Do You Twitter?

You've heard of Twitter. Aside from Facebook, it's the fastest growing social networking site on the web. Business Week and PC Magazine are following Twitter closely, Business Week focusing on business applications. News reporters, White House staff, political campaigns, college and high school students, job seekers and marketers are making connections through Twitter. Major businesses such as Dell are incorporating twitter into their business plans. Everywhere you turn, you hear the term Twitter. Facebook wants Twitter as does Google.

So what is Twitter and how does it affect you? Twitter posts, called tweets, are microblogs. Each entry is 140 characters or less. When you join Twitter, you are asked a seemingly innocuous question, "What are you doing?" and each tweet starts from that question. Your answers to the question become your blog posts and can be followed by your friends or anyone, just as in a regular blog. Tweets at first seem very personal, but they quickly can take on more elaborate objectives. Dell Computers claims to have made $3 million from Twitter.

The video below, Twitter In Plain English is extracted from the Twitter site. Notice that it's appeal is personal, connect to friends, family, co-workers. Nielsen, which tracks Facebook, MySpace, Twitter and other social networking sites, saw Twitter leap "... 1,448 percent from this time last year... according to Monday data from Nielsen. The micro-blogging site logged 18.2 million unique visitors in May 2009, up from 1.2 million in May 2008, and up 7 percent from April 2009" as reported by Chloe Albanesius in PC Magazine online June 22. Albanesius in the same article also notes the continuing dominance of Facebook with 144.3 million unique visitors in May!

Twitter obviously has broad appeal beyond the personal. 140 characters could be a short poem, a haiku, or it could be the lead sentence of a news article, a series of business marketing slogans or a call to organize around an issue, a vote, a sale. It is attractive to journalists who are taught to write the jist of a story in one sentence (who, what, when, and why?) and to generations raised on Headline News of television and radio. "Chrysler Corporation no longer in bankruptcy, ready to start producing cars again." is perfect as a tweet. or "Berkshire Athenaeum announces Summer Schedule of Workshops starting July 2. Sign Up Now!" or "Gas Prices Increase As Summer Vactions begin, $3 gas prices expected midSummer." or "I am reading Deborah Micek's Twitter Revolution. Found it at the Berkshire Athenaeum. Check it out!"

The possibilities of Twitter are endless. It's free and easy to join. I have a Twitter account. You can view my Twitter profile and twitter entries by going to http://twitter.com/aboutbizness.

See Business Week's article, Twitter: Building Businesses Tweet By Tweet and their handy guide to TwitterSpeak. See how it may fit into your own business plan and strategic thinking.




Want to learn more about Twitter? Sign up for our Technical Services librarian, Jeremy Goldstein's Thursday, July 16 workshop on Twitter. It starts at 6p.m. Sign up at the Reference Desk or by calling 413-499-9480 ext 202.

Marketplace Whiteboards On The Financial Crisis

Marketplace is National Public Radio's Business program. It is broadcast Monday thru Friday at 6:30 p.m. on public radio stations nationally. In the Berkshires it may be heard on WFCR and WAMC, each on FM. As with newspapers and magazines Marketplace has a multimedia presence online, where its programs, special reports, podcasts and videos may be downloaded and heard as well as viewed. The program is uniformly informative and worth listening to if you're trying to understand what's going on behind the headlines in the business, financial and working worlds.

For the past year Marketplace online has had a continuing feature, "The Whiteboard", on getting behind the financial crisis and taking the mystery out of Credit Default Swaps, Collatoralized Debt Obligations, Write Downs, Mortgage Backed Securities, and other arcane terms and making them clear. "The Whiteboard" features Marketplace Senior Editor, Paddy Hirsch, in short, graphic, 5 to 10 minute presentations. In this posting I am including 1 of these Whiteboards, as an example, for you to view:

"Uncorking CDOs (Collatorized Debt Obligations)" from October 3, 2008 (Marketplace online) .

When viewing this 6 minute presentation, you may need to watch more than one time. These are after all complicated matters. But Paddy Hirsch does an excellent job. The presentations are never boring. If fact they only got better the more I repeated them. You may understand them quicker than me. But Paddy Hirsch has provided us with an excellent reference backdrop. If you have RealPlayer or Windows Media Player you should be able to view. If not viewable you may need to download a recent version of Quicktime.




After viewing this and other Whiteboards you'll have a better understanding of the financial system and how it works, relation to mortgages, credit card debt, student loans, General Motors bankruptcy and their impact, or, as Paddy Hirsch puts it, "the financial mess we're all in". For the full list of Paddy Hirsch's Marketplace Whiteboards click here. You won't regret time spent.

