Archive for January 7th, 2008

Current Expiration of Save Small Business Act (HR1843/S.988) to … - Reuters

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When Henry Ford started the Ford Motor Company he initiated many ideas which were revolutionary for the time.  One of the most denigrated by other industrialists was his the high level of pay he gave to  his workers.  It was socialist thinking. 

Ford calculated that only a well paid middle class could afford his vehicles over the long run.  Other industrialists of the time were paying low wages and keeping the largest possible profits for the stock holders, the capitalists.

Until the ’90’s Japanese companies had a practice of hiring people for life.  This hindered their flexibility as the industrial industrial environment changed, e.g. the emergence of China.  Japan’s economy stalled.

Today, Japan hires temporary workers when it wants to expand so that it can react quickly if the market contracts.  Temporary workers are paid less per hour and receive fewer benefits.  On the surface, it is a reasonable plan.  So reasonable that it has become a way of doing business over the long term.  The strategy keeps cost down and has driven Japanese stock prices up.

With all things, balance is the key.  As reported in today’s Wall Street Journal, Japanese stock prices are being hit because the purchasing power of the middle class is eroding sharping.  This erosion is due to the practice of hiring such a high number of temporary workers in relationship to permanent workers.  I’m sure you see the irony.

What is the lesson for us?  Henry Ford was right.  People can’t spend what they don’t have.  If they’ve tapped out their home equity and their job does not pay well, where will they get the discretionary cash to pay $3.86 for a great big Latte at Starbucks or more importantly at coffee shop you own? 

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$29 million might not turn heads in parts of California or New York but it’s news in Wisconsin. Chateau du Lac in Ellison Bay, Wisconsin is the biggest and the most expensive home for sale in Wisconsin history. The home is more than 35,000 square feet and sits on a limestone bluff overlooking Lake Michigan. The 100-acre estate also includes a guest home, a separate studio house, and a separate beach home with steps that lead to a sun pier on the shores of Lake Michigan.

The main house opens with a formal two-story foyer with dual staircases. The main floor alone has a formal great room, bayside parlors,a 14-seat Art Deco cinema, custom kitchen, formal dining room, morning room, pub room, garden room, a two-story library and an indoor pool and whirlpool. On the second floor, the master suite is bigger than many homes at 5,000 square feet and consists of seven rooms. A gallery connects the master suite with the northern wing which includes a guest parlor, a galley kitchen, and three additional private bedroom suites with full baths. The home is being sold with all of the furnishings including antiques and paintings for your $29 million. Too bad there aren’t bigger photos on this one.

[via TMJ4]

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Learn about the China Top 100 Retail Companies - Reuters

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Sadly a $65 million home in the Hamptons barely has the power to shock anymore. The Wall Street Journal recently reported that a Southampton, N.Y., estate formerly owned by Martin “Marty” Richards, who produced the Oscar-winning 2002 film “Chicago” and many Broadway plays, has gone on the market for $65 million. We’ve covered Richards before, his riverfront duplex was first listed at $29 million and then went down to $22.7 million. The current owner purchased the home from Richards for $23 million in 2003 and is stated to have spent $25 million overhauling the property with the help of interior designer Robert Couturier. The home has is located on the very popular Gin Lane and has more than 400 feet of beach frontage. There is an eight-bedroom main home as well as a 7,500-square-foot guest home. The grounds include a tennis court, pool, spa and a lily pond. The main house is one of the oldest summer cottages in the Hamptons. The main manor home is absolutely flawless and the almost six acres are exquisitely done. As the listing says, it is a “true Southampton estate.” Is it worth $65 million? I’ve learned to turn off my inner skeptic when looking at Hamptons listings, there’s probably some deep-pocketed person willing to pay exactly that. Yes, even in this uncertain real estate market.

