Financial Gab

Newsflash: The price of gas is high right now.  Inordinate, in fact.  The price is four times what it was five years ago in some places.  With the summer looming, the news just keeps getting worse.

The price of gas results in rising prices in other goods, such as food.  With increased shipping costs, the cause and effect reasoning is office.  With all this in mind, there are ways to get by when gas prices are so high, but then there are also bad ideas.

1. Stealing cars

Yes, it’s tempting.  The main reason stealing cars is so tempting this time of year is gas.  If the dude just filled up his car, you could drive cross-state for free. Unfortunately, stealing cars is illegal if you get caught.  So don’t get caught.

2. Drinking gas

If you drink gasoline, logic says that you will also urinate it.  How great an idea is that?  You could literally fuel your car!  Talk about saving money.  But this is a double-edged sword, as gasoline is also toxic.

3. Placing your car in a tub of gas

The reasoning for this goes back to the 14th century.  Back in those days, dehydrated individuals would often jump in a lake to get rehydrated.  Then why couldn’t we use that same logic with fueling our cars?  Speaking from experience, it just doesn’t work.

Building on yesterday’s post, it’s becoming more and more important to consider outside income sources as the economy falters and the job market tightens up. While yesterday we talked about potential side jobs that can provide excellent learning tools and terrific work environments (see: Coal Miner) today we are going to focus on the class of 2008.

As these newly graduated, idealistic zombies start hitting the streets, they will find that the American job market sucks right now. Really. So here at FinancialGab.com, we aim to educate, entertain and mostly educate. So behold the Top 5 “Just ‘Til I Get My Dream Job, Dude” Jobs

1. Record Store Clerk

Why is it that every cool person in the world somehow has spent time working as a record store clerk, when there are about 15 record stores left in existence. Anyways, these brats will probably get part time positions here, raving about the genius behind Vampire Weekend and spending long amounts of time arguing that Pete Best was truly the most influential Beatle. Beware, world.

2. Running a “Profitable Blog”

Who in their right mind would try this? Here at Financialgab.com, we have no qualms about the fact that we will make no money. In addition, no one will read this. But that doesn’t stop 100k of these kids from taking time away from drinking Natty Lights and eating frozen burritos to make the next great political, entertainment and vacation blogs. Oh, they are terrific writers and they have so much to share with the world, with their entire 22 years of experiences and deep thought. But somehow most of these blogs just seem to highlight how much their lives suck and how “disrespectful” their parents are of “their space” (See: Old bedroom)

3. Fast Food Worker

Okay, this only fits in because a lot of these kids were working in fast food to get by in college and I guess they are going to continue that until they move on up to the world. Actually my favorite on the list, provides free food and endless networking possibilities. Starbucks included. On the downside, runs the risk of promotion and ending up 45 years old at a Burger King in Des Moines, IA. We love you Iowa!

4. Working for my dad!

Your not really working, okay? You show up at your father’s law office and spend seven hours reading Teen People while texting your girlfriends on your brand new iPhone (graduation gift!) Your dad asks you to make copies and work with clients, but you just spend all day playing bejeweled and e-mailing your resume to random companies, begging for a job. The most relaxing on the list, by far.

5. Enterprise Rent A Car

Why do recent graduates always seem to work here? On the flip-side, why is Enterprise ALWAYS hiring, no matter the economy or their company’s status? From what I gather, this is an extremely horrid job that requires like 70 hours a week arguing with customers and scanning gas mileages. But I respect that you are trying, fine sir. Just don’t stay long. Might make the Coal Miner position available look enviable

I hope you owned this stock before this morning. If not, still buy it. Or be homeless. Whatever you choose.

Newsflash: Many of America’s airline carriers are in a state of chaos, and that is putting it nicely.  Of course, this has been a popular topic in recent weeks due to the grounding of many American Airlines flights.

However, the problems go well beyond struggling airlines and poor FAA oversight.  In fact, the airlines would lead us to believe that the problems are related to lack of reinvestment in the company.

The American Airlines stock has crashed over the past 12 months, decreasing by more than 20 points to just below nine at the time of this writing.  Thus, stock holders are not happy.  Obviously, the events of recent weeks have been customers unhappy.  And the aforementioned article leads us to believe that at least some workers are unhappy. 

