Federal government shutdown might be looming

The budget that controls when and where federal money goes will expire on March 4. Rumors are the government might simply shut down. A federal government shutdown 2011 is a possibility, however lawmakers are working to prevent the shutdown.

Possibility of a 2011 federal government shutdown

It is good to know what is going on with a government shutdown since it might possibly occur in 2011. In 1998, a full federal government shut down occurred. Almost every little thing was shut down that was government-run. There have been other federal government shutdowns since 1998, but they were very short-term, partial shutdowns that impacted portions of the government, but not the entire thing. A full government shutdown this year would mean that anything from Social Security to Veteran’s Affairs would simply cease to function. There was no longer access to national parks. Passport agencies were not working anymore while federal employees went unpaid. Some select self-funding agencies, such as the USPS, might stay open. Medical facilities would also continue to operate however with a skeleton crew.

Ways the federal government shutdown can take place

A budget is needed for the federal government which has to pass in both Congress houses while the president also has to sign it. The funds available won't be known by the federal government agencies without a budget. That means they will have to shut down for a while. As in 1998, Congressional debates over spending cuts are holding back the passage of a budget.

What it means to have a 2011 government shutdown

There would be lots of problems if the government shut down this year. Lots of pressure would be put on Congress to get a spending budget passed. Republicans and Democrats would have to play nice. Getting the budget made is necessary. The only time in the last 15 years that a surplus of federal funds was available was after the balanced spending budget spending was created in 1998 after the government shutdown.

Citations

CNN

politicalticker.blogs.cnn.com/2011/02/21/house-republicans-and-senate-democrats-in-talks-to-avoid-government-shutdown/#more-147736

Washington Monthly

washingtonmonthly.com/archives/individual/2011_02/028070.php

German brewery areas no-alcohol beer in United States as an athletics drink

A brewer from Bavaria is launching a campaign to sell non-alcoholic beer as an athletic beverage in the United States. Bavarian brewer Erdinger is wagering that American sportsmen have a taste for its Alkoholfrei brand. Erdinger also believes Alkoholfrei tastes well enough to reverse a trend of decreasing United States sales for no-alcohol beer. Sportsmen benefit from drinking Alkoholfrei, according to Erdinger, because it delivers nutrients for athletes without dehydrating them with alcohol. Article resource – German brewery markets no-alcohol beer in U.S. as a sports drink by MoneyBlogNewz.

Strong belief that Alkoholfrei could be successful in the United States, Erdinger claims

In the United States, beer is typically associated with sports marketing. Never has non-alcoholic beer been a part of this though. In Europe, Alkoholfrei has been promoted as a fitness beverage. Erdinger has done this since 2001. In Europe, Alkoholfrei became really popular while grass roots sporting events and major competitions typically gave free samples out by Erdinger. Erdinger products are sold in forty-five U.S. states, and the brewery has decided to step up marketing efforts for Alkoholfrei to increase its market share in North America. In Fort Kent, Maine, the February World Cup biathlon was held. Along with skis and rifles, the European sportsmen had mugs of Alkoholfrei.

Best sports drink is beer

Erdinger Alkoholfrei appears like beer, with an auburn color and foamy head. The beverage tastes like beer too. This is despite the belief that there isn't any alcohol in it. The beverage is promoted as something that can help recover athletes from a workout or competition with the carbohydrates and vitamins that are in it making it an "isotonic" sports drink. Athletics nutritionists explained the compounds in beer aren't generally high enough to make a difference for sportsmen when it comes to recovery. They typically have on top of the ethanol sodium, potassium, carbohydrates and B vitamins. The Erdinger Alkoholfrei will help rehydrate athletes due to the lack of alcohol.

Will genuine German beer flavor, matter to Americans?

In the 1990s, non-alcoholic beer became part of the United States sector. It started with Sharps from Miller and O'Douls Anheuser-Bush. Selling those brands has been difficult though. It has been that way for years. Even though Alkoholfrei is non-alcoholic, Erdinger has marketed the drink as a genuine German beer flavor. At nearly $10 a six-pack for Erdinger Alkoholfrei, whether Americans can accept that price for a German beer with no buzz or a European energy beverage without the sugar high remains to be seen.

Articles cited

San Francisco Chronicle

sfgate.com/cgi-bin/article.cgi?f=%2Fn%2Fa%2F2011%2F02%2F21%2Fstate%2Fn084141S20.DTL

USA Today

usatoday.com/sports/olympics/2011-02-13-3781689740_x.htm

Business Week

businessweek.com/ap/financialnews/D9LHEP0G0.htm

New lending program targets Reno companies with loan-lending troubles

A new program targeting smaller businesses in Nevada has started. The Rural NV Development Corp. is administering the program. The U.S. Department of Agriculture-funded program targets companies that could not otherwise qualify for loans. One-fifth of the money has already been handed out. This could help people stay away from pay day loan lenders if they can get the financing elsewhere.

