Wells Fargo Bank is a Californian bank having over 100 years of existence. The institution is one of the leading companies as far as the financial sector goes. Come September 19, 2008 stocks were at $39.80 which at the time were relatively high with a promise to continue to rise. However, after partaking in the sub prime mortgage game it lost a great deal of reputation after having to deal with countless lawsuits. The New York Times stated that "Wells Fargo Bank “rode the stagecoach from hell” for a decade, systematically singling out blacks in Baltimore and suburban Maryland for high-interest sub prime mortgages." Further evidence is the fact that 71% of foreclosures under Wells Fargo were in predominantly black neighborhoods.The aftermath of their arrogance was felt particularly by March 6, 2009 as stocks hit $8.6, an all time low. Needless to say that the company received $25 billion dollars from TARP as a bailout.
Profit Margins before the crash seemed to be around 83% mid 2008 at one of its peaks. Post the recession it reach a high of about 91% and has flat lined ever since. It seems as if Wells Fargo is on the rebound. It has been lowering its accounts parables which in turn means an increments in assets, specifically liquid asset in the form of cash. It’s also the number one lender to small business increasing its owners equity which has been evident in the $0.67 dividend increase this last quarter. Those dividends then translate to about $3.8 billion net income furthering both the stock holder value and its liquid assets. Wells Fargo merge with Wachovia has also proven to be beneficial to the company as more of Wachovia’s banks are converting throughout places like Connecticut, Delaware, New Jersey, and New York.
It seems as if Wells Fargo has learned its lesson as it plans to shut down its sub prime mortgage sector. It's main focus is guided towards small business in an effort to push forward the economy. Tough times still lie ahead, but hope is still in the air as its charging on through correcting its errors of the past. Nevertheless, closer supervision is required to create a firm guided hand pointing towards the road progress and ingenuity.
Sunday, April 24, 2011
Thursday, April 21, 2011
Bringing Support Home
Lets face it, as consumers we are constantly confronted with the challenge of what to buy, where to buy it, and how much of it. Questions such as can I find this at another store for less? or will I be completely satisfied with this purchase? are constantly circulating our heads. Now even the question of where is it made from and who and what am I supporting when purchasing this accumulate to what seems like a list of never ending questions from whom we see no correct answer. Perhaps it is because these are but mere attempts to understanding our economic system and how our decisions relate on a global scale.
We of course hear things such as "buy American" and "buy local", but some may be wondering why? The answer to the unexplained chants lie in an economics book. For one, buying American means that a particular product was made and distributed using American businesses. As such, buying a product made in the US will insure a continuous support for those companies who in turn will continue to employ US citizens keeping your dollar circulating in this Northwestern Hemisphere. As economics will denote, the flow of cash is typically followed by the investment made by producers and proceeding to the returns made possible by consumers. Because of this when an American industry is no longer obtaining the returns needed to keep it afloat, it is then that a further minimization of costs need to be devised for the sake of survival. More often than not these cost reducing strategies tend to comprise the liquidation of employees. Employees, or people, tend to be the first ones to get xeroxed from accounting sheets in other for companies to remain hopeful of a larger profit margins. Even though some may be able to bargain other alternatives, most general managers are too overtaken by human instincts such as fear and react all too naturally.
Still as consumers we have the ability of increasing our conscience to the reality of our daily economical dilemma of who to buy from. This ability is often neglected, but a simple reminder to keep facts in mind might help better our decisions to slowly change the direction of this economic crises we are all facing around the world. So remember that all that is American made is supporting American economy as well as the American public. So when your asking yourself what to buy try to think who you would rather support, your home or the neighbors. When it doubt think, what goes around comes around and you'll know just what action to take.
We of course hear things such as "buy American" and "buy local", but some may be wondering why? The answer to the unexplained chants lie in an economics book. For one, buying American means that a particular product was made and distributed using American businesses. As such, buying a product made in the US will insure a continuous support for those companies who in turn will continue to employ US citizens keeping your dollar circulating in this Northwestern Hemisphere. As economics will denote, the flow of cash is typically followed by the investment made by producers and proceeding to the returns made possible by consumers. Because of this when an American industry is no longer obtaining the returns needed to keep it afloat, it is then that a further minimization of costs need to be devised for the sake of survival. More often than not these cost reducing strategies tend to comprise the liquidation of employees. Employees, or people, tend to be the first ones to get xeroxed from accounting sheets in other for companies to remain hopeful of a larger profit margins. Even though some may be able to bargain other alternatives, most general managers are too overtaken by human instincts such as fear and react all too naturally.
Still as consumers we have the ability of increasing our conscience to the reality of our daily economical dilemma of who to buy from. This ability is often neglected, but a simple reminder to keep facts in mind might help better our decisions to slowly change the direction of this economic crises we are all facing around the world. So remember that all that is American made is supporting American economy as well as the American public. So when your asking yourself what to buy try to think who you would rather support, your home or the neighbors. When it doubt think, what goes around comes around and you'll know just what action to take.
