UP Ibalon Bicol: Warren Buffet

Showing posts with label Warren Buffet. Show all posts

Warren Buffet decries the dismal future of US newspapers

5/05/2009 | Posted by Anonymous | Edit Post

In last week’s shareholder's meeting of Berskshire Hathaway Inc.,attended by 35,000 people, Warren Buffet, the “Oracle of Omaha” decried the waning of readership of newspapers in America. The rich billionaire-investor together with his business partner 85-year old Charlie Munger spoke of the dismal future of newspapers which had been predicted even before the Newspaper Association of America disclosed the decline newspaper business.

In 2007, total print advertising revenue dropped 9.4% ($42 billion,) a huge fall in revenue since 1950. Newspaper revenue losses continued during the past 16 months of recession as readership contracted 4.6 percent in the April-September 2008. The drop in sales prompted newspapers to reorganize, cut down on jobs and lessen circulation.

Fewer readers are buying newspapers these days. They now depend on alternative sources of news which are available in online, internet, radio, and TV. Many are disappointed by the increasingly partisan stance of US newspapers, raising doubts on the truthfulness and reliability of their contents.

“Some readers instead are shifting to the free versions of newspapers that most publishers post on their Web sites. That trend helped increase the traffic on newspaper Web sites by 10.5 percent during the first three months of the year, according to a Nielsen Online analysis conducted for the Newspaper Association of America.”---- Yahoo News Finance / AP (04/27/09, Liedtke, M)

About 15 to 30% of major newspapers's revenue comes from subscriptions and copies sold at newsstands. The main source of income still comes from advertising, a money source that is now in danger of drying up. (Photo Credit: Maud77; photoburst)

============================================================

Labels: business, Charlie Munger, investments, Newspaper, recession, USA, Warren Buffet

Fearless economic forecasts

3/11/2009 | Posted by Anonymous | Edit Post

Dominique Strauss-Khan

In a warning delivered by IMF Managing Dir. Dominique Strauss-Khan during a conference of African finance ministers and central bank governors, the International Monetary fund (IMF) speaks of the deepening global financial crisis and the possibility that the world's economic growth will be zero.

The financial meltdown can cause massive suffering, social displacement, and chaos in vulnerable countries.

The effects of the downturn may not be fast in reaching Africa, but Srausse-Khan said, “continued deleveraging by the world's financial institutions, combined with a collapse in consumer and business confidence, is depressing domestic demand across the world."----Philstar (03/10/09)

Warren Buffet

On the other hand, American billionaire Warren Buffet who has the common sense of living "below his means" believes America will bounce back even though “it has fallen off a cliff.” The “Oracle of Omaha” who predicted the worst case scenario in the last 6 months, watches a nation swept with a housing slump, high unemployment, and inflation. He sees lack of confidence, confusion, and fear are defining consumer behavior at this time.—The Washington Times/ AP (03/09/09, Funk J)

Harry S. Dent

Similar gloomy predictions have been made by American economist Harry S. Dent in his book “The Great Depression Ahead : How to Prosper in the Crash Following the Greatest Boom in History.” The book is a good read. He speaks of this year as a bad season---ushering economic turmoil that none of the current generation has seen.

Nouriel Roubini

Nouriel Roubini, professor of NYU’s Stern School of Busicness believes the US recession could last up to 36 months. With no hope of ending the recession this year, "Dr. Doom" said,, "Growth is going to be close to zero and unemployment rate well above 10 percent into next year."----CNBC (03/09/09, Wells, J)

Pres. Barack Obama

But President Barack Obama offers bright economic forecasts with his proposed $3.55 trillion budget. He predicts that the economy will shrink by only 1.2%, and will recover in 2010 with a growth of 3.2%. However, non-partisan analysts believe this is overly-optimistic.---McClatchy Newspapers (02/26/09, Hall, K)

The public is less upbeat than Obama, but people are willing to give him the benefit of the doubt. Midway in the 100-day honeymoon period after assuming presidency, he gets a 67% approval rating, a very good grade at this time when Americans are fearful and disconsolate over the financial ruin they are dealing.(Photo Credit: Atsibatsi)=0=

============================================================

Labels: business, depression, Dr. Doom, economy, financial, Great Depression, Harry Dent, IMF, International Monetary Fund, Nouriel Roubini, prediction, recession, Toti Mesia, Warren Buffet

UP Ibalon Bicol

Warren Buffet decries the dismal future of US newspapers

Fearless economic forecasts

Blog Archive

About Me

UP Ibalon Newsmakers

Topics/Categories

Feedjit Live Blog Stats

Topics/Categories

Featured

Ateneo de Naga HS Batch 74

ABS-CBN News

Recent Posts

GMA News.tv

Philippine Commentary

Inquirer Breaking News