0

The market was almost stagnating, hesitant to make any travel as the investors were slowly exposed to the greater picture of the mess surrounding them. With politicians and bankers saying they have the ultimate panacea for today’s ills and the economist s saying it is too late to ward off an ensuing decade of complications, the taxpayers are between the proverbial devil and the deep sea.

They are even more vexed by the preposterous notion that some highly paid strangers sitting in Manhattan’s high rise offices were surreptitiously able to make telephonic contracts worth billions with accomplices hiding in offshore money laundering havens – all guaranteed on the humble mortgage payments of a few hundreds they were making to their neighborhood banks.

As if that ignominy is not enough, now their money is to be used to compensate for such speculative misadventures of not only American investment banks but of whoever bought into those dubious schemes from beyond the oceans too.

No wonder the European Central Bank’s (ECB) chief Trichet wants the American Congress to pass the bailout bill “for the sake of the U.S. and for the sake of global finance.” But, he also rules out a European bailout plan on the excuse that Europe doesn’t have a central budget. Then, what is the job of the organization ECB he is heading? The truth is that Germany and France are torpedoing a 300 bln euro plan suggested by other members of EU.

Economic Data:

Institute for Supply Management’s (ISM) Manufacturing Index for September – fell by 6.4 to 43.5 from 49.9, the lowest in seven years. The consensus was for 49.5. ISM prices paid excluding crude oil fell by 23.5 to 53.5 against a consensus figure of 73. The first reading shows that manufacturing activity is contracting. The second indicates that people have made a sharp cut abet in spending on purchases, though some may claim it shows inflation is disappearing! However, if prices were easing, people should be buying more.

The ADP employment index of private sector jobs for September – showed a loss of 8000 jobs in the private non-farm sector against the forecast of 60,000-job loss. It was 37,000 in August. Unfortunately, ADPs figures usually are far off the mark compared to government employment report on non-farm payrolls data to be announced on Friday.

Challenger Jobless Report – at the same time, announced 95,094 layoffs during that period.

The U.S. Census Bureau’s (Department of Commerce) Construction Spending for August – stood unchanged at $1,072 billion against a forecast figure of 0.5%. That shows a cessation, even if temporary, in the relentless slide witnessed throughout 2008.

The Mortgage Bankers Association’s (MBA) Weekly Mortgage Applications Survey – showed a 23% drop last week. The refinance index also fell 34.7%. The Veteran Purchase Index decreased 9.7 percent while the Government Purchase Index decreased 14.1 percent. This entire shortfall, despite interests on 30-year and 15-year fixed-rate mortgages decreasing week by week!

Senate’s deliberations on the bailout:

Senate voted on its version of the $700 bln plan this evening. Salient clauses include:
*provisions for an increase in the FDIC’s deposit insurance limit to $250,000 from the present $100,000
*tax breaks for businesses and especially to alternative energy ventures
*Removal of $30 bln limit on FDIC enabling it to borrow an unlimited funds from the Treasury
*authorized the Treasury Secretary to buy bad assets of companies to smart up their epic books
*requires government agencies to make modifications to troubled mortgages.

The bill now goes to the House of Representatives for their concurrence, expected by Friday.

SEC ban on short sales is likely to be extended to October 18, beyond the current expiration on October 2.

Weekly EIA petroleum reserves report – Grievous oil inventories were up by 4.28 mln barrels far exceeding the forecast of 2.75 mln. Gasoline reserves increased by 901,000 against a consensus shortfall of -2.05 mln.

Oil retreated by -$2.11 (-2.10%) to $98.53

Gold rose by $6.50 (0.74%) to $887.30

CBOE Volatility just made it to 39.81, shy of the 40 trace by 0.42.

Uncertainty over stocks succor in the air, investors again made a beeline for Treasury securities.

Market indices

Dow went UP by -19.59 (-0.18%) to 10831.07
S&P 500 UP by -3.68 (-0.32%) to 1161.06
Nasdaq UP by -22.48 (-1.09%) to 2069.40

NYSE

Daily Volume: 1.29 bln
A/D Ratio: 1591 stocks advanced against 1614 declined
52-week Hi/Lo: 10 stocks scaled unique Highs while 191 slid new Lows

NASDAQ

Daily Volume: 1.91 bln
A/D Ratio: 1068 stocks advanced against 1820 declined
52-week Hi/Lo: 7 stocks achieved new Highs while 153 dipped to new Lows

The first half of the trading session saw the market falling due to uncertainty surrounding the bailout legislation and the negative economic data. Then came the news on GE in quick succession and pepped the market up disappointing manufacturing reading and news that Warren Buffett is making another major investment.

Trading in GE was temporarily halted as the news of their $12 bln in a public offering started coming in. Then came the encouraging news of Warren Buffet’s purchase of $3 bln worth of 10% preferred stock. His holding company Berkshire Hathaway (BRK) also have rights to $3 bln in 5-year warrants to purchase GE at $22.25 per share.

Then the market heard the “Oracle’s prophesies” on GE’s good prospects. This was added to by the credit rating agency Standard & Poor’s who re-affirmed GE’s credit rating of AAA.

That was the shot in the arm the market needed. GE was languishing recently due to liabilities from the debts of GE Capital.

Still blue chip IBM (IBM) fell by more than 6% based on rumors of the company issuing further reduced guidance on its earnings.

President Bush finally approved the $25 bln loan package for automobile manufacturers for meeting the new fuel economy standards. Now the ball passes to the Energy Department to work out the rules and regulations to be presented to the Congress sometimes next year for approval.

Monthly sales of car-makers are declining:

Lexus -37%
Ford -35%
Toyota -32%
Hyundai -25%
Honda -24%
GM -16%

ImClone (IMCL) finally revealed the name of its mysterious bidder. It is Eli Lilly with a $6+ bln offer on ImClone @$70 per share.

JNJ won their $1.2 bln patent infringement cases against Boston Scientific (BSX) and Medtronic (MDT).

Marathon Oil (MRO) is disposing off its 50% stake in Pilot Depart Centers.

