As I wrote over on the WealthNation.FM blog…

Well, I guess they were bound to catch up to us sooner or later. Our supreme editor, Dave Moyer, has compiled the first ever set of Wealth Nation bloopers for your listening enjoyment. Now you can get a real listen “behind the scenes” to see what he has to deal with when he’s cleaning up the episodes.

This will teach us not to be taking extended periods of time off from the show in the future!

Just select the play button below and you can listen to the show right here. You can also visit iTunes and subscribe, follow Wealth Nation on Twitter, or join our Wealth Nation group on Facebook!

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I’ve had many people asking about what it takes to actually put together WordCamp Dallas, and there have been a lot of questions specifically involving the costs associated with the event.

I’ve been hesitant to share all the details up to this point for a variety of reasons including:

• Confidentiality for our event sponsors.
• No desire for second-guessing from the bleachers. (aka – I could have done it cheaper!)
• Privacy for myself since it involved cost I picked up.

However, I’ve decided that in the interests of the community I will share as many details as possible so that others who are looking to put on an event of this kind will understand what it’s going to take before they attempt to do it. The last thing we need are surprises, especially where money is involved.

Keep in mind that the costs outlined here were to cover around 350 attendees, plus live streaming of the event to a few hundred more around the world. Also know that WordCamp Dallas 2008 had a similar outcome, but at around 65% of the values here.
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Folks, a few weeks ago I went to the doctor to get a physical. Nothing special whatsoever. Just a routine annual physical. It was a two part visit. The first time I went they took blood to run the normal tests (I’m healthy). Then I went a few days later to see the doctor and get checked out.

So, I leave the office and a couple weeks later I get some paperwork from my insurance company informing me that the doctor has billed them $2,550.00 for the visit, and they were paying $2,046.00 after the healthplan discount. What the FXXK?!?
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Folks, I’m here to share a story with you that I can hardly believe occurred. It’s the story of a major violation of trust between myself and a company we hired to specifically represent us as the buyer’s broker in a purchase transaction. That company is SEDO, and this story is, well judge for yourself… but to me it’s unbelievable.

The story begins when I decided I wanted to obtain a domain, related to OneMansBlog.com, that was already taken and which I quickly determined was parked and had been registered at Sedo.

Sedo is a large, accredited top level domain registrar. So, I first did a quick search on their site to see if the domain was listed for sale, and when it wasn’t found I decided to check out their offer to “broker” the purchase for me.
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My father forwarded this message to me via e-mail from a friend of his (not sure of the origin). I’m not taking sides here, but I think it’s interesting enough that it deserves examination. Would love to hear opinions on this before I share my own.

Henry Markopolos (JP Edit: actually Harry Markopolous… but it’s OK), the man who waged a decade-long campaign to warn regulators about the operations of money manager Bernard Madoff, told a congressional panel yesterday that the Securities and Exchange Commission (a government agency with nearly 3,800 employees and a salary budget of $620 million taxpayer dollars) is incompetent and that the Financial Industry Regulatory Authority, the securities industry’s own policing organization, is corrupt.

Markopolos said the SEC is “captive to the industry it regulates and is afraid to bring big cases against prominent individuals.” He also said that “the SEC was never capable of catching Mr. Madoff. He (Madoff) could have scammed up to $100 billion” if he chose.

The SEC “roars like a lion and bites like a flea” and “is busy protecting the big financial predators from investors,” Markopolis told the panel.

While the SEC is incompetent, the securities industry’s self-policing organization, the Financial Industry Regulatory Authority (with nearly 3,000 employees and an annual budget of $500 million dollars), is “very corrupt,” Markopolos testified.

In 2008 the Financial Industry Regulatory Authority levied fines against financial firms totaling $40 million. 2008 was the third straight annual decline in fines levied by the authority. The total was 73% below the $148.5 million in fines collected in 2005.

And who was heading the Financial Industry Regulatory Authority? None other than Mary Schapiro, who is now the head of the Securities and Exchange Commission. She was nominated by President Obama and unanimously confirmed by the Senate.

So the head of a very corrupt authority is now the head of an incompetent authority. Nominated by an inexperienced President and confirmed by an inept Congress. Is it any wonder the economy is in trouble?

Thoughts?

This is a fascinating report from Megan Davies and Walden Siew of Reuter’s. Thanks to Jacques Snyman for sharing the link over on Facebook.

45 percent of world’s wealth destroyed: Blackstone CEO

NEW YORK (Reuters) – Private equity company Blackstone Group LP (BX.N) CEO Stephen Schwarzman said on Tuesday that up to 45 percent of the world’s wealth has been destroyed by the global credit crisis.

“Between 40 and 45 percent of the world’s wealth has been destroyed in little less than a year and a half,” Schwarzman told an audience at the Japan Society. “This is absolutely unprecedented in our lifetime.”

So, if your 401k is suffering, well… join the club! The whole world is in this one together, and that means we all have to get together and work our way out if it.
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So what have we learned in two millennia?

