black…MYstory

Well, look what I saw today:

The United Arab Emirates plans to reduce crude oil production by up to 25 percent within weeks.

The reports of a UAE oil slowdown — not yet confirmed by the government — have driven up the price of Abu Dhabi crude to its highest levels in eight months.

Industry sources said the UAE was planning major maintenance on oil facilities in October 2007. The sources said this could result in a halt of up to 810,000 barrels per day, or 25 percent of total oil production. The UAE produces 2.54 million barrels of oil per day.

Get ready for $3.50 - $4.00/gallon gas.

Popularity: 44% [?]

I love articles like this. Often, people look at diversity as something people should employ in business practices because it’s a nice thing to do. However, as columnist Ruben Navarrette points out, it’s not about doing what’s nice, it’s about using diversity to make one’s business more successful. By ignoring the this fact, one could find one’s business falling behind the competition.

It’s really simple when you think about it. I posted an article recently about how Intel had to pull an ad which shows a white guy in the middle of a room and several black sprinters around him in a starting position. However, to see the ad, it looks like a bunch of black men bowing down to a white man.

Now, perhaps, if the would have employed more diverse perspectives, they might have seen the issues with this. Instead, a prominent company exposed itself as not being very culturally-competent. Considering that they do business around the world, it looks like they really don’t know enough about people of different cultures. Otherwise, this idea would have never seen daylight.

Corporate America needs diversity. It’s not about the feel-good or PR component–it’s about dollars and cents.

Popularity: 10% [?]

Okay, now that I’ve shared a story about more ethnically-authentic toys being offered in KMart stores, I also have to share a warning.

Two weeks ago, Mattel recalled over 1.5 million Chinese-made toys because lead paint was used on them.

Today, Mattel is poised to announce another recall. Apparently, this is dealing with die-cast cars from a different Chinese supplier over what…ta-daa…lead paint.

Over the past several months, we have other recalls related to Chinese-manufactured or processed products including items such as toothpaste and food.

So, why are we not hearing more outcry from our own government? Perhaps, it goes back to something I shared last week. China holds some $900 billion in U.S. treasury bonds, alone, so, who in the government is willing to rock the boat and jeopardize Chinese exports? Or if you like a more facetious approach, check out what CNBC’s Erin Burnett has to say about the economic stranglehold China has on our economy (thanks, again, to CrooksAndLiars.com):

 

 Burnett On China's Economic Sway: Play Now | Play in Popup | Download

Popularity: 16% [?]

One things I’ve always noticed about dolls or action figures that are supposed to be minority characters is that they always looked like the white dolls dipped in whatever color they wanted to use. So, needless to say, authenticity was lacking.

Now, KMart is recognizing the power of the minority dollar and will be offering multicultural dolls in each of it 1400 stores.

When the rollout is completed next week, Kmart stores will sell nearly four dozen types of ethnic dolls — a nearly fourfold increase from what’s currently available. The dolls are flanked by an advertising campaign in the store’s circulars and designed to appeal to black, Hispanic and Asian parents.

So, what is the real financial benefit of catering to these markets?

Becoming relevant to minority shoppers can reap big benefits. About one in three Americans is a minority, according to the U.S. Census Bureau. Between 2006 and 2011, the spending power of the country’s blacks, Asians, Native Americans and multiracial shoppers is expected to grow 38 percent, to $1.9 trillion. Meanwhile Hispanic buying power alone is projected to grow a formidable 48 percent, to almost $1.2 trillion, according to data from The University of Georgia’s Selig Center for Economic Growth.

Like I’ve said before, Wall Street needs to get on the stick. The minority dollar is out there for the businesses that can truly cater to these markets.

Popularity: 23% [?]

Okay, who told Intel this was a good idea? (click on the pic for a larger image)

In an advertisement that the company says is supposed to convey an image about the speed of their Core Duo processors, they have six black sprinters crouched down in a starting position. However, what this ad comes off looking like is 6 black men bowing down to a white man.

Intel has pulled the ad and is apologizing profusely. In a statement from their web site, they say the following.