Another website that continues to illuminate with clear explanations, is Investopedia, which we have featured in the past and continue to consult for accurate, informed discussion. Marketplace and Investopedia are worthy of your Bookmarks.

The Berkshire Athenaeum has 2 dictionaries of finance and banking you may want to consult:
1) Dictionary of Finance and Investment Terms by John Downes and Jordan Goodman; and 2) Dictionary of Banking and Finance by P.H. Collin.

Upside To The Economic Downturn

With all the bad news about Banks in this last year, it seems that local Berkshire Banks are doing pretty well.

That's the news Berkshire Eagle Business reporter, Tony Dobrowolski, wrote about in the Saturday May 23 and Tuesday May 26 issues of the Berkshire Eagle. In his Saturday article, Berkshire Bank To Return $40 Million To Treasury, Dobrowolski reports:

Berkshire Bank has received approval to return $40 million that it received last fall as part of the federal Troubled Asset Relief Program. Following approval from the U.S. Treasury Department, the bank said it expects to return the money by the end of the month, drawing funds from its cash assets. It does not expect to sell additional stock to repay the government. Berkshire received the funds as part of the Capital Purchase Program, which was a core component of the Troubled Asset Relief Program — or TARP — that set aside $787 billion to help keep the country's credit flowing. The Capital Purchase Program was only available to banks that already had strong reserves."

Legacy Bank had earlier requested $20 million from TARP and then its Board turned it down. Apparently they didn't like the requirements that went along with accepting the money. Turnabout from Berkshire Bank appears to be for similar reasons. The reason for the loan originally was to release credit to other needy banks. The May 23 report indicates they can expand credit without the TARP. National controversy surrounding TARP appeared to have its impact on Berkshire Bank's decision as well.

Dobrolowski's Tuesday article, Local Banks Make The List, reports,

"Berkshire County's two largest banks are the only county companies included in the Boston Globe's recent rankings of the top 100 publicly traded corporations in Massachusetts. Berkshire Hills Bancorp of Pittsfield, the holding company for Berkshire Bank, is ranked 41st. Legacy Bancorp of Pittsfield, the holding company for Legacy Banks, is 84th. Berkshire Bancorp was 78th in The Globe's top 100 rankings last year. This is Legacy's first time on the list, said the bank's President and CEO J. Williar Dunlaevy."I'm proud for the bank," Dunlaevy said on Friday, adding that companies that make the list usually benefit from their size. "I have to give credit to the bank and the community. I think it's great that Berkshire County would have two banks among the top 100 firms in the state."

Last November we wrote a blog post about Berkshire Bank, Berkshire Bank Applies For Bailout Money. Conditions in November involving banks indicated that "bailout" meant unsound. Berkshire Bank and Legacy did not believe themselves unsound. In the case of Berkshire Bank they wanted to expand credit lending to area banks and businesses. Their recent statement indicates they can do this without either government help or stockholder help, that sufficient cash reserves exist. Their turnabout is also to restore whatever lack of confidence local consumers may have had in the bank with their initial acceptance of government funds.

This represents a glimmer of good news in an otherwise large ocean of bad news about banks. Thought you would like to hear a little good news for a change!!

Memorial Week 2009 - A Time For Reflection And Review

Today is Memorial Day. Yes, yes, I know. The"official" holiday of Memorial Day is celebrated the last Monday of May; this year May 25. But May 30 is the original day set aside by the United States Congress in 1868 to remember the dead of both sides of the Civil War. It was then called "Decoration Day". It was since much later changed to Memorial Day -- a day of remembrance for of those no longer with us -- friends, family, and others. It is also a time for reflection and review. (For an informed overview, history of Memorial Day, see Wikipedia's entry here.)

So, this is really Memorial Week, the official start of Summer tourism in the Berkshires and throughout New England resort area. The annual migration to Pittsfield and surroundings has begun. Tourism is a major part of the economy of the Berkshires. How summer develops will reflect the economy. Will people still vacation here or stay at home? Labor Day signifies the end of Summer tourism, although for some, the true end of Summer tourism is October 12, Columbus Day.

Already gas prices have started to climb again. They really began creeping up Mother's Day. Now gas prices in the area are averaging near $2.50 per gallon rates. A year ago we were entering the $4 range with no end in sight. The prices broke in November, going down below $2 for the first time. They stayed down until May 2009. (See Motor Trend's Gas Price Locator for Pittsfield area prices and AAA's fuel gauge report on daily state and region prices.)