“The budget should be balanced, the Treasury should be refilled, public debt should be reduced, the arrogance of officialdom should be tempered and controlled, and the assistance to foreign lands should be curtailed lest Rome become bankrupt. People must again learn to work, instead of living on public assistance.”

– Cicero – 55 BC

…Evidently nothing.

Mark Cuban pitched an idea over on his blog in which he offers to fund business plans for people, but only if:

• People completely detail out their business plan in public.
• The businesses must show a profit within 90 days.
• You use the bank of Mark’s choice and allow him control over expenditures.

Unfortunately, I believe Mark is off base with this concept, and left the following comment over there on his blog. I doubt he’ll respond, but he did at least get people talking – even though he might have done more harm than good.
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Leave it to the Brits to properly report on US news. According to the Independant, California will run out of money in February.

The State of California will run out of money within two months, forcing Governor Arnold Schwarzenegger to start settling bills and paying employees by issuing “IOU” notes, his chief financial officer has revealed….

Unless taxes can be raised, or spending reined in, millions of public-sector employees and private contractors face having their salaries paid in “registered warrants,” a piece of paper which the Governor will promise to exchange for cash as soon as he is able.

The effective bankruptcy of an entire state is unprecedented in American history, even during the Great Depression. Yet despite California’s standing as one of the most prosperous regions of the wealthiest nation on earth, its Governor seems powerless to stave off disaster.

So-called “direct democracy,” through which small interest groups can enact laws by making them the subject of an electoral “proposition” or ballot measure that attracts more than 50 per cent of the vote, has severely limited his ability to manage finances.

Property taxes, the mainstay of any state’s income, have been frozen for many homeowners since a proposition was passed in the late 1970s. A separate measure, introduced in the 1980s, means that income taxes cannot be raised without the agreement of two-thirds of the state’s lawmakers.

Meanwhile, a raft of other ballot measures control spending, meaning that only 25 per cent of California’s spending is considered “discretionary”. The rest has been “earmarked” for a particular cause or project….

So to summarize:

• The state is OUT of money.
• They are not allowed to raise income taxes.
• They are not allowed to raise property taxes.
• No one is willing to stop spending!

Well, I guess we’re all about to learn what happens when a state goes bankrupt! As if we couldn’t already learn that from the History channel when every major global power eventually gave up the ghost because they were broke.

California is about to lose it’s place as one of the world’s great super-states. Yee-haw for Texas!

Well, the US Bureau of Labor Statistics published their unemployment news yesterday, and it was nothing to smile about.

November 2008 US Unemployment Rate

Nonfarm payroll employment fell sharply (-533,000) in November, and the unemployment rate rose from 6.5 to 6.7 percent, the Bureau of Labor Statistics of the U.S. Department of Labor reported today. November’s drop in payroll employment followed declines of 403,000 in September and 320,000 in October, as revised. Job losses were large and widespread across the major industry sectors in November.

Oh, and by the way, these numbers only count the people who are actively looking for a job. An additional 422,000 people exited the work force for any number of reasons — they went back to school, retired or simply abandoned job searches out of sheer frustration.
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I told you guys we were in a recession back in March, but now I fear we could move from a recession straight into a depression. Things could get really bad… Let’s examine shall we?

In economics, a depression is a sustained, long downturn in one or more economies. It is more severe than a recession, which is seen as a normal downturn in the business cycle. The mother of all modern depressions was of course the “Great Depression”:

The Great Depression was a worldwide economic downturn starting in most places in 1929 and ending at different times in the 1930s or early 1940s for different countries. It was the largest and most important economic depression in modern history, and is used in the 21st century as a benchmark in how far the world’s economy can fall. The Great Depression originated in the United States; historians most often use as a starting date the stock market crash on October 29, 1929, known as Black Tuesday. The end of the depression in the U.S. is associated with the onset of the war economy of World War II, beginning around 1939.

The depression had devastating effects in the developed and developing worlds. International trade was deeply affected, as were personal incomes, tax revenues, prices, and profits. Cities all around the world were hit hard, especially those dependent on heavy industry. Construction was virtually halted in many countries. Farming and rural areas suffered as crop prices fell by 40 to 60 percent. Facing plummeting demand with few alternate sources of jobs, areas dependent on primary sector industries such as farming, mining and logging suffered the most.

The majority of countries set up relief programs, and most underwent some sort of political upheaval, pushing them to the left or right. In some states, the desperate citizens turned toward nationalist demagogues – the most infamous being Adolf Hitler – setting the stage for World War II in 1939.

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Ok. So, a good executive can be worth a lot of money to a company. I don’t have anything against a nice pay package, all things considered. But it is literally criminal for an Executive to receive a huge payout when they deliver negative results for a company. In my opinion, Exec pay should be merit based. If the exec delivers outstanding shareholder value, a big paycheck should ensue.

So, how then about these execs? Just 72 hours before the company filed for bankrupcy, Lehman awarded the top 5 executives $100 million. Yep. You heard that right. They drove the company into the ground and got rich off of doing it.
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