Xstrata (XSRAF) is ending its $9 bln bid on Lonmin Plc (LNMI.Y).

Chicago’s Midway airport is to be leased to a private consortium led by Citigroup (C) for a 99-year period .

When most businesses are looking for ways to downsize, consumer retailer Kohl’s Corporation (KSS) is opening 47 original stores in addition to the 31 already opened this year.

Company results:

Wolverine World Wide could bring out 15% increased earnings.

Micron Technology (MU) earnings were disappointing.

Analyst’s ratings:

Company stocks upgraded include:

Allied Capital Corp (ALD), CA Inc (CA), Children’s Place Retail (PLCE), eHealth Inc (EHTH), Energy Solutions Inc (ES),
F5 Networks Inc (FFIV), Force Protection Inc(FRPT) and Informatica Corp (INFA).

Downgraded stocks are:

Brown Shoe Inc (BWS), California Pizza Kitchen (CPKI), Coleman Cable Inc (CCIX), Community Health System (CYH),
CSG Systems International (CSGS), Mortons Restaurant (MRT), Network Engines Inc (NENG), RC2 Corporation (RCRC),
Reliant Energy Inc (RRI), RLI Corp (RLI), Ruth’S Hospitality Group (RUTH), Tenet Healthcare Corp (THC), Tupperware Corp (TUP),
Universal Health Services (UHS) and Xyratex Ltd (XRTX).

Fortunately for the banks and their customers, the 28-day repo funding by the government is showing its excellent effect:
The interbank overnight loan rate has fallen to 3.79% and is holding. Availability of more funds has loosened the credit situation a bit.

Pointers to the future:

* The U.S. national debt broke through the $10 tln mark today.

* Unemployment is expected to touch 7% by the middle of next year, unless the next administration can work magic or miracles.

0

The market was almost stagnating, hesitant to make any move as the investors were slowly exposed to the greater picture of the mess surrounding them. With politicians and bankers saying they have the ultimate panacea for today’s ills and the economist s saying it is too late to ward off an ensuing decade of complications, the taxpayers are between the proverbial devil and the deep sea.

They are even more vexed by the preposterous idea that some highly paid strangers sitting in Manhattan’s high rise offices were surreptitiously able to make telephonic contracts worth billions with accomplices hiding in offshore money laundering havens – all guaranteed on the humble mortgage payments of a few hundreds they were making to their neighborhood banks.

As if that ignominy is not enough, now their money is to be used to compensate for such speculative misadventures of not only American investment banks but of whoever bought into those dubious schemes from beyond the oceans too.

No wonder the European Central Bank’s (ECB) chief Trichet wants the American Congress to pass the bailout bill “for the sake of the U.S. and for the sake of global finance.” But, he also rules out a European bailout concept on the excuse that Europe doesn’t have a central budget. Then, what is the job of the organization ECB he is heading? The truth is that Germany and France are torpedoing a 300 bln euro concept suggested by other members of EU.

Economic Data:

Institute for Supply Management’s (ISM) Manufacturing Index for September – fell by 6.4 to 43.5 from 49.9, the lowest in seven years. The consensus was for 49.5. ISM prices paid excluding crude oil fell by 23.5 to 53.5 against a consensus figure of 73. The first reading shows that manufacturing activity is contracting. The second indicates that people have made a sharp cut succor in spending on purchases, though some may claim it shows inflation is disappearing! However, if prices were easing, people should be buying more.

The ADP employment index of private sector jobs for September – showed a loss of 8000 jobs in the private non-farm sector against the forecast of 60,000-job loss. It was 37,000 in August. Unfortunately, ADPs figures usually are far off the mark compared to government employment report on non-farm payrolls data to be announced on Friday.

Challenger Jobless Report – at the same time, announced 95,094 layoffs during that period.

The U.S. Census Bureau’s (Department of Commerce) Construction Spending for August – stood unchanged at $1,072 billion against a forecast figure of 0.5%. That shows a halt, even if temporary, in the relentless slide witnessed throughout 2008.

The Mortgage Bankers Association’s (MBA) Weekly Mortgage Applications Survey – showed a 23% drop last week. The refinance index also fell 34.7%. The Conventional Purchase Index decreased 9.7 percent while the Government Purchase Index decreased 14.1 percent. This entire shortfall, despite interests on 30-year and 15-year fixed-rate mortgages decreasing week by week!

Senate’s deliberations on the bailout:

Senate voted on its version of the $700 bln plan this evening. Salient clauses include:
*provisions for an increase in the FDIC’s deposit insurance limit to $250,000 from the display $100,000
*tax breaks for businesses and especially to alternative energy ventures
*Removal of $30 bln limit on FDIC enabling it to borrow an unlimited funds from the Treasury
*authorized the Treasury Secretary to acquire bad assets of companies to tidy up their account books
*requires government agencies to construct modifications to petrified mortgages.

The bill now goes to the House of Representatives for their concurrence, expected by Friday.

SEC ban on short sales is likely to be extended to October 18, beyond the current expiration on October 2.

Weekly EIA petroleum reserves report – Outrageous oil inventories were up by 4.28 mln barrels far exceeding the forecast of 2.75 mln. Gasoline reserves increased by 901,000 against a consensus shortfall of -2.05 mln.

Oil retreated by -$2.11 (-2.10%) to $98.53

Gold rose by $6.50 (0.74%) to $887.30

CBOE Volatility just made it to 39.81, shy of the 40 imprint by 0.42.

Uncertainty over stocks back in the air, investors again made a beeline for Treasury securities.

Market indices

Dow went UP by -19.59 (-0.18%) to 10831.07
S&P 500 UP by -3.68 (-0.32%) to 1161.06
Nasdaq UP by -22.48 (-1.09%) to 2069.40

NYSE

Daily Volume: 1.29 bln
A/D Ratio: 1591 stocks advanced against 1614 declined
52-week Hi/Lo: 10 stocks scaled new Highs while 191 slid new Lows

NASDAQ

Daily Volume: 1.91 bln
A/D Ratio: 1068 stocks advanced against 1820 declined
52-week Hi/Lo: 7 stocks achieved new Highs while 153 dipped to unique Lows

The first half of the trading session saw the market falling due to uncertainty surrounding the bailout legislation and the negative economic data. Then came the news on GE in quick succession and pepped the market up disappointing manufacturing reading and news that Warren Buffett is making another major investment.

