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« 5 Strategies for Managing Employees after Layoffs | Main | Weekly Industry Crib Sheet: Economies Continue Slipping as Leaders Pledge Teamwork... »


November 14, 2008

Light Friday: Great Depression Myths and Bailout Bashes...

By Jorina Fontelera

Plus Google Tracks the Flu and Brings Back Ancient Rome, Tanks Made for Tornadoes, Flying Cars and Unearthing an Ancient City.

Given the current economic crisis, it would be easy to compare the state of things today to that of the Great Depression. The Wall Street Journal cautions would-be analysts not to misinterpret the past and so offers up these five myths and truths about the Depression that are related to today's woes:

  1. Herbert Hoover believed that markets were self-correcting. Fact: Hoover believed in government intervention to support incomes and employment. His policies kept businesses from cutting wages as the economy fell and championed many of the ideas in Franklin D. Roosevelt's New Deal such as central planning and control of the economy.
  2. The October 1929 crash precipitated the Great Depression. Fact: The crash triggered the passing of countervailing tariffs that caused the international economy to collapse.
  3. Where the market failed, the government stepped in to protect the people. Fact: The Agricultural Marketing Act caused farmers to lose export markets and raised prices for hard-pressed consumers, which both lowered farm productivity and drove farmers off their land.
  4. Greed was the crash culprit. Fact: Excessively easy credit, which was "broken by the inevitable return to more realistic valuations," is the perpetrator. Rather than rein in the boom to more normal interest levels, Hoover let "the good times roll."
  5. Government regulation pulled the nation out of depression. Fact: Government mismanagement and inefficiency set economic growth back a decade.

Bailout Bashes
From the American International Group (AIG) execs' $440,000 post-bailout spa retreat (second item) to their Las Vegas getaway to Wachovia Corp.'s all-expenses-paid cruise, these staffers can't seem to stop spending taxpayers' money on lavish vacations.

And it's not just American companies partying it up post-bailout. Halifax/Bank of Scotland (HBOS) held a £330,000 ($490,000) post-bailout gala to celebrate the £11.5 billion ($17 billion) it received from taxpayers. Not to be left behind, the Royal Bank of Scotland spent £300,000 ($446,000) on a champagne junket less than a month after receiving a £20 billion ($30 billion) handout. (Pound to dollar conversion based on current exchange rate of £1 to $1.48.)

Like your aunt pulling out the projector to show you photos from her trip, the Business Sheet compiled a slide show of these posh getaways along with details on these "ailing" companies' antics.

The Real Atlantis?
Sevtopolis-img-sevtopolis-img8.jpg
Image credit: Seuthopolis National Initiative

Seuthopolis was an ancient city founded by Thracian kin Seuthes III. Its ruins now lie on the bottom of the Koprinka Reservoir in central Bulgaria.

Architect Zheko Tilev proposed to restore the ancient city by building a dam around it. Despite being underwater for several decades after the reservoir was built, archaeologist Maria Chichikova says the city is still well preserved. Because it is 20m below the reservoir's surface, visitors would be able to admire the ancient city from the dam top as if looking down a well.

Tilev says the site could accommodate more than half a million tourists a year. The project is anticipated to cost about €200 million ($255 million).

Can Google Prevent 28 Days Later from Becoming Reality?
Google knows where you live. And now it knows whether you've come down with the flu, too. Google Flu Trends, the search firm's new public health initiative launched Tuesday, looks at the popularity of flu-related search terms and figures out where flu outbreaks may be occurring in the U.S.

The tool, which operates on the idea that there's likely to be a flu outbreak where flu search terms are currently popular, lets users know about the flu activity in their state.

The Centers for Disease Control and Prevention (CDC) collaborated with Google and shared flu tracking data over a five-year period. According to CNN, Google accurately estimated current flu levels one to two weeks faster than published CDC reports in the 2007-2008 flu season. CDC hopes to test it this season.

"Google hopes to extend the service to other countries, and may in time include other illnesses," the UK Guardian says.

Perhaps in time, Google can prevent a real zombie apocalypse due to a virus a la 28 Days Later from happening.

In other Google news: Along with ferreting out flu-harboring states, Google Earth now gives people a chance to visit ancient Rome.

Tornado Intercept Vehicle. 'Nuff Said.
If you've ever wondered what it'd be like to take a ride inside a tornado, your chance to experience it may come in the form of the TIV2 — the Tornado Intercept Vehicle, version 2. Built by IMAX photographer Sean Casey and the Storm Chasers team, this 16,500 pound tank comes with armor plating and bullet proof glass that allows Casey and crew to go inside a tornado for the "ultimate shot."

Click here to have Casey take you through the features of the TVI2.

Finally, a Flying Car. Got Your Order in?
flying-ferrari_1106136c.jpg
Image credit: Solent News

Waiting in a traffic jam: kiss it goodbye. Commuters could one day soon fly to work.

In about two years, Moller International hopes to have the Autovolantor flying car commercially available and have a prototype ready in 2009.

Based on a $319,653 Ferrari 599 GTB model, Moller says the car will be able to take off vertically and hover at altitudes of up to 5,000ft. The car is expected to be able to do 100 mph on the ground and 150 mph in the air. The calculated airborne range is 75 miles and ground range is 150 miles.

The Autovolantor features a specially designed hybrid fuel and electric system to power the eight fans mounted in the vehicle's fuselage. Small vanes in the exit area of the air ducts directs the vehicle forward, back or keep it neutral for take off and landing. Once airborne, the car maneuvers like a helicopter.

For about $800,086, this flying car could be yours.

Ta-ta!

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