It seems that in USA, Yahoo is viewed by almost same number of visitors like Google but still, Google makes much more profit than Yahoo. According to David Goldman of CNN Money:
Yahoo reaches 80% of Internet users -- same as Google -- but its focus on content over search has yielded a lower profit than its rival. Is that misguided or bold?
I don’t think that the matter is that simple. It is true that Google is behind when it comes to content but what we should not forget is that with Adsense and Blogger, Google has helped to create bloggers like me to create content. Yahoo is following old style business method. I live in a third world country and still, I can earn my livelihood with Adsense and Blogger. The best part is that it is absolute free. On the other hand, it is impossible to do such thing with Yahoo.
So, what is happening is that Yahoo is providing content but not helping people like me. On the other hand, Google is helping thousands of people like me to produce content in Internet and then making money through our efforts.
I have no complain against Google and instead, I am perhaps grateful to them that I can earn some money with their support. No Wonder, Google is making more profit than Yahoo.
Now, in many countries of Asia, millions of people are afraid of the possible outbreak of Swine Flu. Well, the main problem is that people do not have adequate knowledge about this disease. So, they think it is very bad and it can kill many. However, I like to state here that until now, very few people have died from this disease. In fact, many more people die from fever and mosquito or water born diseases each year.
The media can play a vital role in dispersing the fear. If people become afraid then they lose mental strength. There is some kind of medicine for this disease and you can find more information here:
British Airway PLC grounded aircrafts, cut seat numbers and postponed the delivery of 12 new A380 Airbus to save money. In June 2009, the airline carried 2.93 million passengers which was 5% lower compared to the figure of June 2008. The airline is going to cut 3,500 jobs and freeze payments. Already, the BA administrations went into talks with the union but nothing happened. Further discussions are going to be held in the coming weeks. Forbes.com reports:
BA said that in response to the "challenging economic conditions" it was cutting its summer capacity by 3.5 percent, rather than the originally forecast 2.5 percent. Capacity for October through March 2010 is expected to be down by 5 percent.
British Airways’ planes were 79.6% filled up in June 2009 which was 81.4% in 2008. In such “challenging economic conditions,” the airline is taking all necessary steps to cut costs. The airline is also grounding three Boeing 757 aircraft in the middle of next year and three Boeing 747-400s this coming winter. British Airways also postponed the delivery of its first six A380 airbus that were supposed to come in 2012. The rest six planes will arrive within 2016.
In order to reduce its debts, Vancouver based Canadian mining company, Teck Resrouces Ltd., is selling its 17% stake to China Investment Corp. (CIC) for $1.5 billion. Out of this money about $10 million will be used to clear bank debt. Currently, the sale is waiting for regulatory approval and it will be closed on July 14, 2009.
CIC is buying Teck Resources 101.3 million class B voting shares. CIC would also invest in the company’s future projects. In June 2009, Teck Resources sold its
one-third interest in Waneta Dam to BC Hydro for $710 million. The company also collected funds worth $700 million by selling its top assets.
In July 2008, Teck Resources acquired Fording Canadian Coal Trust for $9.8 billion but after the deal was done product prices went down and hurt the company’s profitability. In early 2009, Teck Resources was exempted a portion of its debt. The company is also looking for a partner to invest in its coal business.
This is the time for an Absolute Write Blog Chain. It is a blog chain without any theme. So, you can expect some dramatic change in tone and topic as the blog chain progresses.
I am starting June blog chain with this entry. The last few days were full of stress for me. It is very hot in my country. Monsoon Rain was supposed to come last week and it has not come yet. 2 weeks ago, I had to take my wife to a hospital because she became sick from summer heat. Today, she again felt weak and I became afraid. Fortunately, I did not need to take her to the hospital again. Even I am not well these days. I live in a city with more than 10 million people and like any urban dweller; I have lost touch with nature. Air conditioner is out of my ability and electric fan is the best thing that I can afford. This problem has made me think about nature.