Trading in GE was temporarily halted as the news of their $12 bln in a public offering started coming in. Then came the encouraging news of Warren Buffet’s assume of $3 bln worth of 10% preferred stock. His holding company Berkshire Hathaway (BRK) also have rights to $3 bln in 5-year warrants to purchase GE at $22.25 per share.

Then the market heard the “Oracle’s prophesies” on GE’s good prospects. This was added to by the credit rating agency Standard & Poor’s who re-affirmed GE’s credit rating of AAA.

That was the shot in the arm the market needed. GE was languishing recently due to liabilities from the debts of GE Capital.

Aloof blue chip IBM (IBM) fell by more than 6% based on rumors of the company issuing further reduced guidance on its earnings.

President Bush finally approved the $25 bln loan package for automobile manufacturers for meeting the recent fuel economy standards. Now the ball passes to the Energy Department to work out the rules and regulations to be presented to the Congress sometimes next year for approval.

Monthly sales of car-makers are declining:

Lexus -37%
Ford -35%
Toyota -32%
Hyundai -25%
Honda -24%
GM -16%

ImClone (IMCL) finally revealed the name of its mysterious bidder. It is Eli Lilly with a $6+ bln offer on ImClone @$70 per part.

JNJ won their $1.2 bln patent infringement cases against Boston Scientific (BSX) and Medtronic (MDT).

Marathon Oil (MRO) is disposing off its 50% stake in Pilot Travel Centers.

Xstrata (XSRAF) is ending its $9 bln bid on Lonmin Plc (LNMI.Y).

Chicago’s Midway airport is to be leased to a private consortium led by Citigroup (C) for a 99-year period .

When most businesses are looking for ways to downsize, consumer retailer Kohl’s Corporation (KSS) is opening 47 current stores in addition to the 31 already opened this year.

Company results:

Wolverine World Wide could bring out 15% increased earnings.

Micron Technology (MU) earnings were disappointing.

Analyst’s ratings:

Company stocks upgraded include:

Allied Capital Corp (ALD), CA Inc (CA), Children’s Place Retail (PLCE), eHealth Inc (EHTH), Energy Solutions Inc (ES),
F5 Networks Inc (FFIV), Force Protection Inc(FRPT) and Informatica Corp (INFA).

Downgraded stocks are:

Brown Shoe Inc (BWS), California Pizza Kitchen (CPKI), Coleman Cable Inc (CCIX), Community Health System (CYH),
CSG Systems International (CSGS), Mortons Restaurant (MRT), Network Engines Inc (NENG), RC2 Corporation (RCRC),
Reliant Energy Inc (RRI), RLI Corp (RLI), Ruth’S Hospitality Group (RUTH), Tenet Healthcare Corp (THC), Tupperware Corp (TUP),
Universal Health Services (UHS) and Xyratex Ltd (XRTX).

Fortunately for the banks and their customers, the 28-day repo funding by the government is showing its beneficial effect:
The interbank overnight loan rate has fallen to 3.79% and is holding. Availability of more funds has loosened the credit situation a bit.

Pointers to the future:

* The U.S. national debt broke through the $10 tln mark today.

* Unemployment is expected to touch 7% by the middle of next year, unless the next administration can work magic or miracles.

0

With the world slowly realizing that our actions most certainly do have an impact on the earth as a whole, the ecological crisis is being brought up more often as a topic of discussion. The ecological crisis is the progressive transition of the environment to a state where it would be detrimental to the ecological conditions of this planet, to the point where it would negatively affect the species that live in it. In laments terms, the atmospheric health of the earth is slowly declining and it will soon become unlivable for humans and other animals. Many people believe that the current ecological crisis we are experiencing is the result of the negative affect human industrialization is having on our environment. We can see this occurring in many different ways. For example, mass deforestation causes the increase of Carbon Dioxide levels in our atmosphere, which eventually leads to the deterioration of the ozone layer and global warming. Also, many new pollutants are being released into the atmosphere as a result of the growing number of factories and vehicles. People are creating trash at record breaking levels and the lack of recycling is causing an huge increase in the amount of waste produced. We used to think the earth was to big for us to make any significant change in the way it works, but we can now see the world changing for the worse.

Different people react differently. Some deny the existence of any true ecological crisis, while others are so determined to stop it from progressing that they are doing everything they can to help. We can even glance different religious groups beginning to respond to the ecological crisis as it becomes more of a threat to the earth ecosystem. The main differences are between the Western Religions and Asian Religions. Let’s look at the differences in the way an Asian Religion like Buddhism is reacting to the ecological crisis compared to the way a Western Religion like Christianity is reacting.

First of all, Buddhism follows strict practices based on the teachings attributed to Siddhartha Gautama, commonly known as “The Buddha” (the Awakened One) that are meant to lead to holy enlightenment. Buddhists generally attempt to rid their lives of suffering by controlling their dependences and detaching themselves from worldly pleasures and unwholesome actions. This goes completely against the general tendency of capitalism which promotes overindulgence. Advertising pushes you to support spending your money and buying more things which are not important to your immediate survival.

They consider insatiable desires to be the cause of all miseries. It is for this reason that each individual is asked to act with self control in every position. They believe that it takes inner discipline to fracture from the cycle of limitless consumption and try to live a lifestyle of minimum needs and maximum happiness. They believe this to be crucial for the health and integrity of our own midstream. Applying these beliefs to the ecological crisis, Buddhist are less likely to over consume popularly marketed products. By being more efficient with their consumption, they are less likely to support the mass producing factories that are constantly polluting our air and water. They are also less likely use energy demanding electronics and are less likely to drive cars that expel a lot of harmful gases into our atmosphere.

