Zuckerberg Smiling To The Bank!

Yesterday it was reported that Mark Zuckerberg's billion dollar baby, social networking site Facebook now has a paper valuation of $50 billion based on an investment infusion of $500 million. Zuckerberg's expected to take Facebook public next year which should put in direct competition with Google in terms of valuation.

Zuckerberg is only 26, and easily living the American dream. As of right now, Facebook generates revenue of about $2 billion annually. It will be interesting to see what steps it takes in the future to keep the revenue numbers rising.

A New Normal!

President Obama appeared on "60 Minutes" last night to discuss his emotional stability after the political "shellacking" that he took last Tuesday. Very interesting interview to say the least and The President vows to work with Republicans to prevent gridlock in policy making. One thing that the President said that stuck with me is that we may be in a "new normal" in terms of the economic structure of our country and employment. President Obama stated that he hopes that the new normal isn't company's doing more with less, satisfied that they will still make the same profits while expecting more from employees, which will prevent job creation.

The reality is that we're probably in a "new normal" from a employment perspective. Politics is often a dirty business, but business' look at bottom line numbers in terms of profits. The President can impact many things, however he can't force company's to hire when the company is operating efficiently and making desired profits. This philosophy puts most company's in the mode of simply replacing workers that they have to replace.

Toni Braxton's Money Woes!

Toni Braxton was once a multi million selling artist who probably made millions as one of the top female R&B artists. Braxton even had a successful Las Vegas stint that was cut short by a heart condition. Unfortunately for Braxton, although she had insurance, the company states that because she had a preexisting condition that it wasn't going to cover the losses that resulted from her leaving the Vegas show. Now Braxton has been forced to file bankruptcy with debts that she states could be as high as $50 million. Braxton didn't write on any of the hits that she sang when she was with LaFace records, so she has no residual income when they're being played on the radio.

Artists such as Janet, Mariah and even Mary figured out that part of the music business a long time ago, so long past when they're careers are over, they still will be receiving paychecks. Too bad Braxton didn't ask for songwriting credit on those early hits that are getting played throughout the world. The music business is unforgiving if artists don't have the savvy to use it to their benefit.

Diversity Job Fair Struggling Into Charlotte!

We often hear about the struggling economy, but when you read that the economy has lost 8 million jobs in less than 3 years, it only confirms the reality. The once thriving Diversity Job Fair heads into Charlotte today with the city's Unemployment Rate at 11.1%. There was a time that the fair would have has many as 40 employers on hand recruiting potential employees, that employer number today is closer to 20. Jim Carter, who runs the Kennesaw, GA company tells the Charlotte Observer that he once had a database of about 1800 contacts, that number is down to 892. Reading an article of this nature, clearly highlights the rough economic climate.

Everyone Should Have Jay-Z's Problems!

The New York Post reports on Jay-Z's 99 problems highlighting the success and failures of the hip-hop stars business ventures. Interesting read, and needless to say everyone should have Jay-Z's problems.

Kandi Burruss Opens Boutique In Metro Atlanta!

Kandi Burruss is maximizing her stint as a "Real Housewives of Atlanta" cast member, bringing renewed attention to her abilities as a songwriter with her work on the "Tardy For The Party" song for cast member Kim Zolciak who is just a little challenged as a vocalist. Burruss is also expanding her business opportunities by opening a clothing boutique in metro Atlanta with friend Peaches Chin who will run the boutique on a day to day basis. The store called Tags, will focus on affordable men's and women's clothing. The Atlanta Journal Constitution provides additional details on Burruss' business venture.

Here's wishing her well as she's opening the store during a challenging economic climate, but by marketing affordable clothing she's at least giving the store a chance to succeed.

Is Kanye West Really This Important?

Kanye West set the whole country into a frenzy when he interrupted Taylor Swift's acceptance speech Sunday night at the VMA's. Everyone it seems, including President Barack Obama has an opinion on Mr. West's outburst. The President reportedly called West a "jacksass" in an off the record remark. Perhaps President Obama has forgotten that his responsibility is to run the country instead of commenting on a rapper/producer who is obviously dealing with a few demons.

