25 Ways People & Companies Deal With Recession
A week of ideas--some inventive, some sad, some illegal
Vol. 4, Issue No. 70 | December 18, 2008 By Denny Hatch
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IN THE NEWS
Recession Seen Intensifying, Recovery Delayed- Major economies not seen growing until late 2009
- U.S. seen in longest post-World War II slump
- Fed, ECB, BOE all set to cut rates further
- Median 90 percent probability of zero interest rates and/or quantitative easing in U.S., 50 percent in UK, 40 percent in Japan, 25 percent in euro zone
LONDON, Dec 11 (Reuters) — The recession gripping the developed world likely tightened to a chokehold in the current quarter and it will take longer before pinned-down economies stagger up and recover, Reuters polls showed on Thursday. Gross domestic product for the world's largest economy now looks set to contract for four consecutive quarters, the longest on record since 1947, heavy collateral damage from the most powerful world financial crisis in 80 years.
—Ross Finley, Reuters, Guardian.co.uk, Dec. 11, 2008
http://www.guardian.co.uk/business/feedarticle/8143878
To create this e-zine, I spend a lot of time on the Internet looking for stories to download into my private archive of more than 37,000 entries in 224 major categories. How much time do I spend on the Internet?
Day — Date — (Number of visits excluding e-mail)
Thu — 12-11-08 — (226)
Wed — 12-10-08 — (251)
Tue — 12-09-08 — (390)
Mon — 12-08-08 — (240)
Sun — 12-07-08 — ( 36)
The point is to find dots and try to connect them to each other and back to our businesses, careers and lifestyles.
One set connecting this week is the myriad ways people and companies are dealing with this horrifying recession—some positive, some painful and some downright illegal.
These are the stories that caught my eye; maybe some will catch yours and give you some ideas.
DEC. 4, 2008
1. Reserve Fund to Use Investors’ Cash to Defend Itself
The Reserve Primary Fund has presented its deeply frustrated shareholders with a stark choice. If they are patient, they might ultimately get back 98.5 cents for each dollar they had in the money market fund, which in September became only the second such fund to ever “break the buck,” or report a share price below a dollar. But if they continue to wage legal battles against the fund and its managers, the company will use investors' own money to defend itself against their accusations of mismanagement and deception.
—Diana B. Henriques, The New York Times
http://www.nytimes.com/2008/12/05/business/05fund.html
DEC. 5, 2008
2. Robbers in Drag Hit Harry Winston’s in Paris for $105 Million
Armed robbers—some dressed as women—in Paris escaped with up to £70 million worth of jewellery in less than a minute in one Europe's biggest ever heists. As many as four masked men wielding sawn-off shotguns stormed into the exclusive Harry Winston jewellers in a high-speed raid described by detectives as "terrifyingly efficient."
—Ian Sparks, DailyMail.co.uk
http://tinyurl.com/6gopqe
3. Travelers in Switzerland Stay in a Cheap (Real Cheap!) Hotel
BEDS are on offer for just £6 a night at the world’s first zero-star hotel—based in a converted NUCLEAR BUNKER. But guests at the no-frills establishment will have to put up with hot water bottles rather than central heating. And they will be given a pair of EARPLUGS to help blot out the racket from the ventilation system. Standard beds at the austere Null Stern (No Star) hotel in Sevelen, near Zurich, Switzerland, are military-style bunks.
Takeaway Points to Consider
Layoffs, Chapter 11, federal bailout, criminal acts—all are actions of last resort. Check out these positive stories for the ideas they generate:- No. 3. The £6-a-night hotel in Switzerland is a reminder that we don’t have to travel first class.
- No. 7. Elite Island Resorts in the Caribbean swapping rooms for depressed stocks. Barter can beat paying cash.
- No. 9. The National Academy selling off paintings. What do you have in the attic or in the office storeroom that you could sell on eBay?
- No. 10. Check out how Best Buy is pumping up staff and getting customers to spend.
- No. 11. The New York Times Corp. is mortgaging its new HQ to raise cash. What do you have lying around that you could use for collateral?
- No. 13. If you have to fire people, make sure you do it judiciously in line with Tina Brown’s thinking.
- No. 18. Airlines are taking a look at how they might beef up their frequent flier programs to win back travelers. Do you have systems in place that need reworking?
- No. 19. Do you have a nut of money tucked away somewhere that could be temporarily drawn on to tide you over this rough patch to avoid borrowing or laying off people? Check out how Ford can bail out itself.
- No. 22. Boscov’s department store chain put together a syndicate of investors—starting with members of the Boscov family—to buy back the organization. Fascinating rescue exercise.
Companies Mentioned:
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