Another reason that Buddhists are ecologically aware of their actions is that they are seeing the effects of the ecological crisis directly. Since the accelerated melting of the Himalayan Glaciers, there has been a great increase in Buddhist awareness to it. Because of this they have much more at stake if the balance of our ecology shifts for the worse. “The Dalai Lama has remarked: ‘Older people say that these mountains were covered with thick snow when they were young and that the snows are getting sparser, which may be an indication of the raze of the world.’ “

http://www.thebuddhadharma.com/issues/current/sample/planet.php>

The technological advancements brought about by the Western world, especially those of the industrial market, have had a huge part in the current set of our ecological crisis. Now that the ecological crisis right in front of our faces, many Christian theologians are having a hard time deciding what to make of it. Most religions have never experienced an ecological crisis with the magnitude of the one we face today. Since a crisis of this magnitude is unprecedented, the holy books and scriptures of Western Religion (Bible, Torah and Qur’an) are poorly equipped to guide people through these kinds of situations. Because of this, the leaders of western religion don’t have the resources to determine the social outcomes of any religious claims and guidance they make.

If you base each religions response to the crisis on what their teachings are, it seems Buddhism has more of an interest in our ecological balance and well-being than Christianity. When we compare these religions side by side this becomes more clear.

For example, Buddhists believe in rebirth of the soul. In the Buddhist religion, when you die your soul reborn in another living creature. There is no real beginning or end of your existence, there is just one constant cycle of rebirth that occurs for all eternity. Being among the noblest of beings, humans have a responsibility to protect the earth. Since you will forever continue to exist on earth in different forms, you must use your life as a human to make a change for the better because you might not be able to do it as a lesser being. If you want to live a good reincarnated life in the future, you must make sure that the future of the earth is one that will be enjoyable for you. So it would only be logical that when an ecological crisis which threatens the future existence of life on earth is eminent, they will be very aware and active in stopping it.

Christianity on the other hand does not believe in the rebirth of the soul. As a matter of fact, Christianity followers believe that when you die you either go to heaven or hell. Your soul travels out of your body and never returns to earth. If this is the case, it would seem Christians would have a lower incentive to tackle the ecological crisis since they will not be here in the future to deal with it. On top of that, Christianity teaches that the apocalyptic destruction of the world is inevitable. Followers of Christianity believe that regardless of what they do, there will be a day when the world will be completely destroyed and all life on the earth will approach to an end. Many times when bad things happen it is looked upon as something that is signaling the end of the earth and generally inevitable. Instead of taking steps to conclude or prevent it, they might be more inclined to view the ecological crisis as a sign rather than an avoidable problem due to our lack of attention. Plus, if God is an entity separate from physical matter and the goal of life is to be pure and holy like God, it is logical for a follower Christianity to believe that we must eventually leave the physical world behind to ascend to Gods level. The lack of importance attributed to nature in the Christian religion directly affects the way it might be respond to the ecological crisis.

Another interesting concept separating Buddhists and Christians in the way they respond to an ecological crisis is that of ecofeminism. Ecofeminism, or ecological feminism, is a term for the philosophy that explores the direct connection between the way a society treats women and the procedure it treats its environment. This movement was born by Françoise d’Eaubonne in 1974 by combining feminist and ecological thinking, mainly the opinion that the social mentality that leads to the domination and oppression of women is directly connected to the social mentality that leads to the abuse of the environment. This makes more sense when you grasp into consideration the linguistic links between women and land, such as the terms “rape the land”, “tame nature,” and “reap nature’s bounty.” Even the term “Mother Nature” shows a direct link between the ideological connection between women and nature.

This correlates with the device Buddhists thinking about women and nature. An interesting viewpoint that also relates to the Buddhists doctrine of rebirth brings up that gender can change over successive transmigrations. Thus in the samsaric sense “there is no male or female, but only a single karmic stream” (http://www.enabling.org). This means that females are generally not looked upon as an inferior gender to men as they are in most western religions. The idea that males, females and all other living creatures are equal to each other shows they believe do not have a dominant nature. They believe themselves to be fraction of the ever flowing stream of life and earth and therefore feel a responsibility to hold that flow. They see that the consequences of irresponsible consumption affect all life forms, feel sympathetic and try to prevent it.

The Bible on the other hand describes women as “the weaker vessel” and men as the leader in social and family life. Unlike the Buddhist religion, Christianity can sometimes view women as something that exists for the service of man and this translates subliminally into the way they view nature. When the Bible was written, male and general human domination was a widely current viewpoint. The Bible makes it seem as though human control is God’s will and that humans need to be dominant over the things they can. “And God blessed them; and God said to them, ‘Be fruitful and multiply, and fill the earth, and subdue it; and rule over the fish of the sea and over the birds of the sky, and over every living thing that moves on the earth’” (Genesis 1:27-28). Men are dominant over women, parents are dominant over children, and believers are dominant over non-believers. It is apparent by the many holy crusades in Christian history that violent domination used to be a socially accepted ideology. By applying this dominance to ecofeminism, you might infer that Christianity sees nature that something that must be dominated for the use of man. Therefore, it might be more apparent why their response to the ecological crisis has been so archaic up to this point.

However, both Buddhists and Christians now clearly see the anguish we are facing with the ecological crisis at hand. As a result, both religions have been taking serious steps to raise awareness and take action against it. EcoBuddhism.org for example is a way Buddhists are currently responding to the ecological crisis. EcoBuddhism.org is a website dedicated to providing Buddhists with resources, such as articles, quotes, solutions, and blogs that are intended to help them deal with the ecological crisis. It provides various news posts about eco friendly practices, information about events that are going on in the community, and different wisdoms and inspirations to promote a conscious effort to hold care of our environment.

“There’s need for Buddhists to reflect upon the ecological crisis facing our planet and to “bring to bear the resources of our enormous traditions” to find a solution to this crisis. They’ve proposed that an international gathering of Buddhist leaders be convened leading up to the UN Climate Change conference in December 2009 and they’re currently involved in high-level talks in an effort to make it happen” (EcoBuddhism.org). The Web site is constantly updating their library with things like, sources of renewable energy and new methods of protecting the ecosystem we live in. It also explains the science behind why the ecological crisis is occurring and has maps on the area’s most being affected.