We made a bad mistake. I know why and how, but that simply doesn’t make it better.

The intent behind our ad campaign “Multiply Computing Performance and Maximize the Power of Your Employees” was to convey the performance capabilities of our processors through a number of visual metaphors. Unfortunately, while we have used a visual of sprinters in the past appropriately, this ad of using African-American sprinters did not deliver our intended message and in fact proved to be culturally insensitive and insulting.

I think Intel might want to hire some people of color who are in touch with themselves culturally. That way, you might not see ads like this repeated.

Also, if they have any ads about how intelligent their processors are that involve a group of Asians with abacuses, they might want to pull those, too.

Popularity: 15% [?]

Back in 2003, I found myself traveling between Cincinnati, Ohio and Columbus, Ohio a couple of times a week. Our first child had just been born and I wanted to be home as much as I could. However, I was doing some consulting work in Columubus so, I would go back and forth twice a week.

The drive between the two places provides for a lot of boring radio and, as a news/talk radio junkie, I needed more than music. I decided to go for satellite radio. I had two choices, Sirius or XM. Since XM had a black talk channel (The Power), I chose them. I was exposed to hosts such as Joe Madison, Bernie McCain and Matsimela Mapfumo (Mark Thompson). I really enjoyed listening to all three. A couple of years back, Bernie McCain’s show was yanked and that was a blow to me. He came across as a very wise man who offered a lot of historical insight into what we, a black folks, experience in this country. However, his replacement, Ambrose I. Lane, was very accomplished and insightful in his own right so, I was able to grow to like him.

Now, though, I am not so sure about the latest lineup changes. The parent company of the Power, Radio One, has axed two of my favorites, Lane and Mapfumo. They have replaced them with their Syndication One programming so, we’ll now get the Rev. Al Sharpton’s talk show and a sports show called “The 2 Live Stews”. No offense but, I’ve heard these shows and they don’t appeal to me. I particularly liked listening to Mapfumo’s show (Make It Plain), on my drive home. Sorry but, hearing the latest sports news, instead of the political/social commentary doesn’t appeal to me. Furthermore, as far as I know, you can catch this online. I didn’t listen to most of this lineup when it was “free” so, why would I want it now that I have to pay for it? So, I don’t know. But, one thing is for sure, Radio One took a big step backward with me today.

Popularity: 53% [?]

What we are often told is that the reason that the reason that Blacks and Latinos don’t get the type of back financing that their White counterparts get is based on one’s financial situation, not race. We are told that, in similar situations, both sides are treated equally.

If that’s the case, then, explain this.

A report issued by the National Community Reinvestment Coalition studied 171 metropolitan markets and concluded that blacks were twice as likely as whites to receive expensive loans.

The report, which analyzed 2.3 million loans in 380 metro areas, also concluded that while the disparity among blacks and whites existed at all income levels, it was more severe at higher income levels, rather than lower ones.

The study found that middle-class and upper income blacks in 167 metropolitan areas were at least twice as likely as whites with similar incomes to receive loans with high rates. By comparison, there were 70 metropolitan areas where low-income blacks faced a similar likelihood of receiving above-market rates.

Low-income blacks in all areas were more likely to have pricey loans than whites with similar incomes.

The report uses the Federal Reserve’s definition of high-cost loans: mortgages whose rates are at least 3 percentage points above Treasury securities. That definition includes most subprime loans given to people with weak credit records.

For its part, the industry says that these people have lower credit ratings and this is a factor is their receiving more expensive loans but, consider the following:

The study comes as ratings agency Standard & Poor’s said Tuesday it is considering cutting the credit rating of more than $12 billion in bonds backed by risky home loans as more borrowers miss payments. These bonds — sold by some of Wall Street’s biggest banks — represent a principal source of financing for the housing market.

So, would more scrutiny of these lending practices cut into a lucrative portion of these banks’ business? It certainly seems to be the case.

Popularity: 18% [?]

…so might safety and oversight.