West made an appearance on Jay Leno's show last night and was clearly uncomfortable and at times incoherent in his responses. He appeared to be sincerely sorry for the outburst, and appeared to be calling out for help, stating that since the passing of his mother he hasn't had a break and that he plans to take some time off. It's amazing with all of the problems that we're having in this country that our president has time to worry about Kanye West. While Kanye may not be perfect, he has done a lot of work to uplift young people through his foundation. At the end of the day, he's still a talented multi millionaire, and flawed like the rest of us (I even think that knowing that he was going to be on Leno that West possibly orchestrated his outburst). In the big picture of all of our problems, while it's interesting to psychoanalyze Mr. West, he's really not that important.

Bloomberg Giving Obama A Pass On Raising Taxes!

New York Mayor Michael Bloomberg gave President Barack Obama a pass on potentially raising taxes on the middle class today on "Meet The Press". Bloomberg stated:

"The president has to deal with the reality, and some of the things are beyond his control," Bloomberg said. "He makes commitments and he tries to live up to them, and I think the courage of being able to say, 'Look, the world is different than I anticipated or what it was before, and I'm going to have to face that,' it's fine."

If President Obama is going to indeed raise taxes on the middle class it would be smart to do it within the next year. It would give him 2 years to deal with the heat and economic recovery. Bottom line is that health care reform will probably result in increased taxes for the middle class despite White House denials. Thanks to the New York Daily News for the article.

No Skills, No Job!

We all know that unemployed is higher than it's been in decades, and the numbers could get worse before they get better. The sad reality is that when the economy does begin to turn around, many disenfranchised workers will not be prepared to reenter the workforce.

The Detroit Free Press reports that one in three working age adults in Michigan, or 1.7 million people cannot read well enough to be hired for a job to support a family. More that 40% of this total lacks a high school diploma or GED. So while our President pushes job creation, it appears that many workers will not be qualified to be hired due to lack of adequate skills. This is the true reality of the situation, so while jobs will be created in the future, adequate skills will still be necessary to be considered employable.

Can Ebony and Jet Survive?

Recent revelations that Ebony Magazine's parent company Johnson Publishing is in trouble shouldn't be surprising in this economic climate, but it's hard to believe that CEO Linda Johnson Rice would allow her father's company to go under without making prudent moves to keep it afloat. Chicago Business reports that advertising revenue and circulation have dropped to alarming levels and creditors are beginning to position themselves against the company's assets. Long term employees have also begun to leave in droves.

Unfortunately for Johnson Publishing the Internet has probably taken a major toll on the mainstays of Ebony and Jet. Hopefully moves will be made that will keep the magazines afloat and viable as the number of magazine targeting African Americans is already pretty scarce.

The GM Rescue!

The above graph was supplied by the Detroit Free Press. General Motors filed for bankruptcy yesterday, and the government is on the hook for about $50 billion that we may never see again. GM has lost $82 billion in the last 4 years. Is there really hope that the company can be turned around?

Richard Parsons Fathers Love Child!

The New York Daily News reports that former CEO of Time Warner and present Citigroup Board Chairman Richard Parsons, 61 and married with 3 children has fathered a child with model-philanthropist MacDella Cooper who is 32. The baby was born last August, and of course both persons are calling the birth of the child a private matter, but when you're in the public eye and and major business power broker is anything private.

Ulysses Bridgeman, Jr. One Of The Richest Black Americans!

Ulysses Bridgeman, Jr. was known as Junior Bridgeman when he played in the NBA for the Milwaukee Bucks. Bridgeman quietly parlayed his basketball career into becoming one of the richest Black Americans. He's listed as one of the top 20 "Richest Black Americans" and Forbes describes how he built his wealth:

Bought five Wendy's franchises to generate income while planning his next career. Today controls 161 Wendy's and 118 Chili's restaurants. Total payroll: 11,000 managers, cashiers and cooks. Sales of holding company Manna Inc. in 2008: $530 million. Sits on board of PGA. Also owns small stake in Milwaukee soda bottler Black Bear Beverages.

