Economy/Small Business/Investing
Tougher economic times are the points in history in which savvy investors and the worlds greatest capitalists FIND their greatest gains on investments. They seek opportunities where their returns can be 100% to infinity; how do they find such opportunity when everyone else CHOOSES not to? They seek out undervalued markets and undervalued businesses (those that include newly created businesses that are short on capital but with well-developed plans; niche’ opportunities within established markets). An area that is of special concern and interest is funding of small businesses, that is those with designs on creating a large national or international product and creation of systems & numerous jobs in-turn those that can generate and sustain positive revenues. This time of economic difficulty and mistrust fostered by mismanaged corporations & funds, along with our new president, have both signaled the need to shift from focus on BIG Business as operated today to emphasizing the development of small businesses as the future for a return to our country’s greatness. In addition current BIG businesses can create only limited job opportunities due to potential redundancy, thus they generally look to ramp up revenues through shift in business philosophy and streamlining. Note that publicly traded companies, after laying-off workforce (downsizing) typically go through a period of great capital gains and increasing stock values. This almost seems to not make sense from an investor standpoint, because the company is now loosing some of its ability to manufacture its products or supply services, but closer looks reveal that a company, post-downsizing, actually gains in cash-flow value due to the salaries & long-term benefits now off and coming off the books from the number of displaced staffers. This increase in positive cash flow becomes an enticement to investors as the publicly traded company now has more capital with which to dedicate to R&D of new products, pay down debts and move more nimbly toward better profitability; most importantly now can yield dividends to its investors. In addition the investor sees the company as transforming to streamlined operations as typically more work and speedier product creation is called for and gotten on the part of the remaining work-force. In essence they have now created a more financially viable entity, one in which the investor sees the possibility of great gains. Today NY State Governor Andrew Cuomo issued his second “State of the State” address with emphasis on economic growth of the state’s economy in 2012; he touted tourism as a key factor and Gov. Cuomo said “New York will keep the momentum going with a $200 million second competitive round of regional economic development awards in 2012…”
For more go to The Poughkeepsie Journal web-site link: http://www.poughkeepsiejournal.com/article/20120104/NEWS01/120104014/Cuomo-Investment-economic-development-tourism-key-2012?odyssey=tab|topnews|text|PoughkeepsieJournal.com
This afternoon Sen. Stephen M. Salad issued his statement on Gov. Cuomo’s “State of the State” address, that I posted on earlier. Below is the link to the Senator’s web-site and the statement he made.
Following his statement is Limomangary’s response to the Senator’s statement:
http://www.nysenate.gov/press-release/senator-salands-statement-state-state
SENATOR SALAND’S STATEMENT ON THE STATE OF THE STATE
Posted by Stephen M. Saland on Wednesday, January 4th, 2012:
In his delivery of the State of the State Address, Governor Cuomo managed to strike a balance which was both optimistic and realistic. With a new spirit of cooperation in Albany, unlike the dysfunction we have been witnessing in Washington, we were able to make state government work for the people once again, and made 2011 the most productive year in modern state history.
While we achieved many of our goals, including a balanced and on-time state budget, enacting a property tax cap, adopting ethics reform, cutting taxes for middle class taxpayers, repealing the MTA payroll tax on small businesses, and working to create new private sector jobs, the Governor acknowledged much more work needs to be done.
In order to achieve the results Governor Cuomo envisions for all New Yorkers, we need to continue to work together and that message was echoed by both the Senate Majority Leader and the Speaker of the Assembly.
In 2012, we must build on this momentum and do even more.
It starts with early passage of a fiscally responsible state budget that once again closes a deficit by cutting spending and without any additional taxes or fees.
We must deliver significant mandate relief, including pension reform, that results in real tax savings for local taxpayers and ensures that local governments and school districts stay under the tax cap.
Most importantly, we have to continue in our efforts to make New York more business-friendly to attract and retain new private sector jobs because growth is the long term solution to the State’s fiscal recovery.
While jobs remain our top priority, the Governor has not overlooked a vitally important aspect of our future growth – our next generation. Students of today are our workforce of tomorrow. While we await the specifics, the Governor’s proposal to establish an Education Reform Commission may be the impetus for positive reform.
As the Senate Codes Chairman, I am also looking forward to partnering with this Governor and my colleagues in the Assembly to make this State a safer place to live and work. By expanding the DNA databank to include people who are convicted of felonies and misdemeanors, we will give prosecutors and law enforcement an essential tool in seeking justice for victims of crimes.
I am encouraged by the Governor’s remarks, the direction he’s leading us, and his vision for the State. I look forward to being part of the transformation process that puts people in jobs, lowers our taxes and restores people’s faith in a government that is working for them.
Limomangary’s response to Sen. Saland’s statement:
While quite happy to see the Senator’s indications of increased Bipartisanship on the part of our state leaders, I’d like to get a clear picture on 2 parts of 1 of his points:
1. He mentions “passage of a fiscally responsible state budget that once again closes a deficit by cutting spending and without any additional taxes or fees. We must deliver significant mandate relief, including pension reform, that results in real tax savings for local taxpayers and ensures that local governments and school districts stay under the tax cap.”
Delving between the lines; what exactly does he mean by “cutting spending”, specifically where exactly would he want to see the spending cuts made (municipalities, agencies, programs, etc)?
Looking at the local level; using the local municipality in which I live (City of Poughkeepsie) as an example: the 2012 aid provided to the city was $4,334,715. the projected budeget for 2011-12 is $4,248,021. a decrease of ($86,694.) 1% in state aid. While miniscule on the surface the shortfall in state aid places the burden up the municipality to find ways to make up for the shortfall or find itself in a position of making cuts, possibly by way of terminating an employee or 2, certainly not a good situation expecially as a part of the Senator’s statement included focus on the fact that “jobs remains a top priority”.
2. He mentions “…school districts stay under the tax cap”
My concern here is that cuts within the school district/education system should not even be in the discussion let alone considered. I have previously blogged on the matter of Pres. Obama issuing the mandate that “a high school education is no longer going to be enough” that sentence alone was in my view the issuance of a blank check by the feds and one that we have yet to see many, if any at all, states call Washington on the carpet about. Our leaders should be taking advantage of the president’s mandate by increasing the expectation of federal funding to NY State with those funds being earmarked for major uptick in education spending! On this matter, looking at state budget spending in 2010 the aid from NY state to my school district was $47,526.090 and the proposed budget amount for 2011-12 is the exact same. Good in that there wasn’t a cut from the state but considering my previous thoughts, 2012-13 needs to show an increase in spending.
More certainly to follow…
limomangary
January 4, 2012 at 8:51 pm
i love your blog, i have it in my rss reader and always like new things coming up from it.
todays date
February 15, 2012 at 7:40 am