Reflecting on oil and gas increases to sustained $4 + prices, we see immediate and far reaching effects that have thrown the US economy into one continuing crisis after another, making it especially difficult for small businesses to stay afloat, but also major Fortune 500 companies. Witness the bankruptcy of Chrysler Corporation and the coming bankruptcy of General Motors Monday June 1st. Of course, it was more than gas prices that led to the collapse of the automotive industry in the United States, but for the consumer it was the key. Companies with large inventories on dealer's lots, inventory that did not move, together with crisis in credit financing, the bank bailouts and bailouts of the auto industry. Great losses have occurred. Even Toyota experienced billion dollar losses and Toyota has very diversified offerings, something that could not be said for either Chrysler or General Motors. Auto dealers not moving inventory are offering "going out of business" sales now. Long term relations between dealers and the auto industry are being severed through the bankruptcy restructuring process. The automobile industry will survive but not as the mega-giants they once were.

Another impact of the automotive industry collapse has been on parts suppliers and credit financing agencies such GMAC (General Motors Assistance Corporation). Part suppliers Delta and Visteon are in bankruptcy. (See Business Week article on this). For consumers availability of parts is always a problem Meanwhile the taxpayers are guaranteeing Chrysler's warranties.

Collapse of the automotive industry has been impacted by its inability to confront major trends in the manufacturing economy -- the larger context of the problem. Forbes Magazine has just published a major special report, Made in America, focusing on major manufacturing trends since 1979. These articles represent an informed analysis of what has happened and what needs to happen for the "second American century." The manufacturing sector has changed dramatically. Currently there are 12 million Americans in manufacturing where it was once 19.5 million in 1979. The 12 million that still have jobs have advanced in productiviy and efficiency. Much more is produced with 12 million than the 19.5 milion. The reason for increase in productivity in two words: the Techological Revolution. The effective mating of computer and machinery together with robots and increased sophistication. This has led to manufacturing productivity at the highest level ever $1.6 trillion, according to John Engler, President of the National Association of Manufacturers, in his Forbes article, "Forging a Second American Century", Economist Robert Reich, author of Supercapitalism, foresees in his article, "Manufacturing Jobs Are Never Coming Back" a different scenario. According to Reich unskilled jobs are not coming back and this is a worldwide phenomenon. Instead manufacturing is calling for highly skilled jobs with machines and robots doing the repititive and and even skilled work. Whatever you think this report represents a significant attempt at understanding our current predicament. It is education and continuous training that is needed.

While we're reflecting on these trends and the reemergence of increased gas prices, hopefully you'll take a moment or two to enjoy your summer vacation, wherever you take it. Even in the great recession we're going through, there are positive developments and opportunites to be had.

During this Memorial Week I hope you've taken time to Remember. Remember those no longer with you and those who are still living. And have a happy Summer! Enjoy the beautiful Berkshires!

Create a Blog With Blogger

Some people have asked me, "How can I create my own free Blog?" Google Blogger provides a handy Video Tutorial on how to create your very own Blog. There are many types of blogs but this video is sure to help you get started. I have included Google's Blogger Video Tutorial below to assist you in this process. Play it as many times as you want to go over any point in question. Thanks Google!

April & May Business Workshops at the Berkshire Athenaeum

The Berkshire Athenaeum Reference Department has announced its schedule of Workshops to be held in April and May of 2009. Among these workshops are several that are Business oriented and will be of interest to those involved in starting up and/or managing a small business and to those with a general interest in the impact of business on all of us.

A full list of all workshops to held can be viewed here on the Athenaeum web site. All workshops are 1 hour long and free to all. The schedule of workshops with a Business focus are listed here. These include:

Tuesday, April 7 @10a.m and Wednesday, May 13 @6p.m.
Berkshire Funding Resource Center - Of special interest to non-profit businesses, this will be an "Introduction to the Foundation Center website and its resources, using the Foundation Center databases to locate foundation grant funding resources and in utilizing Athenaeum resources that support grant research. (taught by Madeline Kelly)

Saturday, April 11 @10a.m. and Saturday, May 23 @10a.m.
Business Websites You Should Know About - "Keeping informed and up-to-date is always important in business. Workshop will focus on best business websites and how they may provide a one-stop-shop for all aspects of your business. (taught by pittsfieldbizlibrarian Dick Fairfield)