Christians worldwide are launching similar campaigns and websites to help slow down and eventually stop the progression of the ecological crisis. For example, Ecen.org is a website dedicated to sharing, reflecting, tantalizing in, and encouraging ecologically positive actions. It is a Christian ecological awareness website based out of Europe with the goal of bringing followers of Christianity to an understanding that we must protect the Earth. “ECEN is the chief instrument of the Conference of European Churches for addressing our relationship to the nature and environment from the perspective of Christian theology and Christian way of life” (Ecen.org). On the website, visitors can share common experiences and any information they have regarding the current state of our ecology. They share relevant traditions of different churches, status up events to get people together for environmental work. Generally, the goal of this site is to help people guide each other with the draw of taking care of the things God has created for them. By connecting people and sharing knowledge and common goals, this website shows how many Christians are currently responding to the ecological crisis.

If this is suitable, then it’s certain why followers of Buddhism generally tend to be more ecologically aware than followers Christianity and other Western religions. The Buddhist ideals of minimum consumption prevent them from supporting many of the industries which are causing the ecological crisis to occur. Christianity lacks a connection to the physical world because the general belief is that spirit transcends that. However, the ecological crisis has grown to a level at which it can no longer be ignored. Therefore, both religions have responded by taking serious steps to slow down and eventually stop the ecological crisis from destroying the world we know.

Filed under Automobile Insurance Quotes by on . Comment#

0

In a world in which human laziness is accepted probably much more than it should be, there comes a need for direction. Ever since the beginning of time, all people have been motivated. Motivated to succeed, motivated to conquer, and motivated to be the absolute best. But what is this thing we call motivation? Schermerhorn defines motivation as “accounting for the level, direction, and persistence of trouble expended at work” (Schermerhorn 2005). Although people (and most employees in general) don’t devour being commanded to perform certain tasks by another person or persons, managers are crucial to the motivational demolish of any business or corporation. It has been in my experience that when I’m employed by an organization and the manager(s) is uninvolved with the day to day activities of his or her employees, my co-workers and I will consistently fall accustomed to being unproductive. A manager who leads through motivation does so by creating an environment under which other people are always encouraged to work hard, and feel good about doing so. George Zimmer, founder of Men’s Warehouse, was once quoted stating this about motivation: “when people feel connected to something with a purpose greater than themselves, it inspires them to approach for levels they might not otherwise obtain” (IBID). To achieve substantially and consistent high-performance, a workforce must be highly motivated.

Communication

One of the most notable elements of motivation is communication. Without communication within the workplace, virtually nothing will be accomplished. This aspect of motivation is one that stems all the way back to the hiring process of each employee. During this process, it is best for managers to explain rules and regulations and ask as many questions as possible before choosing to hire that certain applicant. Knowing a person’s social background and their interests is crucial, as a manager shouldn’t hire a potential drug dealer or compulsive gambler.

Developing feedback from employees is also plays a very important role in motivation, and also falls under the category of communication. It’s essential to know what counts and to what degree by asking yourself, “are noble and at-risk behaviors discussed regularly – on the spot, as soon as they occur? ” (Johnson 2005). “Performance is enhanced when people know what they’re doing well and where they can improve” (Jerus 2003). Through surveys, meetings, or some other type of input gathering situation, one can properly obtain feedback. Identifying one’s desires and needs will help managers figure out the best ways to motivate their employees through different incentives. Feedback should be timely, just and comprehensive. While negative input is important, the certain must be assessed as well.

Motivational Incentives

Promising promotions and raises provides incentives for employees to work harder and increase productivity. The promise to promote an individual to a higher spot within their company will usually push that employee to perform at a higher level than previously seen from them before. “Without the aspect of individual promotions or raises, employees really do not feel that it is necessary to execute at a higher level than someone else in the company” (Chang 2005). This is true at my place of work, Washington Lake Park. All employees under managerial levels work for the same wage, regardless of how efficient one is. For example, a coworker of mine and I may work to our very hardest while another coworker of mine will sit in the office for their entire duration of their shift, and yet all of us will be paid exactly the same salary. In a situation such as this, no motivation is provided for employees to work to their fullest potential.

Another type of incentive for employers to provide stems encourage to the hiring process. During the hiring process, managers may tell prospective original hires that they will soon receive a raise after a obvious time period. “This diagram makes workers try as hard as possible to retain their positions, almost locking these people in” (Jerus 2003). Although it seems to be a completely bulletproof type of incentive, it also has its problems. A few years ago, I worked for a company called Amazon Café, an upcoming restaurant chain that provides many healthy alternatives to fast food. Upon being interviewed, I was told immediately that after a three-month period, I would receive a fifty-cent raise on top of what my starting salary. It occurred to me then that I would only have to force myself to please my managers to only the minimum to keep my position and still earn the raise I was promised. Also, there was no need for me to compete with the rest of my coworkers. This is why this method is not always the best motivation technique in the workplace.

It’s becoming a very popular trend for many college graduates with a bachelor’s degree to continue their formal education by completing a master’s or doctoral program in their field of study. Often times, these employees will find themselves stuck because they are financially unable to pay for the required courses. This is where their company’s management steps in. If a company feels that an employee is a valuable part of their team, it’s celebrated for that company to compensate that employee to further his or her education, ultimately helping the company in the long run. This process is a motivational incentive called “tuition reimbursement” (Ayers 2005), under which most companies will provide if these employees are achieving a ‘C’ GPA or higher. Among the biggest users are the hotel industry, business services industry (i.e. accounting/management consulting firms), and retail/wholesale trade. Those industries that offer the lowest levels of tuition reimbursement include food and tobacco, textile and apparel, gallop and paper, and printing and publishing.

One interesting incentive intention used by many companies, including world-renowned coffee blender Starbucks, is the stock option. A stock option “gives the option holder the right to buy shares of stock at a future date at a fixed price” (Schermerhorn 2005). This links ownership directly with performance, since employees holding stock options will almost always be motivated to work hard to raise the stamp of the company’s stock. Starbucks is one of the first companies across the globe to start using this method for its lowest-level employees. Most firms will only provide this option to the highest-ranking senior members of the company.

