Chris Banescu

Ethical Solution to Mortgage Crisis: De-Bundle Loans and Identify Known Risks

I have just sent this appeal to my representatives in Washington. Feel free to copy and paste and send to your representatives.

Dear Representative,

Please do NOT support the $700 Billion Bailout Plan until the Banks and the Lending institutions identify the Toxic Loans and DE-BUNDLE them.

It would take very little effort on their part to identify each loan based on a computer search of their existing loans:
1. Full Default = no payments in 3+ months (Toxic)
2. Partial Default = no payments in 1-3 months (Potential Toxic)
3. Good Standing = on-time payments

[Read more…]

Fixing Washington D.C.’s School System

Fast Company | by Jeff Chu | September 2008

No one is attacking Washington, D.C.’s stagnant culture more boldly than Michelle Rhee, head of the city’s failing schools. Is there a lesson here for our nation’s leaders?

Paul Laurence Dunbar Senior High School in Washington, D.C., is one of the worst schools in one of the worst school districts in America. “The mentality of excellence? We wish we could have that,” said principal Harriett Kargbo, as we toured the school one morning in May. “But this,” she said, pointing at the metal detector guarding the entrance, “is the reality. [Read more…]

Managing for Long-Term Success and Profitability

Business Success and Profitability Long-TermGood management has nothing to do with short-term successes and the management elixirs that allegedly led to them. This seemingly banal insight results from a long-term, historical perspective like [Peter] Drucker’s. It cannot be achieved by judgments based on quarterly results, but rather emerges from a deeply rooted understanding of the durable, unclouded by short-term spectacular success stories. Not the momentary “how” is important, but rather the seminal “why.” (Herman Simon, Management Beyond the Day)

Despite well-established management principles that require a long-term perspective be used when evaluating all business decisions and the countless organizational failures and disasters that demonstrate the consequences of ignoring such strategic thinking, many corporations continue to repeat those same mistakes and seemingly fail to learn their lessons. This may be due to the pressures placed on companies to be “profitable” for the next quarter that motivate senior executives to quickly maximize share prices while ignoring the potential negative effects to the long-term profitability, value, and survivability of an organization. Another explanation for this dysfunctional approach may be the flawed compensation systems and executive contracts that reward management for short-sighted profitability decisions without demanding accountability for the long-term organizational profitability and taking into consideration the impact on the long-term value and competitive position of a company. [Read more…]

Beyond Flextime

Inc.com | by Scott Westcott | August 2008

For Linda Skoglund, getting a pedicure on a busy Tuesday afternoon was a career turning point. It ran against her Midwestern work ethic. And certainly, there was plenty of work piled up at J.A. Counter & Associates, the $2.5 million insurance and investment advisory firm she owns in New Richmond, Wisconsin. On the other hand, canceling her visit to the salon that day could have sent a bad message. It risked signaling to her 15 employees that they weren’t allowed to do whatever they wanted at any given time during work hours. And that would tank her plans to overhaul the work environment at J.A. Counter. [Read more…]

The Declining Value Of Your College Degree

The Wall Street Journal | by Greg Ip | July 2008

A four-year college degree, seen for generations as a ticket to a better life, is no longer enough to guarantee a steadily rising paycheck.

ust ask Bea Dewing. After she earned a bachelor’s degree — her second — in computer science from Maryland’s Frostburg State University in 1986, she enjoyed almost unbroken advances in wages, eventually earning $89,000 a year as a data modeler for Sprint Corp. in Lawrence, Kan. Then, in 2002, Sprint laid her off. [Read more…]

Key Characteristics of Great Leaders – Part II

Great Leaders Integrity, Honesty, Humility, Courageby Chris Banescu –
In this article I’m continuing with my review of the key characteristics of great leaders. Here are some additional qualities that embody superior leadership.

Great leaders surround themselves with greatness. They actively seek out the best possible people and hire them to fill all key positions within their organizations. Great leaders know that surrounding themselves with excellence is a direct reflection on their own character, abilities, and effectiveness as leaders. They understand that their own success and the success of their organizations depend mostly on hiring and promoting the best qualified, ethical, skilled, responsible, mature, and productive people and giving them the proper resources, authority, and freedom to do what’s needed for the long-term benefit of their companies. Great leaders do not feel threatened by anyone lower in the chain of command who’s smarter, better educated, more productive, or more popular than they are. They respect the greatness and unique abilities of the individuals they lead and encourage them to continually flourish and grow. [Read more…]

US States Lead the World in High Corporate Tax Rates

TaxFoundation.org | Scott A. Hodge | Mar. 18, 2008

In March 2008, the Tax Foundation released a summary of the tax rates that US corporations pay. The results are truly eye-opening.

Many states impose state corporate income taxes at rates above the national average of 6.6 percent. Iowa, for example, imposes the highest corporate tax rate of 12 percent, followed by Pennsylvania’s 9.99 percent rate and Minnesota’s 9.8 percent rate. When added to the federal rate, these states tax their businesses at rates far in excess of all other OECD countries.

When compared to other OECD countries:

  • 24 U.S. states have a combined corporate tax rate higher than top-ranked Japan.
  • 32 states have a combined corporate tax rate higher than third-ranked Germany.
  • 46 states have a combined corporate tax rate higher than fourth-ranked Canada.
  • All 50 states have a combined corporate tax rate higher than fifth-ranked France.

[Read more…]