Sunday, April 17, 2011
How to be an exemplary consumer
All around the globe the fierce cry felt back in 1960's United States is being echoed. A new peak of the Industrial era is sweeping the Earth and along with it are the already seen issues. Issues such as laborer's right, fair working conditions, women's right, child labor, equal opportunity, and many others are now being draw into the conscience of many for further examination. The question remains what to do about these infamous sweatshops. Unfortunately, no one really holds a realistic answer. It seems as though sweatshops being given birth to out of the nature of the economic market, from which we all partake in. Basic economics will tell you that so long as a demand exist someone somewhere will take advantage instinctively to supply said demand. It would be too idealistic and unrealistic to say that all of humanity should grow a higher conscience and not subdue itself to such primitive instincts and instead make the effort to only do what's "right", which the word in itself is relatively debatable. In short we must face reality and realize our intrinsic nature to act out of fear and desire. In doing so we can see that those are really root of the issues at hand.
In an ideal world those few privileged who hold power would seek to change such reactions. However, as all matters involving a further advancement in our morals and ethics, a grassroots support needs to come about. It is here that we, the consumers, need to step up to the plate and attempt to grow personal conscience of when we are driven to consume by either said emotion which can blind our ability to reason. The goal here is to ignite the flames of protest using the least amount of effort, but making the most dramatic of impacts. It's as simple as asking yourself a series of questions to accurately conclude whether or not a purchase needs to be made at any point in time. Of course keeping in mind that more often then not whatever you are debating to buy would have most likely been made in a sweatshop of some sort. Hopefully this will serve as a counterbalance to any decisions that would have otherwise been taken out of sheer instinct, from which we all struggle to detach ourselves from. Questions such as do I need this? or do I need it to compensate from some personal insecurity? What can I realistically afford? Can I pay more? Should I pay less? Do I have more time to look elsewhere? are a few examples of how one can grow to develop new skills shopping. The goal is to reduce your consumerism and in doing so surely a ripple effect will take place summing up to a reduction in demand for overall goods.
Also as consumers and living creatures we must think long term. One may be more incline to purchase the cheaper product from financial insecurity, but long run, if one knows that from replacing the cheaper good the price might actually add of to double that of the more expensive yet durable product, shouldn't we make that reasonable economic decisions? Of course with more information better decisions can be made. As consumers we must also be informed about the products we buy, how they are made, by whom, and their environmental effect. And what better way to learn and remember all that information then by teaching it to those around you. After all it has been said that the best way to learn is to teach.
I believe the combination of these actions will create the foundation for real change in the world. A foundation so dense and well constructed that nothing will be able to break it, but rather build upon it. Of course the reminder that we not just consumers, but citizens with a voice as well can't hurt. Still the first steps towards change always have to begin with a shift within oneself. Our decisions have a huge impact on not just our overall well being, but all those around us. Even the people halfway around the world. So really the power of change is within each one of us, its only a matter of embracing it to motivate the right action.
In an ideal world those few privileged who hold power would seek to change such reactions. However, as all matters involving a further advancement in our morals and ethics, a grassroots support needs to come about. It is here that we, the consumers, need to step up to the plate and attempt to grow personal conscience of when we are driven to consume by either said emotion which can blind our ability to reason. The goal here is to ignite the flames of protest using the least amount of effort, but making the most dramatic of impacts. It's as simple as asking yourself a series of questions to accurately conclude whether or not a purchase needs to be made at any point in time. Of course keeping in mind that more often then not whatever you are debating to buy would have most likely been made in a sweatshop of some sort. Hopefully this will serve as a counterbalance to any decisions that would have otherwise been taken out of sheer instinct, from which we all struggle to detach ourselves from. Questions such as do I need this? or do I need it to compensate from some personal insecurity? What can I realistically afford? Can I pay more? Should I pay less? Do I have more time to look elsewhere? are a few examples of how one can grow to develop new skills shopping. The goal is to reduce your consumerism and in doing so surely a ripple effect will take place summing up to a reduction in demand for overall goods.
Also as consumers and living creatures we must think long term. One may be more incline to purchase the cheaper product from financial insecurity, but long run, if one knows that from replacing the cheaper good the price might actually add of to double that of the more expensive yet durable product, shouldn't we make that reasonable economic decisions? Of course with more information better decisions can be made. As consumers we must also be informed about the products we buy, how they are made, by whom, and their environmental effect. And what better way to learn and remember all that information then by teaching it to those around you. After all it has been said that the best way to learn is to teach.