Stock options are one form of what are called employee fringe benefits. As defined by Schermerhorn, fringe benefits are “nonwage or nonsalary forms of compensation” (IBID). Four reasons to have employee benefits are: “to attract and hold capable people, to keep up with competition, to foster friendly morale, and to keep employment channels open by providing opportunities for advancement and promotion as older workers retire” (King 2005). Aside from stock options, other types of employee benefits include health and dental insurance, an automobile provided by the company, childcare, disability benefits and more. For many employers, a benefit plan is an important part of total compensation, because employers either pay the entire cost of a benefit view or have employees contribute a puny portion of costs for their coverage. Many employees will continue to work for their company for the sole reason that the benefits are good, even if they’re not satisfied with his or her current position.

More than just a nice gesture, the process of rewarding employees is an effective way to drive performance and reinforce the behaviors that help your company meet its objectives. There are two forms of rewards. The first form is internal, called intrinsic, which “are the good feelings that near from accomplishing something” (Jerus 2003). While the employee receives these kinds of rewards, managers need to communicate to their employees just how important they are. These are usually the best form of rewards for boosting morale within the workplace. Extrinsic rewards “are externally administered, and are provided by someone else” (Schermerhorn 2005). Bonuses, paid vacation time, improved status and security, free coffee breaks or lunches provided by the company, or the potential of a pay raise are all examples of extrinsic rewards. Some theorists, including Frederick Herzberg, argued that “extrinsic rewards are only hygiene factors, as they neither motivate nor de-motivate” (Ayers 2005). Of course, this does not apply to all people, but the theory is simple in its meaning: intrinsic rewards are more rewarding to people as humans because they affect them for a long period of time, and extrinsic rewards are in the long run less rewarding because they are simply material. But, all people are different, so Herzberg’s theory may not apply in all cases.

Incentive Pay

Commission pay is also a substantial originate of incentive. It’s one of many forms of what is called “incentive pay,” as it is a “payment made to employees based on the value of sales achieved” (Chang 2004). The main advantage of commission from an employee’s point of view is that it enables high performing sales people to salvage large amounts, while the main advantage from an employer’s point of plan is that the cost of wage expenses is equivalent to the value of business achieved rather than just the amount produced. This form of incentive pay is fairly popular in substantial retail stores such as Sears, Boscov’s, etc. Unfortunately, commission payment also has its drawbacks. According to Dave Johnson,

the biggest problems with commission payment include sales people who slice corners, high commission earnings enjoyed by some of the sales team may be resented elsewhere in the business, and it is difficult to change what proves to be an over-generous commission structure without upsetting and demoralizing the sales team” (Johnson 2005).
Although it has its downsides, commission pay is aloof a very celebrated means of motivating employees to work their very hardest.

An alternative but increasingly popular style of incentive pay is the skills-based pay system. Skills-based pay “provides pay raises for years of experience, education units and university degrees” (King 2005). These variables are indirect indicators of knowledge and skills. Under this system, an employee with more education units and more experience in their area of work is assumed to have developed a greater professional expertise. It’s a new wave of motivational incentive that’s sweeping companies gargantuan and small all over the country, including companies such as Best Buy and Federal Express. This type of incentive is crucial in work environments in which knowledge is constantly being updated and unique products and services are frequently being produced. In my past experience with Best Buy, most of the learning that I received followed by a system such as this, in which we (associates) were tested almost daily on new technological information. Unfortunately, I wasn’t so lucky enough to ever receive promotions or raises for completing these tests. At Fed Ex, “test scores are incorporated into the employee’s performance appraisals, and pay can be increased for employees scoring high” (Schermerhorn 2005). Although I was given no raise for completion of any of those tests, I still felt better about myself vivid that I wasn’t as ‘left in the dark’ anymore after taking them.

Competition in the workplace can earn for a stressful environment, but will usually make for a very productive environment. “Human beings are competitive by nature, and this also applies to the workplace because we know we won’t get anywhere with someone else always outshining us” (Different Strokes 2005). When employees see their coworkers receiving raises, promotions and rewards for shining at work, they too will most likely feel it distinguished to do whatever it takes to match whatever those coworkers are doing.

Not all motivation has to be positive. In fact, it’s sometimes more beneficial as a manager to instill some kind of fear or instability within the hearts of their employees. Punishment is “the use of an aversive unpleasant consequence following behavior, with the intention of reducing its frequency” (Chang 2004). It can take many forms such as; criticism, reprimands, extra work, demotion or even corporal punishment for more terrible acts of unwanted behavior. “In an extreme situation where an employee’s behavior is personally uncertain or excessively disruptive to the workplace, punishment may be notable to suppress awful behavior in the short term” (Ayers 2005). However, this can be a dangerous course upon which to embark. Persistent punishment is likely to evoke dislike of the manager and the rest of the corporate environment, which in turn can lead to a withdrawal of co-operation, contribution to work accomplished or even attendance. Thus the employee fails to become an active participator. Punishment can only help in stopping a abominable behavior, never starting good one.

Morale and De-motivation

While it may be an effective means of motivation, the exercise of too worthy negative reinforcement in the workplace can cause depreciation in the value of workers’ morale. Employees are human beings, and as some may be more sensitive than others, they all have feelings and limits to those feelings which can only sustain a certain amount of criticism and hurt. The concept is simple – if morale is high, employees will enjoy coming to work and performing at an appropriate lunge but if it is low, honest the opposite will occur. “Absenteeism, slow performance levels, and neglect for getting things done on time are all very possible outcomes for low morale” (Johnson 2005). Keeping morale high is absolutely a key element to motivating employees. Design a positive, high morale work environment for employees that enable them to use their talents and skills.