Wednesday, April 15 @10a.m., Wednesday, April 22 @10a.m., and Wednesday, April 29 @10a.m.
Blogs and Blogging Series - A 3 part series dedicated to creating your own weblog.
Part 1: April 15: Introduction to Blogs and Blogging. What blogs can and cannot do. Personal and Business Blogs. Developing your Blog Plan. Setting up a blog email account with gmail. (taught by Dick Fairfield)

Part 2: April 22: Create and Manage your own Blog. Using Google's Blogger, you will create your own free Blogger account. Creating your first Blog post. (taught by Dick Fairfield)

Part 3: April 29: Managing Your Blog. Discussion of Blog maintenance and growth. Resources available to support and grow your Blog. (taught by Dick Fairfield). Plan on attending each part of the Blog workshop.

Tuesday, April 28 @6p.m. and Tuesday, May 12 @6p.m.
Free Business Resources on the Web: This workshop will cover FREE online resources available to start-up, maintain, and grow your business. Focus will be on operational tools you'll be able to use right away. Develop online contacts and support. (taught by Dick Fairfield)

PreRegistration is Required for All Workshops. You may Register by calling the Reference Department at 413-499-9480 ext 202 or In Person at the Athenaeum Reference Desk, Berkshire Athenaeum, One Wendell Avenue, Pittsfield, Mass. We look forward to you attending our workshops. There are, however, limited spaces, so, Reserve your space now.

Should you have any questions, please don't hesitate to email me pittsfieldbizlibrarian@gmail.com

Dow Up, Dow Down -- What does it all mean?

It's no secret! We're in an economic crisis of great proportions. But it's really hard to get an uncluttered answer about what essentially needs to be done to bring about stability.

In politics we get an overwhelming Republican No on the President's stimulus plan. An almost equally overwhelming Yes from Democrats on the plan. Result: Well there are more Democrat votes than Republicans. So a stimulus plan exists. That works both in sports and politics.

Does that cure the situation? We'll have to wait and see. Meanwhile other initiatives to stimulate banks and release of credit do not appear to be working. General Motors and Chrysler have once again asked for more billions and AIG is back asking for more government assistance.

Meanwhile, yesterday, February23, the Dow Jones Industrial Average and the NASDAQ (National Association of Securities Dealers Automated Quotation) fell to lows not seen since 1987. Today they are going up once again. Are these indexes accurate measures of the state of the economy? The answer is not self evident. What the Dow and NASDAQ show is Investor Trends and investor confidence or lack of confidence in the marketplace. All are looking for answers and coming up with more questions. (There are no simple answers.)

Meanwhile companies listed in The Dow may give us some idea of the strength of the economic recession. The Dow is made up of a select group of companies numbering just 30, whose growth and decline are critical to the marketplace, according the editors of the Wall St Journal, who select these companies for inclusion in the Index. (For a discussion of how the Dow is composed and points calculated see Investopedia's article here)

What companies, listed in The Dow are in trouble? They are names in the news -- General Motors, currently trading at $1.77, Ford Motor Company at $1.73, General Electric at $8.85, Bank of America at $3.91, Citigroup at 2.14, Alcoa at $5.81. Faring not much better are Intel at $12.08, American Express at $12.20, Pfizer at $13.41, Walt Disney at $17.56, Microsoft at $17.91 and Home Depot at $19.97. Other companies such as Proctor and Gamble, IBM, Wal-Mart, McDonald's, Coca-Cola, Exxon and United Technologies are doing quite well. These companies form the Dow Jones benchmarks for the economy. As these companies trade lower and lower so too does the Index itself go lower. A little over a year ago The Dow was over 14,000 points; today it's at 7100. A company by company, minute by minute watch of the Dow Jones Index, may be viewed and monitored on Bloomberg. (Just click on the link.)

These are bargain basement prices for these companies. Obviously millions of investors have shed their stocks in these companies and have experienced great losses. For those who have never owned stocks due to high prices, now might be advantageous. In this kind of climate it takes a bit of courage to put your own money on the line. Do you think GE, Ford and GM will be around, that the banks are still critical? When stocks cost less than coffee, they do provide an option. With prices this low, it becomes a little easier to see why government involvement is necessary and practical, if not mandatory.

Two books from the recent past can now be seen as cautionary in the wake of the former bubbles that have now been burst thoroughly: Robert Shiller's Irrational Exuberance and Maggie Mahar's Bull! A History of Boom and Bust, 1982 to 2004; What 21st Century Investors Need to Know About Financial Cycles. Both of these books may be found at the Berkshire Athenaeum and other public libraries.