I am now 34 years old and when I was 10-11 years old, there were just half the amount of people in my city. There were many more trees and nature summer was more moderate. I know that many people in Europe and America like to believe that there is nothing called global warming. Well, I can tell you from my experience that it is real. Climate has really changed a lot in the last 2 decades. It is true that the people in my own society and country have a lot of contribution in global warming but at the same time, too much consumption of resources in the rich Western countries is the main villain behind the changing nature of global climate.
In USA, I think that there are more than 700 cars against 1,000 persons. In my own country, it is not even 5 cars against 1000 persons. I have no complain against US consumers. They work hard and they enjoy life with their hard earned money. Not only that, we the people living in the third world countries, have our own fair share of bad activities to harm nature.
All I know is that we do not live in an isolated world any more. I wish that our political leaders and decision makers could come to this realization.
On June 20, 2009, the U.S. President Barack Obama in his weekly radio and Internet address, said that he is going to work on restructuring the country’s financial system. In his speech President Obama said that he would make sure that government gain more oversight on the business activities of the country’s top financial institutions. President Obama also proposed to form “Consumer Financial Protection Agency” that will make sure that banks and financial institutions clear the fine points to consumers before they take any kind of loan.
The Financial Regulatory Reform:
On June 17, 2009, President Barack Obama unveiled his regulatory reform plan. The proposals are now submitted to the congress. The reform if implemented would reverse all the policies set by President Ronald Reagan in the 1980s. Here are some of the major points:
More authority to the Federal Reserve over major financial institutions.
More power to the Federal Deposit Insurance Corporation.
Tap into the “shadow system” of the financial institutions to stop their deceptive practices and protect consumers.
Creation of a watchdog agency called “Consumer Financial Protection Agency” to oversee the interest of the consumers. The agency would make sure that
banks and credit card companies become more clear when they sell their products to their consumers.
Opposing the reform plan:
Banking officials are saying that the reform plan will increase the rich of the government and put them in the middle of the business which is not a very good thing.
In support of the reform plan:
There are many people who are also supporting the reform plan. They supporters are saying that the new reform plan would give a boost to the banking and financial sector of the country. In the light of the recent economic crisis, people have lost their faith on banks and financial institutions. The bank officials place their interest first rather than consumers interest. In order to get more money, they even gave loans to people with poor credit record or people who does not have the capability to clear their loans and it caused a serious crisis.
At this very moment what is most necessary is confidence which the consumers do not have any confidence on rating agencies. A recent survey revealed that only 9 out every 100 people in the U.S and the U.K trust their financial institutions. What President Barack Obama is trying to restore the faith of the investors and consumers through his financial reformation.
American people should accept the reality:
My view is that it is time for the U.S. people also become conscious about their financial condition and understand their limitations. There are many people who earn small amount of money and have no job security. Yet, they took loans from bank to buy house and cars and other expensive items. This is not a very good practice. I understand that it is a dream to have your own house or car but for some people it is too much to handle and may not come true but life does not end if you do not own a house or your own car.
On June 13, 2009, Six Flags Inc., with unianimous support from its lenders, filed for Chapter 11 bankruptcy protection. The New York- based company is the largest theme park company in the world. It operates theme parks in the U.S., Canada and Mexico. The company was already under $2.4 billion dollar when its current management team took over the company. Mark Shapiro, chief executive of Six Flags Inc. said that the company would not be able to sustain such huge debt load in the time of economic recession. Reuters reports:
The plan will result in a deleveraging of the company's balance sheet by about $1.8 billion, as well as the elimination of more than $300 million in preferred stock obligations.
More than three years ago, Daniel M. Snyder, owner of the Washington Redskins American football team, took over Six Flags Inc. Though a successful businessman himself, his management team could not make the company profitable. In the first quarter of the current fiscal year, the company reported a lost worth $146.3 million. After getting bankruptcy court approval, the company will go for restructuring.