Bridgeman Jr. who is now 55, accomplished this when players weren't making what they make today. He should give a class to today's athletes on wealth building, so that they can be prepared when the cheering stops.

A Diverse Mr. Timberlake!

Justin Timberlake continues to diversify his business portfolio in a manner that brings very little attention to himself. Timberlake already has a clothing line (William Rast) and restaurant (Southern Hospitality), now he's rolling out a tequila called 901 according to the New York Daily News, which is getting favorable reviews. Justin's business acumen is rivaling his singing talent.

Mary J. Blige and Big Boi Helping With Foreclosures!

Mary J. Blige and Big Boi assisted with the "Bringing Hope Tour" as they sat in on a workshop intended to assist people facing foreclosure in Atlanta. A good gesture by the two superstars, as foreclosures are very prevalent in our community. The phone number to call is 888-995-HOPE for anyone needing assistance. Thanks to the Atlanta Journal Constitution for the article.

Bob Johnson's Losing Proposition?

The Charlotte Observer reports that Charlotte Bobcats owner Bob Johnson recently went to his managing partners requesting a cash call of $28 million and the request was denied. The Bobcats are estimated to lose roughly $35 million over the next two years, and with an inferior basketball team, those fortunes probably won't improve in the foreseeable future. Despite having Michael Jordan running the team and Larry Brown as the coach, while the Bobcats are having their best season, the product is still bad by elite NBA team standards.

All parties involved will have to have patience with this business endeavor, but I hear Mr. Johnson hates to lose money, which is probably why he's a billionaire.

The Next Bailout Victim!

While AIG has received a lot of attention for bailouts and bonuses, the Los Angeles Times reports that the next wave of bailout victims could be life insurance companies. AIG's life insurance division has suffered massive losses due to bad investments. Allstate is another company that has suffered major losses but remains well capitalized according to reports.

I'm not sure if this figure is correct, but I've read that 78% of African American families don't have life insurance. If this number is indeed correct, it's a very sad commentary on our planning for final expenses. Worst case scenario, the government will make sure these companies honor their commitments to policyholders if that is necessary. Expect the losses to subside over time, however, as the companies become more conservative in their investment options.

Unemployment Rate For Blacks: 13.4%, Black Men: 16.3%

The Los Angeles Times is reporting on the state of black unemployment. The numbers while startling, aren't surprising. Unemployment for blacks has always been higher than any other ethnic group. The fact that black male unemployment is 16.3% is an obvious cause of concern, in light of all of the other issues that plague the black male namely lack of education, little job training and high incarceration rates. The Economic Policy Institute, a Washington think tank, in January projected that black joblessness could hit a peak of 18.2% nationally by mid-2010, and head even higher for black males and teens. Dire prospects for a group that's already facing seemingly insurmountable challenges.

We Ain't Playing!

The $165 million in bonuses that AIG has or will shell out has caused a furor throughout the country, especially since the government now owns 80 percent of the company. The New York Post reports that while the government may not be able to force employees to return the bonuses, tax laws may be amended to demand that the bonuses be taxed up to 100 percent. If only the government had reacted this fast during a catastrophe such as Hurricane Katrina.

Madoff Gets His!

Bernard Madoff was carted of to jail to serve a life sentence after milking investors out of $65 billion dollars yesterday, and avoided a trial by simply pleading guilty. The New York Post profiles some of the victims in Madoff's scam. Maureen Ebel lost her entire fortune of $7.3 million dollars because of Madoff, whom she trusted. If there's a moral to this story, I guess it is to always know where your money is going and never be too trusting of anything that sounds too good to be true as Madoff advertised above average returns on his investments.