Forbes Says Cash Is Being Hoarded

According to Steve Forbes, Editor-in-Chief of Forbes magazine, we're into a global slowdown--the first since the 1970's. And, he contends, Greenspan and the Federal Reserve actions, taken deliberately, have caused today's malaise.

Forbes says that Greenspan was convinced our economy was too prosperous and had to be slowed down. Now, Forbes suggests, he doesn't know how to restart it.

What's worse, "the Fed's mistake has had global implications, as scores of countries are tied to the dollar. Seventy percent of the dollars printed end up being used as transaction money overseas."

Furthermore, he cautions, "cash is increasingly being hoarded, precisely because there is a growing shortage of it."

Barter companies across the country are reporting an increase in business, as the small business sector mirrors what Forbes contends.

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Asians Extremely Pessimistic About The Global Economy

According to a recent story in CFO magazine, chief financial officers everywhere are down on the economy. But the area of the world where the pessimism is the worst is Asia.

The survey polled finance executives in the U.S., Europe, and Asia about regional and global issues. There was a 59 percent decline in global confidence among all respondents compared with last quarter's attitudes about the near term.

An especially glum response from Asia's CFOs weighed heavily on the collective confidence. A staggering 86 percent of the Asian executives say they are either concerned or very pessimistic about the global economy during the next year.

Looking to the future the mood changes. Overall, 72 percent of the CFOs are confident or very optimistic about the global economy during the next five years.

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Price Compression Looms For Hoteliers

According to lodging industry veteran Michael Leven, new hotels (high fixed-cost business) are creating what he calls "price compression," when they lower prices to grab the existing business in the marketplace...so as to make their mortgage payments.

Leven also said that renegotiation of rates with heavy customers happens in down economic times. It's a fact of life which means accepting a smaller level of profitability, rather than no profitability.

But he claims it's a two way street, "we'll renegotiate the rate in return for assurance that when things are good, I can go back to my normal condition."

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Media Ownership Changes Ahead?

The possibility of changing or eliminating long-standing media ownership rules will have a dramatic effect on the TV and radio industry as consolidation efforts would quickly ensue.

A three-judge panel of the U.S. Court of Appeals has indicted that the FCC (Federal Communications Commission) will reconsider its broadcast-ownership rules. Some experts expect the FCC, under the new administration, to relax the rules.

Networks today are limited to owning stations that cover no more than 35% of the national audience. In a future issue of BarterNews we'll take a look at the implications of media consolidation...the pros and cons as it affects the barter industry.

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