I believe the combination of these actions will create the foundation for real change in the world. A foundation so dense and well constructed that nothing will be able to break it, but rather build upon it. Of course the reminder that we not just consumers, but citizens with a voice as well can't hurt. Still the first steps towards change always have to begin with a shift within oneself. Our decisions have a huge impact on not just our overall well being, but all those around us. Even the people halfway around the world. So really the power of change is within each one of us, its only a matter of embracing it to motivate the right action.
Sunday, April 10, 2011
The first of many...Cheers!
At last I have taken the first steps towards my integration to the larger global community. Steps that begin by formally introducing myself to you my readers or, better yet, my enablers. I say enablers because by you reading this you are enabling the construction of my 'self' by creating the motivation to evoke the periodical results of inner exploration. I'll start with what I have composed over the years thus far. For starters my name is Victor and I'm currently enrolled at Foothill College. I plan to finish my general education this quarter to enroll in a Business Psychology (BA) program. Part of completing this first step is successfully finishing English 1, which is the true inspiration of this blog.
So far this English class seems to be a gateway to the globe and its colonization, some call it globalization, by the human race. Humanity has democratically, whatever that means, elected that clans should be organized into what we call corporations. Next, this corporations shall compete in the recruitment of both leaders and followers to continue our instill nature to diminish the earth of it's resources out of the greed to posses all that nature failed to equip man with from the start.No, food, water, and shelter is not enough. Humans need all sorts of goods. Knowing this, corporations go out of their ways to satisfy the thirst for goods demanded by the human kin.
As I am human I don't exclude myself from wanting a lot of the goods produced by these corporations. I have to admit I like a lot of my goods and am very grateful for many of them. However, I do wish to compromise with mother earth as well with my fellows and so as they say the more information one possesses the better their decisions can be. So all you can make better decisions, not that I assume the worst, I wish to share a little bit of what I've recently come across thanks to my English class.
The trend seems to be that goods are brilliantly designed by leaders of the corporations whom reside in the wealthy sectors of the world, which you might refer to as nations. Some of these nations include the United Sates, the European Nations, and Japan. From there the followers, or employees, of these corporations are given instructions and how to produce such goods. In exchange for their loyalty and hard work they are awarded a relatively small portion of the fruits of their physical work. These workers tend to live in less developed countries and therefore poorer parts of the world. China, India, and Africa are a few examples. Overall it seems that exemplary mental performance is valued over its counter physical one. This in turn provokes differences between human beings although I have yet to be convinced of difference in our essence. Nevertheless, regulations seems to the topic at hand to narrow the gap in the chain of command within these companies.
Not all companies function in this matter. This is where information can prove valuable. As consumers we have the power to purchase goods from the companies whose management doesn't revolve around the exploitations of both people and the earth. The short term damage to the consumer is a dent in our spending budget. However, the long term benefits outweigh these downsides by acquiring more durable products, which can prove to be an economic gain in the long run, and insuring the promotion of equality to mankind everywhere. In short know who makes your good and how it was made to insure doing your share in properly bridging the nations of the world.
So far this English class seems to be a gateway to the globe and its colonization, some call it globalization, by the human race. Humanity has democratically, whatever that means, elected that clans should be organized into what we call corporations. Next, this corporations shall compete in the recruitment of both leaders and followers to continue our instill nature to diminish the earth of it's resources out of the greed to posses all that nature failed to equip man with from the start.No, food, water, and shelter is not enough. Humans need all sorts of goods. Knowing this, corporations go out of their ways to satisfy the thirst for goods demanded by the human kin.
As I am human I don't exclude myself from wanting a lot of the goods produced by these corporations. I have to admit I like a lot of my goods and am very grateful for many of them. However, I do wish to compromise with mother earth as well with my fellows and so as they say the more information one possesses the better their decisions can be. So all you can make better decisions, not that I assume the worst, I wish to share a little bit of what I've recently come across thanks to my English class.
The trend seems to be that goods are brilliantly designed by leaders of the corporations whom reside in the wealthy sectors of the world, which you might refer to as nations. Some of these nations include the United Sates, the European Nations, and Japan. From there the followers, or employees, of these corporations are given instructions and how to produce such goods. In exchange for their loyalty and hard work they are awarded a relatively small portion of the fruits of their physical work. These workers tend to live in less developed countries and therefore poorer parts of the world. China, India, and Africa are a few examples. Overall it seems that exemplary mental performance is valued over its counter physical one. This in turn provokes differences between human beings although I have yet to be convinced of difference in our essence. Nevertheless, regulations seems to the topic at hand to narrow the gap in the chain of command within these companies.
Not all companies function in this matter. This is where information can prove valuable. As consumers we have the power to purchase goods from the companies whose management doesn't revolve around the exploitations of both people and the earth. The short term damage to the consumer is a dent in our spending budget. However, the long term benefits outweigh these downsides by acquiring more durable products, which can prove to be an economic gain in the long run, and insuring the promotion of equality to mankind everywhere. In short know who makes your good and how it was made to insure doing your share in properly bridging the nations of the world.
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