Reno, Nevada, rural development loans

A $500,000 grant from the United States Department of Agriculture is funding a new “microlending” program. There is the USDA Rural Microentrepreneur Assistance program. This will fund bad credit loans to all Reno-area companies. Up to $50,000 can be given to businesses denied traditional banking loans with these loans. Between 10 and 12 percent interest will be charged on the loans that have only five years to pay them back.

While in Reno, what you need to get a bad credit business loan

There are some things a business has to do in order to get a Rural NV Development Corp. loan. Businesses have to qualify. Less than 10 employees in the business are allowed while less than $1 million a year in gross revenue is allowed. Traditional loan financing has to have been applied for by the business that got denied. Companies around Reno, Carson City, LV and India Reservation areas can get the money. In NV, only $500,000 total is being offered for these programs. In the first five days of the program, $100,000 was already handed out. Within the month, the whole $500,000 is anticipated to be gone.

Microfinance information

Many know the terms "microfinance" and "microlending" now. They’re more popular than ever. Though the United States Department of Agriculture is calling this Reno loan program “microlending,” it lends much larger amounts than most microfinance programs. Microfinancing is generally targeted towards very low income individuals, often in developing nations. Around $1,000 is typically paid for most "microlending" programs. The microlending for RNDC is huge when comparing these numbers. Businesses that do not have good credit and don't' have money to work on the business are in a "hole" in the credit industry even though microlending is usually given with private individuals from developed countries to developing countries.

Articles cited

RGJ

rgj.com/article/20110201/BIZ/102010321/1321/news

Conjecture abounds about tiny, cheap iPhone Nano

The next large thing from Apple might be a smaller, less costly gadget comparable to an iPhone. By storing all its data online, the gadget could possibly be just half the size of standard iPhones. Android has built industry share with a significant price advantage that might be erased by such a product as the iPhone Nano. Millions of people wouldn’t have to take out a payday cash advance to buy this smartphone. Post resource – Rumors fly about small, cheap iPhone Nano this summer from Apple by MoneyBlogNewz.

Android or iPhone Nano from Apple

For a few years, there have been rumors of a small and cheap iPhone from Apple. Industry analysts are saying the iPhone Nano’s time has come because Apple is ready to leverage its brand image with a new family of connected devices. The market for the iPhone is quite much saturated now. That means Apple might be ready to compete with the Android totally now. Although iPhone Nano is the generic term used for all the conjecture about Apple’s next move, it’s unlikely that can be the name for the device. A specific product made more for music and messaging but may also make calls will likely be what Apple does with the iPhone brand next.

Possibility of MobileMe on iPhone Nano

The MobileMe cloud storage for Apple's iPhone Nano can be something Apple will have to do with the iPhone Nano strategy. The cloud is where iPhone users can store information managed with the iPhone or computer. MobileMe allows this to occur. A MobileMe subscription currently costs $99 a year. With the iPhone Nano, users might get MobileMe for free meaning personal storage for photos, music and videos for Apple. The MobileMe cloud storage would be really helpful. Memory would no longer matter. MobileMe could also become the nexus for a new online music service in development at Apple, which adds to speculation about a possible “iPod phone.”

What Apple will do next

The iPhone Nano, or whatever it will ultimately be called, is expected in June, Apple’s customary release season for the iPhone. Carriers to subsidize the phone to be almost free since it would cost around $200. Until now, the majority of the innovations in the smartphone universe have been pioneered by Apple. The next wave of innovations is reported to be in cost reduction. Devices like the iPhone being cheaper have scared several mobile manufacturers. They’re worried about Apple being too far ahead.

Articles cited

Wall Street Journal

online.wsj.com/article/SB10001424052748704657104576142262842435544.html#ixzz1DrugJhp0

Computerworld

blogs.computerworld.com/17806/iphone_nano_a_no_no_everything_you_need_to_know?source=rss_blogs

ADNet

zdnet.com/blog/igeneration/iphone-nano-could-swamp-the-mobile-market-kill-off-rivals/8232

Guitar Hero and DJ Hero dead; Rock Band might endure

In February, once-blockbuster game “Guitar Hero” is going to be shut down. Activision is shutting down production of the "Guitar Hero" video game along with "DJ Hero." Similar series "Rock Band" hasn’t declared plans to turn off – yet.

‘Guitar Hero’ to be turned off

"Guitar Hero's" death was something that video game maker Activision declared Thurs morning is over. Everybody wanted the "casual-gamer" title before. It was a big hit among people. In Jan of 2009, “Guitar Hero” was the first game to hit more than $1 billion in sales. The company lost $9.36 billion past year with U.S. sales dropping over 8 percent. In February, Activision can be shutting down sales. "DJ Hero" and "Guitar Hero" will both be shut down. Activision will be laying off a staff of approximately 500 people.

’Rock Band’ might survive

“Rock Band” and “Guitar Hero”, while very similar, are created by two different companies. Viacom and MTV Games own “Rock Band” and are able to make deals with musical distribution systems much more very easily and cheaply. "Guitar Hero" controllers can be used to play "Rock Band" although the company is able to stay profitable with the more expensive setup pack. “Rock Band” has maintained stronger download sales than “Guitar Hero” over time, also. This doesn’t mean “Rock Band” is in a comfortable position, however. When "The Beatles: "Rock Band"" came out in 2009, millions were expected to sell. In three months, only $1.7 million in product was sold with the game.

