seeing that they’re not sitting in first class.”

As for Fiddy, he doesn’t need a seat to validate his celebrity status. “I’m clear with my financial space—I don’t need to get any validation by someone else who sits next to me in first class. If you think a seat in first class makes you a star, then you’re not one.”

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50 Cent Introducing his New Fragrance ‘Power’

In 50 Cent, Power on January 14, 2010 by msg390