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From the NY Post’s Gimme Shelter:
–As was first reported by Bob at Massive Time Listings, Howard Stern has paid $15.1 million for the apartment directly below his West Side condo in order to create a massive over 8,400-square-foot penthouse. Stern’s purchase is a combination of three separate units. He first bought in the building in 1998 when he combined two penthouse apartments.
–Baseball player Alex Rodriguez has been spotted checking out a home at the San Remo co-op. The five-bedroom home is listed at $6.975 million, a tiny mdoest by A-Rod standards.
–Rachael Ray has finally closed on her Southampton home. The home on 6.2 acres had a list price of $2.9 million.

From the NY Observer’s Manhattan Transfers:
–Model Isabeli Fontana just spent $3.37 million on a three-bedroom apartment in the Trump Place development on Riverside Boulevard. She already has a penthouse in a Trump condo a few doors down. Fontana, who currently fronts the H&M lingerie campaign, already has two kids so perhaps she needs the extra room.
–Model Jessica Stam, who is just 21, has already bought her third New York apartment .She first sold a co-op on East 16th Street, for $510,000 in August 2004 and bought an $800,000 condo four blocks down. She sold that place for $935,000 and now has paid $1.4 million for a loft at the Petersfield on Fourth Avenue.
–DJ AM has paid $1.995 million for a 1,147-square-foot apartment at One Kenmare Square, Andr

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Want to make sure you’ve great follow through on your projects for the year? How about your priorities, have you got them all sorted out? If you’re the type of person who needs to write everything down to get organized, you’ll benefit from David Seah’s Concrete Goals Tracker for 2008.

Here’s a description from the site:

The Concrete Goals Tracker (CGT) is the original Printable CEO™ form, created one evening in 2005 to alleviate my desire to have a “trusted personal CEO” that would tell me what to do. I figured since I couldn’t hire anyone to do the job, I might be able to go the cheap route and print one up on paper :-)

New for 2008 are write in your own goals PDFs with recommended methodology for how I put together a good “worth doing” list, which is an art in itself. I’ve written instructions on how to create new year’s resolutions using these forms.

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Modern in the 1950s and 1960s and modern now mean two entirely different things. Case in point, this home built by famed architect Edward Durell Stone in New Canaan, Connecticut in 1959. This peaked roof mid-century modern went through a major restoration in 2006/07. The 4400 square foot home now has a new Snaidero kitchen and new bathrooms with plenty of stone and those glass bowl sinks that are currently so popular. The home has four bedrooms and there are 12 pyramid skylights total. The estate also includes a reflecting pool and a home theater. My question for you is whether or not the restoration fits the home. While I think the kitchen is a match, the bathrooms seem a bit too au courant rather than classic modern. This estate is listed at $4.9 million. %Gallery-12598%

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One resolution I’ve for Luxist is to feature more real estate from around the world this year, at least one per week. Today’s home is located in Estoril, a seaside resort in Portugal. it is located near Lisbon, the capital of Portugal and attracts visitors with its sunny shores and classic charm. Today’s villa has eight bedrooms and a lovely waterfront location. The home is four levels that include an entrance hall, living room, formal dining room, library, piano room, master bedroom chapel, wine cellar and staff quarters. Outside there are several terraces with an ocean view, a swimming pool that faces the ocean, and a garden. It is listed at 11 million euros.

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One of the most unique inns in Provincetown, Massachusetts (a town known for, among other things, really eclectic bed and breakfasts) is on the market. Land’s End Inn occupies a coveted spot on Commercial Street on Gulf Hill. The inn has views of the harbor and was originally built in 1904 as a private residence. It has 17 guest bedrooms and 18 bathrooms. Each of the rooms has its own very special theme such as the library room, the English garden room and the Moroccan tower room. Tthe whole place is touched with a charming eccentricity.. The home also has three different kitchens.There is also a manager’s apartment and the listing includes an adjacent lot at 20A Commercial St. of approximately 8060 square feet. More pictures can be seen at the inn’s website. It is listed at $5,250,000.

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