So what is the answer?  This all comes back to the debate of investing in workers vs. appeasing stockholders.  For all the semi-hardships that Google has had over the past year with a stock that has lowered slightly, they are still a great example of the good that can happen when a company reinvests in its workforce.  Google is known for their great work environment, and the success of the company is likely no coincidence.

Of course, the other end of the spectrum is Wal-Mart; a company that is known for treating their employees poorly, yet has had wild success.  These companies are on opposite ends of the spectrum. 

One thing is for sure: American Airlines is not the healthiest of companies right now, and regardless of whether the pilots’ claims are true, something needs to be done for the company to dig out of the hole for its stockholders and its employees.

According to The Salon, you can now access the Wall Street Journal web-site completely free, for those with questionable ethics. Check it out here

Timothy Sykes once took $12,500 from his bar mitzvah and turned it into a cool $2.5 million before apparently losing most of it back. His web site chronicles his process to duplicate his earlier success. That site can be found here

Seeking Alpha has a terrific article about the ridiculousness that is happening with GE. Once a must-have stock, now ruining nice Friday market results for everybody. That can be found here

Finally, according to WSJ, Wachovia is about to announce a 6-7 billion dollar capital infusion from outside investors. RIGHT NOW would be a good time to sell some WB. Check it out here

The 75th anniversary of Prohibition’s end highlights an apparent point in a bear market, like what we have been facing recently: When all else fails, invest in consumption.

While there have not been many food and beverage consumptions that have taken off (where are you, Chipotle?), most have held their ground.  Sure, the rising price of gas has made shipping these items more expensive and generating containers also more expensive, but few have gone broke recently investing in these companies. 

Even in hard times, consumption never ends.

Making waves through the city of St. Louis is what looks like a huge failure in downtown. Recently, the St. Louis Cardinals baseball team built a brand new stadium. Along with that proposal was the development of a “ballpark village” that would include lofts, retail stores, restaurants and a major company relocating its headquarters.

Now that the major company, Centene, has thought better of the idea, the ballpark village concept remains in standstill. Many St. Louisans were already discouraged by the lack of progress with the project since the new Busch Stadium was built. Now, the situation is looking far worse.

We must remember the root of the idea: An attempt to revitalize a struggling downtown area in a major city by putting places of business next to a baseball stadium. That idea was likely a major contributor to Missouri providing tax dollars for the ballpark, along with a threat to move across the Mississippi River to Illinois.

Still, let’s remember that baseball teams play only 81 home games per year, and the other major event facilities in St. Louis are not exactly next door to the new Busch Stadium. As with many other struggling cities, there has been a mass exodus to the ‘burbs in St. Louis over the last 50 years. Will those residents really be willing to comeback to downtown enough for this additional retail center to really revitalize downtown, even if it did have some nice shops and eateries? Probably not.

This is not to say that revitalizing some of America’s big, struggling cities is impossible. Though, maybe these cities should think a little more outside the box than trying to piggyback a sports team that is only in town for about 20 percent of the year.

There is an interesting article on The Motley Fool about impressive gains to be had for investors. As US domestic stocks continue to starve off this bear market, international stocks are rising and have had impressive gains since August of 2007. Overally, international stocks are trading at almost double those of the US in the past year. The biggest advantage to holding international stock is to diversify one’s portfolio. Through a balance of domestic and international stocks, mutual funds, money market accounts and safe investments such as CD’s and high-interest online saving accounts, the average investor can avoid falling into traps and experiencing severe up and downs no matter what the market does. The article is an excellent example of this. International stocks should be researched extensively, as should domestic stocks, to give investors a good picture of future performance. The Easiest Money in the Market - From Fool.com

Believe it or not, Google is now moving into even more markets.  As SEOchat.com discusses, they have high hopes for one of their newest purchases, Android.   With their newest purchase, Google enters the cell phone market more widely.  However, cell phone carriers like AT&T, Sprint and Verizon have nothing to worry about.  Android is just an operating system for cell phones.

The purchase makes perfect sense for Google.  They see a bright future in cell phone operating systems, and it is one area where they can beat Microsoft and, let’s face it, they ain’t taking on traditional Microsoft Windows anytime soon.

This is certainly not to say that their current endeavor will be successful.  We only have to look at their unsuccessful attempts to take on YouTube and Myspace/Facebook to know that not everything Google does turns into gold.  However, this is a solid effort at taking over a big, growing industry.

Rundown

We all know the job market is bleak, but finance and accounting hiring is rising.

Citi is struggling beyond the U.S.

More….