Yesterday, I and some co-workers were having lunch and someone brought up a tire recall. Apparently, to save some money, a manufacturer allowed a batch of tires go through with a high likelihood of blowing. Then, I brought up a recall of toy trains because of lead paint. Then, I brought up the tainted pet food scare in which hundreds (or was it thousands?) of pets died.

The common thread — all of these items were manufactured in China.

One of my co-workers asked, “How is this happening?” Another co-worker explained that, when companies take their manufacturing offshore, much of the oversight goes with it. So, issues of health and safety for the employees or contamination and defect-checking for consumers are not considered heavily in the manufacturing process.

Now, we find out, today, that China has shut down 180 food factories. Apparently, now that China is getting such bad press, its government is finally stepping in to do the job that it should have been doing (or, at least, our government should have been doing more of to protect people here) all along.

Just check out some of the things they found:

Formaldehyde, illegal dyes, and industrial wax were found being used to make candy, pickles, crackers and seafood, it said, citing Han Yi, an official with the General Administration of Quality Supervision, Inspection and Quarantine, which is responsible for food safety.

So, today we are seeing that the almighty dollar is again taking precedence over good common sense. We need to stop making it so beneficial for companies to undermine our economic health and, now, physical health by taking manufacturing offshore.

Popularity: 62% [?]

Is it possible that State Farm had engineering reports rigged to avoid paying Hurricane Katrina claims. That’s what one lawsuit is alleging. The suit contends that State Farm, in collusion with two engineering firms, engaged in a “pattern of racketeering” to deny coverage to homeowners seeking relief from the hurricane’s damage.

This suit was brought on behalf of homeowners in the Mississippi Gulf Coast region and claims that State Farm attempted to have the damage attributed to flooding, not the hurricane:

Scruggs’ 103-page lawsuit claims State Farm engaged in racketeering by procuring “scientifically dishonest” inspection reports and conducting “sham re-inspections” of homes so that damage could be falsely attributed to Katrina’s flood water.

State Farm and other insurers say their homeowner policies cover damage from wind but not rising water, including storm surge.

The bottom line is that this game-playing has gone on long enough. These people deserve to be made whole and somebody, even if it’s our government, needs to make this happen.

Popularity: 17% [?]

Forbes has released its Celebrity 100 list and, for the first time, included hip-hop artists in the list of highest-paid performers.

It’s almost mind-boggling to think about how much money is coming from hip-hop and related businesses in comparison to what I saw when I first started listening to the music in 1979.

Just check out the figures and see if you were as amazed as I:

Jay-Z landed inside of the top 10 at #9, with earnings of over $83 million, much of it due to the sale of Rocawear clothing to Iconix in March for $204 million in cash.

In sheer earnings Jay-Z landed at #7, ahead of actor Tom Hanks, but just behind legendary rockers The Rolling Stones.

50 Cent landed at #32, with earnings of $33 million, based on earnings from his G-Unit empire, which includes music, movies and clothing.

Forbes expects 50 Cent’s to chart high next year, due to the sale of $4.1 billion sale of Glaceau to the Coca-Cola company.

50 Cent owned a reported 10% stake in the company, netting the rapper hundreds of millions of dollars, although the exact earnings figure has yet to be revealed.

Forbes closed on the issue prior to the information being released.

In sheer earnings, 50 Cent landed at #29, beating out Rush Limbaugh but coming in behind LA Laker star Kobe Bryant.

Sean “Diddy” Combs landed at # 43, based on earnings of $23 million, derived from his Bad Boy Entertainment and Sean John empires.

In sheer earnings, Combs landed at #55, acing tennis star Maria Sharapova, but defaulting to Matt Damon.

Philadelphia rapper Will Smith landed at #57 with earnings of $31 million.

In sheer earnings Will Smith landed #38, beating rockers U2, but came in under basketball legend Michael Jordan.

So, needless to say, rap has evolved to the point where some can take their stardom and cash in to the tune of hundreds of millions of dollars. It’s good to see that some realize that a car or a chain is not the highest aspiration for a performer in their field.

Popularity: 52% [?]