Music gaming in the future

In the shutdown announcement, “Guitar Hero” cites the “rapid decline in the music genre” as the major reason for the decision. Motion-based gaming systems such as the Wii and Kinect have been selling musical genre games since their release. Most motion-based music games, however, are depending on dancing, not being a part of the band. As the hardware component of sales is reduced (no controllers to purchase) corporations could have to focus on lower-profit, higher-sales software in order to stay solvent.

Information from

Investor Place

investorplace.com/30610/activision-blizzard-atvi-guitar-hero-sales/

USA Today

content.usatoday.com/communities/gamehunters/post/2011/02/activision-dropping-new-downloads-for-guitar-hero-dj-hero/1

Major banks could possibly be compelled to purchase $60 billion in mortgages

The repackaging of home loans into securities, for many investors, turned into a poor deal. A few lines in contracts imply something significant, though. The poor mortgages could actually be the responsibility of the banks. The banks might be forced to re-purchase loan securities gone terribly. A single term published into most contracts might mean the banking institutions will owe over $60 billion. Thousands have lost their homes while others struggled through payday loan after pay day loan just to stay on top of their mortgages.

Conditions in home loan securities

Mortgage securities were packaged, sold and re-packaged by banking institutions. Billions of dollars were made this way. Many of these mortgage securities were more than just bad credit loans, however. The investments also contained a terms that said if the loans go south, the bank would re-purchase the loans. During the height of the home loan bubble, this seemed like a minor issue. Banking institutions are not happy about the buybacks being forced with all the homes in foreclosure.

Sixty billion dollars lost

The mortgage backed securities buyback was triggered by values dropping. Credit ratings dropping didn't help either. Credit ratings agencies estimate the nation’s six largest banks face about $60 billion worth of buyback liability. Fannie Mae and Freddie Mac own about half of the legal responsibility. In order to buy back a ton of home loans, Fannie and Freddie got about $2.5 billion from B of A in January. These home loans are spread all over the country, with a high number in high-foreclosure states such as Nevada.

A lot of buybacks for years to come

The "highest exposure" to buybacks were in banks like Chase and B of A. There are three groups of businesses seeking to sue banking institutions that aren’t buying back mortgages — insurers, mortgage finance companies and private investors. Some of the loans may be repurchased by the banking institutions. They surely will not all be bought back though. In the end, that means that banking institutions could have many years of possible lawsuits and poor loans on the books, all while the investors are stuck with foreclosed properties that their contracts say they ought to not have.

Citations

New York Times

dealbook.nytimes.com/2011/02/09/banks-could-face-60-billion-tab-on-bad-loans/

Working moms have more overweight children, states study

Childhood obesity has tripled over the last 30 years, claim several studies. Now a connection might have been detected by an American University professor between overweight kids and moms who work a fantastic deal of the time from home. Households with moms who worked more hours had children with a higher body mass index (BMI) over their lifetimes, the study found. This is even without people getting payday advances to purchase their food.

The reason why obesity is linked

The January/February issue of the Child Development journal published the childhood obesity study. There were 990 kids from 10 cities in the United States in grades 3, 5, and 6 looked at. Study founder Prof. Taryn Morrissey from American University’s Public Administration and Policy department, found the total number of years working mothers were employed had a small however cumulative influence on their children’s Body Mass Index. It isn't good for a child to have a higher BMI. Chances of obesity go up with the BMI.

Surprisingly, such factors as the children’s physical activity amounts and TV time did not explain the connection between maternal employment and children’s BMI, the study indicates. Researchers were confused when even the time of day a mother worked didn't make a difference in the Body Mass Index level.

Not implementing the time to cook

The probably culprit that Morrissey and team identified was the lack of time working parents have to shop for groceries and prepare food. The link tended to be more about eating out and eating more pre-prepared foods which tend to have more calories in them.

How to fix it

Prof. Morrissey believes something needs to change considering behavior problems and obesity-related illnesses like high blood pressure, type 2 diabetes and high cholesterol could be brought on by childhood weight problems. It may also cause a lesser life expectancy which can be up to five years the Children's Hospital in Boston concluded in a study. Expanding the availability of healthy, affordable food is paramount to a healthier society.

"Community- and school-based programs offer promise for promoting healthy weight by providing information to children and their families about nutrition and exercise, as well as how to make quick, healthy meals," Morrissey said.

Articles cited

American University

american.edu/media/news/20110204-Childrens-BMI-May-Rise-Longer-Mothers-Work.cfm

Wiley

wiley.com/bw/journal.asp?ref=0009-3920

USA Today

usatoday.com/news/health/2005-03-16-obesity-lifespan_x.htm

Mom, get your kids on the juice. Jack LaLanne would approve.

youtube.com/watch?v=4AEeQZh1s4A