Big-box store Best Buy is definitely an example of a company that needs to work on increasing employee morale. Of course, Best Buy does offer a great stock option and a discount that’s absolutely mind-blowing, but nothing more than that would probably keep many employees around for more than a few months. During the short period of time that I worked for the group, I quickly discovered that not only would I have one manager to narrate me, but somewhere around five. Under the general manager of the store were four assistant managers, a manager of each department, and assistant managers to the manager of each department! Needless to say, any employee under the title of ‘associate’ such as myself was considered a serf and was treated no higher than that of an easily replaceable one. Therefore, I really never felt as though I wanted to go to work, as I was completely unmotivated and my level of morale was so low that I sometimes regarded Best Buy as my own personal ‘Hell on Earth.’ “If companies would just cease using this terrible form of chain management and start enforcing head managers to focus more on employee well-being, they would be more likely to maintain principal employees for a much elongated period of time” (Chang 2004). It’s a simple theory – profits are higher when morale is higher. Low morale is objective one example of what’s called de-motivation.

De-motivation occurs when motivational factors are absent from the workplace. “Lack of incentives or miserable conditions will drive any workforce out of the office and into another, sometimes regardless of employees’ salary” (Ayers 2005). Even if not highly educated, employees generally hope for some kind of psychological contract. If that is not fulfilled, serious unhappiness arises rapidly. Likewise, broken promises are guaranteed to de-motivate.

One way to analyze de-motivation is to refer to behavioral psychologist Abraham Maslow’s ‘Hierarchy of Needs’ theory. Diagrammed as a pyramidal chart, the Hierarchy of Needs explains in an ascending fashion how people need to be satisfied on five levels: physiological, safety, social, esteem, and self-actualization needs, respectively. Physiological, safety and social needs are considered “lower-order needs,” while esteem and self-actualization needs are regarded as “higher-order needs” (Schermerhorn 2005). Lower-order needs are desires for social and physical well-being, while the higher-order needs are desires for growth and psychological development. “According to Maslow, people try to satisfy the five needs in sequence. They progress step by step from the lowest level in the hierarchy up to the highest” (IBID). Based on the theory, once an employee has satisfied all of these needs, he or she will operate more efficiently and managers will see an improvement in that employee’s morale.

Managers must understand that not every employee is the same. The good boss understands this and assesses how he or she can accommodate each employee without disregarding fairness to other employees. Being respected in the workplace plays a very crucial role in heightening morale. For example, employees of foreign origin may celebrate different religious holidays than the majority of the rest of the employees and/or the manager. The importance of this must be recognized, as “distributing vacation time amongst other opportunities and benefits to these employees must be completely equivalent in comparison to what is distributed to other employees” (Johnson 2005). Once again, profits are higher when morale is higher.

Employee Engagement and Goal Setting

There is a theory that states that the leader is solely responsible for engaging his or her workers and that the truly engaged employee is “one whose needs and values are aligned with their work and with their organization” (Ayers 2005). This theory is proposed by Keith A. Ayers of New York University. He argues that there are five steps to developing truly engaged employees. Firstly, one must build trust. Like most things, it does not happen just because you’re trustworthy. People do not know how great you are until you present it by using trust-building behaviors, as the most important behavior is trusting others. Secondly, managers must implement some sort of mentoring. “The relationship between the employee and his or her immediate manager is a critical factor in how engaged the employee will be, as employees need feedback” (IBID). Next, one must carefully use inclusion. Effective leaders know that everyone on their team has strengths, which are necessary for team to be successful. Fourthly, alignment is a necessary element because engaged employees feel aligned with their organizations’ purpose, values and vision. Finally, tremendous leader focus a ample deal of energy onto team development. Effective leaders ensure that all team members understand the strengths they and other members bring to the team and work on capitalizing all of these strengths. They focus on developing the leadership potential of each team member and ultimately implementing a shared approach

Your employees must be part of the goal setting process so that they will work towards the same goals that you are working toward. Your clients have to be racy enough, desperate enough, or thoughtful enough to start and continue doing business with your company. “When they have a spacious experience (and this is the key) with your company employees they will likely stay as long as you preserve giving them concise, educational information that will help them save money” (King 2005). Goals give direction to people in their lives, including everything from education, work, social interactions, etc. Also, they are a great way to establish a system of generating feedback and making the performance expectations between a subordinate and a manager distinct. “It may not always be possible to allow participation when selecting exactly which goals need to be pursued” (Schermerhorn 2005). Setting goals is a crucial part of motivating employees, as it gives them a sense of belonging and a desire to reach the “light at the end of the tunnel.”

Conclusion

Obviously, there are many forms of motivation. In this paper, I have examined various types such as effective communication, employee incentives including pay increases, promotions, benefits, stock options, commission, skills based pay, competition, negative motivation, engaging employees, and goal setting. The world’s best managers may use some or all of these techniques. Motivation within the workplace fuels the fire in every employee’s soul. Creating and facilitating a workplace that supports motivation rewards the organization with higher personal and group productivity. It also enhances an employee’s work environment and increases the chances of retaining high-quality people for much longer periods of time. Most importantly, it is an integral portion in the long-term growth, stability and success of any organization, and thus, is incumbent upon every manager to master these skills to the best of his or her ability. Effective motivators are not always leaders, but leaders are always effective motivators!

References

Schermerhorn, Management, 8th edition, John Wiley and Sons, 2005

Johnson, Dave. 25 ways to motivate employees & power profits. Ebscohost, Vol. 39, Number 5 (May 2005).

Jerus, Robert G. The Top Ten Creating Motivation at Work. Proquest/Coachville Publications (June 2003).

Chang, Emmui. Composite effects of extrinsic motivation on work effort. ScienceDirect Abstracts, Volume 38, Issue 1 (February 2004).

Ayers, Keith E. Leading the Way. ScienceDirect Abstracts, Vol. 52, Iss. 8 (Aug 2005).

King, Ruth. Real Employee and Client Motivation. Community Mental Health Journal, Volume 37, Number 4 (August 2005), pp. 347-358

Different Strokes For Different Folks. Ebscohost Vol. 34, Iss. 4 (Jul/Aug 2005).

