Posts Tagged Economics
O’Malley’s Continued Vendetta Against Constellation Energy
I have been watching the drama unfold between my corporate master, Constellation Energy, Governor Martin O’Malley, and the Public Service Commission. Current events have been focused on the joint venture between France’s Electricite de France (EDF) and Constellation Energy and the impact that this will purportedly have on BGE.
For a surprisingly balanced view of the current row, I recommend taking a look at Jay Hancock’s coverage in the Baltimore Sun and his blog. I cannot add more to what he has already written. I have to agree completely with the point he makes here:
Stock ownership and board votes are the alpha and omega of substantial control. All corporate law is predicated on the notion that the people who own companies and the boards that supervise them are the controlling entities. This PSC sentence — “Once a proposed transaction includes elements other than acquisition of stock and board designation rights, it no longer is eligible for the (e)(2) exception.” — is Orwellian in its casual assertion of omnipotence. By such logic, if Constellation wanted to give an ice cream party for EDF or another business partner, the PSC could block the deal.
What the PSC did in deciding to wait until September to provide an approval on the EDF-Constellation merger was to disobey the law passed by the General Assembly in 2008 that allowed such a deal. Moreover, the rather unfriendly action sets the table for O’Malley and the Attorney General to examine the compensation of Constellation CEO Mayo Shattuck. Personally, I think CEO pay across the board is a bit excessive, but O’Malley’s comments and the actions of the Attorney General set a dangerous precedent for other large and profitable corporations that wish to setup shop in Maryland. The takeaway here is no business is safe from the Big Brother that is Maryland state government.
Constellation has started to go on the offensive in getting information out about the venture, and they have been doing it across all of the usual mediums. There’s a Facebook page, a Twitter account, and a new website as well. At the end of the day, getting this information out in as many mediums as possible is a laudable effort.
The joint venture is needed for the continued viability of Constellation Energy and the future of power generation in Maryland. FWIW, nuclear power is an excellent solution to our need for energy that reduces a reliance on foreign oil and appeals to clean energy. This venture is a step in the right direction for both Maryland and Constellation Energy.
Changes Afoot for My Corporate Master
In case you happen live in a cave or are have the attention span of Generation MySpace, I am sure you are aware of last week’s news involving my corporate master. Needless to say, last week was a rather quiet week in the office.
The churning of the ongoing financial crisis has truly hit home with what happened last week. I could speculate on how this happened, but I would be terribly wrong on some points–and violating company policy. At the end of the day–at this point–Warren Buffett and a subsidiary of Berkshire Hathaway have come to the rescue.
Personally, I think that having Buffett come in speaks volumes to how he views the company. The unfortunate part of this, though, is the effect this deal has on those folks who worked for the company for a long time. They have seen the stock they owned as part of their retirement package plummet in value in a matter of 48 hours.
In any event, it’s business as usual.
Economic Stimulus My…
The economic stimulus payments that were part of the legislation that Congress passed earlier this year started being mailed out and deposited into the accounts of taxpayers earlier this month. Yesterday, I received my stimulus payment via direct deposit to my bank.
Wow. The government wants me to stimulate the economy with $13.85. Looks like that will either buy me lunch or a couple of beers. Needless to say, my stimulating of the economy will be slight.
Thinking About a Part-Time Job
I have been toying around with the idea of a part-time job lately, mainly to make up for some of my lost income during my brief unemployment stint. Doing so also allows me to earn some extra money to pay off some bills that accumulated during that time. The problem I have is coming up with what would be a good part-time job to fit into my schedule.
Two jobs I can think of immediately is working in a coffeehouse or a bar. Of course, I only have experience on the customer side of the counter in both of these environments. The other position I can think of would be to go work in the computer department of one of the “big box” stores. Obviously, I have lots of experience to apply to that position.
Decisions, decisions. In any event, I need to figure something out and
Counter-Offer
Posted by JJT in Uncategorized on August 2, 2006
Late last night, I received word from my real estate agent that the owner of the house I made an offer came back with a counter-offer. The offer I made on Sunday afternoon was for $7,000 less than the asking price, with a request for $3,000 in closing assistance. Overall, the owner is down $10,000 from the original price of $219,500. Looking at the house and the surrounding neighborhood, I think this is a pretty fair deal.
The counter-offer was for $217,500, with some stipulations that we close on the house by the end of this month. They agreed to the items I pointed out that needed repair as well. Nonetheless, if we look at this new price and the agreed closing assistance, the home actually really sells for $214,500. They also made the offer that if we wanted to go to the original price, they would increase closing assistance to $5,000. At the end of the day, the house sells for $214,500. The house was originally listed at $239,900 in early January.
My agent recommended that we go as high as $216,000, but I am not changing the original offer. For one, my offer is a fair one considering the homes that are selling or have sold in the area. Secondly, the house was purchased for $100,000 last year, and I figure the seller put in $40,000 in rehab work. The house does not have a 1/2 bath, and the house does not come with a washer and dryer. In the kitchen, the countertops are standard laminate, and the refrigerator is not nearly as nice as it could be.
I am also sticking to my original offer given these factors. I don’t want to feel pressured, and if they decline my offer I can go shopping elsewhere. I am certain they will decline the offer I made, so if they do I just go back to looking around. At the end of the day, my negotiating position is better–especially in light of the slowing housing market. I have time on my side, and according to the counter-offer, the seller is looking to move along. My offer stands.
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