0

1. Whenever you are involved in an auto accident. DO NOT acquire out of the vehicle if it is a busy street! Call 911 for help. If you don’t have a cell phone, someone driving by will normally call for help. The reason why, you could accumulate ran over by another vehicle! Wait until the rescue workers arrive at the scene. If you are not severely injured, the rescue team will have the traffic blocked, by then, you can get out and talk to the police officers and paramedics.

(If you are not injured, be sure to collect the other drivers full name, phone number and the name of their insurance company, policy number and the insurance companies claim phone number (if available).

Also, try to secure a name and phone number of anyone(s) that witnessed the accident. Normally, police officers don’t do this, unless it’s a severe accident with major injuries or fatalities and that also really unprejudiced depends on how much time they have. Police officers will fill out an accident report, but if it’s a minor accident, a lot of the important details could be missing if you have to go to court years later regarding this accident).

(Part 1 continued:) If you have a camera phone or any camera available, take any photos you may think that would be relevant to this claim, especially your vehicles and possible injuries. Ironically, if your vehicle is drivable, you could get hit the very “next day” and the insurance adjuster will try to allege your property damage. Prefer photos of your vehicle as soon as possible.

The body shop, insurance appraiser and insurance inspectors will take photos, especially if you have filed a personal injury claim. DO NOT Allege THE INSURANCE COMPANY that you have these photos in your possession. This is what attorneys call “keeping an ace in the hole” If you hire a law firm to handle your claim, they will explain the reason why?

2. Personally, I would go ahead and call the other drivers insurance company to accept out if they have a “valid” insurance policy, even if your at the emergency room. The reason why, is because there are so many drivers without valid insurance. You can always file a claim with your insurance company for an un-insured motorist accident, if this is included in your insurance policy, unfortunately, you will have to pay the deductible. “Hit and Urge” accidents are treated in the same manor. If the other driver does not have valid insurance, you should report this to the police department and your insurance company immediately!

3. Go ahead and file your claim with the other drivers insurance company, be sure that you give them the trusty phone number where you can be reached night or day. These adjusters will normally only call you once and it’s literally impossible to call them back without getting their dispute mail! DO NOT VOLUNTEER a lot of unnecessary information when filing your claim, I don’t know this for sure, but the CSR claims taker could possibly be recording your conversation for the claims adjuster to analyze whenever they do finally call you. These adjusters get paid good money to keep their cost of expenses down. Unfortunately, because there are so many false or fraudulent claims, adjusters are forced into this dwelling.

4. Write down immediately what happened on a notepad the events that took place regarding this accident or place it on a computer file. Be definite to write down every detail you can possibly think of such as: Was it raining? What time of day was it? Was there a lot of traffic? How were you struck? Was the other driver helpful? Did you have any witnesses? Was your vehicle drivable? Did you go to the emergency room? What happened in the emergency room? Also, if you have to hire an attorney, the first thing they will ask for, is to see your notes.

5. What documents do you need to withhold after this accident? All medical bills, rental car receipts, gas card purchases, time of expenses driving help and forth to the doctors office, loss of wages check stubs, photograph receipts. Also, get a copy of the value of your vehicle, such as the N.A.D.A book that banks often use or the www.nadaguides.com in the consumer part. Majority of the time, the adjuster will only offer you the wholesale value or the lowest price if your vehicle has been declared totaled. This is what claim adjusters call “Fair Market Value” versus expense of repairs.

6. Whenever the insurance adjuster does finally call you, they will most likely also offer you the lowest price for repairs to your vehicle. This is standard procedure. “Do Not sob at these people!” This will only make matters worse and they might not call you back for a month! You can always decline their offer and wait a couple of weeks, to see if they may up the offer especially if your vehicle has been totaled!

Also, if you have personal injuries, they may assign a different claims adjuster that specializes in personal injury claims. This usually happens in the bigger insurance companies like Position Farm and Allstate from what our attorneys have told us. Be sure to also pick up the adjusters fax number, and you can fax them your decision. DO NOT send them unnecessary statements, they can and will use this against you in court! We found this out the hard way with Site Farm Insurance!

7. If you have a personal injury, you can always use this as leverage to net a rental car, especially if your vehicle has been totaled, by telling them you need a vehicle to drive assist and forth to the doctors office. If your vehicle needs to be repaired, I would recommend getting an estimate from someone that is NOT affiliated with the insurance company. Some of these insurance appraisers will try to slice their losses on repairs and you may have to end up paying the balance. Some insurance companies will issue you a check and some will execute out the check to the body shop once your vehicle has been repaired.

8. If you settle your property injure claim without using an attorney, be sure that the contract does not have any words like “injury” or injuries sustained” anywhere in their contract, especially if you filed a personal injury claim. You will have to give them the title and of course the vehicle, before they can give you the check, if your vehicle has been declared a total loss. The larger companies will just give you a check without a contract, that’s what State Farm did with us. Over all, most attorneys do not handle property damage claims.

9. If you have the time, you can always accumulate a copy of the accident report at the courthouse in the same city normally within 3 days. Some of these insurance companies will take up to three weeks to get this report and until then, they will normally offer you absolutely nothing! Simply because they want to find out who’s fault it was! If you hire an immediate attorney, this is also very good to have on your initial visit.

10. The best way I have found to hire an attorney, is to check with friends and family members. My advice, if you have sustained personal injuries that will be permanent, I would use an expert trial attorney. You can always interview different attorneys. Be sure to choose an attorney that you feel comfortable with. These people can sometimes stay with you for years and years!

I would also recommend viewing this attorney in court to see what kind of tactics they are using against these insurance attorneys. In most states, you have a minimum of 1-2 years before you have to file a lawsuit to recover your losses and expenses. Insurance companies like State Farm and Allstate are notoriously acclaimed about waiting until the last week to settle your personal injury claim. Remember also, lawsuits are filed against the other driver and not the insurance company! Go to your local library and research personal injury books.

Thanks for reading,

Phillip Chambley.

Filed under State Farm Auto Insurance by on . Comment#

Disclosure: You should assume that the owner of this website is an affiliate for providers of goods and services mentioned on this website. The owner may be compensated when you purchase after clicking on a link. Perform due diligence before purchasing from this or any other website.
Click Here for further information